Islamic Banking

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Janahi named Vision 3 chairman

Vision 3 is strategic alliance formed by the trio of leading Middle Eastern banks, Gulf Finance House (GFH), Ithmaar Bank and Abu Dhabi Investment House (ADIH). The primary goal of Vision 3 is to create tailored Islamic financial institutions. Vision 3 has already announced the creation of InfraCapital, the GCC's first investment bank specialising in the provision of tailored infrastructure development and finance; AgriCap, a new investment vehicle focused entirely on serving agricultural ventures and communities and Hospitality Development Fund (HDF), established to nurture and support opportunities across the global hospitality sector.

The board members include GFH chairman Esam Janahi who will be chairman of the company, Bonyan International chairman and chief executive officer (CEO) Imad Nesnas, ADIH chief executive officer Rashad Janahi and Ithmaar Development Company CEO Mohamed Khalil Al Sayed

Al Hilal Bank stalls overseas plans

TradeArabia published a Reuters News on 8 January that Abu Dhabi's government-owned Al Hilal Bank is unlikely to break even this year and may slow overseas expansion due to the global crisis but will grow organically in the UAE. Al Hilal became operational in June last year and expected originally to turn a profit in 2009.

Bank Al Jazira plans USD 40 mn dividend

Ameinfo reported on 8 January that Saudi-based Bank Al Jazira plans a SAR 150 mn or SAR 0.5 a share, cash dividend payout for 2008.

Qatar Investment Authority invests into local banks USD 3.57 bn

The daily Alqabas reported on 8 January that the Qatar Investment Authority invests Qatary Riyyal 13 billion in the local banking sector, including the three Islamic banks. Qatar International Islamic Bank agreed to the new investor, which is going to hold 20 % of the shares after the capital raise.

Deyaar's contracts will be Shariah-compliant

Business 24/7 reported on 6 January that the real estate developer said that Deyaar's contracts will be Shariah-compliant and they are going to deal exclusively with Islamic banks. Deyaar is an affiliate of Dubai Islamic Bank. Markus Giebel, the CEO of Deyaar has written a column for Business 24/7.

Minhaj Shari'ah Financial Advisory opened in Dubai International Financial Centre

Zawya reported that Dr. Abdul Sattar Abu Ghuddah the Chairman of Minhaj announced the launch of its operations in DIFC, which will provide advisory and training services. Sheikh Amin Fateh is the resident Sharia Advisor. The other Sharia scholars involved are: Dr. Mohammad Sultan Al Olama, Dr. Muhammad Amin Qattan, Dr. Yousef Abdullah Al-Shubaily, SH. Abdul Sattar Kattan and Dr. Ibrahim Ali Alshal.

About Minhaj
MINHAJ is a DIFC based company specializing in providing Shari'ah financial advisory services, supervision, Shari'ah auditing, revision and training for Islamic and traditional financial institutions. It is the outcome of a partnership between Tharaa Holding and a number of most prominent scholars and specialists in the Islamic financial services industry world wide.

Source: 

http://www.zawya.com/Story.cfm/sidZAWYA20090106092423/Minhaj%20Shari'ah%20Financial%20Advisory%20launched%20in%20DIFC

Alternative to GCC Currency Union?

Chris Cook opined in an Asia Times Online feature as guest writer that the Gulf takes the wrong currency path, commenting on the announced creation of a GCC currency union along the lines of the Euro. He sees the alternative to the central banking model as a peer-to-peer "Gulf Clearing Union" similar to the Swiss Wirtschaftsring-Genossenschaft. WIR members are obliged to give security over their property by way of collateral, it is a monetary system that is "property-backed". The key innovation that will enable a Gulf Clearing Union is the simple expedient of creating - within a suitable legal framework - a "petro" unit redeemable in a constant amount of energy value. Settlement of credit would take place in petros, in goods or services by reference to the petro, or in dollars or other currency acceptable to the seller.

Chris Cook is a former director of the International Petroleum Exchange and is now a strategic market consultant, entrepreneur and commentator.

Swiss WIR bank concept: http://www.wir.ch/

Islamic Commodity Investments

Devon Maylie reported on 5 January in Barron`s magazine, that commodity-focused companies and hedge funds are introducing special products that comply with Islamic law, either equity based or as direct exposure to commodities. Ian MacDonald, executive director for gold and precious metals at Dubai Multi Commodities Center is cited to claim that there are not enough effort spent on Sharia compliant commodity products so far. The DMCC is seed financing with USD 50 mn each a range of commodity oriented equity funds managed by BlackRock Capital Management, Tocqueville Asset Management, Zweig-DiMenna International Managers and Lucas Capital Management on its platform in partnership with US based Shariah Capital. London-based ETF Securities last year launched an exchange-traded fund for precious metals that is being marketed to Sharia investors. The World Gold Council is also partnering with DMCC to launch a similar product in March.

New Islamic Bank in Djibouti

AllAfrica reported on 27 December 2008 about the openining of Salam African Bank collaborated by Somali and Djibouti businessmen and openend by Djibouti president Ismail Omar Guelleh.

Mohamed Yusuf Ahmed Allore is said to be one of the managers.

Reuters: Japan investors interested in Islamic products

Reuters reported on 30 December that Japanese investors have expressed interest in developing Islamic capital market products, according to a local newspaper quoting Aseambankers Chief Executive Officer Mohammed Rashdan Mohammed Yusof. No company names were disclosed in the interview, however Aseambankers, the investment bankers of Maybank Group plans to develop the Sukuk market in Japan.

Uganda: Global Trust Bank to introduce Sharia banking

UGPulse.com reported on 18 December that Global Trust Bank considers to introduce Sharia banking. Global Trust Bank was recently created and has its headquarters in Nigeria.

Richard Byarugaba is the Managing Director and told journalists that the bank is going to carry out a survey in the Ugandan market to see whether Ugandans need and are ready for such a product of sharia banking.

Japan moves carefully toward Islamic finance

Manabu Hara reported on 12 December in Asahi Newspaper that the Japanese Government has taking a step more to introduce Islamic finance. Earlier this month, the Financial Services Agency (FSA) amended financial regulations to let bank subsidiaries handle Islamic finance operations. But still Murabaha transactions are subject to tax issues.

Islamic Microfinance

Dear All,

Please post here any information, concepts and ideas to foster Islamic Microfinance.

Best regards,

IslamicFinance.de

Dar eyes UK Islamic banking unit

Arabian Business reported on 28 April that Investment Dar its proposed British bank unit 'Dar Capital' might start with capital of up to GBP 100 mn. A project study should be finished by year-end.

Chairman of Investment Dar is Adnan Al-Musallam.

Source: http://www.arabianbusiness.com/517695-dar-eyes-uk-bank-with-up-to-100-ml...

Al Khaliji bank in Qatar gets more active in Islamic finance

Pratap John in Gulf Times reported on 24 April that Al Khaliji bank will be concluding more Shariah-based transactions including co-arranging a Sukuk in Qatar after obtaining the Qatar Central Bank’s approval for an Islamic branch. The bank plans to open branches successively.

Al Khaliji chief executive officer is David Proctor.

Source: http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=214610...

Jordan Islamic Bank well rated and positioned

Arab News reported 28 April about Jordan Islamic Bank (JIB), being one of the oldest establishments along with Dubai Islamic Bank and Kuwait Finance House. Fitch Ratings end March 2008 assigned a 'BB-' foreign currency long-term issuer default rating (IDR) and a 'B' foreign currency short-term IDR to JIB with a long-term stable outlook.

JIB is a subsidiary of the Al-Baraka Banking Group (ABG), which is incorporated in Bahrain and is the restructured holding company of the financial services division of Jeddah-based Dallah Al-Baraka Group (DAG) headed by Saleh Kamel.

Musa Shihadeh is the general manager of JIB.

Source: http://www.menafn.com/qn_news_story_s.asp?StoryId=1093194499

Arab Bank lists funds on the Cayman Island Exchange

CPI Financial reported on 22 April that Arab Bank Fund Managers (Guernsey), a subsidiary of Arab Bank lists nine investment funds on the Channel Islands Stock Exchange. The IIAB Sukuk and Murabaha MENA Fund and the IIAB MENA Feeder Fund, are Shari’ah compliant funds and are both part of International Islamic Arab Bank Protected Cell Companies (IIAB PCC). The investment adviser for these funds is AB Invest in Jordan.

All of the funds are dollar denominated and open-ended, with monthly valuation and dealing.

The Guernsey administrator for all the funds is Legis Fund Services.

Source: http://www.cpifinancial.net/v2/News.aspx?v=1&aid=203&sec=Wealth%20Manage...

CIMB to expand Islamic banking in Middle East

The Star Malaysia reported on 22 April that CIMB group intends to expand its Islamic banking business in Dubai and Saudi Arabia via acquisitions.

The group via Bumiputra-Commerce Holdings Bhd recently acquired a 19.99% stake in China-based Bank of Yingkou Co Ltd.

CIMB group chief executive is Datuk Nazir Razak.

Source: http://biz.thestar.com.my/services/printerfriendly.asp?file=/2008/4/22/b...

Markaz completes structuring of Arbun Call Option

Kuwait Financial Centre 'Markaz' released on 23 April that they developed an Arbun contract, functioning similar to an American option. Kuwait Stock Exchange is trading conventional options since 2005.

The Arbun (downpayment with revocation option) can be both cash and physically settled at anytime on or before the maturity date. The product has been submitted to the Kuwait Stock Exchange for their review and approval.

Mr. Hussein Zeinnedin is Assistant Vice President - Derivatives at Kuwait Financial Centre 'Markaz'.

Source: http://www.ameinfo.com/154396.html

France to host meetings on ‘Islamic finance’

Arab Times reported that the French Senate,is organizing two round table discussions May 14 to examine the role France can play in attracting Islamic funds.

Senates Finance Commission president Jean Arthuis will preside the meeting and Zubeir Bin Terdeyet, Director of Isla Invest, Maya Boureghda, a legal counsellor at BNP Parisbas, Anwar Hassoune, vice-president of Moodys rating company, Vincent Lauwick, SGAM Asset Management, London, Jean Francois Pon from the Federation of French Banks and Gilles Saint Marc, a lawyer from AARPI.

Source: http://www.arabtimesonline.com/kuwaitnews/pagesdetails.asp?nid=16009&cci...

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