Global Islamic bond sales are set to surpass the 2012 record as Persian Gulf issuers take the lead to tap borrowing costs that tumbled in the past year, according to HSBC Holdings Plc, last year’s top sukuk underwriter.
Sales in the six-nation Gulf Cooperation Council will surge to between $30 billion and $35 billion in 2013, Mohammed Dawood, Dubai-based managing director of debt capital markets at HSBC Amanah, said in an interview. That’s up as much as 64 percent from last year. The government of Dubai kicked off sovereign sukuk sales last month with $750 million of 10-year Islamic notes after its borrowing costs dropped 40 percent………………………………………..Full Article: Source

The Finance Ministry is targeting Rp 15 trillion ($1.55 billion) from issuing rupiah-denominated Islamic bonds, or sukuk, to Indonesian citizens as part of the country’s effort to plug the budget deficit amid a deepening domestic financial market.
The Shariah compliant debt notes, the fifth issue of its kind, are intended to woo retail investors in the world’s largest Muslim-majority population to participate in financing government projects. Dahlan Siamat, director of Islamic financing at the Finance Ministry’s debt management office, said that the sukuk would use government infrastructure projects such as toll roads and bridges as the underlying assets………………………………………..Full Article: Source

Malaysia is expected to maintain its stronghold in the global sukuk market in 2013 with the continued development of various infrastructure projects under the Economic Transformation Programme (ETP) to fuel new capital demand, Ratings Agency Malaysia (RAM) says.
“We believe it (Malaysia) can retain its dominant position (in the global sukuk market). With strong legal, regulatory infrastructure, Shariah framework and innovative solution, it will help Malaysia retain its position,” said RAM Rating Services Bhd CEO Foo Su Yin said………………………………………..Full Article: Source

The economic committee of the Shura Council prepared a draft law for sukuk, which differs from a previous draft law that has been circulating previous weeks.
“We have prepared an independent draft law unlike the Ministry of Finance’s current project [regarding sukuk],” said Saeed Aref, a member of the council’s economic committee. The new draft law has been submitted to the Ministry of Finance before being presented to the council………………………………………..Full Article: Source

As the budget deficit soared to a record high at Rs1.77 trillion in the last fiscal year, the government raised Rs182 billion through an Islamic bond, called Sukuk, against the security of Jinnah International Airport Karachi – another asset mortgaged after Pakistan Motorways (M2).
However, analysts question the use of Islamic bonds for budget financing and linking the return with treasury bills, saying it is forbidden and against Shariah laws. The government borrowed the money during fiscal year 2011-12 ended June 30 last year, according to documents of the finance ministry………………………………………..Full Article: Source

Investment Vision, a premier investment company offering wide array of Asset Management and Trading services has announced the launch of the first ever Shari’a Compliant GCC Equity Fund in the Sultanate of Oman. Interest in Islamic Finance has gained a lot of momentum in Oman in under 2 years. More and more investors, in accord to Islamic faith, are now actively seeking Shari’a compliant practices, and interest-free venues and investments.
“Investment Vision has ambitiously dedicated itself to serving the Shari’a compliant Investment sector and we have administratively committed our resources to further expand and develop our capabilities in structuring and offering some of the very best Shari’a compliant products in the Islamic industry,” said Mr. Ammar Ibrahim, Vice President, GCC Assets Management & Advisory Brokerage Services.(Press Release)

Vision Investment Services recently launched Oman’s first Shari’ah-compliant investment fund, the Vision Al Khair GCC Fund, and has appointed the Shariyah Review Bureau to carry out the Shari’ah compliance function for the fund.
Ammar Ibrahim, Vice President, GCC Assets Management & Advisory Brokerage Services, Vision Investment Services, said, “Vision Investment was determined to put in place the best team of Shari’ah expertise and talent in the Islamic industry and in this regard we are thrilled to announce our partnership with Shariyah Review Bureau who will strengthen, oversee and supervise our Fund Investment team.”……………………………………….Full Article: Source

Plans to boost capital in the Islamic Bank of Thailand will hinge on the bank’s success in rehabilitating its finances and addressing its ongoing bad loans, says Somchai Sujjapongse, the director-general of the Fiscal Policy Office. “Before the ministry approves a capital increase … we need to see success in the restructuring plan,” Mr Somchai said following a meeting with bank executives.
The Islamic Bank of Thailand, or IBank, currently has capital funds at 4.6% of risk assets, well below the 8.5% minimum set by the Bank of Thailand for commercial banks, and the 12% to 15% levels currently maintained by the country’s largest banks. The global Basel III standard does not apply to state-owned financial institutions such as the IBank, which is under the supervision of the Finance Ministry………………………………………..Full Article: Source

Qatar National Bank has emerged as the Middle East’s most valuable brand in the global financial services sector. The Banker magazine’s annual list of the world’s most valuable banks saw the Qatari bank extend its lead over regional rivals.
“In the Middle East, the four top rated banks held their places in the table - QNB , Al-Rajhi, National Bank of Abu Dhabi and Emirates NBD - but only QNB was able to increase its brand value, from $12.6 billion to $13.1 billion,” The Banker said in its editorial………………………………………..Full Article: Source

Al Salam Bank-Bahrain, one of the leading Islamic banks in the Kingdom of Bahrain, announces the launch of its new mobile banking service “mobile”, adding another unique feature to its bouquet of products and services. “Mobile” will enhance your banking experience by providing many convenient features at your fingertips.
Head of Retail Banking Group, Mr. Abdul Karim Turki said that “mobile” is loaded with many features covering all aspects of retail banking that can be easily and instantly executed through a virtual branch. The service can be enabled by installing a specially designed and user friendly application compatible with most types of smart phones available in today’s market………………………………………..Full Article: Source

In its first ever syndicated financing transaction, the Doha-based consumer finance company Al Jazeera Finance (AJF) has signed a QR346mn three-year dual currency murabaha facility with a syndicate of banks from the GCC (Gulf Co-operation Council) region.
QInvest acted as sole bookrunner and structuring advisor to Al Jazeera Finance . Qatar Islamic Bank took the mandated lead arranger role and was also acting as the investment agent. Ahli United Bank, First Gulf Bank UAE and QInvest were the lead arrangers………………………………………..Full Article: Source

Dubai’s government last month sold $750 million of 10-year Islamic bonds at a price to yield 3.875 percent, compared with 6.45 percent for similar-maturity notes in April. The cost to protect Dubai debt using five-year credit default swap prices tumbled 220 basis points to 225 last year after the emirate partly repaid and refinanced $3.75 billion of debt at state- owned companies and as the city’s tourism, retail, trade and transport industries rebounded.
The loan included both conventional and Islamic portions and was aimed at funding transport projects. There’s demand for good quality assets and the securitization of Dubai’s road-toll receipts, known as salik, is now a proven structure and should generate good demand if it’s refinanced, the banker said………………………………………..Full Article: Source

Islamic banking services in the Sultanate will witness robust growth during 2013, says Ahmed al Musalmi, Deputy CEO, National Bank of Oman. The introduction of Islamic banking has certainly increased market dynamics. NBO has unveiled “Muzn” brand of its Islamic banking window with the plan to allocate RO10m capital to this.
NBO also plans to raise RO 25m through a sub-debt of which RO15m has already been taken. The two Islamic banks (Bank Nizwa and Alizz Islamic) have raised a total of RO150m through an IPO with the aggregate paid up capital of RO 250m………………………………………..Full Article: Source

The Deputy Governor, State Bank of Pakistan (SBP), Kazi Abdul Muktadir has said that a comprehensive media campaign for promoting inherent strengths of Islamic finance and clearing common apprehensions, confusions and misconceptions about Islamic banking and finance is being launched shortly. ‘This campaign is to be led by the Islamic banking industry with the support of SBP’, he added.
In his opening remarks while chairing a meeting for initiating the media awareness campaign to promote Islamic banking in Pakistan at SBP, Karachi today, he said that preliminary findings of SBP comprehensive country-wide survey on “Knowledge, Attitude & Practices of Islamic Banking in Pakistan” suggest the dire need for initiating mass awareness campaign to increase public trust and confidence in Islamic banking………………………………………..Full Article: Source

Abu Dhabi-based Finance House Group net profit for 2012 rose 20.4 per cent to Dh72.2 million compared to Dh60 million. Total assets grew to Dh3.72 billion, registering a steady increase of six per cent over Dh3.51 billion as at December 31, 2011. The board has recommended a cash dividend of 20 per cent, subject to regulatory approvals.
Mohammed Abdulla Alqubaisi, Chairman of Finance House, said: “Despite challenging market conditions and a tighter regulatory framework, we are proud to maintain our profitable stance for the eighth successive year since inception. For a genuine private sector enterprise operating in the fiercely competitive UAE financial services sector, this is a creditable achievement indeed”………………………………………..Full Article: Source

The risk-based capital (RBC) framework for the takaful industry is a necessary medicine for healthy growth, especially to an industry still very much in a growing stage, says the Malaysian Takaful Association (MTA).
“No doubt the takaful RBC (RBCT) is a painful exercise for some, but I take it as the necessary medicine the industry must digest to ensure long-term survivability and to enhance international credibility of the Malaysian takaful industry,” MTA’s chairman Zainudin Ishak told Business Times………………………………………..Full Article: Source