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The senior management of Sohar Islamic held its first Shariah Supervisory Board (SSB) meeting, chaired by Dr. Hussain Hamed Hassan, and attended by the other SSB members. The SSB of Sohar Islamic comprises of leading Islamic scholars from Islamic finance and academic sectors from across the world. During the course of the meeting, the SSB considered and approved product structures, contracts and policies in order to generate a workable strategy for a range of Islamic Banking products and services that Bank Sohar will soon offer. The SSB members commended Bank Sohar for addressing the need for Islamic banking and for their diligence in assuring Shariah compliance in all products.

Syrian banks prepare for worst-case scenarios after profits tumbled by between 40 and 90 per cent last year as the civil war further weakens the financial sector. Banking transactions such as trade finance or corporate lending have taken a big hit, while basic banking services continue despite the challenging environment. Therefore, several banks, including Byblos Bank Syria, have developed emergency plans to preserve business continuity. However, Syria's private lenders, an important part of president Bashar Al Assad's economic modernisation plan, are struggling with a mismatch of assets and liabilities.

Developer Nakheel is in talks to extend 8 billion dirhams ($2.18 billion) in loans due in 2015, according to its chairman Ali Rashid Lootah. The bank loans under consideration include 6.76 billion dirhams in secured facilities provided by, among others, Dubai's biggest bank Emirates NBD as well as 470 million dirhams in unsecured facilities, all due in 2016. Nakheel reported a 57-percent rise in annual profit in January. It also made interest and profit payments of around 800 million dirhams to lenders last year and has paid around 10 billion dirhams to various trade creditors and contractors since the start of its debt restructuring.

Qatar-based Barwa Bank has become one of the top 10 underwriters of Arabian Gulf Islamic bonds within three years of opening and plans to seek a credit rating in the second half before a possible sukuk sale. The bank arranged US$863 million of notes in 2012, and is considering its own issuance of sukuk. In addition to sovereign clients, Barwa helped Dubai-based Emaar Properties and Abu Dhabi Islamic Bank sell Islamic notes in 2012. The lender had assets of 21.5bn Qatari riyals at the end of June.

A group of mainly Malaysian academics and organizations published an advertisement in The Sun Daily asking Bank Islam Malaysia to lift its suspension of chief economist Azrul Azwar Ahmad Tajudin. According to the 135 professionals, politicians and academics and 59 organizations, Azrul had given a professional opinion based on economics and that his academic freedom should be respected.

Azrul Azwar Ahmad Tajuddin, Bank Islam’s recently suspended chief economist, is a member of the party PKR. However, PKR vice-president Mohd Azmin Ali said that Azrul’s party membership was irrelevant to his recent prediction that Pakatan Rakyat would win the 13th general election and that the analysis he gave is a professional opinion based on strong figures. However, Bank Islam released a statement yesterday saying the suspension was unrelated to Azrul’s personal political views.

Al Rajhi Bank has launched a new online banking portal to provide its customers with online self-service tools. The new internet banking platform is built using Backbase's Bank 2.0 Portal technology and implemented by Al Rajhi's IT department in partnership with Thales. Backbase allows the banking client to be in control of their portal and makes it possible for Al Rajhi customers to customize their banking interface to their personal needs and preferences. For the e-business side, Backbase allows for cross- and up-sell capabilities along with the ability to target relevant content and functionality to the right customer segments and individual customers.

Ajman Bank generated net income of Dh33.5 million (US$9.1m) during last year, compared to profit of Dh6.9m a year earlier. However, Ajman's fourth-quarter profits fell 29.5 per cent to Dh8.3m. The bank did not provide detailed financial statements or an explanation of the drop in quarterly income. Ajman said its increase in income was mainly generated through corporate banking, lending to small and mid-sized businesses and treasury operations. The bank's revenues and shares rose as well.

A senior Islamic Bank of Thailand (IBank) executive has affirmed that the bank’s financial status and liquidity are normal despite its non-performing loans (NPLs) at Bt39 billion, 20 per cent of its total lending. Thanin Angsuwarangsi, IBank manager, said Bt24.3 billion debts are being negotiated by the bank and debtors and the majority are willing to discuss debt resolution on the NPLs with the bank. After a restructuring of IBank’s role, it will emphasise giving loans to Muslim Thai people and small-time business operators. Mr Thanin believed the problem of Bt39 billion NPLs will be solved in three years, adding that IBank officers who are found to unscrupulously offer loans to customers will be legally dealt with.

The European Islamic Investment Bank PLC (EIIB.LN) said Tuesday it has sold a financing facility provided to Arcapita for $8.1 million in cash to Barclays Bank. The facility, dating from 2007, formed part of a syndicated loan facility which was due for repayment in March 2012. However, Arcapita defaulted on its payment obligations and in early 2012 announced that it had filed for Chapter 11 protection in the U.S. The sale will result in a total charge of $6.9 million in the results to December 2012.

Former executives of the Islamic Bank of Thailand who did not adequately pay attention to cash flow, collateral value and monitoring, are to be blamed for the high amount of bad dept at IBank, according to its new president Thanin Angsurarangsit. Non-performing loans at IBank currently amount to Bt39 billion, or about 30 per cent of outstanding loans. Moreover, the Finance Ministry is investigating possible corruption at IBank. The bank will try to maintain its lending at Bt120 billion this year. New lending to large corporates will be reduced as the bank focuses on retail clients who are Muslims.

Bank Asya plans to open 30 new branches and hiring 500 new staff members according to Ahmet Beyaz, the new General Manager. Abdullah Çelik is the general manager for Asia, who reported about the opening of the Erbil office and plans for India and Asia in general.

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.

A mass awareness campaign to increase public trust and confidence in Islamic banking, to be led by the Islamic banking industry with the support of State Bank of Pakistan (SBP), is being launched shortly. According to Deputy Governor of SBP Kazi Abdul Muktadir, the Islamic banking industry is still facing many challenges which include low awareness and understanding of public at large about Islamic banking and its distinction over conventional banking. The campaign is expected to lead to further acceleration in the growth of Islamic banking.

The Finance Ministry is supervising and working on a restructuring of The Islamic Bank of Thailand, or IBank. The ministry's approval for a capital increase depends on the success in the restructuring plan, according to Somchai Sujjapongse, the director-general of the Fiscal Policy Office. The bank is pursuing several options to recover debt, including filing court foreclosures or restructuring debt with clients. Mr Somchai stressed that IBank continues to operate normally, particularly retail lending operations, but has tightened underwriting practices for large corporate lending.

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.

Trevor Rowe has been appointed to the advisory board of Islamic funds manager Crescent Wealth. Rowe is chairman of BrisConnections, executive chairman of Rothschild Australia and chairman of UGL, among other things. Crescent Wealth managing director Talal Yassine said Rowe had been ''appointed for his experience and ability to offer high-level insight and counsel on strategic opportunities''.

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.

Kashf Foundation is one of the biggest specialised non-profit microfinance institutions in Pakistan, providing means for entrepreneurship and sustainable growth opportunities. Its focus has shifted from enterprises to individuals and solutions are customised. There are Rs2.8 billion in outstanding loans and 157 locations across the country where they are serviced. Twenty more locations will be opened this year. Kashf Foundation is planning to bring in Shariah-compliant products as part of its strategy.

Abdul Aziz al Balushi, CEO of Ahlibank, said that the bank may convert some of the existing conventional branches to Islamic banking ones or may open more new Islamic banking branches. He added that services, products and dealing of Ahlibank's Al Hilal Islamic Banking Services are built on the tenets of truth and transparency, and are in accordance with sharia principles. Ahlibank is confident that Islamic banking will be a great success in Oman.