Posted on 25 February 2013 by Laxman | Email|Print
An increasing number of African countries are considering issuing sukuk, or Islamic bonds, in a push to fund their huge infrastructure needs and to diversify their investor base, Standard and Poor’s has said in a report. South Africa, Nigeria, Senegal, and Mauritania have all announced in recent years their intention to issue sukuk bonds.
Standard and Poor’s said in a report that following the Arab spring and the rising influence of Islamist parties in some countries has put the development of Islamic finance on their governments’ agendas. Egypt for example, has recently presented a law allowing sovereign sukuk issuance, which would help finance the country’s high fiscal deficits and also provide funding for the current account deficit, while Tunisia’s 2013 budget law expects to finance its fiscal deficit partly by sukuk issuance, said the ratings company………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
Qatar can become a major global platform for Islamic finance in view of its resources, expertise in Shariah-compliant products and services, and world class regulatory framework, said International Islamic (QIIB) chief executive officer, Abdulbasit A al-Shaibei.
Qatar, he said, is significantly active in the major global Islamic centres such as Malaysia. Also, Islamic finance has growing demand in Qatar and the region………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
Monetary authorities could allow the introduction of Islamic banking products — given the huge market potential — as long as the framework is “market driven.” “Considering that there’s market potential … We can look into the possibility of allowing conventional banks to provide Islamic banking products,” central bank Deputy Governor Nestor A. Espenilla, Jr. said.
“However, we have not received any proposal so far,” he added. “Perhaps the problem is a dearth of providers with sound Islamic banking business models,” Mr. Espenilla noted………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
Islamic finance is no longer a dream, rather it is a success story across the world, including some non-Muslim majority countries like, USA, UK, Philippines, Thailand, Hong Kong and Singapore. There are about 430 Islamic finance institutions and 191 conventional institutions having Islamic banking and finance windows in 70 countries. Their total assets size is around $1.6 trillion while the potential size is around $5 trillion.
This sector is growing fast in Bangladesh also, and has already covered about 20% of the total banking assets. It may be mentioned here that Muslims in non-Muslim majority countries practice Islamic banking and finance and some non-Muslims also follow this system, though the percentage is very small………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, yesterday launched the first-of-its-kind Sharia compliant car finance product in the Sultanate based on the Islamic financing mode of Murabaha.
Sulaiman Al Harthy, Group General Manager (Islamic Banking), said: “Meethaq is proud to launch the innovative car finance as part of its focus to take the lead in offering a suite of banking products, which combine traditional values with modernity. Meethaq has adopted the best practices in Islamic banking and finance worldwide to combine a robust model which will protect customers and complement the Islamic banking industry………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
Bank Nizwa is going to request the Central Bank of Oman (CBO) for allowing the bank to get relaxation in deploying funds in overseas markets for a certain period, until Sharia-compliant products are available within the domestic market.
The bank is going to discuss with the CBO for extending the ceiling on overseas investment, until the bank finds these assets in Oman, Dr Jamil Jaroudi, Chief Executive Officer of Bank Nizwa, told Times of Oman, on the sidelines of a seminar on opportunities in Islamic finance in Oman organised by Thomson Reuters in conjunction with the CMA. “Otherwise, you will have Islamic capital sitting idle in the country. They are positive and flexible. We have to go and present them,” he added………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
Dubai Islamic Bank (DIB) made a formal offer for Tamweel, the Islamic mortgage company in which it owns majority shares. The offer follows the approval from the Securities and Commodities Authority (SCA). DIB currently has i 58.2 per cent of the issued equity of Tamweel.
This bid, which was announced on January 3, 2013, is based on the offer of 10 new DIB shares for 18 existing Tamweel shares held. The fair value of each share for DIB and Tamweel underlying the intended swap is set at Dh2.25 and Dh1.25 respectively. Analysts said the swap offer is below the book value of Tamweel………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
The National Bank for Development (NBD) announced on that it has signed on to finance US$110 million in improvements for the East Delta Electricity Company, which will be the first public project financed according to principles of Islamic Sharia, according to a bank statement.
The financing will go towards parts replacements in the Shabab and Damietta stations run by the East Delta Electricity Production Company. These improvements, according to the bank, will help increase the capacity of the national electrical grid………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
The Bank of Punjab is set to achieve another milestone when it launches Islamic banking in its operations. Apart from shoring up tangible support for the bank in the last four years, the Chief Minister also engendered an environment in the bank that ensured zero tolerance for corruption and eliminated government interference in the bank’s affairs. The Chief Minister Punjab has thus been principally responsible for restoring bank’s trust and goodwill amongst its customers.
In such an environment, backed by prudent financial management through a team of committed professionals the bank has grown from strength to strength during this time leading to Growth in deposits from Rs.164billion to Rs.266 billion………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
The Summit Bank has planned to step in Islamic banking network with the launch of Noor Bank in the next few months, which is aimed at cashing in on the opportunities in commercial and domestic sectors with various Sharia-based products and services.
Summit Bank President and CEO Hussain Lawai on Saturday told Daily Times an interest-free and commercial bank is being planned to open countrywide with an exclusive banking model which caters exclusively to the business needs of Small and Medium Enterprises (SMEs) of the country………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
Qatar Islamic Bank (QIB) has charted out a five-year global investments strategy to help anchor the Bank’s position as an Islamic financial institution of international stature. Presenting the Bank’s 2012 financial results at the ordinary general assembly here yesterday the Bank Chairman Sheikh Jassim bin Hamad bin Jassim bin Jabor Al Thani noted the bank’s international sector has crafted, in collaboration with specialised consultants, a five-year strategic vision for its global investments.
This will strengthen international Islamic banking and position of QIB as an Islamic financial institution of global stature. The Bank has registered substantial progress in restructuring of some of its affiliate and sister companies such as the Arab Finance House and QIB UK, he noted………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
The Gulf Finance House (GFH) announced its financial results for the fiscal year 2012. The bank posted a net profit of $10.03 million compared to $0.38 million in 2011.
The bank’s profitability in 2012 was the result of strong shareholder support, investor loyalty and a dedicated management team committed to seeing through the significant restructuring and income from profitable investments. Operating profit before provisions were $20.43 million when compared to $ 8.5 million in 2011 an increase of 140%. (Press Release)
Posted on 25 February 2013 by Laxman | Email|Print
The Qatar sovereign has ratings of Aa2 from Moody’s and AA from S&P, and was in the bond market last summer with a $4 billion sukuk issue.
The fund, which has stakes in Credit Suisse, Porsche, Harrods and Xstrata among others, will apply for a rating from both Moody’s and Standard & Poor’s. “I can confirm that Qatar Holding will be seeking a credit rating this year,” a spokesperson for the fund told IFR late on Thursday………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
With strong performance seen in 2012 and an optimistic outlook on the horizon for 2013, Malaysia will continue to dominate the global sukuk market with various issuances to mainly fund infrastructure development within the country.
Besides the PLUS issuance, RAM Ratings Services Bhd (RAM) in a special report on the subject said regular issues were made by the Malaysian government and central bank, amounting to a total of US$63 billion. “Overall, Malaysia issued US$97.1 billion of sukuk last year, accounting for 69.7 per cent of the total,” it said. “As with the global scene, Malaysian sukuk issuances have hit a record high………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
The government plans to issue its first sukuk in 2013 to fund energy and mega projects in Egypt, said Dr El-Morsy Hegazy, Minister of Finance at the 7th International Takaful Summit (ITS) in Cairo on Monday. The minister also announced that the sukuk law is in its final stages of being issued as the draft law will be proposed to the Prime Minister within this week before being submitted to the Parliament for approval.
Dr Hegazy says the government is keen to support the financial sector by introducing Shariah-compliant financial tools including sukuk and takaful to expand the range of alternatives for investors. He says these tools will not be developed at the expense of traditional financial products as each has its role………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
A new type of sukuk, introduced by a British unit of a Kuwaiti firm, could make inroads in the market by offering greater security to investors through a structure similar to conventional covered bonds. Providing recourse to a pool of assets if the originator becomes insolvent, covered bonds found a new lease of life in Europe and the United States during the global financial crisis as investors sought liquid and safe investments.
The structure could now play a role in Islamic finance, if tax and pricing issues can be resolved to the satisfaction of investors. It was used for the first time by London-based Gatehouse Bank, a subsidiary of Kuwaiti firm Securities House , through a private placement in December 2012………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
In order to consolidate Hong Kong’s position as an international financial centre and tap the fast growing market of Islamic finance, the HKSAR Government indicated in the 2009/10 Hong Kong Budget that it would work on improving Hong Kong’s regime to facilitate the development of Islamic finance in Hong Kong.
In March 2012, the HKSAR Government launched a two-month public consultation on the proposed legislative amendments to facilitate the development of the Islamic bonds (i.e. sukuk) market in Hong Kong………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
Qatar Insurance Company (QIC), which is strengthening its operations both within the country and overseas, has received approval from the Ministry of Business and Trade to garner as much as QR963mn through a rights issue.
The company, which is the dominant player in the domestic sector, is offering 21.41mn shares at QR45 a share (including a premium of QR35 a piece). The rights issue will be on tap for a fortnight from March 4, 2013………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
Takaful has been a haven for many Muslims around the world who consider conventional insurance policies to be haram, or religiously forbidden. Takaful, or Islamic insurance, is one Islamic financial instrument that has been growing robustly as a Sharia-compliant alternative to conventional insurance policies.
Takaful premiums amounted to $12 billion in 2012 globally, with annual growth ranging from 20 to 25 per cent, which is one of the highest growth rates in the financial world, according to Al-Morsi Hegazi, the Egyptian finance minister………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
Saudi Arabia issued final regulations on real-estate financing, leasing and supervision of financial companies as the kingdom works to ease a housing shortage by opening up its mortgage market and enacting the country’s first home-loans law.
The regulations outlining three of the five laws that make up the package of changes were posted today on the website of the Saudi Arabian Monetary Agency. Rules on the enforcement of foreclosures and mortgage registrations have yet to be completed………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
Tunisia plans to provide Islamic financing to small and medium-sized enterprises via a tie-up between the public and private sectors, which could serve as a model for other Arab states trying to repair their economies after political turmoil.
The Tunis-based Bank of Financing Small and Medium Enterprises has agreed with the Jeddah-based Islamic Corporation for the Development of the Private Sector (ICD), a private investment arm of the Islamic Development Bank, to aid smaller companies in Tunisia………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
KPMG has been named ‘Best Islamic Assurance and Advisory Services Provider’ in the 2012 Euromoney Islamic finance awards. This marks the sixth consecutive year KPMG has taken the top prize, which is unequalled in the assurance and advisory category.
Now in their eleventh year, the awards are widely regarded as the benchmark awards for the global Islamic finance industry. Euromoney again highlighted KPMG’s active role in promoting and supporting the development of the Islamic finance industry around the world………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
Islamic finance follows the rules of Shariah, or Islamic law. The Islamic legal code is drawn from the Koran and the sayings of the Prophet Muhammad. It advises on everything from dietary laws to penalties for theft.
Common Shariah terms relevant to finance include the following: Riba: The charging of interest in any form regardless of the rate is forbidden by the Koran………………………………………..Full Article: Source
Posted on 25 February 2013 by Laxman | Email|Print
The “Muslim travellers” is an important segment in the travel industry, however, not many hotel chains or destinations haven taken a serious look at their needs. So, many travellers have to manage their requirements while travelling or stick to familiar holiday destinations.
Now the media is full of reports on Muslim Travel market, as there are a host of destinations, hotel chains, tour operators etc., all targeting the billions of dollars of these travellers. One company stands out for driving this change of attitude by the global travel industry. Crescentrating, the Singapore startup, coined the term “Halal friendly travel” back in 2008, and launched a dedicated rating system to rate travel services and a travel portal. In hindsight, a bold move seen as a pivotal event in facilitating the development of the ignored Muslim consumer segment………………………………………..Full Article: Source
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