IslamicFinance.de

According to chief the executive officer of Alternative Bank of Switzerland (ABS), financial institutions worldwide must change their profit-mongering mindset. It is essential for them to replace the current principles with value-based banking practices in order to be able to contribute to the economy. Martin Rohner pointed out that the banks need to be brought back to their original economic purpose. The value-based approach removes profit from its first place, thus taking away the pressure of shareholders. Instead of striving for maximum profit, banks are to serve the community and the environment.

Read more on: http://www.thedailystar.net/newDesign/news-details.php?nid=254912

The latest takeover bid for the Birmingham based Islamic Bank of Britain by its majority shareholder, Qatar International Islamic Bank, has not had any success. QIIB's scheme was recently voted down at a shareholder meeting. Meanwhile, Marsaf Al Rayan has become a potential bidder for IBB. The ofer by QIIB from September 6 was worth £35.5 million.

Read more on: http://www.birminghampost.net/birmingham-business/birmingham-business-ne...

New client escaping from the debt crisis in Spain and the crisis in the Middle East turn to assets under the management of banks in Geneva. The outlook of difficulty for Swiss banks does not scare them. Thus, the amount of funds under management has grown due to inflow of foreign money, in particular from Spain and the Middle East. Geneva's banks are seen as shelter.

Read more on: http://uk.reuters.com/article/2012/10/17/geneva-banks-idUKL5E8LHGCI20121017

Cooperating with Malaysia's Sovereign Wealth Fund (SWF), Gatehouse Bank has executed the GBP 165 million acquisition of the law firm SJ Berwin’s offices in London. The role of Gatehouse was Investment and Shari’ah Adviser. The deal is the first real estate investment of the Malaysian client and is essential for its wider global investment strategy. According to Chief Executive Officer of Gatehouse Bank Richard Thomas, this investment is a great example of international co-operation and demonstrates how funds can be mobilised around the world complying with the principles of Shariah.

Read more on: http://www.cpifinancial.net/news/post/16102/gatehouse-advises-malaysias-...

Together with a Malaysian Sovereign Wealth fund, London-based Gatehouse Bank has finished the £165 million acquisition of the offices of the law firm SJ Berwin. Gatehouse played the role of an investment and Sharia adviser for the deal. The investment of the Malaysian client is of major importance for its wider global investment strategy.

Read more on: http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=339370

King & Spalding, Norton Rose and Jones Day have advised on Shariah-compliant financing of £400m which is to be used for the redevelopment of King's Reach Tower on London's South Bank. Investor company Mohammed Al Subeaei & Sons Investment Company (MASIC) from Saudi Arabia provided a £145m mezzanine tranche. The company was advised by a London team from King & Spalding.

Read more on: http://www.legalweek.com/legal-week/news/2215332/norton-rose-and-jones-d...

Due to rapid growth and expansion of the Islamic financing sector, Germany is about to follow the example of some other European countries and launch an Islamic bank. Similar plans are discussed in Ireland as well. One of the reasons for the expansion is the growing demand for a more ethical financial system. However, the question remains whether Islamic finance can offer suitable solutions which reach beyond the Muslim world. Even though it is based on Muslim religious principles, it has some advantages like the lack of speculative activities and a possibility to create a more equitable financial system.

GFH Capital Limited plans to fully buy-out the futball club Leeds United. GFH Capital offers a 100 per cent cash purchase, which means there would be no debt for the club to be paid if the takeover succeeds. Negotiations are protracted as they are about to enter their fifth month but there is more than likely that the deal between GFH Capital and Leeds City Holdings Ltd will be made soon.

See more under: http://www.yorkshireeveningpost.co.uk/sport/leeds-united/latest-whites-n...

HSBC decied to exit the get out of the Shariah-compliant business in the U.K., the UAE, Bahrain, Bangladesh, Singabpor and Mauritius due to high local competition and relatively small market size where there is not sufficient scale to be economic.

See also under: http://www.bloomberg.com/news/2012-10-04/hsbc-ceases-selling-retail-shar...

Bank of London and Middle East - BLME - is going to acquire a multi-let site property with six tentants for its Light Industrial Building Fund. This investment will bring the gross asset value of the fund over £20 million and an annualised yield of over eight per cent from the new acquisition which should help to achieve or even exceed target return of the fund, according to BLME Director Asset Management.

See more under: http://www.cpifinancial.net/news/post/15967/blme-acquires-property-for-i...

In an announcement on Wednesday, Bank of London and The Middle East plc (BLME) informed about a significant senior secured transaction with Greenergy Biofuels Limited. BLME is the lead arranger and the main shareholders with equal stakes are BLME and a bank basedin Qatar. The facility is secured against the assets of a biodiesel plant located in Immingham, Humberside, UK.

More on: http://www.zawya.com/story/BLME_arranges_senior_secured_Murabaha_finance...

The Irish Electricity Supply Board (ESB) considers issuing a sukuk in Malaysia which would make it the first large non-financial company from Europe to involve in trade with Islamic bonds. Issuing a sukuk is likely to contribute to the development of a new source of funding for companies in Europe while the euro zone debt crisis constrains sources of finance at home.

More on: http://in.reuters.com/article/2012/09/20/islamic-ireland-sukuk-idINL5E8K...

Qatar First Investment Bank (QFIB) is announced to acquire two properties in prime locations in Central London. These are the Leinster Inn Hotel at Leinster Square, and Westbourne House, Westbourne Grove. The acquisition is carried out in association with a consortium of investors from the GCC. The transactions aim to capitalise on the growing demand for real estate in Central London by converting both buildings into high-end luxury residential apartments.

Ireland has set itself the goal to become a global Islamic finance hub since its funds industry has passed beyond the €1 trillion (Dh4.73tn) mark. Thus, the country can take a larger slice of the continuously growing Islamic finance sector. After strengthening Ireland's position in the Sharia-compliant sector by attracting its first fund promoted from Malaysia, the country makes plans for further expansion and growth in this area.

According to plan the Turkish investment fund Kuveyt Turk will open the first Islamic bank in Germany this October. They sustain the hopes to overcome the euro crisis and to profit from successful Islamic banking. In contrast with highly speculative financial management which caused the ongoing euro crisis, the Islamic bank shall offer only transactions backed by tangible assets.

An announcement of Gatehouse Bank plc states that the bank has a strong set of interim results for the first six months of 2012. Profit projections have been exceeded by almost 10% with a total of more than $3.2 million (GBP 2.1 million). This shows that the bank’s business and operating model is maturing out of its start-up phase. The bank is also close to meeting its 2012 financial plan, since the income for the same period is £6,121k in comparison with £1,719k for the comparative period - a 250% increase. Thus, substantial growth and wealth preservation on behalf of its investors is delivered.

The Convergences 2015 world Forum for the Millennium Development Goals will be on in Paris from 19-21 September 2012. It is a main event for all professionals interested in discussing innovative answers to reduce poverty in Europe and around the world.

Financial Times Deutschland reports that Kuveyt Tuerk will open the first sharia compliant banking branch in Germany. The bank's headquarters will be in Frankfurt. Other branches are to be opened in other cities with a high density of Muslim inhabitants, according to FTD.

According to the IFIA, CIMB-Principal Islamic Asset Management has become the first Malaysian firm to launch funds from Dublin. Thus it is reinforcing the position of the domicile as Europe's leading funds centre. The start of the CIMB-Principal Islamic Irish Ucits fund range follows the constitution of CIMB-Principal Islamic Asset Management (Ireland).

Gatehouse Bank has bought the Debenhams department store in Leeds city centre for £33.4m ($52.6m). thus, the sharia-compliant investment bank continues property acquisition in this city, the BT building in Sovereign Street being the first one. The new acquisition was chosen for its strategic location for retail and real estate fundamentals.