IslamicFinance.de

Bank Sohar signed an agreement with Dar al Sharia Legal & Financial Consultancy of Dubai, to help it with all the main aspects of launching its Islamic banking window.
Since then, the bank has been working on introducing authentic, Sharia-based banking solutions to its customers. It seems that it has recognized three areas of utmost importance for ensuring that its Islamic window is a solution that respects the basic tenets of Islam, the sensibilities of Omanis and is within the guidelines of the Central Bank of Oman.

Dubai Islamic Bank Pakistan Limited (DIBPL) has annlounced a record pre-tax profit of Rs 316 million for the year ending December 31, 2011.
The year 2011 pointed numerous achievements for DIBPL and the bank opened 39 new branches in a short period of time, having now 75 banks in 30 cities.
DIBPL is determined to keep the momentum going for 2012 as well, having the purpose to take the branch network to surpass 100 branches together with opening 25 branchless banking booths. This would allow an overall footprint of 125 outlets for the bank nationwide.

The Islamic Development Bank (IsDB) Group, based in Jeddah, Saudi Arabia, will host a two day business forum under the title "IsDB Group-Nigeria Business Forum" in cooperation with the Federal Ministry of Finance of Nigeria and the Nigerian National Investment Promotion Commission (NIPC).
The event will be held during the period from 15-16 March 2012, at the Transcorp Hilton Hotel, Abuja. Its objective is to sensitize the Nigerian public and highlight the products and services being offered by the IsDB Group, including eligibility criteria, modes of financing, terms and conditions of financing, procurement, and other operational matters.

A NEW BREED OF TECHNOLOGY & DESIGN INVESTMENT HOUSE TO BE LAUNCHED AND SHOWCASED PARIS, JULY 2012

Qatari Aurum will be launching its first large-scale foray into the world of Technology and Design during an annual gathering of other GCC-based investors and private equity houses in Paris during July this year. The newly¨established group, comprising high net-worth venture capitalists from Qatar, is yet to launch formally but has already set about making waves in an industry reserved for Silicon Valley start-ups and traditionally large-scale US private equity houses. It is expected that the Group will announce its inaugural acquisition of equity in a globally established internet start-up at the Capital & Projects Exchange, Paris, France, July 2012.

The focus of the group is toward bringing a wealth of technology know-how in the internet media and software design services to the GCC region. There is a course laid out to use this investor insight in gathering the choicest design and development houses locally within the region and injecting them with world-class expertise, fuelling a technology-drive unsurpassed in recent times.

KFH Research made a report about the future of Islamic finance in Africa that shows that there are various promising opportunities for the growth and development of Islamic banking in Africa; especially North African countries, in addition to Kenya, Nigeria, Senegal and South Africa.
In addition, the report noted that Africa hosts 38 Islamic finance institutions, and stressed that most African countries have amended their legislations to allow Islamic institutions to operate.

It seems that Dubai’s Noor Islamic Bank is the only institution in the United Arab Emirates that has been targeted by the US for dealings with Iran. Moreover, it appears that the bank had been a primary conduit for returning foreign-currency oil receipts to Iran, until it agreed in December to end dealings with Iranian entities that have been sanctioned by the US and the European Union, including Iran’s banks Saderat and Melli.
Meanwhile, National Bank of Abu Dhabi, the emirate’s largest bank by assets, noted it is reducing banking activities with Iran because of mounting international sanctions against the country.

Dubai Islamic bank with ties to the emirate’s ruling family stopped doing business with Iranian banks in December, shortly before the United States approved new sanctions targeting the country’s financial system.
The decision by Noor Islamic Bank cuts off another of Iran’s links to the international banking system. Noor appears to have acted indirectly in response to Washington’s efforts to compress the screws on Tehran.
The Iranian economy is under increasing pressure from a growing series of U.S. and European sanctions pointed at stopping its disputed nuclear program. Washington and its allies fear Iran is trying to develop nuclear weapons.

Interim Prime Minister Hamadi Jebali noted that the Tunisian Government will try to establish a legal framework to manage the Islamic economy in Tunisia. He added that the country wants to become a regional centre of Islamic finance.
Moreover, he attested that Islamic banks can provide part of these funds.
IDB President Ahmed Mohamed Ali stated the Bank wishes to see the Tunisian private sector play a more significant role in implementation of the bank's projects in Tunisia and Africa.

Adnan Ahmed Yusuf, Chief Executive Officer of Al Baraka Banking Group and Chairman of the Union of Arab Banks, noted that the Islamic banking in the Sultanate will expand and will achieve more than 20% of the domestic banking during the next five years.
He also disclosed the interest of ABG to enter the Islamic banking sector in the Sultanate but due to factors related to the policy of the group towards the form of ownership, Al Baraka Group is currently thinkking about the possibility of managing a bank in the Sultanate or engaging in Islamic finance if the new banking laws permit so.

Capinnova Investment Bank went back into the black last year. The bank had a net profit of $86,000 for the fourth quarter compared with a net loss of $2 million for the same period in 2010.
Chairman Abdul Kareem Bucheery noted that they will continue to capitalise on these opportunities in 2012 and the following years by introducing good Islamic banking products that meet our investors requirements and expectations. He added that Islamic banking industry in Bahrain is one of the important sectors with an array of opportunities that are yet to be exploited.

It seems that Barwa Bank made plans to apply for a credit rating next year before a possible debt offering. Chief Executive Officer Steve Troop noted that is a good set of results will come up in 2012, they will look for a rating in 2013.
Qatar’s biggest lender Qatar National Bank SAQ (QNBK) raised $1 billion in a sukuk offering earlier this month. Doha Bank QSC, Al Khaliji and International Bank of Qatar have announced plans to sell debt after no sales by lenders in the country last year.

K&L Gates Seminar
Islamic Finance: Recent Issues and Career Opportunities
February 20, 2012
The Arab Spring of 2011, the Goldman Sachs $2bn Islamic bond, the Islamic Interbank Benchmark Rate - just three recent topics that have reignited interest in Islamic Finance.

This programme addressed recent issues in Islamic Finance and potential career opportunities in the industry.

Specific topics covered included:

What happens when Islamic Finance transactions go wrong? The use of arbitration to resolve disputes.
The impact of the Arab Spring of 2011 on the growth of Islamic Finance.
The convergence of Islamic, Christian, Jewish and Socially Responsible Investment principles.
The role of private equity and leasing in Islamic investing.
The Islamic Interbank Benchmark Rate.
Career opportunities in Islamic Finance.
The global impact of Islamic Finance in Europe, the Middle East and the US.
Speakers included:

Dr Humayon Dar - Chairman, President & CEO - Edbiz Consulting
Jonathan Lawrence - Islamic Finance Partner - K&L Gates, London
Mohammed Amin - Islamic Finance Consultant - Conservative Muslim Forum
Kathleen Bradley - Counsel - K&L Gates, Doha

It seems that small and medium-sized Islamic banks may need to merge if they want to evolve into bigger regional players capable of filling the funding hole left by shrinking Western banks. This statement came from Salah Jaidah, the head of Islamic finance at Deutsche Bank.
He added that whilst Islamic banks might not immediately be able to face the challenge, within time they will be able to reposition themselves.
The Gulf Co-operation Council area has over 100 Islamic banks, aligned from Al Rajhi Bank of Saudi Arabia with a $25 billion market cap to small unlisted lenders.
The idea of a so-called Islamic "mega-bank" has already been promoted in the region by Bahrain-based Al Baraka banking group.

In its 2012 Islamic Wealth Management Report illustrated by masterpieces of Islamic calligraphy, by the Chinese Muslim master Hajji Noordeen, deals with the theme “The path to corporate transformation – converting a company to Islam”.

Bank Sarasin reviews the complexities of converting a business to Islam, a topic which is rarely discussed or written about. Conversion is complicated by the need to address every aspect of a business, the lack of broadly accepted standards and regulations, and differences in the Muslim world itself. The Report, released today, is the Bank’s third on Islamic Wealth Management.

Converting a business to Islam can increase the value of a company by 18-25% due to the scarcity of genuine Islamic investments. But the conversion process is arduous, extending from the design to distribution and beyond, to how the company spends its profits. As Sarasin notes, the market potential is massive, with the global Muslim population expected to increase by 26% to 2030, to 2.2 billion, rivalling China and India in terms of market size.

The Libyan Foreign Bank will present Shariah-compliant products as the government prepares regulation to make Islamic banking the norm in the North African nation following the ouster of Muammar Qaddafi.
Shariah-compliant finance may acquire the benefits of regime changes in North Africa, where protests last year overthrew three leaders who persecuted Islamists. While Muslims make up about 95 percent of North Africa’s 220 million people, access to Shariah-compliant financial services is still limited because past leaders, including Qaddafi, held back the industry’s growth to curb the influence of Islamic parties.

It seems that a long-awaited mega Islamic bank with the headquarter in Bahrain may be launched this year and $600 million of its $one billion capital will be contributed by Islamic banks in the Arab region.
The remaining capital will be subscribed by local sovereign wealth funds and other financial institutions and investors.
According to Adnan Youssef, chairman of the Beirut-based Union of Arab Banks (UAB), first noted that the bank would have a capital of $10 billion and would be a joint venture between regional Islamic banks and other investors.

According to Chief Executive Officer Igor Finogenov, Eurasian Development Bank wants to expand Shariah-compliant financing after helping arrange a deal last year.
The bank is searching to boost lending that respects the Islam’s ban on interest after serving as mandated lead arranger for a $60 million syndicated Murabaha facility for Kazan, Russia-based AK Bars Bank in September.

aiz Bank Plc, has begun full operation of non-interest commercial banking in Nigeria from three branches in Abuja, Kaduna and Kano.
It seems that most of the early customers were groups of business institutions and private individuals from different religious persuasions making enquiries as well as opening different accounts.
The introduction of Islamic banking is part of a drive by the Central Bank of Nigeria, CBN, to force Nigeria’s economy and promote financial inclusion by presenting alternative products.

BankDhofar has chosen Deloitte & Touche for a market assessment and feasibility study into the launching of an Islamic Window at the Bank. This study comes after the Royal Decree launched last year by His Majesty Sultan Qaboos, which agrees with the establishment of Islamic Banking in the Sultanate.
BankDhofar is committed to the implementation of Islamic financial services and has already invested in some training programmes for its executives providing them with insights into planning and acquiring Islamic banking products and services. The bank has also chosen a new Head of Islamic Banking, to prepare the Bank to manage this new service through dedicated Islamic windows.

According to Minister of State for Finance, Alhaji Yerima Ngama, discussions reached advanced stage between the federal government and the Islamic Development Bank (IDB) to secure a $600 million-loan for infrastructure development in the country.
He added that the loan which is on a three to four-year borrowing plan without interest had already passed the screening stages and would soon be made available for federal and state government projects, but there were some criteria yet to be satisfied by government before it could get the funding.
For example, he said some of the projects which funding was being sought for have not actually begun. Therefor, he noted that there was need to apply for funds ahead of time.