IslamicFinance.de

Saudi Arabia boasts with good news: home lending is growing rapidly in the second quarter of this year, faster than during any period in the last over four years. This is an indication that banks are open and willing to take risk as the nation's mortgage law comes into effect. Central bank data show an increase in the mortgage lending to 48 billion riyals (US$12.8 billion) which constitutes 83%. Copmared to this, the increase for the same period in UAE was lower than 1% and 34% in Qatar.

More on: http://www.irealtytimes.com/articles/2781/20120917/middle-east-real-esta...

Qatar First Investment Bank (QFIB) is announced to acquire two properties in prime locations in Central London. These are the Leinster Inn Hotel at Leinster Square, and Westbourne House, Westbourne Grove. The acquisition is carried out in association with a consortium of investors from the GCC. The transactions aim to capitalise on the growing demand for real estate in Central London by converting both buildings into high-end luxury residential apartments.

According to leaders in the area of real estate investment, Malaysian real estate investment trusts show a positive developmen this year. The strong returns which Axis REIT Managers Bhd provided over the past year include Al-Hadharah Boustead REIT, Al-Aqar Healthcare REIT, Pavilion REIT, CapitaMalls Malaysia Trust, Axis REIT, Starhill REIT and Tower REIT. A further positive development is expected.

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has suggested more specific accounting standards for real estate while increasing disclosure for Islamic banks’ investment accounts.
The move made by the Bahrain-based AAOIFI submits it is responding to the same kind of pressure to tighten standards that has been noticed in the conventional finance industry since the global financial crisis discharged in 2008.
Both suggestions were discussed at a public hearing for industry participants in Manama and there will be another hearing in Doha on April 12.

Dear Reader,

IslamicFinance.de is privately funded for many years. Now, for the first time, you have the possibility to make a contribution, from one Dollar upwards!

The technical details, and the money transfer via paypal is organised by Kapipal a new online fundraising tool:

http://www.kapipal.com/islamicfinance

On the blog I gave some more thoughts about Islamic finance media for those interested: http://www.islamicfinance.de/?q=node/3454

Please also note: The fundraising action has a deadline, so act today, not tomorrow and tell your friends about it!

All donors who will leave a message will be listed in the article, which follows after closure of the fundraising period.

I am happy to meet you in person either on 19th March in Milano (http://www.islamicfinance.de/?q=node/3396) or on 10th May in Frankfurt (http://www.islamicfinance.de/?q=BAFINII) at the respective Islamic finance conference.

Wa at Taufiq min Allah, all the best,

Michael Saleh Gassner

Dear Readers,

Islamic finance media are a tricky service. This is true for various reasons: The Internet eats up the revenues, because everything ought to be free. Islamic banks are still a niche phenomena, and international banks like UBS or Deutsche are almost as large as the entire global Islamic finance industry. Consequently the marketing budgets are much lower, too.

Last not least, who should advertise? The banks among themselves or to the clients? Advertising from bank to bank, does usually not make much sense, but real client oriented formats are hard to find, too. May be this is a niche. Others, who could finance Islamic finance media are basically the service providers to the banks, but due to the limited number of Islamic financial insitutions, direct marketing, e.g. face to face meetings will be preferred.

This in short is the background why Islamic finance media are not so well established in terms of journalism and research, but mostly reflecting the press release as criticised by the makers of the Islamic Globe. See: http://www.theislamicglobe.com/index.php?option=com_content&view=article...

The research note by Alan Robertson, CEO, Jones Lang LaSalle MENA, prooves that Middle Eastern investors have been strong net buyers in overseas markets in recent years.
Considering the capital transactions across the world's commercial real estate markets, 2011 was a significantly more active year than 2010.
During the year 2011, Middle Eastern investors were able to take advantage of continued request for real estate in many global markets to get rid of assets they had purchased in recent years and repatriate capital to their local economies.

A new report shows that sovereign wealth funds (SWFs) and cash-positive pension funds from Asia and the Middle East are an arising force behind the high level of global capital currently flowing into the Central London commercial real estate market.
Central London has always had a pivotal role in international commercial property investment in an European and global context, completely overshadowing other global cities in terms of cross-regional investment into European real estate, because of its traditional strengths of transparency, long income flows and relative liquidity.

Gatehouse Bank based in London, has surpassed the USD half billion mark in real estate investment acquisitions, on behalf of its GCC investors. This was succeeded after the acquisition of a multi-million dollar US student property portfolio, "The Republic at Denton" and "The Republic at Lubbock" in Texas, USA providing investors a net cash yield of 7.0% per annum and a projected IRR of 9.0% over a hold period of five years.
The newly built, multi-million dollar developed properties were obtained in partnership with US-based student housing specialty operator, The Scion Group LLC.

Real Estate Department at Kuwait Finance House will participate in the real estate and investment expo organized by Top Expo Group at the Fair Ground. KFH will introduce its financing services for all kinds of real estate, such as residential, investment, commercial, and industrial for local real estate; in addition to financing real estate in most countries worldwide.
Furthermore, KFH presents clients the possibility to acquire real estate in Bahrain through Murabaha and Ijarah.

Grosvenor Fund Management partnered with Kuwait Finance House to invest up to £380m in US healthcare real estate.
The partnership will aim the acquisition and development of private-pay senior living facilities and medical office buildings. Investments will take place through the formation of equity joint ventures with local and regional operating and development partners.
The new partnership is Grosvenor Fund Management’s third mechanism in 2011, having a combined investment capacity of £900m.

The 2nd Quarter 2011 issue of the Malaysian ICM quarterly bulletin published by the Securities Commission Malaysia (SC) is now available online at:
http://www.sc.com.my/eng/html/icm/11_2Q_msianicm.pdf

Hamptons International claims Omani move to introduce Shari’ah-compliant Islamic financial services ‘promises to impart a much-needed fillip to the real estate sector’.
It seems that the recent Royal Directive authorising the offering of Islamic banking services has the potential to jumpstart a recovery of the once-vibrant property market.

Bank of London and The Middle East (BLME) stated that that they will launch a Light Industrial Building Fund (LIBF). This fund is a Sharia'a compliant UK real estate fund which invests in sustainable property assets.
The five core areas that set the foundations for BLME's competitive offering are Private Banking, Asset Management, Corporate Advisory, Corporate Banking and Markets Division.

As a result of Sharia compliant banking services spreading over the country, the banks are bringing flexible mortgage schemes in in order to back real estate projects.
Sharia principles prohibit charging interests or investing in businesses that provide goods or services considered contrary to its teachings.

The acquisition of Rolls-Royce core manufacturing and logistics facility in Scotland was completed. Gatehouse Bank (Gatehouse) is going to offer a one- of-a-kind opportunity that delivers maximum benefits and all this through the core manufacturing and logistics facility that will be built for and let to Rolls-Royce plc.

Alinma Bank and Deutsche Gulf Finance signed an agreement that has the point to strengthen joint real estate financing and to provide real estate financing programs with affordable, long-term provisions with flexibility in repayment.
Alinma Bank was represented by Mr. Abdulmohsen Al-Fares, its CEO and Deutsche Gulf Finance was represented by Mr. Fahad Ben Abdullah Al Rajhi, chairman of the company's board of directors.
The signing ceremony took place at the head office of Alinma Bank in Riyadh.

Standard & Poor's Ratings published a report named "Social Unrest Rattles Middle East And North Africa Real Estate Markets", in which they analize the current landscape in property markets in the Arabic-speaking countries of the Middle East and North Africa (MENA).
Because of the political unrest and demonstrations that took place recently, some real estate companies are obligated to cover damages from building destruction. It seems like this problems are causing the turists to avoid countries like Egypt and Tunisia.

The UK Treasury is searching for laws in the Finance Bill that can block means of escapes in taxes. That includes conventional and alternative (Islamic) real estate transactions.
Between others, they want to stop people that are using offshore vehicles in order to avoid the payment of full stamp duty tax (SDLT).
The manipulation of these means of escape by acute lawyers and tax accountants is wellknown by HM Treasury but numerous Chancellors failed to stop this.

With a supportive regulatory and tax framework and proximity to large Muslim populations in its neighbourhood, it is only a matter of time before Singapore becomes a major player in Islamic finance.
Analysts say Sukuk, or Islamic bonds and Syariah-compliant real estate investment trusts, are two products that have strong growth potential in Singapore.
One reason behind Singapore's success in Islamic finance is the Monetary Authority of Singapore's (MAS) efforts to create a supportive framework for a competitive Islamic finance landscape.