IslamicFinance.de

The first onshore Shariah-compliant real estate fund in the Australian market, The LM Australian Alif Fund, was officially launched at end of May in Bahrain. The fund is managed by LM Investment Management Ltd., a specialist Australian income funds manager operating internationally and which is aimed at Islamic investors who are looking for opportunities in alternative investments and in new markets.

Mushtak Parker interviewed Ken Scott-Hamilton, general manager (Middle East), LM Investment Management Ltd., for Arab News about the rationale behind launching the fund and the opportunities and challenges for Islamic finance in Australia.

To speed up the development of infrastructure projects, the Asian Development Bank (ADB) and the Islamic Development Bank (IDB) have agreed to set up Asia's first major multi-country USD 500 mn Islamic infrastructure fund.

The 12 targeted countries are Afghanistan, Azerbaijan, Bangladesh, Indonesia, Kazakhstan, Kyrgyz Republic, Malaysia, Maldives, Pakistan, Tajikistan, Turkmenistan and Uzbekistan.

Sharia scholar Mohammad Akram Laldin rules organised tawarruq as not violating Islamic law principles.

Newly confirmed Central Bank Governor is Sanusi Lamido Sanusi.

Sanusi, 47, got his BSc degree in economics from Ahmadu Bello University (ABU) in 1981 and Masters Degree also in economics from the same institution in 1983.

He later read Sharia and Islamic Studies at the International University of Africa in Khartoum in 1991 and began his working career at ABU from 1983 to 1985 as a graduate assistant.

His banking career started when he joined Icon Ltd (Merchant Bankers) and later worked with UBA where he rose to the rank of general manager in 2005.

“What we need to do is open the interbank market, to improve the bank open position limits, to go back to wholesale debt auction, and to reverse the emergency measures that were taken, which were temporary, as quickly as possible,” Sanusi is quoted by the newspaper.

Dubai Islamic Bank announced that it has purchased USD 50.6 mn from the partial cash tender offer to retire USD 200 mn of outstanding Sukuk. DIB purchased the certificates at 88 % of the face value.

Global Investment House plans to sell a 14.1 % stake in Al-Salam Bank in a June 11 auction to reduce its holdings. The company expects 6.4 million dinar in profit.

Global said in January that it defaulted on most of its loan repayments.rg.net

The total demand for residential units in Saudi Arabia will be in the range of 500,000 to 800,000 during the period 2009-13. The currently planned organised supply will provide about 73,000 units during 2009-13 and the rest will be tapped by current and future projects by smaller size developers and major projects planned in future.

Bahrain's Al Salam Bank has announced that Bahraini Saudi Bank's shareholders had accepted its takeover offer.

The CMA announced on 7 June that Saudi Electricity Company’s request to offer Sukuk in the period from (13/6/2009) G to (28/6/2009) G. More details will be published in the prospectus to the public.

The Global Association of Risk Professionals and the Banque du Liban recently announced the development of a new program, the Certificate in Risk Management for Islamic Financial Institutions.

The explosive growth in, and increasing sophistication of Islamic financial products has created the need for standards and guidelines for sound risk management approaches analyzing these financial instruments.

The Certificate is expected to be available in 3Q 2009

Andrew England in Abu Dhabi and Abeer Allam in Riyadh reported in the Financial Times about the Saudi conglomerate owned by Maan Al-Sanea.

The statement by Saad Group – its first admission that it is facing difficulties – came after bankers said the Saudi Arabian Monetary Agency (Sama) had frozen the personal accounts of Mr Sanea and members of his family.

IslamicFinance.de: Saad Group is related to the Golden Belt Sukuk. No information was given in the article hereto.

Three national banks are in the process of opening Islamic units to respond to growing demand for sharia banking services, an official was cited in Antara: Bank Central Asia (BCA), Bank Panin and Bank Victoria.

Reuters reported on 18 March that Indonesia's third-largest lender, PT Bank Central Asia Tbk, is planning to launch an Islamic bank in September following its acquisition of a small bank last year, its vice president director said.

Insurer Manulife Holdings Bhd will submit an application before the end-October deadline for a takaful licence to tap into the growing Islamic insurance market. The plan by Manulife to seek a takaful licence is in line with the Government’s move to liberalise the financial sector and allow more takaful players into the market.

BUMIPUTRA-Commerce Holdings Bhd, said it received approval from the Securities Commission for the sale of as much as RM 2 bn Sukuk, to be made availabl to CIMB Islamic Bank.

Indonesian property firm PT Bakrieland Development Tbk wants to raise up to 300 billion rupiah from an Sukuk issue, or twice the amount previously indicated. Bakrieland has appointed PT Bahana Securities and PT Madani Securities as underwriters for the sukuk. The firm plans to issue a 2-year tranche with an indicative yield of 14-15 %, and a 3-year tranche with an indicative yield of 15-16 %.

HwangDBS Investment Management Bhd launched its first local sukuk fund, HwangDBS AIIMAN Sukuk Fund (ASF).

HSBC Amanah, the financial group's Islamic division, said it will start marketing its first Islamic Sukuk fund.

The HSBC Amanah Sukuk Fund, domiciled in Saudi Arabia, will comprise Sukuk, issued by 12 to 14 companies, mostly in the real estate, commercial banking and utilities sectors based in the Gulf Cooperation Council area. It would seek to raise USD 100 million for the fund, which has a 4-year maturity and will target mid- to high-single-digit annual returns.

Jovian Capital Corporation announced an agreement with UM Financial Inc. to explore the launch of a
co-branded, Shariah-compliant investment product. The product targets Canada's approximately 1 million strong Muslim population, as well as foreign investors looking for a uniquely Canadian, Shariah-compliant investment.

A recent article in the Economist emphasizes the importance of the nascent debt markets for Gulf countries.