The UAE insurance market’s sustained growth path has allowed it to secure its position as the largest and most developed insurance market in the Gulf region in 2011. Its USD 6.6 billion total insurance premiums during the period recorded a 10% increase compared with 2010.
The UAE’s buoyant performance also represented a 45% share of the GCC’s USD 14.7 billion combined gross insurance premiums, placing it well ahead of its neighbor Saudi Arabia, which accounted for less than 34% of the market, according to the world insurance report compiled by the Sigma research unit of global reinsurance group, Swiss Re………………………………………..Full Article: Source

Asian managers, joining a trend from the bond markets, have begun launching Islamic private equity funds in response to interest from investors in the Middle East. For those investors, the new vehicles are a way to capitalize on fast-growing economies in the region, sometimes with more flexibility and attractive terms than are available via local Middle East funds.
Navis Capital Partners in Malaysia and Korea’s STIC Investments are two of the few general partners that manage Shariah-compliant private equity funds across Asia. Kuala Lumpur-based Navis first raised money to invest in Shariah-compliant deals in 2003, while STIC started in 2004………………………………………..Full Article: Source

The government of Dubai has announced its plans to establish a central Sharia board to oversee all Islamic financial products used in the emirate. The move is also expected to further develop an interest in the Islamic financial markets by encouraging government-linked entities to issue and list sukuk on the local equity market. The plan has been envisaged to strengthen Dubai’s reputation in the Islamic finance market and make it a global hub for all financial transactions based on Islamic principles.
However, Dubai is expected to face stiff competition from London and Malaysia, which have a sound Islamic finance system and are actively involved in trading of sukuk (Islamic bonds). Currently, besides Malaysia, few countries have a central regulatory board and most Gulf countries have a decentralized model of regulation. ……………………………………….Full Article: Source

On Wednesday, His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, rang the opening bell kicking off the next phase of Dubai’s Islamic economy initiative.
Eissa Kazim, chief executive of Dubai Financial Market and secretary-general of the committee governing Dubai’s Islamic economy initiative, said the goal of the initiative is to promote sharia-compliant activities, with one of those activities being sukuks………………………………………..Full Article: Source

A new initiative to transform Dubai into a global hub for sukuks is aimed at positioning the UAE as a top-ranked economy in the world, His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, said on Wednesday.
Speaking to journalists at the launch of a bold initiative ‘Transforming Dubai into a Global Centre for Islamic Bonds’ at the Dubai Financial Market, Shaikh Mohammed said the UAE, under the leadership of the President, His Highness Shaikh Khalifa bin Zayed Al Nahyan, “seeks to maintain its position as the overall top-ranked economy through such projects and initiatives”………………………………………..Full Article: Source

Islamic bonds, or sukuk, have long been popular with investors in the Middle East. Now they are being discovered in Europe and the United States. When the Dubai government issued a $500 million, 10-year sovereign Islamic bond, last month, 38 percent of it was snapped up by Western investors, according to research by Standard & Poor’s.
“European problems helped fuel demand for alternative products like sukuk in emerging markets, which is why we’re seeing a strong wave of interest coming in from Western investors lately,” said Mohammed Dawood, managing director of debt capital markets for HSBC’s Islamic banking division………………………………………..Full Article: Source

The Cabinet approved a draft law governing the issuance of Islamic bonds, known as sukuk, on Wednesday. The proposed regulatory framework will be referred to the Shura Council, which has temporary legislative powers until the House of Representatives is elected in the next few months.
The move is part of an investment program aimed at attracting capital to boost revenues and close the budget deficit slated to reach LE200 billion by the end of 2013. But the bill doesn’t have the support of everyone. Some political factions opposed foreigners being able to own shares of state companies; however, officials claimed the proposed law does not allow foreigners to do so………………………………………..Full Article: Source

Egypt can gain around $10 billion in funds annually from its sukuk Islamic bond market but it will at least three months to push through the necessary regulations, Finance Minister Al-Mursi Al-Sayed Hegazy said on Wednesday.
Egypt has only three months of cover for imports left inforeign currency reserves and in December postponed a deal with the IMF for more funds………………………………………..Full Article: Source

Dubai Electricity and Water Authority (DEWA) has issued initial price guidance for a five-year, benchmark-sized Islamic bond, or sukuk, a document from lead arrangers obtained by Reuters has revealed.
Benchmark-sized is typically understood to mean at least $500 million. The emirate’s sole utility is aiming to sell the dollar-denominated sukuk in the low 3% area, the document said. DEWA is meeting fixed income investors in London and Asia this week ahead of the possible sukuk sale, which is due to price this week………………………………………..Full Article: Source

The GCC debt capital market should score another positive year this year as fundamentals favoring the market are expected to continue, said Sameh Al Qubaisi, General Manager of Corporate Coverage Group at National Bank of Abu Dhabi’s (NBAD) Global Financial Markets.
Speaking at the 2013 Global Financial Markets Forum (GFMF) in Abu Dhabi Wednesday, he said “2012 was a stellar year for capital debt markets and we expect a continued growth and maturing of this sector which will fuel accelerated growth across the economy.” Issuances in the first month and half of 2013 has surpassed $3 billion (AED11 billion), with a number of issuers looking closely to tapping the market at the right window of opportunity………………………………………..Full Article: Source

Plainly speaking, it’s been a complete management failure, both inside and out. How else can one frame the fact that two state-controlled banks, the SME Bank and the Islamic Bank of Thailand, are now wrestling with bad loans in excess of 80 billion baht, or over one-quarter of their total outstanding loans?
When we consider the fact that their peers in the private sector count their own non-performing loans in the low single digits, and that Thai bank profitability overall is at record highs, the performance of these two institutions looks even worse………………………………………..Full Article: Source

The banking sector in Abu Dhabi showed consistent increases in liquidity and net profits throughout 2012, largely aided by net-interest earnings and bigger profits from Islamic finance. Fourth-quarter results and a strong performance by many banks’ shares – the strongest in five years – have led many analysts to conclude that the sector is firmly on the path to recovery.
Indeed, Reuters reported on February 6 that the Abu Dhabi bank index was up by 11.4%, outperforming a 10.1% increase in the overall market, though from an admittedly low base. October 2012 was as a major turning point for the UAE’s banks, when outstanding provisions – which banks set aside for bad loans – decreased for the first time since 2008………………………………………..Full Article: Source

International Islamic (QIIB) will provide finance to Qataris and residents with the “lowest profit rate,” grace period of up to six months as well as quick and easy processing, the bank said.
QIIB has also come out with an “unique” offer linked to this finance scheme under which it will compensate “1% of the transferred liability” to customers moving their liabilities from other banks. The offer will be in force until March-end, QIIB said. ……………………………………….Full Article: Source

ABC Islamic Bank announced that its net profit for the year ending 2012 was $8.3m, compared to $8.1m last year. Total operating income amounted to $16m, 6% higher than last year of $15.1m. Operating expenses increased by $0.8m to $6.9mi, resulting in cost to income ratio of 43.3%, compared to 40.8% in last year, mainly due to higher staff expenses related to compensation scheme.
Impairment provision of $0.5m for regional exposure taken during the year was at the same level as of last year.Net profit for the fourth quarter was the same as of last year of $1.4m. (Press Release)

BIMB Holdings Bhd’s net profit attributable to ordinary equity holders of the parent company dropped 10.36% to RM67.13mil on the back of a 17.76% increase in revenue to RM669.17mil for the fourth quarter ended Dec 31, 2012. Thus, earnings per share dropped to 6.29 sen from 7.02 sen. However, on a full-year basis, net profit was up 18.29% to RM250.78mil on the back of a 23.62% increase in revenue to RM2.52bil.
Meanwhile, Takaful Malaysia reported a 31% growth in its profits after taxation and zakat to close the financial year ended Dec 31, 2012 with RM101.2mil. The group’s full-year operating revenue increased by 19% to RM1.61bil………………………………………..Full Article: Source