The Qur’an’s teachings around business chime with the objectives of the worldwide social enterprise movement. Though wealth creation is the primary goal taught by top businessmen, social impact is considered to be a more fulfilling outcome for others.
Money is not timeless, but what you do with that money can be. The light you instil in the uneducated, the medicine you provide to the ill, or the food and water you provide to the malnourished is far more enduring than the car you drive or the house you buy. Most advocates of social entrepreneurship believe that creating a business with a social impact leaves much more than just a humble footprint behind………………………………………..Full Article: Source

The compatibility of contemporary insolvency legislation in the context of Islamic financial institutions and Islamic capital markets instruments is an important subject which regulators, courts and other stakeholders must address sooner rather than later to ensure the sustainable and continuous growth of the industry.
This issue deserves more serious consideration from the legislatures and regulators as lack of an appropriate and legal and regulatory regime on insolvency in respect of Islamic financial institutions would certainly affect insolvency proceedings and the remedies sought or granted pursuant to such proceedings………………………………………..Full Article: Source

The Islamic banking segment strengthened its position within Brunei Darussalam’s financial services industry last year on the back of rising demand that led to the launch of a new bank and major bond issuances. Having moved early to establish sharia-compliant services, the Sultanate is now well placed to carve out a niche for itself as an international Islamic banking centre.
However, the industry will need to address a number of challenges, led by a shortage of skilled workers, if it is to fully support the segment’s development………………………………………..Full Article: Source

EFG-Hermes Holding SAE (HRHO), Egypt’s biggest investment bank, said its sale to Qatar’s QInvest LLC has been delayed as regulators in the Middle East scrutinize the takeover. QInvest, a unit of Qatar Islamic Bank (QIBK), and EFG-Hermes plan to create an investment bank with operations in the Middle East, Africa and Turkey, as well as southern and southeastern Asia.
“It is mainly because of regulatory approvals that the conclusion of the deal is taking longer than expected,” Hanzada Nessim, investor-relations manager at Cairo-based EFG-Hermes, said. The deal, announced in March, was expected to be concluded in November………………………………………..Full Article: Source

The Government of Dubai, acting through the Department of Finance, opened the first issue of the year in the Mena capital markets with a dual-tranche landmark transaction, which has successfully raised $1.25 billion across a 10-year sukuk and a first ever 30 year conventional issue.
The aggregate order book was over twelve times oversubscribed demonstrating tremendous investor appetite. The well-planned and swift intra-day execution took advantage of the positive market environment which led to a quick build of a large and high-quality order book for a 10 year Sukuk………………………………………..Full Article: Source

Dubai says two bond offerings have raised $1.25 billion in what appeared to signal investor interest returning to the city-state after a stunning downturn. Wednesday’s statement by Dubai’s government said the second bond was added because of high demand for the original offering for a $750 million, 10-year Islamic bond known as sukuk. The additional 30-year conventional bond raised $500 million.
The sales suggest Dubai is winning back financial confidence after a deep slump that hit in 2009, driving down property prices and requiring a $10 billion bailout from neighboring Abu Dhabi………………………………………..Full Article: Source

Malaysian conglomerate Sime Darby made a successful debut in the US dollar bond market, pricing on January 22 a dual-tranche sukuk issue totaling US$800 million. It is the first Malaysian issuer and the first sukuk issuer globally to launch in the international US dollar debt capital markets in 2013.
The transaction did not disappoint as it generated a robust investor demand as it offered a welcome diversification from the slew of conventional bond deals that are flooding the market since the start of the year………………………………………..Full Article: Source

Further bank mergers in Bahrain could be on the way this year with Gulf Finance House (GFH) confirming it is studying options to merge its affiliate, Khaleeji Commercial Bank (KHCB), with other Bahraini banks. GFH, which has undergone a number of debt restructurings since 2009, currently owns 47 per cent of KHCB, which would be worth around $61.8 million at current market value.
“GFH is currently studying a number of options to merge Khaleeji Commercial Bank with other banks in Bahrain to create a bigger and stronger bank,” GFH said in a statement on the Bahrain Bourse website………………………………………..Full Article: Source

A fundamental difference between conventional and Islamic finance is that, as the Islamic system does not permit risk-free capital, those operating under the Shariah framework cannot profit from the lending of money. Accordingly, the charging of interest known as riba is prohibited by the Shariah and instead, a system of risk sharing is promoted.
Riba can be defined as any increase over and above the principal amount payable under a contract, which is not covered by a corresponding increase in labour, commodity, risk or expertise………………………………………..Full Article: Source