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Japan looks for growth and influence from Islamic finance boom

Japan is the latest global financial hub to start making inroads into Islamic finance, a move that could help strengthen regional economic ties and give its lenders an edge in winning business in markets whose growth prospects far outpace their home turf. A regulatory effort is expected to facilitate development of the sector, and could even help Japan counter any loss of regional influence ahead of the launch of the China-led Asian Infrastructure Investment Bank. Japan's Financial Services Agency (FSA) is considering allowing banks to provide Islamic products in the domestic market for the first time.

Dubai Islamic Bank makes offer for remaining Tamweel shares

Dubai Islamic Bank (DIB) has offered 1.25 dirhams per share in cash to buy the remaining shares in its mortgage unit Tamweel. The offer will be open for one month until it expires on April 30. DIB currently holds 86.5 percent of Tamweel and is in the process of buying the remaining 13.5 percent. It took a 57.33 percent stake in 2010, a move that rescued the mortgage lender, which was struggling during a crash of Dubai's property market. The bank's board in January 2013 approved plans to fully acquire Tamweel.

Dentons advise Ajman Bank on $155 million Islamic financing

Dentons has advised Ajman Bank on $155 million Islamic financing facilities made available by a syndicate of banks. The facilities comprise of a dual commodity Murabaha and Wakala arrangement with a two year lifespan. Noor Bank acted as the arranger and bookrunner for the deal, and along with Emirates Islamic Bank, First Gulf Bank, United Arab Bank and Warba Bank which participated in the facilities. This transaction follows on from the $200 million Shari’ah-compliant syndicated facility to Ajman Bank that Dentons worked on in December 2014.

Islamic banking: History and development

While the first theoretical work began in the 1940s, the experimental work regarding Islamic banking did not start until 1960. In 1963, the Mit-Ghamr Islamic Savings Bank (MGISB) started in Egypt which is regarded as the first Islamic bank in the world. The first private commercial Islamic Bank 'Dubai Islamic Bank' was established in 1975 by a group of Muslim businessmen from several countries. Within ten years since the establishment of Dubai Islamic Bank, more than 50 Islamic banks came into being not only in Muslim countries but also in some of the Europe countries. The first Islamic bank in Bangladesh was set up in 1983.

Market for Islamic Banking in Kashmir and Early Muslim Economic Thought A bygone view

The 95% Muslim Population of Kashmir among which pre-eminent section is far away from modern banking system because of its Ribah (Interest) meticulously verboten by Qur’an. Kashmiri business class also desire for an alternative banking system; here the preferable economic management is visible since the decades. Various federations should be designed for the micro establishment of Islamic banking in Kashmir by taking the examples of Kerala, Maharashtra and various other Micro-economic institutions running in the country. The Non-banking Finance Corporations, Investment Alternative Credits should be introduced for the economic deprived section of Kashmir.

Saudi's Sidra Capital opening Islamic trade fund to GCC investors

Saudi Arabia-based investment bank Sidra Capital is changing its Islamic trade finance fund, initially established as closed-ended, to an open-ended format as it sees growing appetite from regional investors in the Gulf, its chief executive Hani Baothman said. The first tranche of the GCC (Gulf Cooperation Council) investors came with $50 million, and the firm expects more and more interest to come through. The fund, launched in 2012 with an initial $15 million in assets, has received approval from the Luxembourg regulator to become open-ended and it expects the Saudi regulator's approval as early as April, Baothman said.

Sharia banks to benefit from trillions in 'zakat'

Indonesia's sharia banks expect to raise a large amount of inexpensive funds from Islamic charity foundations following the signing of a memorandum of understanding (MoU) between Bank Indonesia, the Indonesian Ulema Council (MUI) and several alms and zakat collecting bodies.Under the agreement signed in Jakarta on Monday, the central bank and the MUI's National Sharia Council (DSN) agreed to work together to encourage the Islamic charity foundations to keep their funds in the country's sharia banks.

Jordan's sukuk market looking set for take-off

The Islamic debt market in Jordan is set to capitalise on growing worldwide interest in sukuk after long-awaited regulations allowing banks to issue and buy the financial instrument have been put in place. Only one corporate sharia-compliant bond has been issued so far in Jordan, a seven-year, JD85 million ($119.8 million) security launched by Al Rahji Cement in 2011, while the government has yet to tap the market with an Islamic sovereign bond. However, the passage of the sukuk law and the government's request in June last year for assistance from the Japan International Cooperation Agency to launch an Islamic bond suggest Jordan is intent on entering the market in the near future.

Book of the Day: Proposals For A Democratic Economy

New Left Project’s new e-book, "Alternatives to Capitalism: Proposals for a Democratic Economy" is now available for download. In it, the leading radical thinkers Robin Hahnel and Erik Olin Wright take on the crucial but all-too neglected question: what kind of society should we be fighting for instead of capitalism? Hahnel favours ‘participatory economics’. Wright advocates ‘real utopian socialism’. Alternatives to Capitalism puts these practical proposals through their paces in an in-depth, frank and extremely instructive debate about the central question of our time.

World Social Forum concludes in Tunisia

The 13th World Social Forum (WSF) came to a close after discussing a range of political, social and cultural issues, notably the phenomenon of terrorism and its impacts on democracy. The attendees delivered a message of peace and solidarity from Tunisia's National Bardo Museum, the site of a recent deadly attack. The four-day gathering was held under the slogan of "Together to pursue the revolution of rights and dignity." It gathered representatives of over 5,000 national and multi-national NGOs, including worker, peasant and feminist movements, from 121 countries.

RAK orderbook down from previous sukuk as airline crash impacts Emirates sukuk

This is Ras Al Khaimah's first sukuk issuance since October 2013, when the UAE emirate of Ras Al Khaimah sukuk was priced at 3.297% (MS+175bps) with a total of USD500m which garnered orders over USD5bn, which represents much stronger demand than the currently launched 10y sukuk. Also launching this week was the Emirates airlines sukuk which is to fund the orders for A380-800, as Emirates seeks USD107.5bn worth of aircrafts from Boeing and Airbus. This is the first time for UK Export Finance (UKEF) to guarantee a sukuk.

Will a sukuk be good for Ras Al Khaimah property?

Ras Al Khaimah is planning to open books on a 10-year, US dollar-denominated sukuk – a sign of the local economy’s continued development. A document from lead arrangers Al Hilal Bank, Citigroup, J.P.Morgan and National Bank of Abu Dhabi outlines meetings have been arranged for investors, with the final one set for next Monday in London. It is thought that the emirate is planning a benchmark size offer, which could be upwards of $500 million (£337.4 million). Two years ago figures showed that property values in Ras Al Khaimah grew by 16%. With this ongoing investment, the strength of a sukuk, and with more people moving to the area to live as well as for vacations, investors could be set to see greater rates of returns over the next few years.

MOVES-Islamic bank BLME's CEO to resign effective June 11 - statement

Britain's Bank of London and The Middle East (BLME) said on Sunday its chief executive Humphrey Percy would step down effective June 11. Percy, who has served as CEO since August 2006, will also step down as a board member of the bank, BLME said in a statement. No reason for his departure was given in the statement, which quoted him as looking forward to the new challenges. An announcement on his successor as chief executive of BLME will be made in due course, the statement added.

Gatehouse Bank and Threadneedle Investments to explore strategic investment opportunities

Gatehouse Bank plc ("Gatehouse") and Threadneedle Investments ("Threadneedle") have outlined their plans to explore the development of a range of diverse investment products aimed at the growing market segment of Islamic investors. This comes shortly after the announcement of Threadneedle's acquisition of a 2% strategic equity stake in Gatehouse. An important part of Threadneedle'sinvestment in Gatehouse is the desire of both parties to work together, sharing their respective global fund structuring knowledge and Shariah-compliant origination track record. This partnership recognises the growing potential for investment products targeting the Shariah-compliant financial sector.

UPDATE 1-HSBC's Islamic banking unit raises 705 mln ringgit in Malaysia sukuk sale -IFR

The Malaysian Islamic banking arm of HSBC Holdings has raised 750 million ringgit ($205 million) from the sale of 5-year Islamic bonds at a yield of 4.24 percent. The sale is the third tranche of the lender's overall 3 billion ringgit sukuk programme, sold using an agency-based structure known as 'wakala'. HSBC Amanah Malaysia Bhd pulled in strong demand, with the final book exceeding 1.38 billion ringgit at a bid-to-cover ratio of 1.84 times. Final pricing came at the low end of guidance, which started at 4.22-4.28 percent. As orders poured in, the guidance was tightened to 4.22-4.25 percent within a few hours after books were opened.

SUKUK PIPELINE - Issue plans around the world

The Thomson Reuters Global Sukuk Index is at 117.36419 points, down from 117.49811 at the end of last month but up from 115.79726 at the end of last year. The Thomson Reuters Investment Grade Sukuk Index is at 116.08405 against 115.48693 at the end of February and 113.69014 at end-2014. Some of the sukuk in the pipeline are: Indonesian flag carrier Garuda Indonesia plans to issue $500 million worth of sukuk in May to refinance $350 million in loans maturing in June. Besides, Turkey's Capital Markets Board approved the issuance of 2.05 billion ringgit ($554 million) of sukuk by Turkiye Finans Katilim Bankasi.

UAE residents to Islamic banks: Why no new products?

In EY’s World Islamic Banking Competitiveness report, EY monitored 55,884 Islamic banking customer sentiments in the UAE on social media as part of a wider study. According to the study, UAE banking clients were most satisfied with customer service. Customer feelings were mixed with respect to branch experience, online banking and phone banking. The study of social media comments has revealed an improvement opportunity for Shariah-compliant banks with respect to products and services, which were ranked the lowest in terms of customer satisfaction.

Standard Chartered confirms departure of Islamic banking head

Afaq Khan, CEO of Standard Chartered Saadiq, has decided to leave the Bank and plans to take a career break, according to a statement by the bank. Afaq Khan joined Standard Chartered in 2003 and is a well-known and well-respected figure in the Islamic finance industry. Khan is the second senior figure to leave Standard Chartered Saadiq in the last six months. At the end of October last year, Wasim Saifi resigned as Global Head of Islamic Banking for Consumer Banking. Saifi had rejoined Standard Chartered in the role in January 2011. The bank said a successor to Afaq Khan will be announced in due course.

HSBC's Islamic banking unit plans sukuk sale in Malaysia

The Malaysian Islamic banking section of HSBC Holdings has tapped the Islamic bonds (sukuk) market last Friday, as part of a S$1.1 billion sukuk programme. According to Reuters, the bank planned to raise up to 500 million ringgit worth of sukuk, using an agency-based structure known as 'wakala'.
The transaction ist he first issuance of sukuk by HSBC Amanah Malaysia Berhad since October and September 2012. HSBC Amanah has appointed HSBC as lead arranger with Hong Leong Islamic Bank and Maybank Investment Bank as joint lead managers for the sale.

Arab Investment Bank and IDB unit launch leasing firm

An Islamic leasing firm will be launched by Egypt's Arab Investment Bank and the private sector arm of the Islamic Development Bank an in aim to provide sharia-compliant financing to small businesses. Enmaa Leasing Company for this purpose will have authorized capital of $20 million, according to a joint statement said. The ICD is discussing to debut sovereign Islamic bonds (sukuk) with Nigeria and Ivory Coast.

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