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The Islamic Development Bank (IDB) plans to increase its sukuk program to $10 billion from $6.5 billion, to keep pace with demand for investment-grade paper from the international institution. The Jeddah-based lender plans to make the increase official in November subject to clearance from regulators in Britain, where its multi-currency program is listed. An expanded sukuk program would help the IDB increase its profile among global investors and secure similar pricing levels to other development banks such as the World Bank and European Investment Bank, which can borrow at slightly lower rates because they are more frequent issuers. IDB sukuk are highly sought after by Islamic banks.

Gulf Finance House (GFH) is now well on its way to long-term profitable growth, Esam Yousif Janahi said after he stepped down as chairman of the Islamic investment bank last week. The exit was a well-planned move and follows the achievement of key objectives of the restructuring exercise, he explained. The bank's liabilities have been brought down substantially from $2.6 billion in 2009. The capital adequacy ratio is now over 20 per cent as against single-digit levels in 2009, at the height of the crisis. Mr Janahi said he continues to remain a major shareholder. On future plans, he said he would focus on managing personal investments and strategic partnerships with partners.

Gulf Finance House (GFH) has appointed Dr. Ahmed Al-Mutawa as Chairman following the resignation of former Chairman Essam Yousif Janahi last week. GFH’s Board have also elected Mosabah Al-Mutairy as Vice Chairman. Al-Mutawa is a UAE National with 34 years’ experience of financial and economic experience. He was previously Managing Director of the Khalifa Fund for Enterprise Development and the Secretary General of Gulf Organisation for Industrial Consulting. Al-Mutairy is an Omani National whose 20-year career spans investment, finance and accounting.

Ajman Bank has sacked its Chief Executive Mohammed Zaqout, less than six months after appointing him to lead the United Arab Emirates' lender. The Islamic bank said it had terminated the services of Zaqout with effect from Sunday, with Chief Financial Officer Seifeldin Abdelkareem becoming acting CEO. The bank, listed on the Dubai Financial Market since 2008, is 25-percent owned by the government of Ajman.

Bahrain-based Khaleeji Commercial Bank (KHCB) has announced the appointment of Mr Khalil Ismaeel Al Meer as the bank's new Chief Executive Officer. Prior to his appointment, Mr. Al Meer was General Manager of Corporate Banking division in BBK. He has over 28 years of experience in corporate banking, gained in senior roles at National Bank of Bahrain and Bank of Bahrain and Kuwait. He holds a B.Sc. in Business Administration from the University of Bahrain. He also attended the Gulf Executive Development Program at Darden Graduate School of Business in University of Virginia (USA) and the Senior International Bankers Program of the International Centre for Banking and Finance Services at Manchester Business School (UK).

Dubai has embarked on a three-year strategy to place itself firmly at the centre of the Islamic economy. The first steps in the seven-pillar plan, which includes 46 initiatives to be implemented within a three-year window – reduced from five – will be taken next year. The seven separate strategic directions are: finance; the halal food industry; family friendly tourism; the digital economy; fashion, arts and design; economic education; and standards and certification. Dubai has already launched plans to be a global centre for the issuance of sukuk to challenge the supremacy of sukuk centres such as London and Kuala Lumpur. Next month the emirate will host the first Global Islamic Economy Summit, organised by Dubai Chamber of Commerce and the international news and information group Thomson Reuters.

The Board of Directors of Qatar First Bank (QFB) announced the appointment of Ahmad Meshari as Acting Chief Executive Officer of the Bank with immediate effect. Ahmad will replace Emad Mansour who recently resigned from the bank. Ahmad will have responsibility for QFB’s business lines including the wealth management business, principal investments, asset management and corporate finance advisory. He brings with him more than 30 years’ experience in the financial sector gained through different senior management positions in regional banks and key roles on high-profile boards, primarily with Islamic financial institutions. He joins QFB from Qatar Islamic Bank (QIB) where he served as Deputy Chief Executive Officer.

The Sukuk insurance policy of the Jeddah-based Islamic Corporation for the Insurance of Export Credit and Investment (ICIEC) is ready to roll out but the corporation to date has received no applications from sovereign issuers, Dr Abdul Rahman Taha, CEO of ICIEC, said. ICIEC has had initial inquiries from Egypt and Senegal regarding the credit enhancement for Ijarah-based sovereign Sukuk issuances. A major drawback of the Sukuk Insurance Policy is that ICIEC can only guarantee up to $125 million of an issuance, because of its lack of capacity. However, it has reached agreement with the insurance majors to provide further capacity for sovereign Sukuk issuances. ICIEC is expecting more business to come from industrialized countries ECAs, and has signed agreements with Atradius, the Dutch ECA, and with Ducroire Delcredere, the Belgium ECA.

Kuwait Finance House KFH Wealth Management General Manager Matthew Welch stated that reinforcing the Bank's private banking and wealth management service is a key pillar of the restructuring and transformation plan that the Bank is presently implementing. Matthew noted the rising competition in the high net worth segment and that clients are increasingly discerning in selecting the institution with whom they choose to invest. He explained that KFH is keen on harnessing the investment capabilities of the wider KFH group to bring new opportunities and investment ideas for the benefit of the Bank's high net worth client base. In addition, he noted that clients now expect increased access to investment advisory and discretionary management services to help them navigate the present volatile market conditions.

Abu Dhabi government-owned Al Hilal Bank priced its debut $500m five-year sukuk issue, as Gulf issuers flood back to the market to take advantage of conducive market conditions. The transaction priced at par with a profit rate of 3.267 percent and a spread of 170 basis points over midswaps. The spread had tightened significantly from the initial price thoughts, released on Sunday, which had indicated a spread of 190 bps over the benchmark.

The Gulf insurance industry is growing as government spending increases but the sector is suffering from overcapacity in certain markets, which threatens to drive the smaller insurance companies into financial turmoil. Generally, the low level of penetration levels in the Gulf region has granted ample room for the insurance sector to flourish, according to an insurance report by Dubai-based Alpen Capital. The rising wealth of a young population, an increase in expatriate numbers and a growing awareness of insurance products are all helping to boost the industry. Regulators can play a role by developing guidelines to further ensure both the financial strength of insurance firms and the protection of customers.

Global Islamic Finance is expected to maintain its rapid pace of growth, strengthening its credibility as a real alternative to conventional finance. However, structural problems continue to limit its potential while its growth has made the industry more sensitive to global economic fluctuations. The contrasting fortunes shaping Islamic Finance will be the subject of a conference to be hosted by S&P in Dubai on 2 October, 2013. Prospects for the Sukuk sector will be one of the key focuses of the Conference. Another major theme is the widening sovereign adoption of Islamic Finance instruments. S&P analysts from across the Middle East, Africa, Europe and North America and a panel of senior Islamic Finance industry participants will speak at the S&P Islamic Finance Conference.

Bank Dhofar, has announced the resignation of its chief executive Anthony Mahoney for personal reasons, effective September 26. The Omani lender has appointed Abdul Omar Al-Ojaili as its acting chief executive. Bank Dhofar is planning to merge with Bank Sohar with a view to creating Oman’s second-largest bank. The new entity would have total assets worth 4.1 billion rials ($10.7 billion), according to quarterly financial statements, and a market capitalisation of around $1.8 billion. Bank Dhofar shares have risen 14 per cent year-to-date.

Abu Dhabi government-owned Al Hilal Bank will price its debut Islamic bond offering on Tuesday, subject to market conditions, especially the shutdown of the U.S. government. Books are now open for the transaction, with commitments from investors already totalling $2.75 billion. The five-year sukuk will be of benchmark size - traditionally understood to be worth at least $500 million - with initial price guidance set at 190 basis points over midswaps. Al Hilal is due to conclude meetings with fixed-income investors on Monday in London. Citigroup, HSBC, National Bank of Abu Dhabi and Standard Chartered are arranging the roadshows, along with Al Hilal itself.

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.

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.

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.

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.

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.