IslamicFinance.de

For Immediate Release

March 8, 2010–CGAP, Deutsche Bank, Grameen-Jameel and Islamic Development Bank have joined forces to challenge the Islamic microfinance industry to develop new ideas for business models in the Islamic Microfinance Challenge 2010: Innovating Sustainable, Scalable, and Market-Driven Models. Islamic microfinance has gained some traction over the past few years, with a swift rise in the number of institutions offering microfinance products in compliance with Islamic principles. But the fundamental challenge for the Islamic microfinance industry remains meeting client demand with affordable, authentic, profitable, and market-driven products.

Following an investigation into the activities of Al Mal, an authorised firm in the Qatar Financial Centre (“QFC”), the QFC Regulatory Authority has taken the decision to withdraw the authorisation of Al Mal.

Saudi Arabia's regulator has fined the country's biggest Islamic bank, Al-Rajhi , for not notifying it about the resignation of two senior executives, the regulator said.

Dubai World which is in talks to restructure some $22 billion debt, is unlikely to pay off developer Nakheel's $980 million Islamic bond, a source familiar with the matter said on Monday, and all options are open.

Asya Participation Bank is now directly accessing the international financial markets for financing. Asya Bank is also innovating new products including a new card family, under the "DIT Pratik" brand. The DIT Pratik card is a EMV contactless card.

Masraf Al Rayan (MAR), an Islamic bank in Qatar, has launched $1.1 billion (Dh4bn) Al Rayan GCC Fund which would be managed by Al Rayan Investment. The Shariah-compliant value fund will take a medium to long-term perspective, investing in GCC-listed equities as well as fixed-income and money-market instruments. Where possible, the fund will seek to take an activist investment approach.

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The following news has been placed in summary at the website given.

TADAWUL EDGES LOWER
ADX GAINS 0.78 PERCENT
DFM SEES SLIGHT DROP
NEW GLOBAL STANDARDS ISSUED FOR ISLAMIC DERIVATIVES
DUBAI'S DEBT IS $109BN, SAYS IMF
GULF STATES SHOULD DROP DOLLAR PEG, SAYS HEDGE FUND CHIEF
OMAN'S 2009 BUDGET DEFICIT SMALLER THAN PLANNED
DUBAI AIMING FOR BUDGET SURPLUS IN 2011
TADAWUL DIPS 0.55 PERCENT
ADX EDGES HIGHER
DFM SEES SLIGHT GAIN
MAF ASSET MANAGEMENT TRIMS FUND SIZE
WORLD BANK TO PROVIDE $250M LOAN TO IRAQ
NATIONAL BONDS DISTRIBUTES 3.53 PERCENT PROFIT
BAHRAIN'S ARCAPITA CUTS JOBS BY 15 PERCENT
RAS AL KHAIMAH RATED 'A' BY STANDARD AND POOR'S

Please read the website to get the full summary of the news.

Dr Saad, who presented his working paper during the 2010 International Conference on Islamic Finance at Rizqun International Hotel in Gadong yesterday, explained how Islamic micro-financing could help alleviate poverty by giving a small amount of financing to those who want to start up a business.

Press Release

*Bahrain-based Gulf Finance House earlier today completed the partial extension of a
$100 million facility. We consider this as another "distressed exchange" due to
partial extension of initial maturity. *We then reassessed GFH's creditworthiness
and raised the ratings to 'CCC-/C'. *The outlook is negative and reflects our
opinion of GFH's very weak liquidity position, from a rating standpoint, because it
still faces challenges to meet debt repayments coming due in the very near term.

PARIS (Standard & Poor's) March 3, 2010--Standard & Poor's Ratings Services today
said it raised its long- and short-term counterparty credit ratings on Bahrain-based
Gulf Finance House G.S.C. (GFH) to 'CCC-/C' from 'SD/SD' (selective default). The
outlook is negative.

"The rating action follows GFH's completion of the partial extension of maturity of
a $100 million facility," said Standard & Poor's credit analyst Goeksenin Karagoez.

The first tranche of this facility was a $50 million payment due March 3, 2010, with
the remainder due on March 3, 2011. We understand that GFH has obtained consent for

The Saudi mortgage law, once passed would drive Saudi housing demand and prices as more people access the market.

Investors could welcome the commencement of trading of Tamweel stock once the government releases the details of the company's merger with Amlak, analysts said Sunday.

ABC Islamic Bank along with Noor Islamic Bank PJSC and Standard Chartered Bank have been mandated by Turkey’s Bank Asya to arrange a US$75 million (and/or equivalent in Euros) syndicated dual currency Murabaha financing facility (the “Facility”).

The facility which offers a profit margin of 225bps over the applicable benchmark has been structured as a Shari’a compliant dual-currency facility with a one-year tenor. Proceeds will be used to fund Bank Asya’s Islamic trade finance activities.

The Australian government has expressed an interest in creating a Islamic finance hub for the nearly one billion Muslims in Asia-Pacific region and expand the Islamic banking to help Australia become a dominant player in regional financing.

The following borrowers are expected to sell Islamic bonds, which use asset returns to pay investors to comply with the religion’s ban on paying interest:

CAGAMAS BHD
LEBANON
WAHA CAPITAL PJSC
KUVEYT TURK KATILIM BANKASI AS
SAUDI ARABIAN OIL CO
LAFARGE MALAYAN CEMENT BHD
QATAR ISLAMIC BANK SAQ
PAKISTAN
TAIBA HOLDING CO
THAILAND
DEVELOPMENT BANK OF KAZAKHSTAN
KHAZANAH NASIONAL BHD

Blom Developments Bank SAL (“Blom”) placed US$10 million with The Investment Dar Company KSCC (“TID”)under a wakala agreement (the “Agreement.

The Agreement was governed by English law and provided that TID would invest the Capital Sum (as the agent of Blom) in a shari’ah compliant manner. The Agreement further provided that at the end of the investment period TID had an obligation to pay to Blom the Capital Sum together with the anticipated agreed profit (the “Profit”).

TID failed to fulfill its obligations under the Agreement to pay to Blom the Capital Sum and the Profit at the end of the investment period. As a result Blom brought a summary judgment application in the English High Court. The Court ordered TID to pay to Blom the Capital Sum (but not the Profit).

Al Rajhi Capital, the investment banking subsidiary of Saudi Arabia's Al Rajhi Bank, and Arcapita Bank B.S.C.(c), an international investment firm headquartered in Bahrain, announced today the launch of a $500m (SR1.875bn) fund, the ARC Real Estate Income Fund.

Trade between the Republic of Bosnia and Herzegovina and the UAE has inceased, reaching a total of EUR8m (Dhs42m) in the last two years through investments from Abu Dhabi Islamic Bank, Dubai Islamic Bank and Islamic Development Bank, Jeddah focusing on finance and real estate sectors.