IslamicFinance.de

Islamic lending companies from Dubai’s DIFC Investments LLC to Saudi Arabia’s Etihad Etisalat take advantage of falling borrowing costs. As a result, Islamic syndicated lending in Europe, the Middle East and Africa rose to a four-year high this year. Shariah-compliant transactions this year are as high as $8.37 billion (Dh30.74 billion). The largest share belongs to Etihad Etisalat and is worth 10 billion-riyal ($2.67 billion). This year’s lending is over $3 billion higher than last year's.

UK-based law consultancy company Clifford Chance has prepared and handed over the draft law for forming Sharia-compliant takaful insurance firms and sukuk debt instruments. While a new set of law will serve as the rules takaful insurance companies, amendments will be made in Capital Market Law to accommodate Islamic debt instruments like sukuks. The final draft is expexted to be finished in about a month's time.

According to a report by KFH-Research, the volume of issuance of international Sukuk in July reached USD 12.9 billion. Since the beginning of the year, this amount is as high as USD 79.3 billion. A significant market expansion for the third consecutive month is observed. The total issuances so far for the current year mark an increase of 51.2% compared to the same period last year.

Incepta Pharmaceuticals Ltd signed a Musharaka deal worth US $ 20 million with Standard Chartered Bank, thus becoming the bank's Wholesale Banking Saadiq client. The money is a term finance for 5 years and will be used for Incepta Pharma expansion projects.

The Islamic trade industry neglects trade finance and leaves it to the domination of conventional banks. Direct lending is preferred over trade business. The youth of Islamic banks is pointed out as the mail reason for this kind of banking policy. However, due to a shift in the global trends pattern, an increase of the scope for Islamic banks to expand in trade finance is expected.

Political, humanitarian and financial aid to the victims of violence in northwest Myanmar is being organized by the Organisation of Islamic Cooperation. According to Secretary-General Ekmeleddin Ihsanoglu, the dimensions of the violent conflict between ethnic Rakhine Buddhists and Muslim Rohingyas are hardly known. Therefore, the call for help including housing, food, medical help and political support must be answered.

According to CTPartners, a huge number of family-owned businesses, which now have expanded into regional and global conglomerates, are concerned with succession planning to manage and preserve their wealth for future generations. Family-owned businesses should ensure sustainability beyond the founding fathers and their immediate offspring. Since these businesses constitute 75% of the private sector economy, their sustainability is essential for their contries as well.

The net profit of Dubai Islamic Bank (DIB) for the first half of the year have been announced. They are as high as Dhs555m, which result is a demonstration of a continuous growth. Compared with it, the same period of 2011 brought a profit of Dhs552m. A 27% increase from the first quarter of 2012 to the second has been registered.

As soon as the Central Bank of Oman grants the National Bank of Oman the final guidelines and the necessary approvals, the latter can offer Islamic Banking products. Also, it has launched its own Sharia compliant brand named ‘Muzn’.

Qatar's Islamic bank Masraf al Rayan has set up an independent brokerage subsidiary. Its purpose will be to offer a number of Shariah-compliant financial instruments for all types of investors. Although Al Rayan Financial Brokerage Company will be wholly owned by Masraf Al Rayan bank, it will operate as an independent subsidiary.

A group from Aabar Investments plans to set up the first Islamic bank in Oman - Al Izz Islamic Bank. The promotion of the bank is conducted under the supervision of Abu Dhabi's Aabar , Oman's Huriah Company and Dubai-based Tasameem Real Estate Company. The bank's role will be to provide comprehensive business and retail Islamic banking solutions in accordance with Omani law.

At the 12th meeting of the Centennial Fund's board of trustees works of the fund and a strategic plan until the year 2020 were revisited. The goal of the plan is to boost small and medium enterprises (SMEs). A large number of projects will receive money from the fund. The new strategy also aims to increase the amount of jobs and to fight poverty and unemployment.

Abu Dhabi Islamic Bank (ADIB) announced their expansion to Iraq yesterday. By opening a branch in Iraq, the bank becomes the first financial institution in the UAE which launches operations there with license from the Iraqi Central Bank. The branch of ADIB will be situated in Baghdad and will be managed by Jawdat Mahmoud Jawdat. ADIB aims to develop the Islamic finance industry in Iraq using best in class Islamic banking products.

Islamic exchange-traded funds (ETFs) are having serious difficulty attracting new investment while Western investors, on the other hand, move into conventional ETFs. This contrast is said to be caused by the Gulf's investment culture and the principles choice of financial products by institutions. Despite expected growth in Islamic ETFs due to higher interest in financial products like sukuk, amounts of fresh money committed to Islamic ETFs have hardly risen or have even stopped.

Despite the initial high optimism after Ali Abdullah Saleh's fall from power, almost half of the country's population suffer from starvation, says the World Food Programme. The appeals for humanitarian help made by Oxfam and Islamic Relief to the UN resultet in a minor raise of funds. Still, instead of $38m, the UN has decided on only $586m. Suggested reasons for this reaction are lack of media coverage, associations with al-Qaida and lack of political sway as well as donor fatigue.

According to the Saudi Arabian Mortgage Law which was adopted by the Council of Ministers earlier this month, insurance will be a prerequisite for mortgages. This means that without insurance, no No mortgage finance provider would finance a house. The new law is expected to affect positively or even to boost the Saudi insurance market and the mortgage takaful in particular.

Facing a debt issue, Kuwaiti investment firm National Industries Group Holding (NIG) asked creditors for extension. Since a $475-million sukuk matures next month, they asked for a four-year extension. The problem lies in refinancing the debt after borrowing costs rose, which firms who borrowed cheap short-term cash in the boom years to fund an asset-buying spree cannot complete.

This year's Ramadan shall bring joy to over 3.000 people thanks to a charitable campaigne of the Bank of the Year in the UAE - the United Arab Bank (UAB). Together with Awqaf & Minors' Affairs Foundation they will disburse meals during the holy month. Thus, they will become part of the giving spirit of the Ramadan and hope to make their contribution to the development of the society towards betterment.

Bank of Amercia/Merrill Lynch released a report about GCC 2020 looking at the core trends of modernising infrastructure, growth and decoupling from oil and that the region should look towards higher value added sectors. "First, and most immediately, we believe heavy investment in petrochemicals will now begin to see improving returns due to their global competitive advantage. Second, we believe a shift will require an ongoing need to invest in regional infrastructure. Third, we see a social and economic need for a growing middle class, supporting the growth of consumer sectors. Our message: own Saudi petchems, own GCC builders and building materials, own Saudi and UAE consumer plays, own Saudi banks."

The holy month of Ramadan will be marked by the Dubai Islamic Humanitarian Foundation's donation of Dh135 million to a number of charity organisations in six UAE emirates. Dubai Islamic Bank's problems should not affect the charitable act which will include Dubai, Sharjah, Ajman, Umm Al Quwain, Fujairah and Ras Al Khaimah as receiving emirates. More than 3,250 poor families will be given magnetic smart cards. The campaigne takes place for the fifth year in a row.