IslamicFinance.de

BankDhofar intends a move to introduce sharia-compliant banking services. Therefore, they plan the launch of an Islamic Banking window. The approval for the move was given at an Extraordinary General Meeting of the bank's shareholders. Also, it was agreed upon the appointment of a Sharia Supervisory Board.

Read more on: http://www.zawya.com/story/BankDhofar_EGM_nod_for_Islamic_Banking_Window...

Al Jazira Bank has registered net income of SAR 130 million during the third quarter of the year. This is an increase of 97% in comparison with the net income SAR 66 million for the same period last year. Compared to the second quarter of 2012, there is an increase of 1% from SAR 129 million. The difference between the total operating income during the third quarter this year and the same period in 2011 is 33% in favour of Q3 2012.

Read more on: http://www.cpifinancial.net/news/post/16209/al-jazira-bank-q3-profit-up-...

According to an announcement by Bloomberg, Banque Saudi Fransi (BSFR) has been approved by the Saudi central bank to issue Islamic bonds worth SR2.5bn ($667m). The expected effects of the sukuk include enhancing the bank's capital base and expansion of ots lending activities.

Read more on: http://www.ameinfo.com/sama-approves-banque-saudi-fransis-667m-315206

Turkey is well on its way to become the next hub for Islamic banking and finance. It only needs its government to show its commitment to Islamic finance so that other participants in the industry join Turkey in building a vibrant Islamic banking and finance industry. The recent successful $1.5 billion sovereign Sukuk issue denominated in dollar as well as the lira-denominated $900 million sovereign Sukuk have lead the county's way to the global platform of Islamic banking and finance. Since Pakistan has the most Shariah authentic model of Islamic banking, a Turkey-Pakistan alliance will contribute to the promotion of Islamic banking in Turkey, and, furthermore, it is expected to bring a new juristic approach to product development and structuring.

Read more on: http://tribune.com.pk/story/451643/rising-partner-a-turkey-pakistan-alli...

A Memorandum of Understanding (MoU) has been signed by the World Bank and the Islamic Development Bank (IDB). It will provide a framework for collaboration between the two parties and support global, regional and country efforts in the development of Islamic Finance. The common objectives of the two banks include fostering, encouraging, and studying the expansion of Islamic finance worldwide. Some of the leading principles of the MoU are sharing knowledge sound practices in the Islamic financial services industry and cross fertilization of ideas.

According to a senior bank official, Barclays Bank Egypt SAE discusses involving in the Egyptian Islamic banking market and to increase loans to small and medium businesses. Thus, the bank intends to implement new ways to generate revenue. Replication of its South African Islamic products in Egypt is one of the main topics considered. Since SMEs provide 70% of the country's economic growth, Barclays Bank have been examining in detail lending to SMEs for the last two years.

Read more on: http://www.bloomberg.com/news/2012-10-10/barclays-weighs-islamic-finance...

After a long time of secular rule, the Tunisian government intends to develop Islamic banking. However, there are discussions on whether the leading motive is economic or rather political. Some people see that the initiative as an effort to win the support of voters. On one hand, change of policy is possible to bring economic benefits because the country would have more access to a huge pool of Islamic investment funds from the Gulf. On the other hand, there are some political complications in Tunisia.

Sabah’s state banks have been positively assessed which results in rising confidence about the potential of its financial services sector and Islamic finance in particular. The “AA1” and “P1” issue ratings of the corporation have been reaffirmed by RAM Ratings in July. A month prior to that, Sabah Development Bank (SDB) received long- and short-term issue ratings of “AA1” and “P1”. All in all, a stable outlook and a leading strategic role of the Corporation are pointed out.

Read more on: http://www.oxfordbusinessgroup.com/economic_updates/sabah-islamic-bankin...

At this year's Oman Investment Forum 2012 the executive president of the Central Bank of Oman (CBO) announced that the regulatory framework for Islamic Banking has been finalised. Also, amendments to the Banking Law are being worked on. The local banks Bank Nizwa and Al Izz Islamic Bank received initial approvals to practice Islamic banking.

Read more on: http://www.zawya.com/story/Oman_finalises_Islamic_Banking_rules-GN_09102...

The educational system provides numerous young specialists in Islamic finance, however, they are hardly able to find a job. According to a UAE senior Islamic banker, one of the main problems in the industry lies in the lack of suitable graduate training programmes and internships. Thus, it becomes very difficult to absorb the growing number of graduates. The solution to this issue is in the hands of the corresponding institutions themselves. Moreover, employers look for experienced employees and even prefer experienced candidates from the conventional banking sector.

Due to rapid growth and expansion of the Islamic financing sector, Germany is about to follow the example of some other European countries and launch an Islamic bank. Similar plans are discussed in Ireland as well. One of the reasons for the expansion is the growing demand for a more ethical financial system. However, the question remains whether Islamic finance can offer suitable solutions which reach beyond the Muslim world. Even though it is based on Muslim religious principles, it has some advantages like the lack of speculative activities and a possibility to create a more equitable financial system.

Last week HSBC decided to close down its Islamic retail banking operations in six markets so that it will be present only in Malaysia, Saudi Arabia and, in shrunken form, Indonesia. This event underlined the contradictions of the broader sector. On one hand, Islamic banking is continuously reported to be growing at e very high rate - more than 20% a year. On the other hand, there is a huge difference between asset growth and revenues and profit. Poor performance in retail banking markets is the reason for HSBC's withdrawal as well as for the decrease of Barclays' and Deutsche Bank's Islamic banking teams in Dubai.

See more on: http://www.zawya.com/story/HSBCs_Islamic_closures_highlight_dilemma-2012...

Fitch Rating Agency warns about Sharia-complained banks as they do not complete with established conventional banks offering Islamic-compliant products. This is especially the case in Oman who's banking market hasn't been opened yet.

See more under: http://www.thenational.ae/thenationalconversation/industry-insights/fina...

The Islamic Development Bank (IDB) plans to set up first Islamic company in Kazakhstan in 2013. The object of business shall be: renewable energy and agricultural projects. The reason for that is the lack of agricultural resources in Gulf countries. On the contrary, countries in Central Asia and Africa have the resources but not the capital, which is why IDB considers opportunities for Islamic banking in Kazakhstan, which has a resource-driven economy that is the largest in Central Asia.

See more under: http://www.reuters.com/article/2012/10/01/islamic-finance-kazakhstan-idU...

Tunisian central bank intends to issue Islamic bonds early next year, according to the central bank governor. Finance ministry, religious affairs ministry and the central bank have set up committees that are currently working on an Islamic finance law in order to strengthen the Islamic banking in the country.

See more under: http://www.english.globalarabnetwork.com/2012100112595/Finance/central-b...

The central bank governor of Tunisian Central Bank has announced country's plan to issue Islamic bonds early 2013. Tunisian government is currently working on an Islamic finance law that should constitute Islamic banking in Tunisia, where at the moment only two Islamic banks exist. The law is going to be prepared within two weeks, after which the Government of Tunisia will decide whether to legislate it or not.

See more under: http://english.ahram.org.eg/NewsContent/3/12/54296/Business/Economy/Tuni...

Prime Minister Manmohan Singh has been urged by The Jeddah-based Indian Forum for Interest-Free Banking to clear huddles for granting license for Shariah-compliant banks and financial institutions to operate in India.

In a petition submitted to the prime minister at the Emerging Kerala Global Connect they said it would open floodgates infrastructural funding for India.

More on: http://india.nydailynews.com/politicsarticle/cec9a20cf6a8ec24c8b2ccffbed...

According to a new report published by Standard & Poor's, supportive socio-political factors and economic incentives should accelerate the growth of Islamic banking activities in North Africa from current low levels.

Islamic banking started its emergence in North Africa in the 1970s. However, the sector is still branded as a niche market in the region, with an overall market share well below 5% of total banking assets. As the report says, the change in political landscape following the Arab Spring should rekindle the development of Islamic banking in the region.

More on: http://in.reuters.com/article/2012/09/27/idINWNA625620120927

According to Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz, there is more renminbi financing in the pipeline after the two issuances of offshore yuan sukuk out of Malaysia and a yuan bond issuance by Malaysian corporations. She said that the reason for this was that there was greater potential to raise funds in the currency, especially investments in China.

More on: http://biz.thestar.com.my/news/story.asp?file=/2012/9/28/business/120915...

Since the enactment of the Islamic Banking Act in 1983 Malaysia has been operating with both conventional and Islamic banking systems. According to Islamic principles money lending and investing in businesses that are considered haram are prohibited. Islamic finance is all about accumulating all the available resources and providing financing based on pre-determined profits rather than dealing with interest.

More on: http://www.nst.com.my/red/cover-story-should-you-get-an-islamic-mortgage...