IslamicFinance.de

Islamic finance is coming to Spain, where it estimates it will find a potential market of two million clients reported Paola Del Vecchio on Ansamed.

According to financial newspaper Negocios, the Halal Institute - the centre of Islamic quality certification in Cordoba operating under the Spanish Islamic Commission - is shortly to sign an agreement with the Sa Nostra building society in the Balearic Islands for the creation of an Islamic current account.

According to market research carried out by the Halal Institute, potential clients in Spain have good earnings, a high level of loyalty to their bank and a low rate of payment default. Thanks to the agreement soon to be sealed by the Halal Insitute and Sa Nostra, Muslim residents of the Spanish archipelago will also be able to open special current accounts to collect the funds needed to be buried in the first Islamic cemetery in the Balearics, without the bank taking any commission or adding any interest to the holder's deposits.

QInvest will soon launch a USD 250 mn private equity fund and another sector-specific fund as well as two other funds by the third quarter of this year reported Santhosh V Perumal in Gulf Times

The Qatar Financial Centre-based firm, whose principal shareholders are Qatar Islamic Bank and Gulf Finance House, also said it would also embark on brokerage and wealth management services.

CEO is Shahzad Shahbaz.

Investment Dar failed to pay a “periodic distribution” due on April 27 to holders of its Sukuk maturing in 2010.

Governor of Central Bank of Iran (CBI)Central Bank of Iran (CBI) Mahmoud Bahmani has promised to supply the initial capital for the establishment of Cooperatives Development Bank. Managing Director of Cooperatives Fund Mashallah Azimi told Mehr News Agency that the proposed bank would start operation this year.

Increasing number of defaults will lead to test the legal framework and stability of the Islamic finance structures in centres such as Dubai, Bahrain and Malaysia. Judges will have to weigh conventional law and sharia (Islamic law) used in contracts, and legal uncertainty over key contract provisions could hurt the industry's ability to bounce back when the global economy recovers. The industry will be watching to ensure any legal disputes are settled in a transparent manner which gives certainty to the contract terms entered into, said Davide Barzilai, a London-based Islamic finance lawyer with Norton Rose.

The Dubai Financial Market has finalised comprehensive standards to be established for the issuance of Sukuk and awaiting approval of authorities.

International Bank Qatar launched a new branch Al Yusr Islamic banking to offer consumer, personal finance and corporate anking.

Ambank Group entered the market of Brunei Darussalam with the opening of its subsidiary called AmCapital (B) Sdn Bhd. Ambank has regional expansion plans to bring its expertise in funds management, Islamic finance and investment advisory to the Sultanate, reported Amin Hosni in Brudirect.com

Brunei Darussalam welcomes Islamic finance players such as takaful and sukuk to promote the country as another Islamic financial centre.

Dubai’s Nakheel receives bail-out cash, but the amount is not disclosed, reported Simeon Kerr in the Financial Times; it is also said that Nakheel was restructuring some payment plans with suppliers.

Contractors say developers such as Nakheel have started to honour some – but not all – payments, after months of delay.

Noor Islamic Bank PJSC issued a statement saying that their Tunisian representative office is operational and that they continue to explore market opportunities in North Africa, while assessing regional market trends and having to readjust plans to reflect the reality of the slowdown.

The statement followed news announcing the closure of the rep office by some media.

"SAVE THE DATE"
16th June 2009, 09:30 – 12:30
Islamic Cultural Centre - London Central Mosque, Regents
Park, London

Faith in Capitalism
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The new yearbook includes Standard & Poor’s latest analysis and rating methodologies on almost 40 rated Islamic debt issues and issuers, and an overview of its suite of global benchmark and investable Sharia indices.

While total global sukuk issuance more than halved to $14.9 billion in 2008 from $34 billion in the previous year, Standard & Poor’s believes the outlook for Islamic finance remains strong. Sharia-compliant assets now total about $700 billion after growth exceeding 10% annually during the past decade.

Full 70+ pages report for free download at:

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Beginning of May the OIC Member States' Stock Exchanges Forum took place in Teheran, which was themed: enhancing cooperation among the Islamic countries' Exchanges.

RHB Banking Group is extending its Islamic banking services to Singapore reported Gabriel Chen on asiaone business.

Gilles Saint-Marc, a Paris based lawyer is cited that the first Islamic bank in France may start already in June 2009.

Malaysian Governor Zeti Akhtar Aziz said to Bloomberg, that an international Islamic financial institution of a large size that can take international business, whether business in Europe, or South Korea or any part of the world is wanted to be seen, reported Shanthy Nambiar and Haslinda Amin on Bloomberg.

Amlak Finance will halve its investment in Sky Gardens, a tower located near the Dubai International Financial Centre (DIFC). Amlak had purchased properties in various parts of Dubai to sell them to potential purchasers. As buyers have become fewer, the company decided to scale back its investment.

Mawarid Finance announced in cooperation with Al Aswaq Al Arabiya of Al Arabiya News Channel the launch of an e-portal dedicated to Islamic economics. The new e-portal features a database of Islamic financial companies and institutions in addition to fatwas related to Islamic financial transactions, products, updates on Islamic financing.

A link was provided in the Press Release.

Ayah el Said and Rachel Ziemba discussed risk management considerations comparing stress testing in conventional finance and the Islamic finance industry on RGEMonitor.

For Islamic financial institutions, a plausible scenario means factoring in possible contractions in several of the economies that have been the centers for Islamic finance as well as significant asset market corrections which would weaken the balance sheets of Islamic financial institutions. A stress scenario should factor in at least another 40% drop in property prices in Dubai and considerable drops in other markets. The increased risks of investment losses on the one hand, and rising non-performing loans on the other, adds to the vulnerability of Islamic banks.

Bahrain’s central bank confirmed that it has appointed Deutsche Bank, HSBC Bank and Calyon as lead managers for its upcoming sale of the sovereign USD 500 mn 5-year Sukuk.

It will also issue 3-year debt in local currency to raise a further 250 mn Bahraini dinars.