The real estate market in the Middle East has seen a substantial cooling of activity since the global economic downtown at the end of 2008. However, new levels of activity have begun during 2012 as the availability of finance has returned to the market and regional economies are starting to grow once again.
The major driver of real estate expansion within the Middle East is being lead by Saudi Arabia, Qatar and, to a lesser extent, Abu Dhabi. It is estimated, for example, that Saudi Arabia will need 1.2 million new homes by 2015 (Deutsche Bank AG research paper September 2010)………………………………………..Full Article: Source

A royal decree in Saudi Arabia has shaken up the way in which the government allocates vast tracts of land, removing an obstacle to a $67 billion program to ease the country’s housing shortage.
King Abdullah originally announced the housing scheme in March 2011. His plan to build 500,000 homes over several years was part of a series of official steps to improve social welfare, at a time when social discontent was prompting uprisings in other Arab countries………………………………………..Full Article: Source

The Islamic Development Bank (IDB) is reviewing the government’s recent measures on the Padma Bridge Project to take a decision on revival of its committed funding support for it. As part of the original deal, it was supposed to construct the approach road on the bridge’s Jajira side.
The government made earlier a request to the IDB to revive its funding support for the Padma Bridge project. The ministry of finance (MoF) sources said that the lending agency that was a co-financier for the Padma Bridge project as a member of the previously formed, but now non-functional, World Bank-led consortium, has expressed interest to meet the request of Bangladesh to revive its funding support for it………………………………………..Full Article: Source

The sixth-largest global economy, Brazil represents a very real opportunity for Islamic finance to spread its wings in a hitherto relatively untapped region, while Shariah compliant finance offers Brazil an exciting source of funding to boost development. Alexandre Lopes discusses the opportunities and challenges involved.
Known for its profit and loss sharing principle, Islamic finance seems to be expanding the global footprint of its funds to countries outside its original market in the Middle East. As this US$1.3 trillion industry sets sail, an untapped huge market in South America is likely to cross its path…………………………………….Full Article: Source

KLCC Property Holdings Bhd (KLCCP) is eyeing significant redevelopment opportunities for some of its assets as it transforms itself to become the country’s largest real estate investment trust (REIT) – KLCCP Stapled Group.
“We have a three-pronged approach for growth and this includes the significant redevelopment potential arising from Kompleks Dayabumi, and that is why we have not injected it into the REIT yet………………………………………..Full Article: Source

At the 289th meeting of its board of executive directors convened beginning of the week, the Islamic Development Bank (IDB) approved $ 617 million toward funding development projects, which included important projects in the areas of education ($ 174 million for Indonesia), electricity ($ 319.6 million for Iran, Uganda and Bangladesh), agriculture ($ 80 million for Morocco), sanitation ($ 15 million in Maldives) and health ($ 10 million for Mozambique).
The board members concurred to raise IDB’s participation in the capital of the Istanbul-based Kuwait Turkish Participation Bank Inc. by nearly $ 18 million to stand at $ 65 million………………………………………..Full Article: Source

The Islamic Development Bank (IDB) approved $ 617 million toward funding development projects, which included important projects in the areas of education ($ 174 million for Indonesia), electricity ($ 319.6 million for Iran, Uganda and Bangladesh), agriculture ($ 80 million for Morocco), sanitation ($ 15 million in Maldives) and health ($ 10 million for Mozambique).
The board members concurred to raise IDB’s participation in the capital of the Istanbul-based Kuwait Turkish Participation Bank Inc. by nearly $ 18 million to stand at $ 65 million………………………………………..Full Article: Source

Dana Gas has announced that it has today (27 March) launched the process of seeking consents from the holders of the $1 billion Sukuk-al-Mudarabah issued by Dana Gas Sukuk to restructure the Sukuk on previously announced terms.
As a normal part of this process, Dana Gas today (27 March) issued an announcement on the UK Regulatory News Service confirming the launch of the consent solicitation process, a period in which the company seeks approval from holders of the Sukuk………………………………………..Full Article: Source

The National Commercial Bank (NCB) was recently declared winner of the “Best Islamic Project Finance Deal 2013 Award” by Euromoney for being one of the main organizers and for its participation with major portion of the total finance amounting to $1.2 billion for the expansion project of Prince Mohammed bin Abdulaziz International Airport in Madinah.
This is the first financing transaction in the world for an airport project structured in accordance to the Islamic law with the partnership of the public and private sectors. NCB is considered as the largest contributor to the finance deal for this megaproject, the funding of this Shariah-compliant transaction is primarily based on the assets………………………………………..Full Article: Source

The Shura Council on Monday discussed plans to include the Islamic Development Bank (IDB) as a potential partner with the Egyptian government to contribute funds towards the second payment installment of an electrical station set to be built in southern Helwan.
The installment would cost an estimated $250m. Minister of Electricity and Energy Ahmed Imam stated that the station would operate at 1,950 MW, and would require a total of EGP 13bn in investments over the whole course of the construction project. He added it was part of Egypt’s 2012-2017 ‘five-year project plan’………………………………………..Full Article: Source

The Islamic Development Bank and the Ecobank have allocated €377 million to Iran’s water and wastewater projects, IRNA quoted Iranian water and wastewater company official Hossein Bonakdari as saying.
The IDB and the Ecobank allocated €342 million and €35 million, respectively, he noted. He added that 8.75 trillion rials (about $714 million) worth of bonds were issued and a major portion of which were sold to finance water supply projects………………………………………..Full Article: Source

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

Great news for investors looking for better returns: sharemarket superstar Trevor Rowe has been appointed to the advisory board of Islamic funds manager Crescent Wealth.
Rowe, AO, the chairman of former Nicholas Bolton plaything BrisConnections, is a well-known figure in the boardrooms of Australia. Among other things he is executive chairman of Rothschild Australia and chairman of UGL, as well as being a former chairman of the Queensland Investment Corporation and of ASX………………………………………..Full Article: Source

Kingdom Holding Co. (KINGDOM), controlled by billionaire Prince Alwaleed bin Talal, established a committee to help the company move toward Shariah-compliant loans as Islamic financing gains appeal among borrowers.
The committee will “prepare an integrated strategic plan for the conversion of future loans in accordance with the Islamic Shariah,” the Riyadh-based company said in an e-mailed statement today. The panel will comprise Sheikh Abdullah Sulaiman Al Manee’a, an adviser to the Royal Court, Sheikh Mohamed Ali Elgari, Sheikh Ali Abdulaziz AlNashwan and Abdulah Salim AlGhamdi………………………………………..Full Article: Source

The Islamic Development Bank (IDB) is likely to provide credits up to US$ 11 billion to the Bangladesh Petroleum Corporation (BPC) in four years up to 2016 for purchase of petroleum oil, officials said Wednesday.
Economic Relations Division (ERD) officials said the Jeddah-based lender had given assurances about giving $8.0 billion to $11 billion in the form of short-term credit to the state-owned corporation under its proposed Member Country Partnership Strategy (MCPS)………………………………………..Full Article: Source

It’s true. Outside of oil and gas projects and a few specific infrastructure projects (ports like Jebel Ali and airports like Dubai), far less real economic development has happened in the oil-rich parts of the Arab world than would be expected based on their great endowment of human and natural resources.
The Islamic world isn’t monolithic, and it’s probably worthwhile to address relatively stable oil-rich states separately from Iraq, Iran, and Libya, again separately from other Islamic states without much oil separately from Asian Islamic countries like Malaysia and Indonesia. Let’s look specifically at the stable oil rich Arab Islamic states for now………………………………………..Full Article: Source

The Indonesian government will issue rupiah-denominated sukuk Islamic bonds to finance state projects next year, a move welcomed by analysts as a breakthrough in the development of the country’s undersized Islamic finance sector.
The Finance Ministry plans to borrow up to Rp 1 trillion (US$103.5 million) through sukuk issuance to finance state projects next year, according to the 2013 state budget financial note. Sukuk should be seen as alternative source of financing for the government’s infrastructure projects, the note adds………………………………………..Full Article: Source

Emaar Properties PJSC (EMAAR), the developer of the world’s tallest tower in Dubai, obtained a $500 million loan from a group of banks to develop a mixed-use project in Turkey, its second such venture in the country.
Emaar raised $500 million in July from the sale of seven- year Islamic bonds at a profit rate of 6.4 percent, according to data compiled by Bloomberg. The bonds traded at a yield of 4.898 percent today, according to the data………………………………………..Full Article: Source

Islamic finance continues to grow as a prudent alternative to conventional debt-based structures. Financial assets total more than US$1.3 trillion and instruments are expanding into new countries beyond its traditional markets in the Middle East and Malaysia.
At its core, Shariah principles favour the development and sharing of risk in physical assets, which contribute to the economic growth of society. There is therefore a natural match between the Islamic finance model and the acquisition and development of real estate assets. Moreover, Islamic finance is a flexible tool which can be used for a wide range of real estate financings………………………………………..Full Article: Source

PwC launched its first survey for Capital Projects and Infrastructure in the Middle East, titled “Delivering the Middle East’s Mega Projects”. The survey reveals that investment in major projects remains positive despite challenging economic conditions both globally and in the Middle East.
66% of respondents reported spending over $100m on major projects in 2012 across a broad range of industry sectors, with 72% expecting to increase their spending in 2013. Released today, the report seeks to establish issues and challenges facing project owners and explore opportunity markets. The report also sheds light on project financing issues, including funding constraints, perception of private financing and the funding outlook for 2013………………………………………..Full Article: Source

Kuwait Finance House (KFIN) made a 25 million-dinar ($89 million) profit from a property deal as the country’s biggest Islamic lender reorganizes its business.The bank sold 16 units of land for 84 million dinars, it said in an e-mailed statement. Profit from the sale will be included in 2012 financial results.
Kuwait Finance House said last month it plans to boost capital by 20 percent to help finance its five-year plan and support expansion. The lender said in March it will restructure, merge or sell unprofitable units to boost earnings………………………………………..Full Article: Source

Islamic financing is a “very feasible” model for funding major projects and will benefit Brunei’s economy. Shazali Sulaiman, a local partner at KPMG (a global network of professional firms specialising in financial services), and a speaker at yesterday’s Islamic Finance News (IFN) Roadshow at the Empire Hotel and Country Club, said Islamic syariah-compliant financing for major projects would be good news for Brunei.
“It will benefit Brunei because we are using local banks and international banks, which are working together to come up with the structure of the financing, and that will help develop a more established Islamic capital market in Brunei later on,” Sulaiman said………………………………………..Full Article: Source

The property developer arm of Malaysia’s sovereign fund Khazanah Nasional Bhd will issue Islamic bonds worth up to 2 billion ringgit ($657.95 million) to fund working capital, repay debts and redeem its convertible preference shares.
The Islamic bonds are UEM Land Holdings Bhd’s first debt issue, and could go towards the development of its projects in Nusajaya, a new economic district to the south of the capital, Kuala Lumpur………………………………………..Full Article: Source

Gatehouse Bank plc (Gatehouse), a Shariah compliant bank based in the City of London, has completed the acquisition of a diverse industrial portfolio of 19 operationally critical properties across the United States of America. The portfolio is stabilised at 100% occupancy, and the properties are leased to 16 tenants with an average remaining lease term of 14 years.
The $178 million portfolio was acquired in partnership with the Brennan Investment Group (BIG). The properties, located in 16 cities across the Midwest, Northeast, Southeast and Southwest regions of the U.S., will be held for approximately five years, offering investors a stable projected net annual cash yield as well as an attractive IRR upon exit from the investment………………………………………..Full Article: Source

Turkey’s national carrier Turkish Airlines is in talks with banks about a leasing arrangement worth around $500 million to help fund its plane orders from 2014, bankers familiar with the negotiations said.
Turkish Airlines was also considering issuing sukuk — Islamic bonds — or eurobonds next year to finance its aircraft acquisition plans from 2014, they said………………………………………..Full Article: Source

Dubai is reviving massive real estate projects as its economy recovers from a corporate debt crisis, but this time around, constraints on financing are likely to slow the pace of its building boom.
Sukuk (Islamic bonds) from Dubai have attracted massive demand, partly because of a huge supply/demand imbalance among cash-rich Islamic funds. So sukuk could play a big role in Dubai’s financing activities. However, bond market traders and investors said the Dubai government might not be able to raise more than roughly $3 billion through bond issues in a single year………………………………………..Full Article: Source

Malaysian Airline System Bhd (MAS) has entered into an Islamic financing scheme of up to RM5.3 billion to fund the purchase of eight aircraft. The national carrier had executed a master facility for a Bai’ Bithaman Ajil Islamic financing arrangement with Turus Pesawat Sdn Bhd, a special purpose company owned by the Ministry of Finance (MoF), to provide financing facilities.
The current facility will be used to finance the purchase of six Airbus A380-800, one Airbus A330- 200F and one Airbus A330-300 and other related expenses, MAS said in a filing to the exchange………………………………………..Full Article: Source

Qatar Telecom (Qtel), one of the Gulf Arab region’s largest telecoms firms, has signed its debut Islamic financing facility, the operator said on Tuesday.
The $500 million deal, which runs for 18 months and is structured as a revolving Murabaha facility, was provided by Qatar Islamic Bank in a capacity as sole mandated lead arranger, the former monopoly said in an emailed statement. A murabaha is a sharia-compliant cost-plus-profit arrangement……………………………………….Full Article: Source

Mazaya Qatar Real Estate Development Company QSC has signed a dual-currency, $106.7m 8-year syndicated facility to finance the development of the Sidra Village Residential Project. QInvest acted as Financial Advisor to Mazaya Qatar Real Estate Development Company and Sole Bookrunner for the facility.
Qatar Islamic Bank took the Investment Agent and Mandated Lead Arranger roles and was joined in the facility at MLA level by a group of regional financial institutions comprising ABC (through Arab Banking Corporation and ABC Islamic Bank), National Bank of Abu Dhabi, and First Gulf Bank, with Ahli United Bank taking a Lead Arranger role………………………………………..Full Article: Source

The Islamic Development Bank has allocated €1.27 billion in loans to Iran for implementing a number of wastewater projects, the Fars News Agency quoted Iranian National Water and Wastewater Company Deputy Director Hossein Bonakdari as saying on Tuesday.
The loan has been provided according to a deal for a period of three years, he said, adding that three projects are underway which have been financed by the IDB loans………………………………………..Full Article: Source

The Islamic Development Bank in Jeddah, Saudi Arabia, approved this week the financing of some development projects valued at 752.5 million U.S. dollars across the globe.
The bank will provide 250 million U.S. dollars for the second phase of the construction of a power station in Egypt, said the report. The bank will also provide 277 million U.S. dollars to assist Pakistan’s efforts to fight polio and 50 million U.S. dollars to improve the Yemeni job market for young people………………………………………..Full Article: Source

The Islamic Development Bank (IDB) and Uzbek government have recently signed a financial agreement on the allocation of credit to the sum of $100 million for a modernisation project of two hydropower plants in the Tashkent region.
The agreement was signed during the Tashkent meeting of the Arab Coordination Group (ACG), which was attended by members of the Uzbek government and representatives of the financial and business sectors. The ACG includes the Islamic Development Bank, the Saudi Fund for Development and the Kuwait Fund for Arab Economic Development, the OPEC Fund for International Development and the Abu Dhabi Fund for Development………………………………………..Full Article: Source

Modern buildings are constructed daily in Doha, but urban planners designing the city that overlooks the Arabian Gulf have not lost sight of the importance of preserving Qatar’s rich architectural past, experts say.
Beginning in 1995, Qatar began to revive the spirit of historical buildings, according to archaeology expert Mohammad al-Khulaifi, 1993 winner of a prestigious award from the Organisation of Islamic Capitals and Cities………………………………………..Full Article: Source

Qatari banks are bulking up to play a role in funding the country’s massive infrastructure expansion. But in a country which is already overbanked by some measures, they may risk becoming too big.
Doha Bank, Qatar’s fifth-largest lender by market value and part-owned by the country’s sovereign wealth fund, announced plans in October to increase its share capital by 50 percent in the first quarter of next year, raising about $1.6 billion………………………………………..Full Article: Source

Saudi Arabia will build a massive Islamic center complete with a university and a mosque in Afghanistan, an Afghan minister said, describing the project as “grand and unique.” Estimated to cost up to $100 million, the center on a hilltop in central Kabul will house up to 5,000 students, Dayi-Ul Haq Abed, the acting Haj and religious affairs minister told AFP.
It will be named after Custodian of the Two Holy Mosques King Abdullah, the minister added. “The agreement was signed last week in Jeddah. The construction will start next year, in a couple of months or so,” Abed said………………………………………..Full Article: Source

Islamic finance continues to grow as a prudent alternative to conventional debt-based structures. Financial assets total more than $1.3 trillion and instruments are expanding into new countries beyond its traditional markets in the Middle East and Malaysia. At its core, Sharia principles favour the development and sharing of risk in physical assets, which contribute to the economic growth of society.
There is therefore a natural match between the Islamic finance model and the acquisition and development of real estate assets. Moreover, Islamic finance is a flexible tool which can be used for a wide range of real estate financings. This ranges from residential mortgages (such as the United National Bank of Pakistan’s lease-based mortgage, the first of its kind in the UK), to large scale financings such as Qatari Diar’s acquisition of the Chelsea Barracks and the construction of the Shard of Glass in London. ……………………………………….Full Article: Source

UDA Holdings Bhd has come up with a development blueprint to sidestep limitations for proposed projects on wakaf (endowment) land in the country. The blueprint — first of its kind here — will see the development of commercial properties for higher returns to the respective Muslim community, simply by leasing out the plots while maintaining the Islamic titles.
Otherwise, complications arise due to wakaf land currently being regulated and managed under different laws and regulations within the purview of the States Islamic Religious Council — consisting of 15 states and federal territories in the country, said UDA chairman Datuk Nur Jazlan Mohamed………………………………………..Full Article: Source

The Mumbai Economic Development Zone (MEDZ) has been granted access rights to the Mumbai-Pune highway. Energy City Navi Mumbai and Mumbai IT and Telecom City projects are together named the MEDZ.
It is a joint development project between Gulf Finance House (GFH), the Bahrain-based Islamic investment bank, and the Wadhwa Group, a leading real estate developer in India. The project is GFH’s flagship development project in India………………………………………..Full Article: Source

Queensland solar company The Solar Guys has tapped into the huge Islamic finance market to fund a 50MW solar PV project in Indonesia, the first in a series of projects under an agreement struck with the Indonesian government.
The Solar Guys are proposing to build 250MW of solar PV under a plan it has dubbed the “One Solar Watt Per Person” campaign. The target of 250MW translates into 250 million watts, which roughly equates to Indonesia’s population………………………………………..Full Article: Source

Gatehouse Bank plc, a Kuwaiti-owned wholesale Shariah compliant investment bank based in the City of London, has completed the £165m acquisition of the law firm SJ Berwin’s offices at 10 Queen Street Place in London, in collaboration with a flourishing Malaysian Sovereign Wealth fund.
Gatehouse acted as Investment and Shariah Adviser for the deal, which marks the Malaysian client’s first investment into the London real estate market and is a key part of its wider global investment strategy………………………………………..Full Article: Source

Sukuk have played a crucial role in the infrastructure sector over the past decade, with proceeds raised from issuances being utilised for both low and high profile projects, according to KFH Research.
The very nature of Sukuk combined with their flexibility allows them to be structured in various different ways which has attracted corporate and sovereign entities to choose Islamic bonds as a viable alternative financing instrument. The infrastructure sector has seen a large portion of the raised Sukuk funds directed to development projects around the globe………………………………………..Full Article: Source

Sukuk (Islamic bonds) have played a crucial role in the infrastructure sector over the past decade, with proceeds raised from issuances being utilized for both low and high profile projects.
The cumulative infrastructure projects and funding needs in both the GCC and Asian regions are expected to support the sukuk market in 2012 and 2013 given that infrastructure spending has been one of the key drivers or economic growth in the GCC over the past decade. An important dimension of the infrastructure investments has centered on efforts to turn the region into an internationally significant transportation hub………………………………………..Full Article: Source

Sukuk have played a crucial role in the infrastructure sector over the past decade, with proceeds raised from issuances being utilised for both low and high profile projects. The very nature of sukuk combined with their flexibility allows them to be structured in various different ways which has attracted corporate and sovereign entities to choose Islamic bonds as a viable alternative financing instrument.
The infrastructure sector has seen a large portion of the raised sukuk funds directed to development projects around the globe………………………………………..Full Article: Source

A Bahraini investment bank is working on a deal to buy England’s Leeds United Football Club, in what could be the latest acquisition of a European soccer team by oil-rich Gulf investors.
Gulf Finance House, an Islamic investment bank from the tiny Gulf island state, said Thursday one of its Dubai-based subsidiaries will “lead and arrange the acquisition of Leeds City Holdings, the parent company of LUFC.” A person familiar with the matter said the transaction price would be about £50 million ($80.8 million), and that GFH Capital is acting on behalf of “investors from the Gulf,” without elaborating………………………………………..Full Article: Source

Boeing Capital Corporation ‘BCC’ stressed on the need for airline to invest strategically into new aircraft and the long-anticipated growth of Islamic financing’s role in commercial airplane deliveries is also coming to fruition. Airplanes have been regarded as ideal for lending under Shariah law given their mobile nature and asset attractiveness.
These discussions were highlighted as financial institutions and airlines in the Middle East have significantly increased their capital investments in new Boeing commercial airplanes over the past two years, thus realizing substantial rewards for their investors as demand for new airplanes continues to expand………………………………………..Full Article: Source

As part of the implementation of the country strategy together with Kazakhstan, in 2012-2014 the Islamic Development Bank may finance projects worth 1 billion USD. The vice president on finance Abdulaziz Al-Hinai has announced that at the beginning of October in Astana the Islamic Development Bank will sign a new country strategy of the bank in Kazakhstan.
He hasn’t told about the document in details and just announced that the sides are still discussing some issues of the strategy. In his turn, at the meeting in Almaty the deputy minister of industry and new technologies Bakhytzhan Dzhaksaliyev noted that in the nearest 2 years the IDB will finance projects worth to 1 billion US dollars in Kazakhstan………………………………………..Full Article: Source

In recent times Islamic project finance has shown its ability to adapt in the face of a number of hurdles that are not encountered in conventional project financing.
Traditionally, Islamic financiers have encountered a number of commercial and liquidity challenges associated with the high debt to equity ratios of infrastructure projects and the project durations themselves, which can take as long as 30 years to complete…………………………………….Full Article: Source

Indonesia can fully facilitate its plans for enhancing infrastructure if it were to utilise Islamic financial instruments which can help to further boost the economy and increase economic stability in the country.
Standard and Poors the leading company stated in a report that Islamic finance was the perfect option for Indonesia in materializing its infrastructure plans.S&P credit analyst, Allan Redimerio, stated, “We believe Indonesia can emulate Malaysia’s success thus far in utilizing Islamic finance for infrastructure development. This is due to Indonesia’s large infrastructure development needs, the government’s willingness to attract private capital to fund these investments, and the rising demand for investable assets of a growing domestic Islamic finance market.”……………………………………Full Article: Source

Several recent landmark corporate and infrastructure sukuk by companies in the Gulf Cooperation Council (GCC) issuing in Malaysian ringgit may signal the start of a trend that could help develop and globalize the market, Standard & Poor’s Ratings Services said in a report published today, “Beyond Borders: The GCC And Asia Could Rev Up Their Economies–And The Islamic Finance Market.”
In an era when the world’s conventional banks are producing fewer and shorter loans and companies are considering other options for finance, Standard & Poor’s believes that Islamic financial instruments could become a key funding source, especially in the GCC countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates) and Asia………………………………………..Full Article: Source

In an era when the world’s conventional banks are producing fewer and shorter loans and companies are considering other options for finance, Standard & Poor’s believes that Islamic financial instruments could become a key funding source, especially in the Gulf Cooperation Council (GCC) countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates) and Asia.
These regions, with established Islamic financial regulatory bodies, are centers of the growing estimated $1 trillion market. At the same time, Asia and the GCC are seeking huge amounts of capital to pay for their soaring needs for new infrastructure………………………………………..Full Article: Source