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Shariah banking offers an opportunity for Africa's existing banks. In Kenya, the Gulf African Bank and the First Community Bank experienced exceptional growth. Standard Chartered said it would soon start offering Islamic banking products in Kenya. As African banks embrace Islamic practices, regulatory bodies are scrambling to issue Shariah-compliant policy statements and rules. Nigeria brought in new guidelines to help deal with sukuk and guidelines were established to deal with takaful. South Africa has rewritten its tax laws to ensure that Shariah-compliant products are more transparent. Uganda, Botswana and Zambia are also looking to make regulatory changes to grow their Islamic banking sectors.

The Governor of Zamfara State, Alhaji Abdul’aziz Yari, has said the state would invest the sum of N1.5 billion in Jaiz Bank to shore up the financial institution’s capital base. Speaking in Gusau while inaugurating the bank's 11th branch since it started operations in January last year, he urged citizens of the state to patronise the bank in order to realise the gains of non-interest banking. Moreover, the governor said local government funds would be invested in the bank. People will be mobilised through the mass media to educate them on the importance if the bank, he added. Meanwhile, the Chairman of the bank, Alhaji Umaru Mutallab, expressed appreciation to the governor for his interest in the bank.

The Islamic Financial Services Board (IFSB) and Bangladesh Bank has successfully organised a "Seminar on Prospects and Challenges in the Development of Islamic Finance for Bangladesh" on 23 and 24 September 2013 in Dhaka. The seminar aimed to create greater awareness on the latest developments on the Islamic financial services industry, and to discuss the issues in further augmenting its role in Bangladesh. The meeting consisted of five sessions where recent developments in the Islamic capital market, regulatory frameworks, microfinance among others were discussed. At the end of the one and a half day seminar, IFSB assured Bangladesh Bank of its constant support for the various initiatives to strengthen the Islamic finance in its member countries.

Malaysia is tightening rules for the $307 billion of stocks now deemed in compliance with Shariah law as it seeks to attract more investment from overseas Muslims. The Securities Commission will require companies to limit debt and cash that don’t conform to Koranic principles to less than 33 percent of total assets to qualify for Shariah listing, from no provision previously. The regulator will publish a revised list of equities next month from the current 801 that comply with religious tenets. The new regulations put the nation on a par with the conditions needed for inclusion in the Dow Jones Islamic Market World Index, which has a market capitalization of $14.9 trillion.

Dubai Chamber of Commerce and Industry , in partnership with Thomson Reuters , organised the first roundtable discussion for media on 'What is the Islamic Economy?' as a prelude to the 'Global Islamic Economy Summit' taking place in Dubai on November 25 and 26, 2013. Dubai is already enjoying a high status for Islamic banking and is in the process of enhancing halal food industry, trade policies and commercial laws, and Islamic tourism among other sectors and this Summit will provide the impetus to the future growth of the Islamic Economy. The Summit's topics of discussion will include the six major pillars of the Islamic economy: Islamic Finance; Halal Food; Halal Lifestyle; Halal Travel; SME Development; and Islamic Economy Infrastructure.

International Bank of Azerbaijan (IBA) is the first European bank to present the Qibla card, which corresponds to the rules of Islamic banking. IBA Islamic Banking Department head Behnam Gurbanzade said the card will be released into circulation in the near future. The cost of the card is 40 manats. The debit card was issued in conjunction with MasterCard Platinum. It is equipped with an electronic compass indicating the direction of Mecca. With the help of this card, the card holder will be able to cash funds in the account, as well as pay for the purchase of various goods and services. Qibla card will be issued as a debit card, but can also be used with a limit of debt, issued by the bank.

Oman's government may issue an international sovereign bond and an Islamic bond next year, its central bank chief Hamood Sangour al-Zadjali said. He did not provide details on the size of the bonds, however. While Oman aims to develop its fledgling Islamic finance industry, a debut issue of sukuk by the government would be a major step towards that. Zadjali also said Oman planned a domestic issue of government development bonds worth 100 million rials ($260 million) in the fourth quarter of this year. The procedes will be used for development purposes as well as for projects. Oman's banking sector is expected to grow 15-20 percent this year in terms of assets.

Yemen's government may issue a local-currency Islamic bond this year to finance its imports of petroleum products, its central bank governor Mohammed Awad bin Hamam said. The sukuk could be worth about 50 billion Yemeni rials ($233 million) and use a salam structure. The interest rate is expected to be around 10 percent, with a maturity of three or five years. Yemen's recovery plans are heavily dependent on foreign aid, but the recovery is fragile. The International Monetary Fund expected Yemen's gross domestic product to grow around 6 percent this year.

Cheraman Group, India’s first Sharia-compliant non-banking company is planning to fund several infrasturcture and industrial projects in the country. The company is gearing up to raise a large portion of its authorized capital of Rs10 billion (Dh588 million) from investors in the Middle East. Some of the directors of the group’s holding company Cheraman Financial Services Limited (CFSL), in which the Government of Kerala has a 11 per cent stake, met in Dubai last week and had consultations with senior officials of some of UAE’s banks and financial institutions as well as high net worth investors.Some of the projects under consideration include petrochemical and chemical plants and airport.

The Dubai Chamber of Commerce and Industry launched Anchor 100 Initiative to attract top world businesses to move to Dubai by highlighting the main 11 reasons to invest in Dubai. The reasons include low taxes and incentives, location and infrastructure, and qualified labor force. Besides, the Dubai Chamber together with Thomson Reuters will host the Global Islamic Economy Summit taking place in Dubai on November 25 and 26, 2013. According to Sayd Farook, Global Head of Islamic Finance at Thomson Reuters, there is still a huge untapped potential for Islamic Finance as 72 per cent of Muslims are non-banked. Growing further will need broadening the appeal of Islamic finance as well as targeting opportunities for growth in emerging Islamic markets.

Moody's Investors Service has today taken actions on National Bank of Bahrain, BBK, BMI Bank and Bahrain Islamic Bank. The ratings agency has confirmed that National Bank of Bahrain (NBB) and BBK received Baa2/Prime-2 deposit and senior debt ratings, with a negative outlook. Regarding BMI Bank, Moody's has extended the review for downgrade on the bank's Ba1 deposit rating, and affirmed the bank's standalone E+ bank financial strength rating (BFSR) with a stable outlook, equivalent to a baseline credit assessment of b1. In addition to these actions, Moody's has also extended the review for downgrade on all the ratings of Bahrain Islamic Bank (BIsB) to reflect its extensive capital needs and ongoing uncertainties around the recapitalisation of the bank.

Africa has big potential for Islamic finance. Nigerian Jaiz Bank for example aims to expand outside northern Nigeria and open 100 branches by 2017. Local conventional banks are getting ready to move into Islamic finance too, including Sterling Bank, which recently gained a licence to open an Islamic window. Despite Kenya’s smaller Muslim population compared to Nigeria, the country’s Islamic finance sector is also emerging. Gulf African Bank for example enjoyed over 154% net profit growth to $2.8 million. Other countries like Zambia are eager to catch up. However, the lack of competition might be a challenge, as well as conventional banking laws dictating Islamic finance.

Dubai’s Islamic bonds are the world’s best-performing sovereign dollar sukuk this quarter as the economy of the Arabian Gulf business hub gathers steam, with bank profits, tourist numbers and property prices rising. Dubai’s US$650 million of notes due May 2022 returned 5.3 per cent, the most among 33 Sharia-compliant sovereign bonds tracked by Bloomberg. The average return was 1.3 per cent. Dubai’s CDS, contracts insuring the emirate’s debt against default for five years, fell 86 basis points in the past 12 months to 199. They reached a five-year low of 187 on May 7. Dubai’s economy is set to expand 4.6 per cent, on average, between 2012 and 2015.

Islamic banking industry grew by nearly seven per cent during the second quarter of the calendar year 2013. The momentum in growth, however, started weakening due to increasing base, according to the Islamic Banking Bulletin of the State Bank of Pakistan. The report said the asset base of the industry reached Rs903 billion, registering year-on-year growth of 27pc, while deposits grew by 28pc to reach Rs771bn by the end of June 2013. Profit of the Islamic banking industry reached above Rs4.3bn by the end of June 2013, though lower compared to Rs5.9bn profit registered during June 2012, said the bulletin. During the quarter under review, non-performing financing (NPF) of Islamic banking industry witnessed a slight decline and was recorded Rs19.4bn compared to Rs19.5bn in the previous quarter.

Malaysia remains a forerunner in global sukuk with the global outstanding sukuk amounting to over US$148 billion as at June 2013, which represents 60.4 per cent of the total global sukuk. Deputy Prime Minister Tan Sri Muhyiddin Yassin said credit must be given to Bank Negara Malaysia, the Securities Commission Malaysia, Shariah scholars and the Islamic financial industry community for their efforts to bring Malaysia's Islamic finance marketplace to the current level of sophistication. Muhyiddin, who is also Education Minister, also pointed out that shortage of qualified experts in Islamic finance was the constraining factor for the innovation of new products and services in most countries.

Waqf (Wakaf) is the missing piece in Malaysia's Islamic financial system despite the country being the market leader with various sophisticated products and services. According to CIMB Islamic Bank chief executive officer Badlisyah Abd Ghani, waqf in a commercial manner is missing in the market today. Badlisyah said to have waqf in the financial market, there is a need for a conducive legal framework that will allow it for its incorporation in an effective manner.

Dubai is not currently in negotiations with Abu Dhabi to refinance $20 billion of crisis-related debt that will come due in 2014. The borrowed amount comprised $10 billion from the UAE central bank and $5 billion each from two state-owned banks in Abu Dhabi, National Bank of Abu Dhabi and Al Hilal Bank. The central bank debt is due to mature in February 2014, and the commercial bank debt in November 2014. Debt market analysts believe Abu Dhabi may quietly roll over the debt if Dubai is not ready to pay it back next year.

The Bangko Sentral ng Pilipinas (BSP) is planning to open up the its rediscounting window to sharia lending entities, essentially a mechanism that allows lenders to exchange their loan receivables for cash but at a discount, effectively giving them cash that they then use to turn around and give even more loans. The sharia rediscounting window forms part of a larger effort to achieve an inclusive financial system that delivers financial services not only to the unbanked but also to the Muslim community. Moreover, the BSP is preparing to draft new rules for the BSP to extend its financial services to Islamic banks that are in accordance with the provisions of Islamic banking. The draft bill has already been submitted to the Senate and the House of Representatives.

Malaysia's Shariah-compliant banks should be roped in to manage the country's 1.2 billion ringgit ($375 million) worth of properties held as Islamic endowments. Prime Minister Najib Razak announced this month that the Malaysian Wakaf Foundation will be turned into a corporate entity to derive more value from assets held by the trust. The move to open wakaf (endorsement) management to the private sector may boost business for Malaysia's Islamic banks towards growing their share of the country's total banking assets to 40 percent by 2020 from 24.1 percent presently. The Malaysian Wakaf Foundation will meet the government's Economic Planning Unit this month to finalize its immediate plans

Bahraini lender Al Baraka Bank's Turkish unit Albaraka Turk has secured an Islamic murabaha syndicated loan of $196 million and 175.5 million euros ($237 million). The loan, in one- and two-year tranches, had a cost of LIBOR/EURIBOR +1 percent and LIBOR/EURIBOR +1.35 percent respectively.