IslamicFinance.de

The Muslim Community Co-operative (Australia) (MCCA) has recently received an Australian financial services licence from the Australian Securities and Investments Commission (ASIC). It is necessary for the MCCA to set up its Managed Investment Scheme, the ‘MCCA Islamic Finance Investment Fund’, by which the MCCA plans to launch its Shari’ah-compliant home finance products.

The MCCA has until now been a mutually-owned co-operative. The plan for the next three years is to wind down the co-operative outfit and sell its assets to the new fund. And the intended launch date will either be 1st May or 1st July 2009.

Chaaban Omran is the managing director of the MCCA

Malaysian Rating Corp. starts offering from July 2009 onwards services to rate the degree of Sharia compliance of Islamic financial institutions. The audit will review the risk management culture and frequence of Sharia meetings aside from management skills.

The Agency targets fund managers, insurers and banks in Malaysia first before it plans expansion to South-East Asia.

Mohd Razlan Mohamed is the CEO of the Malaysian Rating Corp.

In spite of several applications Bank Al Maghrib, the central bank of Morocco, did not issue a stand alone Islamic banking license. The reasons: too much stress for the Moroccan market and the problem of taxation on certain Islamic products. However, since their permission on the market, the total value of Islamic finance products is around DH 200 mn.

Amanie Business Solutions LLC. officially launched its web integrated Shariah stock screening service, the service will target new entrants into the Islamic fund management industry.

The web delivery platform of Amanie Screening can be accessed through http://www.amaniescreening.com . Investors and fund managers will be able to view the details and features of the Shariah Stock Screening service.

Amanie is a Shariah advisory and education company seeking to serve the global Islamic finance community.

Ithmaar outlines 2008 achievements and concludes that due to good diversification the global crisis has been well mastered. Ithmaar reported USD 85.2 mn in consolidated profits for 2008.

Ithmaar Bank, a Bahrain-based investment bank with global reach, heads a regional banking and financial services group that comprises more than 20 subsidiaries, associates and joint ventures. Their combined activities, covering investment, private, retail, and commercial banking, private equity, Islamic insurance and assurance, equipment leasing, and real estate development, form a unique 360 degrees value chain that embraces the entire spectrum of banking and financial services.

Michael P. Lee is CEO of Ithmaar Bank.

In February 2009, following a meeting of the Bank’s Board of Directors, Ithmaar reported $85.2 million in consolidated profits for 2008. Of these profits, $22.2 million are attributable to the Bank’s shareholders. Ithmaar also reported significant growth in both its total assets and its funds under management, and said its balance sheet remains strong, with liquid assets at $1.3 billion, representing around 23 percent of its total assets.

Joyce C Abaño reported on 25th March that the Shariah-compliant Qatar First Investment Bank (QFIB) celebrated its official launching yesterday during an exclusive ceremony at the Museum of Islamic Art. The event was graced by former US president Bill Clinton, who spoke about the challenges of globalisation and growing interdependence, and the need to identify common goals and values worldwide. The bank has an authrised capital of QR 3.6 bn (USD 1 bn).

The bank was awarded a licence by the Qatar Financial Centre in September 2008. Mike de Graffenried is the CEO of QFIB.

The Bahrain Financial Exchange (BFX) has employed the consultancy services of the SHAPE™ Financial Corp. SHAPE is a leading specialist in the formation of solutions for Islamic finance markets and will assist the BFX in the development of Sharia compliant Islamic finance products for listing on the Exchange. The initial work will be conducted across Islamic capital markets, Sukuks, REITs, ETFs and Murabaha sectors.

Dubai Islamic Bank is considering raising AED 3 bn (USD 817 mn) in fresh capital and converting emergency government deposits into regulatory capital. The bank's board of directors would discuss the two measures on March 25, the bank said on Tuesday in a statement on the bourse website.

Rival banks, such as Union National Bank, National Bank of Abu Dhabi and Emirates NBD Bank in the UAE have already launched similar moves.

KuveytTürk aims to cater for German Muslims from payment services to the whole range of Islamic finance products in the years to come. The application process for a financial services branch with both regulators is ongoing but not yet finished contrary to what media sources were reporting yesterday.

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is offering Export Credit Insurance which offers to protect the exporters from the risk of payment default by their buyers or importers on one hand, and offers them a number of indirect and direct financing products on the other hand. This dual solution approach mitigates the principal inherent risks in international trade, encouraging exporters in entering new markets and expanding customer base.

The concept was presented in Saudi-Arabia and the ICIEC is going to present the possibilities to other IDB member countries.

According to Les Afriques the Central Bank of Nigeria is circulating a draft of their regulation for Sharia compliant financial institutions.

Dawood Islamic Bank Limited has received Rs. 1 billion (USD 12.9 mn) investment from Unicorn Investment Bank Limited, based in Bahrain , this was stated in a statement issued from Bank’s headoffice in Karachi. Dawood Islamic Bank launched in 2007 with an initial paid-up capital of Rs. 3 billion. The Dawood Islamic bank has a branch network of 21 branches spread over the major cities of Pakistan , including Karachi , Lahore , Islamabad , Faisalabad , Multan , Sialkot , Iqbalabad and Joharabad.

Unicorn already had a 22.2 % equity stake in Dawood Islamic Bank prior to the current investment. With the new investment the equity of Unicorn Investment Bank, in Dawood Islamic Bank has increased to 37% percent

Aamir Khan is Managing Director and Head Global Private Equity of Unicorn Investment Bank and a founder Director of Dawood Islamic Bank

Said Rafique Dawood is Chairman Dawood Islamic Bank.

The Malta Institute of Management (MIM) met up with Opposition Leader Dr Joseph Muscat, to present a copy of Dr Robert Attard’s Principles of Maltese Taxation.

Hon Dr Muscat said that Malta has a big opportunity ahead of it. MIM has spearheaded the discussion in Islamic Finance in Malta and the Labour Party has supported it throughout. Reuben Buttigieg explained how Malta can be marketed as an Islamic Finance centre through the direct intervention of the government through the issuance of Sukuk.

Frederik Richter reported on 15 March based on Reuters that Bank of Bahrain and Kuwait (BBK) is looking for opportunities to acquire after the planned merger with rival Shamil Bank was put on hold.

BBK recently created its fully-owned Islamic investment bank Capinnova. BBK has a market capitalization of about $1.04 billion and a market share of 15-20 percent in the Bahraini retail market, according to its own estimates. (Reuters)

Kuwait News Agency citing that the Moroccan newspaper "Al-Jareeda Al-Oula" reported that three Gulf investment groups have revealed their intention to invest USD 250 mn this year in Morocco, including the Kuwait Fund for Arab Economic Development (KFAED and the Kuwait Finance House Group (KFH).
In the same context, the newspaper quoted an official from the "ENOCENOC" group of the United Arab Emirates as saying that the group decided to invest USD 150 million to set up an investment project in the northern city of Tangier.

The Executive Director of the ENOCENOC Group Saeed Khoury said the investment will be to build the first phase of the plant in Tangier which is scheduled to enter service in the first quarter of next year.

Bahrain-based First Leasing Bank (FLB) made a net profit of USD 3 mn in 2008 last year. The bank's income from financing activities grew to USD 8.4 mn from US 3.6 mn in 2007 and total portfolio grew to USD 142.5 mn from USD 54.5 mn at the end of 2007.

Khalid Kanoo is Chairman.
Greg Brinkerhoff is CEO.

Les Afriques reported on 7 March that Mohamed Sakhr El Materi, President of Princesse El Materi Holding has received end of January the regulatory agreement to create the commercial bank Zitouna.

Existing Islamic banks in Tunisia are Best Bank (Bank Ettamwil Tounsi Saoudi) and Noor Islamic Bank, the latter with its regional office.

International Investment Bank (IIB), Bahrain announces a Net Income of USD 13.5 mn and the approval of a cash dividend payment of 7% for the year ended 31 December 2008.

At USD 13.5 mn, the 2008 Net Income represents a 12.3% return on Paid up Capital (ROC). The Capital Adequacy ratio at 31 December 2008 of 86% is over 7 times of 12% required by the Central Bank of Bahrain.

Mr. Aabed Al Zeera is the Chief Executive Officer and Board member.

For full details on IIB’s financial results, please see the ‘Financial Section’ on IIB’s website at source.

Adam Schreck wrote on 10 March on Associated Press that Dubai Islamic Bank sets aside cash amid fraud probe and that it has foreclosed on a real estate project after court papers indicated the bank was the victim of a half-billion dollar fraud. In a statement, Dubai Islamic Bank said it had exposure of about USD 330 mn to a company named CCH linked to some of the suspects in the court papers.

Liau Y-Sing reported on Reuters, 5 March that Malaysia's stock exchange will launch in June a platform to allow banks to execute Commodity Murabaha transactions, a popular but controversial Islamic contract with a market worth more than USD 100 bn according to the International Islamic Financial Market. Any tangible asset that is sharia-compliant can be used in commodity murabaha transactions and palm oil is one obvious example. Malaysia is the world's No. 2 palm oil producer.

But some religious scholars have criticised the structure, saying it resembles conventional-based lending instruments. The Accounting and Auditing Organisation for Islamic Financial Institutions is of the view that the contract, while not invalid, is not ideal.