There is little to hinder another strong performance by the sukuk market in the next few years, Standard & Poor’s said. Investors Are Snapping Up Sukuk, Despite Questions About Creditworthiness.” “Global issuance expanded for the fourth year in a row in 2012, growing 64% to about $138 billion, and we expect another strong few years,” said Standard & Poor’s credit analyst Paul-Henri Pruvost.
Despite increased growth, the market for sukuk, the Islamic equivalent of bonds, is still a small segment of the global fixed-income world. Sukuk comply with Sharia law, meaning they do not technically pay interest; rather, they are structured to provide sukuk holders a profit margin. While still considered an alternative investment, S&P believes the sukuk market has the potential to grow and join the mainstream………………………………………..Full Article: Source

The sukuk market is expected to witness strong performance in the next few years while Gulf countries and Asia will remain the key engines for growth, according to Standard & Poor’s. “Global issuance expanded for the fourth year in a row in 2012, growing 64 per cent to about $138 billion, and we expect another strong few years,” S&P’s said in a report.
Despite increased growth, the market for sukuk is still one per cent of the total bond issuance and there is strong potential to grow more and join the mainstream, S&P’s managing director and regional head for the Middle East Stuart Anderson told reporters at a news conference on Monday in Dubai………………………………………..Full Article: Source

Saudi Binladin Group, one of the largest construction firms in the kingdom, is currently meeting fixed income investors as it plans to issue a new local currency Islamic bond, or sukuk, four sources aware of the matter told reporters.
Roadshows are due to take place this week and next, at which point the size and pricing of the deal would be determined, a banking source said, speaking on condition of anonymity as he was not authorised to speak to media………………………………………..Full Article: Source

Emirates airline, Dubai’s flagship carrier, plans to issue a 10-year amortising Islamic bond, or sukuk, this week, after releasing early price talk for the deal. The sukuk, maturing 2023, will have an amortising structure, with an average weighted life of five years, arranging banks said.
An amortising bond is structured in a way that gradually reduces the value of the bond over a fixed period of time, meaning the borrower pays off the full amount before the final maturity date………………………………………..Full Article: Source

The Shura Council approved the sukuk draft law during its general session on Monday after deliberations and voting entered its fifth day. The final draft law consists of the council’s economic and financial committee proposal, the government’s proposal and the Shura Council’s joint committee proposal.
The Shura Council modified 13 articles in the draft law. The final report from the committee mentioned that there are some items that have been further developed and modified………………………………………..Full Article: Source

Dubai Electricity and Water Authority’s (Dewa) $1 billion sukuk was listed on Nasdaq Dubai on Monday. Shaikh Maktoum Bin Mohammad Bin Rashid Al Maktoum, Deputy Ruler of Dubai and Chairman of Dubai International Financial Centre, rang the bell for the listing.
The issuance of the Dewa sukuk was met positively by regional and global investors, leading to an increase in the value of sukuk listed on Nasdaq to $6.24 billion, while the value of sukuk listed in Dubai bourses rose to $10.173 billion………………………………………..Full Article: Source

Dubai Islamic Bank (DIB) may pay more than twice the Arabian Gulf average on Sharia-compliant debt for its first perpetual sukuk as the lender seeks to avert a downgrade by Moody’s Investors Service.
The United Arab Emirates’ biggest Islamic lender will probably pay between 6.5 per cent and 7.14 per cent for the sukuk to boost Tier 1 capital, the core resources needed to cushion against losses, according to three analysts surveyed by Bloomberg. This compares with a 2.65 per cent average yield on Islamic bonds issued by financial institutions in the Gulf Cooperation Council (GCC), according to HSBC/Nasdaq Dubai indexes………………………………………..Full Article: Source

Turkish Islamic lender Bank Asya said on Monday it had mandated banks for a subordinated sukuk issue worth up to $300 million with a ten-year maturity.
The lender made the statement to the Istanbul Stock Exchange. Strong investor demand and a need to improve capital adequacy ratios are causing Turkey’s Islamic banks to consider issuing subordinated sukuk, bankers and analysts told Reuters last month………………………………………..Full Article: Source

Qatar International Islamic Bank ’s (QIIB) share holders have given the approval for the board of directors’ decision to issue $2bn sukuk. The new issuance is followed by the QIIB ’s debut debt deal of $700m sukuk in the international markets in October, 2012.
The ordinary general assembly, chaired by the bank Chairman Dr Sheikh Khalid bin Thani bin Abdullah Al Thani, yesterday approved all the 11 items figured in the agenda, including the 2012 financial results………………………………………..Full Article: Source

The Securities and Exchange Commission (SEC) has said Islamic finance and sukuk bond would be part of the new products to be introduced into the Nigerian capital market. Director General of the commission, Ms. Arunma Oteh who stated this recently in Lagos during the 2013 maiden media briefing said the product would help improve the capital market.
She said the SEC will build 2013 strategic focus around three themes which include financial inclusion, innovation and effectiveness. According to her, “We need to reach out to the large numbers of Nigerians who have yet to take advantage of the opportunities in the capital market, through collective investment schemes and new products such as Islamic finance and sukuk bond, while supporting SMEs.”……………………………………….Full Article: Source

The U.K. government is considering reviving plans to sell Islamic bonds as part of an initiative to boost Britain’s role as a center for Shariah-compliant financing.
Treasury Minister Greg Clark and Sayeeda Warsi, a minister in the foreign office, are leading a working group to raise the profile of the Islamic finance industry, the Treasury said in an e-mailed statement today. Among items discussed at today’s inaugural meeting was the sale of Islamic bonds, said Shabir Randeree, chairman of DCD London & Mutual Plc in London and a member of the taskforce………………………………………..Full Article: Source

The British government launched a campaign to promote London as a centre for Islamic finance, seeking to counter growing competition in that industry from rising centres such as Dubai and Kuala Lumpur. A task force including Britain’s Financial Secretary to the Treasury Greg Clark, ministers of state and private sector executives will advertise London around the world, the British Foreign Office said on Monday.
The group will try to attract foreign investment to Britain by facilitating Islamic financial business, including investment in British infrastructure by Islamic sovereign wealth funds, the Foreign Office said in a statement………………………………………..Full Article: Source

The European Central Bank and the Malaysia-based Islamic Financial Services Board (IFSB) are conducting a joint study on policies affecting Islamic finance in Europe, the IFSB’s top official told Reuters.
“We are doing a joint study with Europe’s central bank which brings together European scholars and regulators to examine a broad set of policy and regulatory issues in relation to Islamic finance in Europe,” said IFSB secretary-general Jaseem Ahmed. The IFSB is one of the main bodies setting standards globally for Islamic finance………………………………………..Full Article: Source

The UK government has set up an “Islamic finance task force” to reinforce London’s position as the dominant western hub for this niche but fast-growing part of the financial system.
Islamic finance replicates many of the products and services of conventional banks and asset managers but avoids areas prohibited to Muslims – particularly interest – and encourages the use of “real” assets to underlie most transactions………………………………………..Full Article: Source

London is set to go head-to-head with the world’s leading Islamic finance centres as the government pushes to make the UK a leading centre for Sharia-compliant lending. The government has announced plans to boost Britain’s profile as a hub for Islamic banking, in the hope of benefiting from the rapidly growing market for Sharia-compliant financial products.
A task force led by Greg Clark, Secretary to the Treasury, and Baroness Warsi, Foreign Office minister, has been handed the remit of “showcasing the UK as the preferred choice for the Muslim world to invest in and do business in”………………………………………..Full Article: Source

Qatar expects to go ahead soon with its plan to establish a big, international Islamic bank, Finance Minister Youssef Kamal said on Monday. Last April the Qatari government signed a memorandum of understanding with the Jeddah-based Islamic Development Bank, a multilateral lender, and Saudi Arabia’s Dallah Albaraka Group to establish a bank with initial capital of $1 billion.
Asked on Monday when the bank would be set up, Kamal replied: “Soon.” He did not elaborate on the timing, ownership or other aspects of the new institution………………………………………..Full Article: Source

Kuwait Finance House (KFH) the world’s leading Islamic bank, has taken a major step today in its strategic transformation program with the announcement of KFH Real Estate company, a dedicated fully owned investment vehicle for the real estate asset class.
Shaheen Al-Ghanim, KFH ’s General Manager of International Banking and Acting Chief Investment Officer highlighted KFH ’s investment vision and insight through the announcement of KFH Real Estate; emphasizing on the importance of this announcement, as it marks a new beginning for KFH and its potential contribution to the global Islamic financial services industry. (Press Release)

Malaysia proves its worth as a global model for a modern and dynamic industry. Malaysia has succeeded in developing a vibrant and modern Islamic banking and financial industry over the last three decades.
The Islamic Banking Act, which came into force in 1983, had paved the way for the nation to develop a vibrant and modern Islamic banking and financial industry. Initially, the industry served as an alternative channel for Muslims to perform banking and financial transactions in accordance with Islamic practices, and thus, avoid practices that have elements of oppression that are prohibited by Islam………………………………………..Full Article: Source

For so many reasons, Islamic banking is growing at a fast pace around the world. It is asserting itself as a key player in the global financial system. In 2011, for instance, Islamic banking worldwide assets grew by 19 percent to $1.3 trillion. Altogether, Islamic banking worldwide increased profit-making by 15 percent during that period.
The first private Islamic bank, the Dubai Islamic Bank, was set up in 1975 by a group of Muslim businessmen from several countries. Two more private banks were founded in 1977 under the name of Faisal Islamic Bank in Egypt and Sudan. In the same year, the Kuwaiti government set up the Kuwait Finance House. Since then, Islamic banking has grown steadily………………………………………..Full Article: Source

Investment Dar, the controlling shareholder in British luxury car maker Aston Martin, on Sunday agreed to sell its stake in a loss-making Bahraini bank for $92m as the Kuwaiti firm restructures debt.
Investment Dar accepted an offer from National Bank of Bahrain and a state-run Social Insurance Organisation Asset Management, a unit of pension fund Social Insurance Organisation, to sell its 51.6% stake, or 484-million shares, in Bahrain Islamic Bank at 72 fils apiece, according to statements posted on the Bahrain Bourse………………………………………..Full Article: Source

OMA Emirates-Solution Gulf, a provider of cutting edge technology for the payment industry announced the recent opening of a new office in Serbia. An integral part of the company’s overall expansion plans, the office will help penetrate into the European market. A dedicated team of local sales, after sales and support staff has been put into place to provide the company’s entire range of products and services for all banking and financial institutions with a special emphasis on Islamic Banking payment solutions.
The expansion is directly co-related to the growing demand for OMA Emirates’ advanced technological solutions in Serbia and the surrounding markets in Eastern Europe. The company is now capable of providing turnkey projects to banking and financial institutions in developing new or upgrading technologies for Point of Sale, Switch requirements and Islamic banking implementations. (Press Release)

Alliance Financial Group Bhd (AFG) is selling its 30% stake in AFG Takaful Bhd to American International Assurance Bhd for RM45mil. AFG said on Monday its unit Alliance Bank Malaysia Bhd had signed a conditional share sale agreement with AIA to sell the stake, comprising of 30 million shares of RM1 each for a cash consideration of RM45mil.
AIA AFG Takaful’s core business is to carry out family takaful business. It was incorporated on Dec 6, 2010 with a paid-up of RM100mil………………………………………..Full Article: Source