A recent draft law that would allow Egypt’s finance ministry and state-run administrative bodies to issue Islamic bonds (sukuk) that are in compliance with Islamic sharia has stirred controversy.
Opposition figures have criticised the move, and Al-Azhar University, Egypt’s Sunni religious authority, has also contested it. Proponents, however, argue that it has the potential to save Egypt’s faltering economy. Islamic bonds are a financial tool in the form of deeds that represent the value of a public asset owned by the state or a private entity………………………………………..Full Article: Source

Egyptian officials are revising a draft law that would allow the government to issue sukuk (Islamic bonds), after criticism by religious scholars, finance minister Al-Mursi Al-Sayed Hegazy said on Tuesday.
“Proposed amendments to the Islamic instruments bill that were mentioned by the Islamic Research Academy have been taken into account,” he told Reuters after meeting with top officials of Egypt’s prestigious Al-Azhar university at its headquarters………………………………………..Full Article: Source

The country’s biggest infrastructure project the Sungai Buloh-Kajang My Rapid Transit (MRT) is in for another big round of financing. Finance Ministry unit Prokhas Sdn Bhd, the financial adviser of DanaInfra Nasional Bhd established in 2010 to facilitate the funding of large infrastructure projects by the Government, revealed that the next sukuk issuance to finance the mammoth development is expected as early as March and slated to be significantly larger that the current RM1.5bil sukuk series being issued this month.
The RM23bil MRT first-line development, incidentally, is Danainfra’s maiden project………………………………………..Full Article: Source

DanaInfra Nasional Bhd is likely to sell at least RM6 billion of Islamic bonds (sukuk) this year to finance the mass rapid transit (MRT) project, with a tranche of about RM1.5 billion expected to be issued every quarter, an official says.
“It could be more than RM6 billion, but this will ultimately depend on (the project handler) MRT Corp’s requirements. We think a quarterly issuance is optimal,” said chief operating officer Datuk Kamal Mohd Ali……………………………………….Full Article: Source

Fitch Ratings assigned Sime Darby Bhd’s proposed US$1.5bil Sukuk issuance programme an ‘A’ rating. The rating agency said on Tuesday the proposed Sukuk programme — set up through its special purpose vehicle — Sime Darby Global Bhd, was rated at the same level as Sime Darby’s senior unsecured rating in accordance with Fitch’s “Rating Sukuk” criteria.
“Sime Darby’s obligations relating to the Sukuk programme rank equally with its senior unsecured debt obligations and the programme is exposed to low structural subordination risk on account of Sime Darby’s majority stake in and management control of key operating entities,” it said………………………………………..Full Article: Source

The Central Bank of Bahrain (CBB) announces that the monthly issue of the short-term Islamic leasing bonds, Sukuk Al-Ijara, has been subscribed by 100%. Subscriptions worth BD20m were received for the BD20m issue, which carries a maturity of 182 days.
The expected return on the issue, which begins on 17 January 2013 and matures on 18 July 2013, is 1.03%. The Sukuk Al-Ijara are issued by the CBB on behalf of the Government of the Kingdom of Bahrain………………………………………..Full Article: Source

The future of Islamic finance following the global financial crisis in 2008 is even “brighter than before”, said the Regent of Perak Raja Dr Nazrin Shah. The industry has expanded by 15% to 20% per annum since the 1990s and now amounts to over US$1.2 trillion (RM3.61 trillion) globally, said Nazrin, who is also the Financial Ambassador of Malaysia’s International Islamic Financial Centre.
“While this is less than 1% of global financial assets, it is expected to quadruple in the next decade,” he said………………………………………..Full Article: Source

SHUAA Capital psc announced Tuesday that its wholly-owned subsidiary, Gulf Finance Corporation, a leading UAE-based boutique finance company focused on the needs of small- and medium-sized enterprises (SMEs), has engaged with the UAE Central Bank for a license to establish an Islamic Window for some of its financing activities.
Gulf Finance plans to submit the necessary applications in the first quarter of 2013 with a view to being market-ready in the spring of 2013, subject to regulatory approvals………………………………………..Full Article: Source

Indonesia is counting on people like Nur Hanifah, a 50-year-old widow who sells plastic buckets and inflatable kiddie pools, to help it catch Malaysia, a country one-tenth the size that leads the world in Islamic finance.
Hanifah took out a Shariah-compliant loan from PT Bank Muamalat Indonesia after her husband’s death to help finance a store on the ground floor of a shophouse in Serang, two hours’ drive west of Jakarta. While she doesn’t pay any interest, borrowers like Hanifah typically must give the bank 40 percent of their profit plus part of the principal each month………………………………………..Full Article: Source

Dubai’s Ruler has ordered the transfer of all legal action in the Dubai International Financial Centre courts involving Amlak Finance, an Islamic mortgage firm undergoing a government-led debt restructuring, to a special judicial committee outside Dubai’s normal legal system.
A decree issued on December 16 by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, says all Dubai courts including those in the DIFC, the emirate’s main financial hub, “shall be prohibited from the consideration and settlement of any application or claim related to Amlak Finance,” according to a translation seen by Dow Jones………………………………………..Full Article: Source

Now with a collaboration between Ethica and local partner Haifx Consult in place – including on-the-ground Islamic finance learning centers and mentorship programs – professionals get local access to global Islamic finance certification at subsidized rates. With a population of 150 million – the largest in Africa – and with Muslims making up more than half this number, it is no surprise that Nigeria is spearheading the growth of Islamic finance in Africa.
It started off with an ATM machine. Nigerians were finding out about Ethica’s Islamic finance training and certification on bank teller machines in urban centers around Nigeria, completely unbeknownst to the Dubai-based institute. When Ethica learned about the free advertising, they were pleasantly surprised and more than a little encouraged by the dynamism and excitement of those trying to bring Islamic finance to Nigeria. (Press Release)

The Bank for the Financing of Small and Medium Enterprises (Bfpme) and the Islamic Corporation for the Development of the Private Sector Development (Isdb) signed on January 2nd three agreements to boost the development of Islamic finance in Tunisia.
The first agreement relates to a 350,000 dinars grant (around €170,000) from the Isdb to the Bfpme for the introduction of new Islamic banking products and services targeting Tunisian SMEs. The second agreement focuses on technical assistance provided by experts of the Bfpme, La Presse newspaper reports………………………………………..Full Article: Source

The Islamic banking in Oman is demand-led and is expected to grow fast on the back of higher demand and positive sentiments, according to Richard Thomas, chief executive officer of Gatehouse Bank, a Sharia-compliant investment bank based in London.
“Oman’s foray into Islamic banking is based on strong fundamentals and sound regulations. The government is extremely proactive and keen to utilise unproductive money into fruitful enterprises. They have a very mature outlook on Islamic banking, and that is music to the ears,” he said………………………………………..Full Article: Source

Bank Rakyat’s target of RM2 billion profit before tax and zakat for fiscal year 2012 will likely be reached, according to its chairman Tan Sri Dato Sri Sabbaruddin Chik. According to him, until end of the third quarter last year, Bank Rakyat recorded a profit before tax and zakat of RM1.62 billion, an increase of 8.1 percent from RM1.5 billion for the same period the previous year.
He said based on Top 500 Islamic Financial Institutions Report (November 2011-November 2012), Bank Rakyat had assets value of RM77.46 billion until September 2012, making it the largest Islamic cooperative bank in Malaysia and Southeast Asia………………………………………..Full Article: Source

Pure Islamic Banking is now open for you — MUSCAT — National Bank of Oman (NBO) has received the final license from Central Bank of Oman and is proud to announce the soft launch of MUZN Pure Islamic Banking from TODAY! Muzn is now officially open to welcome and serve customers at its first branch in Al Athaiba.
Muzn’s flagship branch located in A’Sahwa Towers — Athaiba North, is a full fledged Islamic Banking Branch. The Branch has qualified staff and robust systems in place to offer a broad spectrum of Shari’a approved Islamic Banking products and services to all its customers. The Bank will also progressively open more branches in all regions of Oman………………………………………..Full Article: Source

BankDhofar announced that its Maisarah Islamic banking branch in Azaiba will open in the coming weeks. BankDhofar’s Maisarah Islamic banking window has a team of highly skilled specialists. Utilising the most advanced technology, they will offer a complete suite of Sharia-compliant Islamic services. The team has been busy undergoing extensive training on the product portfolio, which includes savings accounts, car loans and other facilities, a press release said.
BankDhofar CEO Tony Mahoney said, “We’re really excited about the opening of our first of many Maisarah branches and we’re on track to see it open in the coming weeks. It’s a pretty electrifying time for BankDhofar and banking in Oman.”……………………………………….Full Article: Source

After its foray into investment banking services, Ahlibank is expanding its service offering with new licenses obtained from the Capital Market Authority (CMA). The new activities are: Portfolio Management, Fund Management, Issue Management and Issuer of Structured Instruments.
The above activities will be in addition to the existing licenses to provide Brokerage and Investment advisory services. Thanking CMA for its approval, the chief executive officer, Abdulaziz al Balushi, said, “On our fifth anniversary, we are happy to launch our full-suite investment banking services offering………………………………………..Full Article: Source

The move by Bank Islam to suspend its chief economist, Azrul Azwar Ahmad Tajudin, for predicting the coming general election results in favour of Pakatan Rakyat, will be a loss to the bank, said think tank Political Studies for Change.
Calling on the bank to review its decision, it said Azrul Azwar has more than 10 years of experience, having served as an analyst at Meridian Asset Management Sdn Bhd, RHB Bank, Malaysia Industrial Development Finance Bhd (MIDF) and the Islamic Financial Services Board (IFSB)………………………………………..Full Article: Source