The new Islamic Bonds (Sukuk) law is expected to generate $10 billion for the Egyptian government, Finance Minister El-Morsi Hegazy was quoted as saying on Sunday. The minister indicated that “studies” show that the new bonds would generate such an amount without giving further details or specifying a timeline, according Reuters.
Last week, Egypt’s cabinet approved a draft law to allow sovereign Islamic bonds as the government searches for new ways to finance an unsustainable budget deficit………………………………………..Full Article: Source

Malaysia’s government paid higher yields for its second offering of state-backed Islamic bonds on behalf of the national airline to entice investors, as total issuance of the notes rose to 4.6 billion ringgit ($1.5 billion).
The finance ministry sold 1.2 billion ringgit of the debt yesterday, with orders amounting to 1.5 billion ringgit, said two people familiar with the matter who asked not to be named because the details are private………………………………………..Full Article: Source

DanaInfra Nasional Bhd (DINB) has extended the offer period and upped the indicative profit rate, for the country’s first Exchange Traded Bonds and Sukuk (ETBS) or DanaInfra Retail Sukuk for retail investors, in a move to woo more investors to take up the new asset class.
The offer period now closes a week later on Jan 25, 2013, while the indicative profit rate which was previously at a minimum of 3.7% per annum has now been fixed at 4% per annum. The money raised from the DanaInfra Retail Sukuk is to partly fund the MRT project, a RM15 billion project………………………………………..Full Article: Source

A jump in US Treasury yields in the last few weeks has raised a grim possibility for emerging market bond investors: a sustained back-up in US yields that could sink the value of bond holdings. But compared to many other places in the world, the Gulf looks well-placed to weather such a storm.
Because it has a big local investor base of cash-rich financial institutions, the region may quickly absorb any mass exit by foreign investors from its bonds. And relatively high yield levels, especially for lower-rated bonds, give countries in the six-member Gulf Co-operation Council some protection………………………………………..Full Article: Source

Challenges or not, Islamic banking is set to continue its growth momentum this year. Underpinning this is the planned conversion of development financial institutions (DFIs) into full-fledged Islamic banks, a growing demand for Islamic finance, a strong sukuk market and anticipated mergers among Islamic banks.
Industry observers and players reckoned that these factors would spur the growth of the industry and hot up competition among the players, both existing and new. Statistics concur with this. According to the Ministry of Finance (MOF) 2012/2013 Economic Report, Islamic banking continued to expand in the first seven months of 2012, with total assets increasing 20.6% to RM469.5bil, representing 24.2% of the country’s banking system assets………………………………………..Full Article: Source

While conventional banking continues to make headlines mainly for scandals, huge pay offs and bonuses, Islamic finance is growing by amazing 20 percent annually. It manages to attract non-Muslims worldwide as well as many countries have adopted and accepted this financial model. This phenomenon is also known to the people in the industry as “faith in finances”.
With this enormous potential, it is clear that there is a huge economic benefit to be sought from it. Out of all the Muslim countries that tried to chase this market, Malaysia seems to lead the way in Islamic finance by leaps and bounds. More than one-fifth of its entire banking structure is in fact Shariah-compliant that in itself is quiet an important statement. Just to note and compare that the average for other Muslim countries is barely 12 percent and many times much less………………………………………..Full Article: Source

Kuwait Finance House Chairman Mohamed Ali AL-Khudairi praised his highness Sheikh Mohammed Bin Rashid AL Maktoum, UAE Vice President and Prime Minister’s initiative of adding the Islamic economy sector to the major sectors of Dubai’s economy.
Al-Khudairi said that the UAE’s initiative to bolster Islamic finance in the emirate will be positively reflected in the products and services offered by Islamic banks, including Sukuk, Takaful and the international arbitration involving Islamic contracts. He also mentioned the UAE’s deep experience in Islamic banking, having launched the world’s first Islamic bank, Dubai Islamic Bank, in 1975………………………………………..Full Article: Source

Aircraft leasing group Alafco, a unit of Kuwait Finance House (KFH), may list some of its shares on an international exchange, according to a market filing on Sunday. KFH, one of the largest Islamic lenders in the Gulf Arab region, owns a 53.69 percent stake in Alafco.
Kuwait-based Alafco said the idea came from shareholders and did not disclose the size of the stake that could be listed nor on which exchange. It plans to carry out due diligence on the proposal, the filing said………………………………………..Full Article: Source

Oman’s Islamic banks and window operations of conventional banks, some of which have already started operations, are expected to achieve an asset base of OMR1.5 billion by the end of this year and OMR3-4 billion in the next three to four years, said a prominent expert on Islamic finance.
The Sharia-compliant institutions are expected to mobilise OMR1 billion by way of deposits by the end 2013 while the equity capital of two Islamic banks and window operations put together is estimated in the region of OMR550 million. Of this, the combined paid up capital of two Islamic banks alone is at OMR250 million………………………………………..Full Article: Source

RakBank, also known as the National Bank of Ras Al-Khaimah, has launched its new Islamic banking services including a wide range of products from accounts, loans and cards to Takaful policies.
The services will be offered through a separate brand, RakBank Amal. “As the fastest growing bank in the region, introducing Islamic Banking is the natural direction for RakBank as it strives to better serve existing and potential customers in the country through added choice,” said Graham Honeybill, RakBank chief executive officer………………………………………..Full Article: Source

Meethaq, the pioneer of Islamic banking in Oman, from Bank Muscat, is all set to redefine Islamic banking with the launch of full-fledged operations at its dedicated branch in Al Ghubra.
Bank Muscat is the first commercial bank in Oman to receive CBO approval and begin operations through independent Islamic banking window as per the requirements of Islamic banking regulatory framework of CBO. Ever since the announcement of the final CBO approval to begin soft operations, customers have been pouring into Meethaq branch to open accounts and avail various services………………………………………..Full Article: Source

National Bank of Oman ( NBO ) opened its Muzn Pure Islamic banking branch to customers on Wednesday. The bank in a statement claimed that it was the first conventional bank in the country to offer Islamic banking products to the public.
An impressive soft opening was held at the Muzn Branch under the auspices of the Sheikh Khalfan Al Esry, Muzn Sharia Supervisory Board Member, Sayyidah Rawan Al Said, NBO ’s Board Member and Salaam Al Shaksy, NBO ’s chief executive officer, in the presence of NBO ’s senior management and staff………………………………………..Full Article: Source

ahlibank is all set to launch its Islamic Banking services window across Oman under the Al Hilal Islamic Banking Services brand. Al Hilal Islamic Banking services will provide Islamic banking products and services built on the tenants of truth and transparency in banking and will be fully segregated from the conventional branches.
The bank will be launching six branches from the very start covering a wide geographical area in the Sultanate and will be providing a full-fledged banking experience with a full tray of products to both retail and commercial customer from the launch. ……………………………………….Full Article: Source

Qatar Islamic Bank (QIBK) posted a 9.5 percent decline in profit last year as the country’s biggest Shariah-compliant lender by assets raised provisions against bad loans.
Net income was 1.24 billion riyals ($341 million), the Doha-based lender said in an e-mailed statement. That compared with profit of 1.37 billion riyals in 2011. The mean estimate of seven analysts was for profit of 1.46 billion riyals, according to data compiled by Bloomberg………………………………………..Full Article: Source

Outlook for Gulf lenders, backed by sovereign support, remains stable, credit rating agency Fitch said in a latest report. “GCC sovereigns are helping to stimulate their economies through government-sponsored infrastructure projects, taking advantage of their significant oil/gas revenues. Oil production is expected to be lower in 2013, but will, nevertheless, generate strong revenues for oil exporters, above budget requirements (except in Bahrain). Non-oil producers will, however, be at a clear disadvantage, in the absence of economic growth,” it says.
Fitch said it expects loan growth to increase in 2013, as confidence improves and infrastructure projects come on stream, stimulating the local economies, but much also depends on the global economy and regional unrest………………………………………..Full Article: Source

Omani banks are expected to report higher profits in 2013 and likely to grow more aggressively as they compete for market share, Fitch Ratings said in a report. In its 2013 outlook for GCC banks, the ratings agency said that the outlook for Omani banks remains stable this year.
“To date, Omani banks have achieved modest profitability due to a cautious growth strategy, but they are likely to grow more aggressively as they compete for market share now,” Fitch said………………………………………..Full Article: Source

Balance-sheet constraints, intense competition and undiversified funding portfolios are posing challenges to the growth of Qatari banks. With government funding flowing freely to real estate and construction sector, the banks’ asset quality should also continue to improve, Fitch Ratings noted in its 2013 GCC/Middle East Banks Outlook.
Qatar’s rapid loan growth has been well above the average in the region. It has been more or less matched by deposit growth, to a large extent public sector, but loans/deposits ratios are gradually creeping up………………………………………..Full Article: Source

Al Rajhi Company for Cooperative Insurance (Al Rajhi Takaful) posted a net profit of SAR 1,477 thousand for the 4th quarter compared to a net profit of SAR 5,125 thousand for the corresponding quarter of 2011, a decrease of 71.2 per cent.
Al Rajhi Takaful posted a net profit before Zakat of SAR 2,118 thousand for the 4th quarter of 2012 compared to a net profit before Zakat of SAR 5,125 thousand for 2011, a decrease of 58.7 per cent………………………………………..Full Article: Source

Khazanah Nasional Bhd’s acquisition of a 49% stake in life insurer CIMB Aviva Assurance Bhd and CIMB Aviva Takaful Bhd is a “safer bet” for Khazanah, said Inter-Pacific Securities head of research Pong Teng Siew.
“Khazanah’s biggest problem is finding investments that fit their requirements thus financial institutions are safer bets for them,” he told SunBiz. Khazanah has exposure to the insurance scene through its stakes in ACR Capital Holdings Bhd, Asia Capital Reinsurance Malaysia Sdn Bhd and ACR ReTakaful Holdings Limited which are present in the reinsurance and retakaful business………………………………………..Full Article: Source