IslamicFinance.de

Yemen announced Saturday the first sukuk, Islamic bonds, had been issued as the country is seeking to benefit from the surplus liquidity of the Islamic banks to finance big investments that can help boost the national economy.
The Islamic Sukuk Unit at the Central Bank of Yemen was responsible for the issuance which was part of a one-year programme introducing sukuk worth YR 100 billion by the end of 2011.
Every three months, the unit will issue sukuk worth $ 125 million.

The recent launch of an Islamic equity index by the Bombay Stock Exchange (BSE), TASIS Sharia 50, received more media coverage globally than India Islamic indexes from the index providers.
A Google search of "Islamic index India" provides 279,000 results, comparable to "Islamic index Malaysia" (270,000), Pakistan (274,000), Saudi Arabia (272,000) and Turkey (259,000), and almost ten times more than the GCC (36,500), at the time this article was written.

Islamic home-finance provider Tamweel PJSC, based in Dubai, announced on Sunday that it swung back into the black in 2010, posting a modest net profit of 7.08 million dollars.
The figure represents a "turnaround" from Tamweel's financial performance in 2009, when it posted a net loss of 14.8 million dollars.

Demand for Islamic private equity in Gulf Arab states is on the rise among investors who value its more prudent debt approach and its flexibility in structuring deals, even though the sector faces hurdles in the form of a shortage of qualified professionals and restrictions in its investments options.
As private equity activity is picking up again after it came to a virtual standstill during the financial crisis, Shariah-compliant private equity in particular is emerging as a popular investment tool among regional investors.

Japan has included tax reforms and regulatory measures for Islamic finance, as part of the country’s financial strategy, which is one of seven key components of the government’s “new growth strategy — blueprint for revitalizing Japan.
Malaysian Government-Linked Companies (GLCs) under the program are required to increase their investments through Islamic finance structures and to venture cross-border with the aim of developing a diversified and enhanced returns strategy.
Islamic finance facilitation, albeit a niche objective, fits in with Japan’s new growth strategy in other ways as well.

BI (Bank Indonesia) has also secured approval from the House of Representatives to join the newly established International Islamic Liquidity Management .
This is to attempt to grow the country's Islamic banking sector.

The Ugandan central bank is currently struggling to address demands for the first sharia bank in the East African country.
Bank of Uganda, the republic’s central bank, has therefore sent delegates to Indonesia, home to the world’s largest Muslim population, to learn more about Islamic finance.

The Minister of Finance and National Economy, Ali Mahmoud, has called on the Islamic Investment Insurance and Export Credit to provide collateral for the security of the Sudanese exports and investment in Sudan in all fields.
He added that providing of security for these products will enable Sudan to provide food security to the Arab and Islamic worlds, urging coming out with an obvious vision in coordination with the Sudanese institutions to benefit from security provision availing by the the Islamic institution for the exporters and investors from the member countries.

Sharia-compliant reinsurer Best Re will grow its business in Africa and eventually expand into South America to diversify its sources of income which is mainly derived from Asia.
Asia, specifically countries such as China, Indonesia and Malaysia, accounts for three-quarters of Best Re's income and the company wants to bring this share to about 60 percent within five years.

The Islamic bank said that the open-ended fund will invest in publicly traded stocks of companies that meet strict Sharia law criteria.
Al Hilal Bank has appointed Abu Dhabi-based investment company Invest AD as investment advisor to the new fund and HSBC to provide custodial and administrative services.

Abu Dhabi Islamic Bank swung to a profit in the fourth quarter of 2010, beating analysts forecasts as customer deposits and fee income rose.
Analysts polled by Reuters had estimated an average fourth-quarter profit of 196 million dirhams. Annual revenues increased 22 percent to 3.07 billion dirhams, with customer deposits rising 17.2 percent from a year earlier. Group fee and commission income increased 43 percent in the fourth quarter.

Islamic bonds from the Arabian Gulf may extend last week’s rally as the resignation of Egyptian President Hosni Mubarak bolstered investor confidence that turmoil in the Arab’s world’s most populous nation will subside.
The yield on Dubai’s 6.396 percent sukuk due November 2014 declined 25 basis points last week to 6.28 percent on Feb. 11.

Kuwait Finance House (KFH) said on Sunday its net profit in 2010 dropped 10.7 percent, despite a rising asset base.
In 2009, the bank's profit dived 24 percent due to the global financial crisis.

QInvest is working to conclude two “reasonable size” mandates for initial public offerings by local companies this year.
The company is still planning to offer its shares to the public as it pursues expansion in the Middle East.

The Farz Foundation recently hosted the first National Islamic Microfinance Conference in Lahore, Pakistan, in an effort to develop solutions for the microfinance industry in Pakistan.
Among the ideas proposed to move away from lending practices that “create overindebtedness and violate the principles of customer’s ethic” is the Farz Methodology, a microfinance model promoted by Farz. The methodology, based on Islamic principles, offers free business and health education to clients, prior to offering funding, in deference to Sadqae Jariah (social responsibility). Farz offers loans to clients for the purchase of assets, such as real estate and business equipment. The loans, called murabaha, are interest-free but stipulate that the lender be entitled to a 24-percent profit on the proceeds from the asset.

Al Amal Microfinance Bank of Yemen has been awarded US$104,000 under the Islamic Microfinance Challenge 2010, a partnership launched to encourage the reach of Islamic financial services to micro-entrepreneurs.
CGAP, Deutsche Bank, Grameen-Jameel Pan Arab Microfinance, and Islamic Development Bank partnered to sponsor this global competition to uncover viable business models that provide microfinance products compatible with Islamic law, or Shariah.

Saudi Electricity Company has invited banks for a potential bond mandate, reported IFR Markets.
A request for proposals (RFP) has been sent to a limited number of local banks and international institutions with operations in Saudi Arabia, and replies are due by the end of February.

Uganda has received applications from three Islamic banks in the Middle East to offer Shariah-compliant financial services in the country.
The African nation is changing its banking rules to allow lenders to operate under Islamic law and representatives from its central bank are in Jakarta to learn from Indonesia’s experience.

Conventional banks with Islamic arms will meet the banking regulator shortly with a joint plea that their Islamic operations that are to be closed by the year-end be converted into a single and independent Shariah-compliant bank.
Officials of the affected banks have met and prepared the proposal which is to be submitted to the Qatar Central Bank today or tomorrow.
If QCB agrees to study the proposal for approval, the name and the capital of the new Islamic bank would be decided and a detailed study would be conducted by a think-tank from within the local banking industry to assess the viability of the proposal.

South Korea will renew its push to allow tax exemptions on Islamic bonds issued by companies to help local borrowers tap growing Muslim wealth.
The government’s “top priority” at a parliament session starting on Feb. 18 will be to pass a bill on Islamic bonds and another to impose a levy on banks’ foreign-currency debt.