SGI-Mitabu, a consortium of two Brisbane solar companies, will finance its entire Indonesian solar power project using sharia-compliant financing, starting in July with an offshore-domiciled sukuk, or Islamic bond, a senior executive said.
The deal is set to be Australia’s first issuance of sukuk, a market that expects global demand to reach $421 billion by 2016 from $240 billion in 2012, according to a Thomson Reuters report………………………………………..Full Article: Source

There have been years of unheeded clamour for the UK government to show its support for Islamic finance and issue a sovereign sukuk. But now the industry needs to change its tune — and bring some new ideas to the table.
A large section of Islamic market participants continue to hold up the possibility of a UK sovereign sukuk as a talismanic prize that will cement London’s pride of place as a western hub for Islamic finance. The topic is revisited every year, with much parade, and yet the government’s understanding of why it is in its interests to do this grows ever dimmer. Either the case is not being made well enough by those being consulted, or the government’s stock answer that gilts are much cheaper is a way of putting its fingers in its ears to the discussion………………………………………..Full Article: Source

Islamic ‘Sukuk’ could be an alternative source of financing for constructing Padma Bridge. Sukuk is one type of Islamic Bond, which is asset based or asset-backed, where there is an asset (or pool of assets) underlying every transaction and the ownership of that asset or pool is transferred to investors.
A day-long international conference on Islamic finance, titled ‘Islamic Finance news Roadshow’ held Tuesday in the city discussed on the issue. The Islamic Finance news Roadshow brought together world’s industry experts and the market movers of the country’s Islamic finance industry………………………………………..Full Article: Source

Indonesia raised 1.5 trillion rupiah ($155.11 million) at a Feb. 5 sukuk auction, as targeted, the Finance Minstry’s debt office said on Tuesday.
In its first sukuk auction of the year, Indonesia sold 6-month sharia T-bills, as well as project-based 5- and 24-year sukuk to finance its budget deficit………………………………………..Full Article: Source

Dubai aims to become a top global centre for Islamic bonds by introducing more detailed standards that ensure issuance and trading obey not only the letter but also the spirit of Islamic rules, a securities market official said.
The emirate hopes the new standards will reduce disputes between scholars, issuers and investors over what types of debt structures are permissible and attract more business to its market………………………………………..Full Article: Source

Islamic banking assets with commercial banks globally grew to USD 1.3 trillion in 2011 and, one potential scenario projects it to reach USD 1.8 trillion in 2013, representing average annual growth of 17 per cent, says a report.
According to Ernst & Young’s World Islamic Banking Competitiveness Report 2013, Islamic banking assets with commercial banks globally grew to USD 1.3 trillion in 2011, suggesting an average annual growth of 19 per cent over past four years (24 per cent in 2011). The top four markets account for 84 per cent of industry assets………………………………………..Full Article: Source

It had been reported that The Islamic financial system has grown tremendously over the last 40 years, says Dr Hatim El Tahir, Director, Islamic Finance Group, for Deloitte and Touche.
“The total size of the Islamic insurance industry is US$1.3 trillion which is still small compared to the international financial market. In 1973 it was only US1$ billion,” he said on Thursday night during his contribution to a seminar on Islamic Banking hosted by the Agricultural Development Bank (ADB) at the National Academy Performing Arts (NAPA) in Port-of-Spain………………………………………..Full Article: Source

Australian businesses and fund managers will find accessing capital from countries within the Gulf Cooperation Council (GCC) easier with the establishment of global Islamic finance experts Amanie Advisors in Australia.
With enormous multi-billion dollar pools of capital forming from within the GCC’s combined economies of Saudi Arabia, Kuwait, Bahrain, Qatar, Oman and the UAE, there is expected activity of approximately $1.5 trillion in 2013, this representing a huge opportunity for Australian businesses and fund managers to grow………………………………………..Full Article: Source

Amanie Advisors Australia Pty Ltd, has been established in Australia as part of Group Amanie Advisors, a global Islamic finance advisory firm operating in nine cities of the world.
The firm has obtained an Australian Financial Services Licence (AFSL) from financial markets regulator, the Australian Securities and Investment Commission………………………………………..Full Article: Source

The new Islamic Financial Services Act 2012 (IFSA) will statutorily enforce management of Shariah-non-compliance risk and requires Islamic financial institutions to ensure at all times that their aim, operation, business, affairs and activities are in compliance with Shariah.
“This is perhaps one of the distinctive features of the IFSA 2012,” said Prof Datuk Dr Rifaat Ahmed Abdel Karim, Chief Executive Officer of International Islamic Banking Liquidity Management Corporation………………………………………..Full Article: Source

Permodalan Nasional Bhd (PNB) is a strong supporter of the government’s efforts at promoting Islamic finance with investee companies under the group being major players in the industry.
President/Group Chief Executive Tan Sri Hamad Kama Piah Che Othman said the investee companies currently command a market share of over 30 per cent in Islamic banking and more than 80 per cent for the takaful business.Speaking at the Yayasan Tun Ismail Memorial Lecture Series 2012/2013 here Tuesday, he said the group’s major strategic investee company, namely Maybank, had total assets worth RM476.9 billion as of Sept 30, 2012………………………………………..Full Article: Source

It had been reported that the growth of Islamic banking in Indonesia outperforms its conventional partner.The assets of sharia banking grow 47.21 per cent, while its financing grow at 48.81 per cent and third-party funding at 50 per cent.

Indonesia’s sharia banking is committed in mobilising funding from community. It is shown by the number of financing-to-deposit ratio (FDR) that is always above 100 per cent………………………………………..Full Article: Source

Vasilis Katsipis, general manager of market development for A.M. Best Co. Inc.’s MENA, South & Central Asia and Dubai units, said that the fast growth of takaful has increased competition for conventional insurers.

Mr. Katsipis noted that takaful companies’ portfolios are very similar to those of a conventional insurer. Instead of competing with Shari’ah-compliant products for similar business, they must provide something new to add value, he said………………………………………..Full Article: Source

Saudi Arabia’s King Abdullah bin Abdulaziz Al Saud issued a royal order relieving Dr. Abdulrahman bin Abdulaziz al-Tuwaijri, President of Capital Market Authority (CMA), of his post on Tuesday.

The king went on to appoint Mohammed bin Abdulmalik bin Abdullah al-Shiekh as CMA President at the rank of Minister, reported the Saudi Press Agency. The king instructed the appropriate authorities to carry out the order immediately. The move comes in tandem with other new appointments in the Kingdom………………………………………..Full Article: Source