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Bahrain-based Al Baraka Banking Group B.S.C. (ABG) announced that it has achieved a net income of $235m in 2012, an increase of 11% on the income achieved in 2011. Other financial position items witnessed good increases as well, including total assets (11%), total financing and investments (21%), deposits including equity of investment account-holders (12%) and total equity (9%). The financial statements of the Group for 2012 showed that the continued expansion in business reflected positively on income, with total operating income of $880m in 2012, an increase of 21% over 2011. According to H.E Sheikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group, the success is based on its geographic expansion programs and branch network as well as strong financial means, human resources and technical capabilities. Furthermore, he emphasized the importance of ABG's commitment to the Islamic banking model.

Bahrain's bankrupt Arcapita Bank BSC, after negotiations with creditors, filed in New York bankruptcy court on Friday a proposed Chapter 11 reorganization plan that calls for a $185 million exit financing package. According to the bank the package will allow it to wind down its operations, sell off its assets and maximize recovery for creditors. Arcapita will set up new operating companies and most unsecured creditors will give up their claims in exchange for equity in the new company.

Bahrain-based Arcapita Bank is planning to liquidate its assets, and will not seek out new investors or investments, according to its reorganisation plan. Creditors will be given equity in two new companies that hold all the assets of Arcapita and several related companies. The proposal also envisions a new $550 million sukuk to be issued to the unsecured creditors. The reorganisation plan will be submitted to creditors for a vote and to the US court for confirmation.

The three Bahraini Islamic banks Capivest, Elaf Bank and Capital Management House have completed their merging into a single entity with total assets worth over $400m and total equity of around $340m. Shareholders had given their approval to the tie-up at the end of June. Advisors on the three-way merger were Deloitte and law firms Trowers & Hamlins and Elham Ali Hassan and Associates.

3BL 'Triple Bottom Line' Associates (3BL), Bahrain's first social impact and sustainability consultancy, has released the results of the Bahrain Responsible Business Survey. According to report, the most popular understanding of corporate social responsibility (CSR) is community engagement. Whereas, the most prevalent CSR activities are: Community Engagement, Employee Wellness, Transparency, Corporate Governance, Health and Safety, and Gender Equality and Diversity. The importance given to the environment among survey respondents was much lower than for social responsibility.

The Islamic International Rating Agency (IIRA) has assigned a national scale long-term credit rating of 'AA-' (Double A Minus) to Bank of Khartoum (BOK) with a short-term rating of 'A-1' (A One). The outlook on the assigned rating is 'stable'. The fiduciary score has been assessed in the range of '70-75', reflecting adequate fiduciary standards wherein rights of various fund providers are adequately defined and protected. BOK is the first financial institution to have been rated in Sudan.

The Islamic International Rating Agency (IIRA) situated in Bahrain has upgraded the credit rating of Jordan Islamic Bank (JIB) on the national scale, whereas the international scale ratings of JIB have been reaffirmed. The outlook on the ratings is 'stable'. The report issued by the agency also reaffirmed JIB's Sharia Quality Rating of AA, which confirms the bank's conformance to very high standards of Islamic Shari'a principles in its dealings and finances.

In order to to improve the operational model of the entire takaful industry, the Central Bank of Bahrain is set to issue new enhanced draft rules. Thus, it will also be able to make the country a preferred choice for all takaful and retakaful. The new rules are part of solvency (Phase II), and are related to corporate governance and actuarial reporting requirements. With the introduction of these rules in 2013, the central bank aims to accelerate growth of the country’s takaful industry while protecting the interest of all industry participants.

Khalid Hamad, executive director of the Bahrain Central Bank, said that the implementation of the Malaysian-based Islamic Financial Services Board (IFSB) should be mandatory. These rules and regulations would contribute to better growth of the industry. He further pointed out that the role of the IFSB is very similar to the one of the Basel committee in terms of issued guidelines and standards.

Bahrain's Al Salam Bank confirmed media reports related to a potential merger with an unnamed regional bank. One potential merger prospect is Khaleeji Commercial Bank , after Gulf Finance House, which owns 47 percent of the lender, said last week it was studying tie-up options with other Bahraini banks. In February, merger talks between Bahrain Islamic Bank and Al Salam Bank collapsed due to disagreement on valuation.

Gulf Finance House (GFH) has issued a statement denying the suspension of the firm’s Acting CEO Hisham Alrayes. GFH clarified that its ex-CEO Mr Ted Pretty and Ex-Deputy CEO Mr Mohd Al Nusu were suspended for a period of three months. Both have already resigned from the company. According to the statment, the CMA had not imposed any financial penalty on the firm.

As part of its strategy to raise money for its creditors, Bahrain-based Arcapita Bank sold its stakes in five retirement homes outside London. The American property investment trust Health Care REIT bought the 80 per cent ownership. Arcapita Bank has faced legal proceedings with creditors after the 2008 global financial crisis and is therefore liquidating its assets.

Ithmaar Bank helped support a local charity that provides an Education Scholarship Fund (ESF) for children of financially challenged families. Ithmaar Bank Chief Executive Officer and Member of the Board, Mohammed Bucheerei, presented the cheque for the ESF to Azra Mohammed Mohsin, President of the Pakistani Women's Association (PWA) which established the fund. More than 100 children are receiving support from the ESF in the current academic year .

Bahrain-based Gulf Finance House (GFH) is studying options to merge its affiliate, Khaleeji Commercial Bank (KCB), with other Bahraini banks. It did not say which Bahraini banks it was considering as merger partners.

Al Salam Bank Bahrain acquired an equity stake in two new Boeing planes which are being leased long-term to Emirates Airlines. Thus, investors have the opportunity to benefit from a regular income stream with a yield of 9% p.a. secured by a top tier airline. The Bank retained a sizeable stake of the investment in the proprietary portfolio and sold down the remaining portion to its investors.

The role is to manage all product development and research for Islamic Finance, implement the agreed strategy, launch new or updated products to market and take the lead on building relationships with the various stakeholders in the Islamic Finance space.

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The countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE have a very high chance of success in the development of their financial markets and promoting their competitiveness. This is shown in a recent research by Deutsche Bank. One of the key factors stressed on in the research report is progress made in corporate governance-related matters. The Cooperation Council for the Arab States of the Gulf countries has made significant advances in establishing effective financial market regulation and oversight as well as a strong grip on market abuse and financial fraud. Continuing to follow this direction and committing the resources needed to achieve optimal consistency and effectiveness in regulation and market supervision is seen as crucial for achieving the goals of financial development and economic diversification.

Deloitte Islamic Finance Knowledge Centre is a thought leadership think-tank focused on providing innovative intellectual and practical programs, for Islamic finance leaders and institutions and leads the practice development in Middle East region and coordinates with Deloitte's member firms globally. Its activities include:

•Develop practice across the MENA region and support Deloitte's Islamic financial service offerings•Provide internal and client's training and Islamic finance education•Conduct leading market and regulatory research and thought leadership•Promote professional excellence and best practices through different awareness programsThe responsibilities of the "Business Analyst" include:
•Co-drive Deloitte IFKC thought leadership function in ME and co-oversee knowledge-building initiatives in close collaboration with the Director of Deloitte IFKC.

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In the process of Arcapita Bank's asset liquidation aiming to raise money for its creditors, the bank has sold its interests in five retirement homes outside London. According to a statement, Arcapita and its investors have sold their ownership of 80% in the property to Health Care REIT. The investment in the US-based publicly traded property investment trust was carried out in 2003 through a joint venture with Sunrise Senior Living. At the time Arcaoita sought Chapter 11 protection on March 19, 2011, the bank had assets of US$3.06 billion (Dh11.24bn) and liabilities of $2.5bn.

The merger between three Islamic banks based in Bahrain - Elaf Bank, Capital Management House and Capivest - has been successfully closed by Kuwait Finance House-Bahrain (KFH-Bahrain). The merger will enable a strengthened financial institution with a total equity reaching approximately $340 million. The total assets in excess will be $400m spanning the Middle East and North Africa (Mena), Europe and Asia. KFH-Bahrain played the role of transaction and lead adviser. The discussions and procedures started in late 2011 leading now to the creation of a robust merged entity which is more competitive in the field of global Islamic banking and investment industry.