Dubai is aiming to become a global capital of the Islamic economy. But, while a great deal of Islamic finance business is done in Dubai and the wider UAE, the industry is very much in its infancy and needs to look to partners in other financial centres to help it to develop.
Malaysia and Indonesia are the obvious world leaders in the field and are already working closely with the growing number of Islamic institutions that have set up in the UAE………………………………….Full Article: Source

The Qatar Financial Centre (QFC) has the most Islamic finance friendly tax systems out of eight countries in the MENA region, reviewed in a study conducted by three leading experts, Mohammed Amin, Salah Gueydi and Hafiz Choudhury, and sponsored by Qatar Financial Centre Authority in partnership with the International Tax and Investment Center, based in Washington DC.
The study, Cross Border Taxation of Islamic Finance in the MENA region - Phase One, shows that while simpler Islamic finance transactions can be carried out in some countries without prohibitive tax costs, of the countries reviewed only Turkey and the QFC have a tax system that enables sukuk transactions to be carried out without excessive tax costs………………………………….Full Article: Source

A new study into the cross border tax burden on Islamic finance transactions in the Middle East and North Africa region, relative to the tax burden placed on conventional finance, underscores the importance of regional tax legislative changes to equalize the tax treatment of shariah-compliant financial options.
The study reviewed the tax treatment of four common Islamic finance structures, commodity murabaha, sukuk, salaam and istisna in eight MENA region countries: Egypt, Jordan, Kuwait, Libya, Oman, Qatar, Saudi Arabia, Turkey and also in the Qatar Financial Centre………………………………….Full Article: Source

The growth potential for Bangladesh’s Islamic finance industry is enormous, and coupled with a steadily growing economy and financial reforms. With support from the Bangladesh government, financial regulators and the central bank, Bangladesh can be poised to become the next hub for Islamic finance in Asia and on a global scale, the world Islamic scholars opined in the International Islamic Finance Roadshow held recently in Bangladesh.
In the roadshow, the panelists discussed on various issues on Islamic Finance such as Challenges & Opportunities in Bangladesh’s Islamic Finance Sector, Possibilities and Opportunities for Diversification of Islamic Products, Facilitating Shariah Compliant Investment Flows in Bangladesh and South Asia through innovative products, structures and channels, crucial steps to take Bangladesh’s Islamic Finance to the Next Level etc………………………………….Full Article: Source

The government must move quickly to shore up public confidence in the Islamic Bank of Thailand following deposit runs at the state-controlled bank due to worries about its financial stability. The bank reported some 5 billion baht worth of withdrawals over the past two weeks following reports of its weakening financial status.
Samart Maluleem, a Democrat MP for Bangkok and head of the House committee for border affairs, and Prawat Uttamote, a Pheu Thai party list MP and deputy chairman of the border affairs committee, both called on the government to move quickly to reassure the public the bank would have full government support………………………………….Full Article: Source

Bank Muscat agreed on an equity investment worth OMR75.1 (US$195.1m) from the International Finance Corp, it said on Wednesday, a move which will bolster the capital base of Oman’s largest lender.
The World Bank unit will buy into the bank through a private share placement which will represent 5.28 percent of Bank Muscat’s capital following the investment, a statement to the Oman stock exchange said………………………………….Full Article: Source

When Ahli United Bank, Bahrain’s largest lender by market value, announced this week a rise in profits for 2012, it was more than good news for the bank alone. It was a sign that the island kingdom is surviving as a regional financial centre.
Two years after pro-democracy protesters inspired by the Arab Spring uprisings blockaded Bahrain’s financial district, political tensions still weigh on its banking industry. This is deterring some investment and inflows of money, and making it harder for Bahrain to compete with other centres such as Dubai………………………………….Full Article: Source

The long history of Islamic banking has gotten remarkable embellishments in the recent years. With the industry touting a global size of $1.35 trillion in 2012; the growth engines are yet to gun, with experts predicting the industry to attain a size of $4 trillion by 2015.
Islamic banking assets have grown by 33 percent since 2010 - twice as fast as the conventional banking assets and in the wake of widespread developments ongoing in the Islamic banking industry (IBI), the gap between the conventional banking and its ethical spin - Islamic banking is narrowing substantially, with every passing moment………………………………….Full Article: Source

The Bahrain based leading Islamic banking group, Al Baraka Banking Group B.S.C. (ABG) announced that it has achieved a net income of $235m in 2012, a noticeable increase of 11% on the income achieved in 2011.
Similarly, statement of financial position items witnessed good increases. Total assets increased by 11%, total financing and investments by 21%, deposits including equity of investment account-holders by 12% and total equity be 9% at the end of December 2012 in comparison with the end of December 2011………………………………….Full Article: Source

The senior management of Sohar Islamic, the stand alone, independent Islamic window within Bank Sohar held its first Shariah Supervisory Board (SSB) meeting, chaired by Dr. Hussain Hamed Hassan, and attended by the other SSB members.
The SSB of Sohar Islamic comprises of leading Islamic scholars from Islamic finance and academic sectors from across the world: Dr Hussain Hamed Hassan, Dr Ajeel Jasem Saud Al Nishmi, Dr Mudassar Siddiqui and Sheikh Azzan bin Nasir Farfoor Al Amri. The meeting was hosted by Dr Mohammad Abdulaziz Kalmoor, CEO of Bank Sohar and was also attended by Sharia consultant, Dar Al Sharia. (Press Release)

The government raised about Rp 1.05 trillion (US$108 million) from the sales of Islamic bonds (sukuk) on Tuesday, lower than its initial target of Rp 1.5 trillion, as investors held back from entering the sharia bonds market on fears that the recent depreciation of rupiah may spark inflation.
Total incoming bids for the sukuk topped Rp 2.26 trillion, far lower than the Rp 4.1 trillion that the Finance Ministry’s debt management office received during the last sukuk auction on Feb. 5. …………………………………Full Article: Source

As per a study recently conducted by Thompson Reuters, which included all issuers and investors of Islamic Sukuk, the Sultanate of Oman came No. 1 as a preferred destination for attracting investments and issuance of Sukuk, ahead of countries, such as Egypt, Kazakhstan, Tunisia and Libya.
The Capital Market Authority (CMA) will host next Sunday “Oman Position in Islamic Banking Forum’ organized by Thompson Reuters. The organization of this forum comes within the Sultanate’s interest in the sector after the recent introduction of Islamic banking and allowing the establishment of Islamic banks………………………………….Full Article: Source

Oman United Insurance Co is planning to launch takaful operations and its board of directors has agreed in principal to incorporate a company to handle Sharia-compliant insurance products.
“The board of directors has agreed in principle to incorporate a takaful insurance company and suggested to discuss this in the annual general ordinary meeting scheduled on March 28, 2013 for consideration and approval,” the company said in a disclosure to the Muscat Securities Market on Tuesday………………………………….Full Article: Source

Al Khaleej Takaful Insurance and Reinsurance’s net profit for fiscal year ending December 31, 2012 is up to QR78.2 million, an increase by 23.34 percent over QR63.4 million achieved in 2011.
The company’s Earnings Per Share (EPS) this year are QR5.50 compared to QR4.46 in 2011, according to Qatar Exchange notification Wednesday………………………………….Full Article: Source

Takaful prospects for the African market has huge potential but also posed challenges which must be faced and met by the takaful industry if it is to get a foothold on the continent. Some of the challenges included the lack of public awareness about the takaful industry, as well as the lack of available financial infrastructure necessary for the industry to truly kick off in Africa.
Managing Director of Africa Retakaful Omar Gouda said that the industry needs to provide solutions through a variety of means that people trust and understand. “The products that we are supplying, the distribution channels we are employing, and the rules and regulations we adhere to, must all be understood clearly by everyone,” he said………………………………….Full Article: Source