IslamicFinance.de

Managing-Director of Bank Mellat Ali Divandari announced that his bank has been removed from the European Union's sanctions list. The EU Council had listed Bank Mellat and its then-chairman Dr Divandari in the designated list in July 2010 on the basis that it was a legitimate part of its regime of sanctions designed to stop the Iranian nuclear program. Both the bank and Dr Divandari challenged the sanctions in the European Court which finally declared a ruling in support of Bank Mellat.

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 4th Langkawi Islamic Finance and Economics (LIFE-4) Global Forum, scheduled for mid-February 2013, will provide a global platform to discuss key issues around the competitiveness, growth and sustainability of Islamic finance. Its theme is 'Islamic Financial Planning and Wealth Management as the New Frontier for Global Islamic Banking and Finance Industry'. Financial regulators, experts, jurists, academics and stakeholders across the world will meet in order to move the industry forward.

Alafco, a Kuwait-based Aircraft leasing group, may list some of its shares on an international exchange. The idea reportedly came from shareholders. However, the size of the stake that could be listed or on which exchange was not announced. Kuwait Finance House owns a 53.69 percent stake in Alafco, the rest belongs to State-run Kuwait Airways Corporation and private investors.

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.

The Agricultural Development Bank (ADB) is hoping to introduce Islamic banking services for its Muslim and non-Muslim clients within one year. In order to educate the public about Islamic banking methods and strategies, ADB sought the help of experts from Deloitte and Touche. Jail Leladhasingh, corporate manager, business development at ADB, said the ADB is exploring the possibility of setting up the bank to offer this alternative service to farmers.

Jordan Islamic Bank (JIB) and Ministry of Religious Endowments / Hajj fund have signed the agreement of issuance Hajj Sukuk for citizens who are interested in participating in the fund through Jordan Islamic Bank. Citizens can subscribe in Hajj Sukuk as a tool for saving and investment that complies with Sharia principles. Underwriting can be done through all JIB's branches and offices.

North Africa is moving towards the development of the Islamic financial industry as a response to the protests in several countries of the Arab world. Although there are some difficulties to overcome like low banking penetration and limited development of retail banking in general, there ist still potential for growth and progress. However, until a more stable political environment is provided, Shari'ah-compliant banking will be a niche market in North Africa.

The Takaful market has been growing steadily and remains unsaturated with huge growth potential. Global Takaful contributions grew by 19 per cent in 2010 to US$8.3 billion and were forecast to reach US$12 billion in 2012.

Islamic bonds trailed emerging-market debt for a second year, a trend that is expected to continue this year. Compared with a 18.5 per cent yield for developing-nation securities, Global Sharia-compliant notes gained 9.6 per cent last year.
Falling yields have helped to push worldwide sales of debt that comply with Islam's ban on interest, and sales may increase this year as new countries including Oman, Tunisia and Egypt tap the Sharia-compliant capital market for the first time.

On January 30, the UN High Level Panel started its meeting in Liberia to discuss the current Millennium Development Goals (MDGs) and their replacement after they expire in 2015. The focus will be on economic transformation and reduction of poverty. Followers of the financial inclusion project believe increased access to financial services can help achieve these aims and recommend the High Level Panel to develop strategies that help create financial inclusion.

Oman's Ahlibank, which launched its Al Hilal Islamic banking services in the sultanate, is considering to convert all its conventional branches to Islamic banking. According to Abdullah al Jabri, DGM and head of Al Hilal Islamic Banking Services, the bank is planning to start with branches in Ibra, Nizwa and Sur in the coming month.

TH Heavy Engineering plans to issue non-rated sukuk under the Sukuk Murabahah programme with MIDF Amanah Investment as the principal adviser. The Sukuk Murabahah is unrated, non-transferable and non-tradable. The Securities Commission (SC) reportedly authorised the proposed programme. The tenure of the Sukuk Murabahah programme is up to six years from the date of the first issuance, which will be made within one year from the date of the SC’s authorisation.

Zain Saudi has extended the maturity of a nine billion riyal ($2.40bn) Islamic loan for another four weeks until February 27. The lending banks accorded to put back the maturity of the murabaha facility for the seventh time since it was agreed in July 2009. Zain Saudi said it would use the extension to conclude negotiations with lenders over a new long-term financing agreement, but also warned the existing facility could be further extended.

The Iranian Bank Mellat plans to sue the European Union governments for damages after a European court annulled sanctions against the company. The reasons for the court's decision are that the EU failed to provide enough evidence that Bank Mellat was linked to Iran's disputed nuclear progamme. However, EU governments may appeal the decision. Bank Mellat now plans to resume trading in Europe although broader European sanctions against Iranian banks could still limit Bank Mellat's ability to function there.

Tamweel today announced that it had repaid in full a $300 million five-year Sukuk, which was issued in early 2008 and matured in January 2013. The proceeds were used for general Islamic financing and corporate purposes. The timely repayment of the Sukuk demonstrates the financial strength of Tamweel and its majority shareholder Dubai Islamic Bank (DIB).

The European Court of Justice annulled the European Union (EU) sanctions imposed against the Iranian Bank Mellat in July 2010. According to the bank's Managing-Director Ali Divandari, the Court also required the EU to cover the costs of legal procedures. Additionally, Bank Mellat will receive all legal expenses as well as compensation from the EU for losses incurred because of these sanctions. Divandari also said vague reasons were used by the EU to impose the sanctions two and a half years ago.

Approximately US$10 million were stolen from the vault of the International Bank for Trade and Finance (IBTF) in Damascus on January 17. According to the bank's chief executive Sultan Al Zobi, the management only discovered the robbery on the following Sunday. He also added that a bank employee was believed to be involved in the raid. IBTF notified the authorities, an investigation is under way.

Texas-based Jafari No-Interest Credit Union, designed for Shia Muslims, will cover costs with fees instead of interest. The current blueprint is to charge members a $3 monthly fee while the credit union tries to keep costs down. However, additional fees may also be charged to members in order to cover operating expenses and build capital.

DURBAN-based Al Baraka Bank launched a full international foreign exchange service and now offers a full range of international banking services. As part of the Al Baraka Banking Group it can leverage off the group and its 14 subsidiaries around the world. According to the bank's CE Shabir Chohan, the full foreign exchange service coupled with the recently launched chequebook facility will position the bank as a competitive commercial bank in South Africa.