Asia

Cagamas, Lebanon, Waha Capital Plan Sales: Islamic Bond Alert

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

Islamic Finance must turn to its roots, by Muhammad Ayub

The global economy is facing a deep downturn as a result of the crisis. It was due to excessive
ability to create money and credit for earning increasing profits without creating anything of
value for use by the mankind. The system needs radical change in the approach, principles and
the operation of economic and financial systems. Creation of money, and lending it on interest –
interest based debts and financial obligations leading to undue receivables for the lenders, is
the biggest and primary problem of the conventional system. Islamic principles of finance
provide checks for the factors that have distorted the system. Enhanced supply of risk-related
capital, restricted risk taking, balanced return rate structure based on the real sector economic
activities, and supply of money commensurate with prospects of growth in an economy, provide
a sound basis for sustainable development. Hence, Islamic financial institutions and markets
have better ability to sustain in the hard times. Islamic banking industry should not only have
escaped unharmed during the crisis, it should also have availed the opportunity of developing

Islamic banks unfazed by new competition

The country’s existing Islamic banking players remain unfazed by the upcoming competition in the form of more licences to be issued for world-class Islamic banks and takaful operators. CIMB Islamic Bank Bhd executive director and chief executive officer Badlisyah Abdul Ghani said the move would result in a greater variety of syariah-based financial services and products being offered to the public.

PM to Muslims: Be moderate, adopt Wasatiyah concept

Najib said the 1MDB Foundation would also consider offering scholarships for students wanting to pursue other strategic and important fields like Islamic finance and banking.

Islamic Bank to float B55bn in bonds

The Islamic Bank of Thailand plans to float 55 billion baht worth of Islamic bonds in the local and overseas markets this year, says bank president Dheerasak Suwannayos. He said the bank hoped to raise 5 billion baht from a local Islamic bond issue in the second quarter, the first issued in the Thai market.

Nazir: Appoint minister to promote Asean

Asean member countries must have a minister to promote and champion the grouping’s causes within each country as the region moves towards integration by 2015, CIMB group chief executive Datuk Seri Nazir Tun Razak said

Asia to Drive 24% Growth in 2010 Global Sukuk Sales, CIMB Says

Sales of Islamic bonds may increase 24 percent this year, led by Southeast Asia, as the region’s expansion helps drag the world out of recession, said CIMB Group Holdings Bhd., the leading arranger of such issuance.

Experts pitch for Islamic banking in India

With the global financial crisis putting the spotlight on "casino capitalism" of the West, leading scholars and experts from the Arab world on Thursday pitched for interest-free Islamic banking as a solution and its introduction in India, home to the world's largest Muslim minority.

Islamic Microfinance - Business Proposal Competition

CGAP, Deutsche Bank, Islamic Development Bank, and Grameen-Jameel announced the Islamic Microfinance Challenge 2010: Innovating Sustainable, Scalable, and Market-Driven Models. The contest is a joint initiative to promote the innovative design of Shariah-compliant products for Islamic microfinance clients.

The organizers are seeking original Islamic microfinance business proposals which are profitable, sustainable, scalable, and Shariah-compliant. Finalists of this competition will be awarded with grant funds as well as need-based technical support to launch a pilot project of their proposed business idea.

It offers a unique opportunity to showcase innovative business ideas, gain industry-wide recognition, and benefit from the funds and technical expertise of leading institutions in the microfinance and Islamic finance sectors.

RP to miss Islamic finance boom in Asia this year

Islamic finance growth will stay strong this year, as Southeast Asia drives demand for financial products that comply with Islamic or Sharia law, debt watcher Standard & Poor's said.

But the Philippines is unlikely to benefit from this since Islamic banking remains an uncharted territory here, an official of the country's lone Islamic bank said on Monday.

Malaysia Needs Vibrant Stock Market For Islamic Finance Growth

Malaysia needs to develop a vibrant stock market to attract asset flow and support the growth of Islamic finance, first holder of the International Centre for Education in Islamic Finance (INCEIF) chair of Islamic finance, Dr Abbas Mirakhor, said Friday.

Pakistan to pay $600m on maturing Islamic bond

Pakistan is due to pay $600 million on a maturing 5-year Euro Sukuk bond, on Tuesday, an SBP official said.

Dawood Islamic Bank opens branches

Dawood Islamic Bank, Pakistan’s only double AA rated bank has completed its hat trick by inaugurating three more branches in Lahore.

Source: 

http://www.dailytimes.com.pk/default.asp?page=2010\01\27\story_27-1-2010_pg5_3

Bahrain bourse, Bursa Malaysia sign Islamic finance MoU

The Bahrain Financial Exchange and Bursa Malaysia signed an agreement to study a common platform on which Islamic finance products such as commodity murabahas can be traded. Malaysia's stock exchange launched a platform last year on which murabaha, an Islamic money market instrument, can be traded using palm oil as the underlying commodity.

PQFTL, EGIBL & FWU AG launch BancaTakaful product

Emirates Global Islamic Bank has launched a BancaTakaful product ‘Sarparast Family Takaful Plan’ in collaboration with Pak-Qatar Family Takaful and FWU AG a global facilitator of BancaTakaful.

Sime lists RM4.5b sukuk programme

Sime Darby Bhd yesterday listed its Ringgit Malaysia Sukuk Programme on Bursa Malaysia with a combined master limit of RM4.5bil under the Exempt Regime.

The World's Sukuk Markets are good medium-term growth prospects, says S&P

Medium-term growth prospects for the world's sukuk market are good, said Standard & Poor's Ratings Services in a report published today. In addition, we understand from unofficial market sources that about US$10 billion more could potentially enter the pipeline. If that comes to market, total sukuk issuance in 2010 could approach the current 2007 record of US$34.3 billion. The main uncertainty this year is market conditions.

Brunei Battles Credit Card Debt With Tighter Rules

Financial regulators in Brunei have placed restrictions on how small the amounts credit card issuers can set for monthly repayment of credit card debts, according to a directive from the country’s Ministry of Finance. Cardholder incomes also will determine credit card spending limits, the directive states.

India banking reforms focus on Islamic finance

India is planning to overhaul regulation of its financial system to attract investments from the Gulf and to encourage its largely unbanked Muslim population to save money in a way compliant with their religion, a senior government adviser has said. K Rahman Khan, deputy chairman of India's upper house of parliament, told the Financial Times that the ruling Congress Party is proposing reforms to the finance ministry, the Reserve Bank of India and Securities and Exchange Board of India to allow for the introduction of Islamic financial services.

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