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Broking firm, Miller has recruited Razi Sulaiman, a treaty reinsurance and takaful specialist, for its Malaysia operations. Miller anticipates significant future growth in the takaful sector and Razi will help to further develop the company's presence in this arena. Razi Sulaiman has built up knowledge of treaty and facultative reinsurance having specialised in technical support and claims previously. He began his career with Uni Asia Insurance before joining Miller. Working closely with Faris Davidson and the rest of the team in Malaysia he will help to grow Miller’s treaty and facultative book, focussing on Malaysia, Brunei & Indonesia and with particular emphasis on the takaful sector.

Operators seeking the licence to underwrite Takaful Insurance have continued to turn in their applications to the National Insurance Commission (NAICOM). Since the process is still ongoing, the number of applications is still not known. Interests have been received from underwriters and the general public. NAICOM will through the licensing demystify insurance practice, making it possible for operators to operate at the grassroots. Ibrahim Hassan, deputy commissioner for Insurance (Technical) NAICOM, said the interested companies must maintain a minimum deposit in a non-interest financial institution at all times and that the provision for the establishment of an Advisory Council of Experts (ACE) must be made in the articles of the Company and there should be establishment of investment policy for the participants’ Risk Fund.

Daman Islamic Insurance Company’s net profit crossed QR40m for the first nine months of 2013. The figure reflects a 111 percent increase compared to the same period in 2012. Announcing the financial results, Daman Islamic Insurance Company Chairman Sheikh Jassim bin Hamad bin Jassim bin Jabor Al Thani said the returns from the investments increased by 160 percent on year-on-year basis. Sheikh Jassim attributed the company’s strong performance during the period to the diverse insurance products available in the market. The opening of new branches also supported the growth, he said.

Syarikat Takaful Malaysia is targeting double digit-growth in new business this year driven by its family and group segments. Group managing director Datuk Mohamed Hassan Kamil said the company aims to maintain its lead in the group family takaful business, capturing 40% of the market sector, and 20% of the combined family and general takaful business. He noted that Takaful Malaysia will carry on being cautious in accepting only profitable underwriting contracts while avoiding those prone to greater risks. Hassan also mentioned that developing new product offerings is definitely an area the company is looking into as it strongly believes this would likely be the key driver of sales. Takaful Malaysia's growth areas are still within the fire and engineering segments.

BIMB Holdings yesterday received shareholders' nod to buy the remaining 49% stake it does not own in Bank Islam Malaysia Bhd from Dubai Financial Group (DFG) and Lembaga Tabung Haji (LTH). The acquisition is expected to be accretive to the group's earnings by another 5% from the financial year ending Dec 31, 2014 (FY14). With BIMB's current 51% controlling stake in Bank Islam, the Islamic banking unit is already contributing 85% to the group's revenue and earnings. BIMB shareholders also gave the green light to BIMB to raise up to RM3 billion through a combination of a rights issue and a sukuk to part-finance the acquisition. Besides, BIMB might reportedly acquire stake in Bank Muamalat Malaysia from state investment fund Khazanah Nasional and conglomerate DRB-Hicom.

The Insurance Commission (IC) is looking at the feasibility of establishing an Islamic insurance system, particularly the possibility of offering takaful insurance in the country to help Filipino Muslims. Taking notice of the disasters and destructions that happened in the southern part of the country, Insurance Commissioner Emmanuel Dooc said the IC is looking for ways to help the Muslims in Mindanao. Plans include the setup of an investment advisory council for preneed life and non-life that will look into viable investment activities, and the mandatory earthquake insurance for residential units and small and medium enterprises. However, the IC sees the need for Islamic finance regulations to be able to offer takaful products.

A report issued by KFH-Research revealed that the global sukuk market recovered during the month of September last year to reach in its new issuances USD 7.8 billion - a 33pct growth. Malaysia still accounts for the largest share of the issuance where the Malaysian Ringgit came in first place in terms of the currencies that sukuk issued through. No sukuk were issued of the U.S. dollar in September. The most notable issuance during the month was by Saudi dairy and food firm Almarai Co. which completed the sale of a SAR1.7 billion (USD 453.1 million). Sovereign issuers made up 84.9pct of the primary market in September, while government related entities accounted for 4.0pct and corporates took the remaining 11.1pct. A total of 47 sukuk were issued in September vs. 55 sukuk in August and 66 in July.

Al-Rajhi Bank said third-quarter net profit fell 8.1 percent. The bank made SR1.72 billion ($458.6 million) in the three months to September 30, compared with SR1.87 billion in the same period a year earlier. Al-Rajhi attributed the fall in net profit to a decrease in operating income, which dipped 4.6 percent compared to the corresponding period of 2012. It did not elaborate further. Al-Rajhi's loans and advances at the end of the third quarter stood at SR185 billion, gaining 12 percent on the same point of 2012. Its total assets were worth SR273 billion at the end of the third quarter, up 10 percent on the corresponding point in 2012.

The Nigerian State of Osun has completed N11.4bn sukuk bond issue. The sukuk bond was issued in accordance with enactment of the Osun State Bonds, Notes and Other Securities Law 2012 and setting up the Osun Sukuk Company Plc. Though Islamic in nomenclature, the sukuk bond was a conventional bond and coordinated by the regular investors in the nation’s capital and money market. The N14. 4 bn sukuk (14. 75 per cent) fixed return tranche 2 has 42 investors with Lotus Capital Limited as the leading issuing house and Augusto and co, one of Nigeria’s rating agencies, as the rating agent. Out of the 42 investors, only one of them (Jaiz Bank) is Islamic and the name sukuk is just a nomenclature, saying that the investors are regular Nigerians.

Shahjalal Islami Bank Ltd. has signed a Memorandum of Understanding regarding e-GP (Electronic Government Procurement) system with the Central Procurement Technical Unit (CPTU), Implementation Monitoring and Evaluation Division (IMED), Ministry of Planning. Under this Memorandum, Shahjalal Islami Bank Ltd. will provide e-GP (Electronic Government Procurement) service within the territorial jurisdiction of the Bank. CPTU of the Ministry will provide e- GP Portal Dashboard and training to nominated focal persons of the Bank for the use of payment system under e- GP. On the other hand, CPTU Ministry of Planning will publish the names of the Bank in e-GP portal link to the Bank as the e-payment service provider.

The Bahrain Chamber of Dispute Resolution (BCDR) ordered Bank Alkhair's former Chief Executive Officer, Majed Al-Refai, in a verdict to repay a $2 million loan he had taken during his tenure as CEO, and to compensate the bank for all legal fees and costs. The latest ruling against Al Refai follows several other criminal cases involving Al Refai and associates which have all been ruled in favor of the bank. On 29 September 2013, the Supreme Criminal Court of Appeal sentenced Al Refai and his Canadian associate Robert Little each to one year in prison for forging the bank’s Articles of Association. The bank has confirmed numerous legal proceedings, which are ongoing since September 2010, all within the jurisdiction of the Kingdom of Bahrain, and do not affect the ongoing operations of the bank.

The financial crisis has changed the focus for Bahraini investment banks away from bumper projects and the preference now is for slimmer balance sheets, according to GFH founder Essam Janahi, who last week stepped down as chairman. GFH has now reduced its liabilities to $223 million, from over $2 billion at the peak of the crisis, and is rolling out a more conservative strategy. Future investments will shy away from aggressive rates of return and favour smaller deals to better manage risk, Janahi said. Even some Islamic investment banks which rode out the global crisis fairly comfortably have streamlined their operations and say they will not spurn relatively small deals. Qatar's QInvest for example has streamlined operations and discontinued areas such as wealth management and brokerage services.

Saudi Arabia's National Industrialization Company (Tasnee) has signed a sharia-compliant loan facility worth SR4 billion ($1.06 billion) with seven Saudi banks and Emirates NBD. The Saudi banks which contributed are Riyad Bank, Al Rajhi Bank, Bank Al Bilad, Saudi British Bank, Samba Financial Group, Banque Saudi Fransi and Saudi Investment Bank. The financing, signed on Sunday, will be repaid in eight years including a one-year grace period. The loan, which was covered 1.5 times, will finance the company's stakes in future projects and refinance existing loans.

The financial crisis changed the focus of Bahraini investment banks away from bumper projects and the preference now is for slimmer balance sheets, according to GFH founder Essam Janahi, who last week stepped down as chairman. GFH has now reduced its liabilities to $223 million, from over $2bn at the peak of the crisis, and is rolling out a more conservative strategy. Future investments will shy away from aggressive rates of return and favour smaller deals to better manage risk, Mr Janahi said. Bahraini firm Arcapita filed for bankruptcy protection in a New York court in March last year, emerging from Chapter 11 last month with a five-year plan to sell legacy assets to pay creditors. Last week, the reorganised firm appointed a new seven-man board of directors that includes a representative from Bahrain's central bank and the chief executive of Bank Alkhair.

The Islamic Development Bank (IDB) is considering setting up an Islamic bond issuance programme in Dubai. It would be the IDB's first sukuk programme in a Middle Eastern country. While discussions are at an early stage, the IDB has seen growing demand for its sukuk and already plans to expand its main London-listed programme to $10 billion from the current $6.5 billion.The IDB sukuk could offer a much-needed boost to trading volumes and encourage issuers from outside the emirate to choose Dubai as their listing venue. Support for sukuk issuance is part of a broad cooperation agreement signed in July between the IDB and the government of Dubai.

Islamic Microfinance is an effective tool for the poverty alleviation and it should be introduced around the globe to state an effective policy for ultimate poverty alleviation from the world, Dr. Fatima Mohamed Yousif Al-Balooshi, Minister (Ministry of Social Development - Bahrain) stated. Dr. Fatima Al-Blooshi was speaking as a Chief Guest in the 3rd Global Islamic Microfinance Forum (GIMF) held on 6th to 8th October, 2013 in Dubai. Muhammad Zubair Mughal (CEO - AlHuda CIBE), said that the involvement of interest in micro financing is one of the major causes behind the increasing poverty in Muslim countries. He said that the forum aimed to streamline the policies for poverty reduction, to promote the Research and Education in Islamic Microfinance industry and to enhance its outreach on global canvas.

Islamic International Rating Agency has upgraded the national scale ratings of Kuveyt Turk Participation Bank on both the short-term and long-term scale to AA-/A-1 + (Double A Minus /A-One Plus) from A+/A-1 (A Plus/A-One) previously. Ratings on the international scale have been reaffirmed with local currency ratings at BBB/A-3 (Triple B/A-Three) and foreign currency assessment at BBB-/A-3 (Triple B Minus/ A-Three). Outlook on the ratings is 'Stable'. The ratings draw on recent, continued business expansion, reinforced by fresh capital provided by the bank's sponsors. Organization level improvements in terms of strengthening the control areas and adding focus to certain business functions, has also been noted.

Al Salam Bank-Bahrain (ASBB) shareholders approved by majority the Board of Directors’ recommendation to merge the bank with BMI Bahrain through exchange of ASBB shares. The Chairperson H.H. Shaikha Hessa bint Khalifa Al Khalifa pointed out that ASBB’s strategy is to grow organically and through mergers and acquisitions, and consistent with this strategy the Board of Directors had been continuously on the lookout for suitable commercial banking targets to acquire and integrate. H.H Shaikha Hessa mentioned that upon merger the Group will have total assets of circa BHD 1.8 billion, financing facility of circa BHD 1.2 billion, equity of over BHD 285 million and total customer deposits in excess of BHD 1.2 billion.

In the executive summary of its report on GCC Islamic Finance, Kuwait Financial Centre “Markaz” notes that at the end of 2012, assets under management (AUMs) in Islamic finance reached $1.76 trillion. The Islamic finance industry reached about $434 billion in size, in the GCC, for the year ending 2011. The report points out that global Takaful market is estimated to touch about $25 billion by end of 2015. A variety of factors contribute to the remarkable rise in the Islamic finance assets, said Markaz, including growing GDP, rising middle class society, and most importantly increased awareness of the concept of Islamic finance. However, Markaz also notes there are challenges, relating to evolving standards, shortage of expertise in the industry. Furthermore, the capital markets in the GCC region are relatively underdeveloped which hinders the growth of Islamic finance in the region.

Islamic banking has a presence in India in the form of NBFCs and Baitul Mal (Islamic Treasury), but the business is small. Many Indian institutions, including some government-owned ones, have shown interest in this growing niche opportunity, for example Kerala government-owned KSIDC. India needs an Islamic banking model as a tool of financial inclusion. Moreover, India could attract the Middle East’s high investible surplus through Islamic banking and finance. However, there are also challenges, like the regulatory framework, dearth of Islamic banking professionals and lack of awareness. By not introducing Islamic finance, India is losing the opportunity of garnering capital from a large section of the Muslim population as well as from Islamic nations in the Middle East and elsewhere.