One of the most high-profile advisory firms in Islamic finance, Dar Al Istithmar, which advised Goldman Sachs on a controversial $2 billion sukuk programme, has closed down with most of its staff moving to another company, sources told Reuters.
Dar, which had offices in London and Dubai, was set up in 2004 as a joint venture between Deutsche Bank, which subsequently pulled out, and financial firms Russell Wood Ltd and Oxford Islamic Finance Ltd………………………………………..Full Article: Source

Indonesia’s best-performing Islamic bond funds are buying sukuk of construction and retail companies to take advantage of the government’s $300 billion development program, after sovereign yields dropped to a record.
PT Samuel Aset Manajemen’s SAM Sukuk Syariah Sejahtera (SASUSYS) fund, which posted the biggest returns at 12 percent last year, plans to more than double corporate holdings to 50 percent of total investments in 2013, Herbie Mohede, the fixed-income manager, said in an interview. Borrowing costs on government Shariah- compliant notes due 2018 declined 69 basis points in the past three months to 5.32 percent yesterday and touched an all-time low of 5.24 percent on Jan. 9………………………………………..Full Article: Source

Finance Minister Adviser Ahmed El-Nagar said that the Ministry will start the Sukuk issuance project for financing economic and social projects in the last quarter of the current Fiscal Year’s budget. Nagar noted that proposals by the Islamic Research Academy were taken into consideration, adding that Azhar will review the bill before endorsement.
He noted that a seven-member central Sharia panel will be formed for Sukuk issuance. The premier will be in charge of appointing the panel members - in view the finance minister nominations - for a three-year renewable term………………………………………..Full Article: Source

Indonesia aims to raise 1.5 trillion rupiah (RM477 million) from a sukuk auction on February 5 to finance its budget deficit, the debt office at the finance ministry said. The country plans to sell 6-month sharia T-bills and project-based sukuk maturing in 5-, 9-, 14- and 24-year.
The G20 economy is aiming for a total issuance of 57.5 trillion rupiah worth of conventional and sharia bonds in the first quarter of the year……………………………………….Full Article: Source

Saudi Arabian Mining Company (Maaden) aims to complete the financing for a $7 billion phosphate project by the end of the year, Khalid Al-Rowais, vice president of finance said on Tuesday.
“A sukuk is an option but the most important thing is to have the right balance to suit the project,” Rowais said, adding talks were ongoing with its financial adviser on funding plans………………………………………..Full Article: Source

National Bank of Abu Dhabi PJSC, the United Arab Emirates’ second-biggest lender by assets, plans to sell bonds after reporting a higher-than-expected increase in fourth-quarter profit.
Net income rose to 1.12 billion dirhams ($305 million) from 724 million dirhams a year earlier, the Abu Dhabi-based bank said today in a statement. That beat the median 878 million- dirham estimate of six analysts surveyed by Bloomberg. Full-year profit climbed 17 percent to 4.3 billion dirhams, it said. Net interest income and net income from Islamic financing for the year rose 5 percent to 6.1 billion dirhams………………………………………..Full Article: Source

Dubai companies are set to pick up the pace of bond sales to profit from lower borrowing costs after yields plunged last week at an offering by the sheikhdom, according to the United Arab Emirates’ biggest bank.
Sales by Dubai-based entities are likely to surpass last year’s $6.95 billion, according to Mohammad Kamran Wajid, head of Emirates NBD (EMIRATES) PJSC’s investment banking unit. “Bonds and sukuk are now becoming the name of the game and issuers should take advantage of this investor class,” Wajid said………………………………………..Full Article: Source

Vision Investment Services has set a new trend by introducing the first Sharia-compliant fund in Oman. The Vision Al Khair GCC Fund (Sharia-compliant) is an investment vehicle, wherein all financial instruments of the fund are in compliance with acceptable Sharia principles and policies.
It is an investment programme, wherein the fund seeks investments in financial instruments of the Gulf Cooperation Council (GCC) economies to earn profits that are in conformity with the precepts of Sharia………………………………………..Full Article: Source

Chairman of Board of Managers of National Development Fund Mohammad Reza Farzin in a meeting with the head of Islamic Development Bank (IDB) Monday proposed establishing an Islamic states savings fund. At the meeting, both sides exchanges views on promoting cooperation between the fund and the bank to issue bonds as well as making investments in Muslim states’ markets.
Head of IDB Ahmad Mohammad Ali, for his part, voiced the bank’s readiness to cooperate with National Development Fund and described its role in advancing the economic objectives of the bank as crucial………………………………………..Full Article: Source

Ahlibank’s Al Hilal Islamic Banking Services launched five branches on Tuesday with a sixth planned in Salalah by the end of next month. Al Hilal said it is now ready to provide Islamic banking products and services with the window’s operations being fully segregated from the bank’s conventional activities.
Commenting on the launch, Hamdan bin Ali bin Nasser al Hinai, chairman of Ahlibank, said, “Islamic finance, by its very nature, is a financial system that highlights the importance of aligning the objectives of business with the needs of the community to ensure that the overall well-being of society is not forgotten when pursuing investment opportunities.”……………………………………….Full Article: Source

Ahlibank, which launched its Al Hilal Islamic banking services in the sultanate on Tuesday, is considering switching from conventional banking to Islamic banking soon. “We are looking forward to convert all our conventional branches to Islamic banking and we hope that will happen very soon. We plan to switch all our retail banking services to the Islamic banking system. We are looking at starting with branches in Ibra, Nizwa and Sur and this may happen in the coming month,” said Abdullah al Jabri, DGM and head of Al Hilal Islamic Banking Services.
“There is a good indication that people are more interested in Islamic banking. During our soft launch on Sunday, we opened more than 40 accounts in one day. On Tuesday, we received above 250 calls enquiring about our services. Islamic banking may have 70 per cent of market share within the coming three to five years,” he added………………………………………..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

A number of Islamic banks and financial institutions are awaiting the passage of a new legislative reform package to regulate the sector in the coming year. The goal of the package is to create an environment conducive for Islamic banks to operate by making available the necessary tools for growth without contradicting the values and practices of Islamic banking.
One such reform would include amendments to Egypt’s current law, which does not distinguish between Islamist and non-Islamist banking institutions. This would force non-Islamist banks to comply by the same standards of Islamist ones………………………………………..Full Article: Source

Masraf Al Rayan, Qatar’s largest Islamic lender by market value, is seeking shareholders’ approval to buy a strategic stake in a Libyan commercial bank through a capital increase without naming the target entity in a released statement.
Masraf Al Rayan says it wants to finance the purchase of the stake through a capital increase and there are high potentials that it may issue an Islamic bond if the shareholders approve the move as the bank continues to expand regionally according to a brokerage note from QNB Financial Services………………………………………..Full Article: Source

Bank Nizwa, Oman’s first dedicated Islamic bank, on Monday celebrated its official launch into the Omani market. HH Sayyid Shihab Bin Tariq Al Said, Personal Adviser to His Majesty Sultan Qaboos Bin Said, was the chief guest at the special reception held at the bank’s head office at Shatti Al Qurum.
Those present included the founders, members of the board, executive management team from the bank, media representatives and various dignitaries from across the Sultanate………………………………………..Full Article: Source

National Bank of Abu Dhabi , the UAE’s largest lender by market value, posted a 55-percent rise in fourth-quarter net profit, beating analysts’ forecasts, helped by higher investment income and lower impairment charges.
The majority state-owned bank made a net profit of 1.12 billion dirhams ($305.2 million) in the fourth quarter compared with 724 million dirhams for the prior-year period, it said in a bourse statement on Tuesday………………………………………..Full Article: Source

Kingdom Holding Co. (KINGDOM), controlled by billionaire Prince Alwaleed bin Talal, established a committee to help the company move toward Shariah-compliant loans as Islamic financing gains appeal among borrowers.
The committee will “prepare an integrated strategic plan for the conversion of future loans in accordance with the Islamic Shariah,” the Riyadh-based company said in an e-mailed statement today. The panel will comprise Sheikh Abdullah Sulaiman Al Manee’a, an adviser to the Royal Court, Sheikh Mohamed Ali Elgari, Sheikh Ali Abdulaziz AlNashwan and Abdulah Salim AlGhamdi………………………………………..Full Article: Source

Islamic economics has the solution to the economic problems of Muslim communities globally, says Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah. He said theories developed in Islamic economics must be linked to practical policies in providing solutions to real life situations.
“Islamic economics places socio-economic justice as its primary objective. The principles of justice, fairness and equity are fundamental in Islamic economics,” he said………………………………………..Full Article: Source

More attention needs to be given to ethics in economics and policies that affect the economy today, said the International Islamic University Malaysia (IIUM) dean Professor Dr Khaliq Ahmad.
“You cannot separate ethics as something that is not important in economics and finance. Unfortunately, the mainstream economics today has developed in a certain direction that tries to make ethics separate,” he said. He said mainstream or modern economics today aim to be scientific and objective, and do not include ethics………………………………………..Full Article: Source

The development of Takaful regulation in the GCC varies significantly country by country, creating an uneven playing field, according to a new report from A.M. Best.
The levels of policyholder protection differ from one state to another, which has created opportunities for Takaful operators to pursue regulatory arbitrage, according to a new report from A.M. Best Co. This special report maps the provisions for Takaful regulation in the GCC and identifies the implications for policyholder protection and its impact on A.M. Best ratings………………………………………..Full Article: Source

A millionaire Muslim businessman who has written a religious slogan on the side of his house has been told to remove it after it upset his neighbours. Mahmood Ali, 54, fell out with residents and planners over the Arabic slogan which reads: “There is no god but Allah and Mohammed is his messenger”.
He claims it is just a proclamation of his faith and he should be allowed to write whatever he wants in a free country. But the council said it contravenes planning laws which are designed to stop people placing advertising hoardings on their homes………………………………………..Full Article: Source