Inconsistent regulation across the Gulf’s takaful (Islamic insurance) industry is hurting profit margins and credit ratings, while leaving the door open to regulatory arbitrage, according to global insurance rating agency A.M. Best.
New rules in Oman and updated ones in Bahrain are expected this year, but lack of coordination among regulators is making life difficult for takaful operators, said Vasilis Katsipis, Dubai-based general manager for market development at the firm………………………………………..Full Article: Source

The UAE has what it takes to become a hub for Islamic finance, according to Sheikh Mohammed bin Rashid Al Maktoum, the country’s vice president and prime minister. Sheikh Mohammed, also ruler of Dubai, made his comments at a workshop organised by the higher committee for development of Islamic economy sector to follow up progress on action plans and proposed initiatives.
He said in comments published by news agency WAM: “We have a clear vision for this vital sector and we want it to contribute significantly to our national economy and ton help bolster our position as the world’s capital for Islamic economy.”……………………………………….Full Article: Source

Inexperienced Islamist leaders in Egypt and Tunisia are struggling to manage economic grievances. For all the pledges of change, however, the Islamists in the two countries where they are now in power – Egypt and Tunisia – have yet to prove they can deliver. They are discovering that governing is much trickier than fighting authoritarianism, not least when it comes to the economy.
Theories of what Islam can offer in the economic field are also transpiring to be rather limited in practice……………………………………….Full Article: Source

“Islamic banking has become an alternative to conventional banking after the recent crisis. There appears to be a great potential for growth in the industry. There are challenges associated with developing an industry with a different approach to “risk management.” However, this can be the best time to grow the Islamic financial market, since Basel III can be an opportunity rather than an obstacle.
Because in terms of capital adequacy, Islamic banking is already placed well,” stated Dr. Yildiray Yildirim, Associate Professor of Finance, Chair, Finance Department, Whitman School of Management at the Syracuse University in New York………………………………………..Full Article: Source

Bank Nizwa, Oman’s first fully Shari’ah-compliant bank, launched its Islamic auto finance product on 9 February. The auto finance is a Murabaha-based contract.
In a statement from the bank, Tariq al Farsi, general manager, retail and private banking, Bank Nizwa said, “Our customers are showing interest in our Shari’ah-compliant products and services. Our auto-finance product offers customers the opportunity to choose a car to suit their lifestyles, and we at Bank Nizwa endeavour to exceed their expectations.”……………………………………….Full Article: Source

Decline was expected but still beat forecasts thanks to 10.8 per cent fall in impairments. Abu Dhabi Islamic Bank reported a drop in quarterly profit on Thursday but still beat forecasts as the bank made fewer provisions for bad loans.
Abu Dhabi’s biggest sharia-compliant bank by market value had fourth-quarter net profit of Dhs333 million ($90.7 million) in the final three months of 2012 compared with Dhs338.6 million a year earlier, it said in a statement………………………………………..Full Article: Source

Islamic finance software provider, Path Solutions has announced that Burj Bank Limited, Pakistan, a key subsidiary of the Islamic Corporation for the Development of the Private Sector (ICD) Group has gone live on iMAL Islamic Core Banking System in just nine months across all the 75 branches countrywide replacing legacy system Symbols from SunGard.
With the successful roll-out of iMAL at Burj Bank, Path Solutions has executed a record core banking replacement for projects of similar size. The implementation of iMAL, which was a key part of the bank’s transformation initiatives has started in May 2012 and was completed on Monday 4 February 2013………………………………………..Full Article: Source

Turkish banks, which doubled their foreign borrowing last year, may issue billions of lira worth of lira-denominated Eurobonds in months ahead after a debut issue from Akbank sparked huge interest from foreign investors.
Turkey’s third-largest private bank by assets last week issued the first lira Eurobond by a domestic borrower, raising 1 billion lira ($532 million) with a five-year maturity at 7.5 percent - the cheapest price ever paid by a Turkish bank on a lira bond at that tenor………………………………………..Full Article: Source

The Middle East’s recent surge in sukuk sales could fall victim to the bursting of a bubble in emerging market debts, according to the London-based private bank Coutts. The bank, part of Royal Bank of Scotland, is recommending a switch towards equities and other assets less vulnerable to a sharp withdrawal of investment.
“There’s a correction coming,” said Gary Dugan, the bank’s chief investment officer for Asia and the Middle East. Investors should “beware in the Middle East of a significant sell-off in sukuk, [where] a lot of leakage from emerging market bond funds is looking for further sources of returns”………………………………………..Full Article: Source

Fitch Ratings has assigned Hazine Mustesarligi Varlik Kiralama Anonim Sirketi’s (Hazine) $1.5 billionn of global certificates (Sukuk), due 26 March 2018, a ‘BBB-’ rating. The certificates have a profit rate of 2.803 per cent.
Hazine, an asset leasing company incorporated solely for the purpose of participating in this transaction, is wholly owned by the Republic of Turkey, acting through the Undersecretariat of the Treasury………………………………………..Full Article: Source

Dana Gas raised US$135 million from the sale of about half its stake in MOL, a Hungarian oil and gas firm, the company said Sunday. Dana sold 1.675m shares in MOL, one of Dana’s partners in a gas project in Iraq’s Kurdistan region, on Friday.
The sukuk restructuring, which involves a $70m cash repayment and a pair of new sukuks covering the remaining $850m, is expected to be completed in the first half of the year. The proceeds from the MOL share sale will be used to meet short-term obligations, including Dana’s sukuk restructuring obligations, the company said………………………………………..Full Article: Source

Al Jazeera Finance (AJF) has signed a US$ 95 million (QR 345.8 million) 3-year dual currency Murabaha facility with a syndicate of banks from the GCC, the company said Sunday.
QInvest acted as Sole Bookrunner and Structuring Advisor to AJF in its first syndicated financing transaction. Qatar Islamic Bank took the Mandate Lead Arranger (MLA) role and is also acting as the Investment Agent. Ahli United Bank, First Gulf Bank UAE and QInvest were the Lead Arrangers………………………………………..Full Article: Source