Africa

Egypt introduces new 'sukuk' law to attract Gulf investors

Egypt will launch its first Islamic debt guidelines and amend its capital market law in a try to spur Arab investment and open itself to investment from the Persian Gulf and Southeast Asia.
This will allow oil-rich countries to invest in the roughly 180 companies listed on the Egyptian stock market.
A statement published by the financial watchdog's website revealed that the proposal will be discussed by experts and other involved parties before being floated for final approval by Egypt's cabinet.

Iraq to start Islamic services at two state banks

Beginning with this month, Iraq will offer Islamic banking services at its two main state-owned banks. The ministry revealed in a website posting that the bank will introduce banking services compliant with Islamic Sharia law at the Rafidain and Rashid banks in the next two weeks.

Malaysia to invest in Kazakhstan

Malaysia is going to invest in 5 projects from Kazahstan. This projects include investments in a Kazakh Islamic bank, oil and gas exploration by Petronas, cattle breeding, energy generation and the construction of a hotel.
The projects are expxcted to begin as soon as possible.
Jambul district of Kazakhstan and National Feedlot Corp Sdn Bhd signed a Memorandum of Understanding on cattle rearing, while their produce would be exported to Malaysia and neighbouring countries.

AAOIFI forum a big success

At this year's Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) annual conference came 400 delegates from more than 20 countries from as far afield as South Africa, North Africa, Asia and Europe.
Despite the recent unrest in the kingdom, the conference wasn't affected, it was a big success. The conference closed at the Gulf Hotel and AAOIFI will now carry out training workshops in Bahrain until Friday.

Africa does not need irresponsible investments – Ezekwesili

Obiageli Ezekwesili, the World Bank Vice President for the Africa Region, announced that even though Afr ica expects business, it is not open for just any business. She added that the continent can only afford responsible investments.
In her oppinion, Africa needs investments that are people-focused and pro-poor, promotes Africa’s efforts to achieve the Millennium Development Goals, helps in creating jobs and promotes transparency, accountability as well as good governance.

Fears grow for Azerbaijani IF

Hikmet Allahverdiyez, director of Moore Stephens in Azerbaijan, has the strong oppinion that if banks won't be aloud to have more freedom to invest across the economy, Islamic finance will fail. Azerbaijani banks can only provide "a limited set of Shari'ah compliant products" to retail customers.
At the end of last year Elman Rustamov, chairman of the Central Bank of Azerbaijan, stated that the CBA has no plans to develop Islamic banking within the next two to three years.

OIC/Africa: OIC Secretary General visits Africa to Promote Socio-Economic Cooperation

Prof. Ekmeleddin Ihsanoglu, Secretary General of the Organisation of Islamic Conference, will honor the invitations of the presidents of the Republics of Benin, Togo, Sierra-Leone, Guinea Bissau, Gambia, Senegal and Niger.
The delegation that will attend him contains: the Assistant Secretary General for Economic Affairs, Ambassador Hameed Opeloyeru; the Director, African Affairs, Ambassador Yahaya Lawal and a host of senior officials from the General Secretariat.

Is Uganda ready for Islamic banking?

The OIC (Organisation of Islamic Conference) Business Forum was held on June 2008 in Uganda.
At that point it was declared that the National Islamic Bank would be set up in Uganda. This will bring Uganda in line with some other EAC member countries like Kenya that have already opened their doors to this form of banking. Such new banking products will increase the depth, breadth and range of finance products bank customers can use to access banking services and as an alternative to the current interest bearing financial products under the conventional banking system.

Barwa Bank in QR529m deal with NPS

Barwa Bank and National Petroleum Services Group (NPS) made an agreement to refinance an existing syndication and support its expansion and working capital. All this will be worth QR529m.
NPS group provides drilling and well services to customers in the oil, gas and petrochemical industries in the Middle East, North Africa, Far East, and Europe.
Its state-of-the-art equipment and sectorial services are embracing Qatar, Saudi Arabia, United Arab Emirates, Bahrain, Syria, Brunei, Malaysia, Singapore, Libya, and Iraq.

UN Calls for Investment in Protections for Asia’s Poorest

Economists and Asian leaders pointed out that in order not to shock financially and environmentally Asia’s poorest, basic social protections are needed. They think that the key to helping Asia’s poorest lift themselves out of poverty is increased spending on social programs.
United Nations economists stated that government-funded social protections such as universal education, basic health care and job programs could provide a critical safety net for the millions of impoverished Asians who are most vulnerable to rising food prices and environmental calamities.

Middle East and North Africa: Protecting Social Cohesion and Economic Stability

The Middle East and North Africa region is going through a raough patch because of social unrest and surging commodity prices.
Countries from the region must create more jobs and generate inclusive growth. Their biggest challenge is to maintain social cohesion and macroeconomic stability. Although the governments have understandably increased spending, it is well known that it is not a permanent solution. Each country must develop its own approach for political, social, and economic transformation.

SERA projects generate interest in CSR in Nigeria – Egbas

Ken Egbas is the Managing Partner TruContact. TruContact is considered by many one of Nigeria’s leading Public relations agencies. He also developed the Social Enterprise and Reports (SERA awards).
In an interview given to Saturday Vanguard Business, Egbas underlines his belief that private organisations should be deeply involved in corporate social responsibility in any environment they operate.

EBRD eyes expansion in Mena region

The European Bank of Reconstruction and Development is ready to expand to North Africa and the Middle East next year. A potential country for operations is Egypt. The bank plans to invest €2.5bn ($3.54bn) in the region per year.

Row over CBN 'Sharia' clause in banking rule

Because of the the new guideline on Non-Interest Financial Institutions (NIFI) by the Central Bank of Nigeria (CBN) a big legal battle is going to take place.
The guideline was signed by the Acting Director, Financial Policy and Regulation Department of the apex bank, Chris.O. Chukwu and became operational on January 13, 2011. It introduced religion into Nigerian banking, although it was forbidden by the Banks and Other Financial Institutions Act 1991. Four Senior Advocates of Nigeria (SAN) have been engaged by some Nigerians to fight the new guideline at the Federal High Court, Abuja.

Pakistan - World’s Largest Conference on Islamic Microfinance

AlHuda Centre of Islamic Banking & Economics (CIBE) and AKHUWAT from Pakistan will be the hosts of World’s Largest Conference on Islamic Microfinance. The conference will be held on June 13, 2011 at Faisal Auditorium Islamabad and delegates from 12 countries and 800 participants will attend this event.
Through this event light will be shed on topics like methodology of poverty reduction, Zakat, Shariah implications, Dard-e-Hasna, Waqf models, latest trends of islamic microfinance, technological application of poverty alleviation, usage of islamic microfinance in non muslim societies and other issues.

The Emerging Islamic finance market in Nigeria - Outline and challenges

Background
The current size of the Islamic Banking Industry at the global level is $1 trillion, and could grow to $5 trillion over time.
Nigeria is inclined to this global trend. In March 2011 the country has signed an agreement with Malaysia's Central Bank to cooperate in Islamic Financial Service1.
Principles of Islamic Finance
The most important principles of Islamic Finance involve the forbiddance of:
- interest earnings, money lending or usury (riba)
- sinful activity (haram), such as direct or indirect association with lines of business involving alcohol, pork products, firearms, tobacco, and pornography
- speculation, betting, and gambling (maisir), including the speculative trade or exchange of money for debt without an underlying asset transfer
- trading of the same object between buyer and seller
Conclusion

Sudan's Bank of Khartoum eyes up Kenya

The Sudanese Islamic Bank plans to move in the future into Kenya. This would be the first cross-border expansion of Islamic finance in East Africa.
Kenya is in the process of changing its finance laws to allow Islamic finance. Kenya has two Shari'ah compliant banks in operation, a Takaful company and an array of Shari'ah compliant banking products in conventional banks, leading the way.

Sudan hopes to fully sell $286 mln sukuk, eyes more

The hope of selling Islamic bonds worth 765 million pounds is taking over Sudan, after the split from the south that is going to take place in July.
The African country relies on the domestic debt market as U.S. sanctions mostly deny access to international markets.
Azhari Eltayeb Elfaki stated that the demand is bigger than they thought it would be.

egypt: New prospects for Islamic finance

It is well known that Egypt is considered the birthplace of islamic finance. But because of past corruption scandals, there was a time in which the previous government wanted a financial system that was more economic.
Now, after Hosni Mubarak and his government was brought down, Muslims are welcoming Islamic banking, giving Egypt the chance to be the center of Islamic finance.

Islamic finance can fuel regional economies

A historic opportunity for economic and financial change guided by Sharia-compliant instruments appeared because of the political transformation in the Middle East and North Africa.
Volker Nienhaus, economic adviser and former president of the University of Marburg, stated at the 19th International Conference on Investment Rules and their Impact on Economic Development that Islamic instruments should be invested in the development of an entrepreneurial middle class so that long-term economic progress and job creation can be guaranteed.
Dr Nienhaus underlined his statement by telling Gulf News that the promotion of enterprise among the middle class was the key to ensuring regional stability.

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