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Fitch Ratings has today affirmed Jordan Islamic Bank for Finance and Investment's (JIB) ratings at Long-term Issuer Default (IDR) 'BB-' (BB minus) with stable outlook, Short-term IDR 'B', Individual 'C/D' and Support '3'.

Iran welcomes foreign banks to establish branches in the country and engage in normal banking operations. According to Presstv, Article 44 of the Constitution had heretofore placed banking activities exclusively in the hands of government. In tandem with the Law on Usury Free Banking Operations, these two measures effectively blocked foreign banking operations from conducting business in the mainland.

With the long-awaited privatization law having already come into force in the summer of 2008, allowing the normal functioning of foreign banks in Iran is viewed as a major economy boosting initiative by the Central Bank of Iran (CBI). The rules for regulating the activity of foreign banks are set forth in four parts and 13 articles in the decree dated March 18, 2009 by the Council of Ministers and titled The Executive Bylaw of the Manner of Establishment and Operations of Foreign Bank Branches in Iran. The minimum capital for establishing a foreign bank branch in Iran is 5 million euros.

Under the new circumstances, four US banks, including Citibank and Goldman Sachs, have applied for opening a branch in Iran. The banks made a formal request to the CBI to establish a branch.

A new report released today by management consultancy Arthur D. Little entitled “Islamic Finance Comes of Age” has identified a surge in activity around Islamic finance as a promising opportunity for the global financial services industry as it emerges from the current recession. With Islamic finance assets currently standing at USD 800 bn, Arthur D. Little expects this figure to surge to as much as USD 4 trillion in the next six years, representing a major opportunity for Western financial institutions looking to develop new partnerships and global markets.

The report can be downloaded after free registration at: http://www.adlittle.com/islamic_finance

In Gaza a new "Islamic National Bank" was started with a capital of USD 20 mn reported Kifah Zaboun in Asharq Al-Awsat. The bank is licensed by Gaza without the consent of the Palestinian Monetary Agency.

The chairman of the bank, Ala Al-Rafati, denied accusations from sources within the Fatah movement which claimed that the bank is affiliated to Hamas saying that the Islamic National Bank is a private institute with a Board of Directors and an Executive Body.

Four Saudi insurance firms launched on Saturday initial public offerings to raise a total SAR 260 mn. Axa Cooperative Insurance Co and Wiqaya Takaful Insurance and Re-insurance Co will offer a 40 % stake, or 8 mn shares each. Ace Arabia Cooperative Insurance Co will also offer a 40 % stake equivalent to 4 mn shares, while Al Rajhi Company for Cooperative Insurance will offer 30 %, or 6 mn shares.

Indonesia's forthcoming Global Sukuk has been assigned a foreign currency rating of Ba3 with a stable outlook by Moody's Investors Service.

Chase bank in Kenya has launched Shariah compliant products writes Mwaniki Wahome in the Daily Nation.

Known as Imam Banking, products are tailored for corporate, small-and-medium enterprises, as well as individuals. The accounts will include current accounts, savings accounts and fixed period investments. Together with Genghis Capital Limited and Winton Investment Services Sharia compliant investment banking and wealth managements products are planned. Further the management studies to introduce Takaful.

Zafrullah Khan is the MD of Chase.

Sukuk trading is about to start this year in Saudi according to the chairman of the capital market authority, Dr Abdulrahman Al Tuwaijri.

Danga Capital Bhd., a special purpose vehicle set up by the Malaysia government, raised a Sukuk, offering to MYR 1.6 bn (USD 443 mn) from MYR 1 bn. The 5-year tranche was priced at 4.22 % and the 7-year tranche at 4.49 % at the higher-end of the price guidance.

RAM Ratings has a AAA rating on Danga's planned MYR10 billion program with a long-term stable outlook.

CIMB Investment Bank Bhd. and AmInvestment Bank Bhd. are the joint lead managers and lead arrangers for the issue.

Arcapita had raised more than two-thirds of a USD 400 mn rights issue from existing shareholders and hoped to conclude the deal by the end of this month according to the CEO. Arcapita has a number of deals ahead, such as 2 acquisitions in Asian infrastructure or real estate sectors, buying up the assets from the Australian power investment firm Babcock & Brown Power and a USD 3.5 bn residential real estate project in Qatar with Kuwait's Al-Imtiyaz Investment.

The Minister of Finance in the Government of Kurdistan province, Baez Talabani has opened Ceyhan Bank for Islamic Investment and Development. The chairman of Ceyhan sets as goal of opening this bank to provide qualified and new services, on the basis of Islamic shareholders for people, companies and government institutions.

Armen Papazian said he was named to the post head of Islamic finance by UBS Investment Bank 2-1/2 weeks ago with a global mandate to hire staff and design innovative products and as sign of commitment, that UBS believes in the growth sector.

Faisal Private Bank's Chief Executive, Marco Rochat, said the absence of a global set of harmonised rules on sharia compliance created an unlevel playing field, reported Martin de Sa'Pinto on Reuters. Faisal Private Bank adivses on nearly USD 500 mn.

The hedge fund platform Al Safi set up by Barclays Capital is planning Private Equity funds, reported Pratima Desai and Cecilia Valente on Reuters.

A lack of legislation is seriously hampering domestic issues of Sukuk in Kuwait, forcing companies to go abroad, Abdulkader Thomas, president of consultancy Shape Financial Corp said to Ulf Laessing and Raissa Kasolowsky published on Reuters. A ministerial decree allowing sukuk issued in 2007 was not adequate for the market to flourish, Thomas said. Saudi Arabia would also have to overhaul its legislation for its sukuk market to function more effectively.

Indonesia began gauging interest this week for its maiden global sukuk that is expected to raise up to USD 650 mn. Sri Mulyani Indrawati, finance minister, confirmed that the offering circular for the Sukuk Al Ijara reported John Aglionby in the Financial Times. Barclays Capital, HSBC and Standard Chartered Bank are marketing the Sukuk. t has been rated Ba3 from Moody’s Investors Service, BB- from Standard & Poor’s Ratings Services and BB from Fitch Ratings.

Yields on traditional government bonds are coming down: The government’s 10-year paper is now offering 11.99%, down from above 14 % in February. Indonesia’s credit default swap spreads over US Treasuries have tightened to 491 bps, down from well over 1,000 bps late last year.

BMB Islamic adviced on the Sharia compliant F&C fund observing social responsible investing rules as well.

Gulf Finance House plans to launch a GBP 50 mn UK commercial property fund and a USD 50 mn Sukuk fund in the GCC. The USD 50 mn sukuk fund, to launch in the next two weeks pending regulatory approval, would focus on government, quasi-government, or very stable GCC issues, reported Ulf Laessing and Raissa Kasolowsky on Reuters.

Unicorn Investment Bank consider mergers in the Gulf, and acquisitions of about USD 2 bn in the Gulf, Europa and Asia. It plans a Sukuk Al Ijara about USD 425 mn in Q3 to fund its expansion reported Ulf Laessing and Raissa Kasolowsky on Reuters. Current targets are two Gulf firms, retail banks in Pakistan, India and Malaysia and one in Britain or continental Europe. Unicorn received also a license in Malaysia for a new set up.

Plans announced last September to issue USD 1.5 bn Sukuk by the end of 2008 had been postponed due to market conditions.

Ernst & Young released a report saying that the takaful market may reach USD 7.7 bn contributions by 2012, compared to USD 2.5 bn in 2006 and USD 3.4 bn in 2007.