IslamicFinance.de

Today Bloomberg announced the launch of a new corporate sukuk index - Malaysian Ringgit (MYR). The index has been developed together with the Association of Islamic Banking Institutions Malaysia (AIBIM) and Bursa Malaysia. The purpose of the Bloomberg AIBIM Bursa Malaysia Corporate Sukuk Index is to serve as a benchmark for investors of ringgit-denominated Islamic bonds in Malaysia. It will track and measure the performance of the most liquid and credit-worthy Islamic corporate bonds in the country.

More on: http://www.moneylife.in/business-wire-news/bloomberg-launches-new-corpor...

On monday, Islamic Development Bank (IDB) Group opened its office of business forum (thiqah) at the Investment Coordinating Board (BKPM) in Jakarta. Since this is the bank's first office beyond the boundaries of Saudi Arabia, it is expexted that it will contribute to IDB's expansion and mobilization of its resources and promotion of Indonesia as a major investment destination for IDB's members. This move will enable a connection between Indonesia and investors from other Muslim countries, thus taking advantage of the rapidly growing Islamic economy.

More on: http://www.thejakartapost.com/news/2012/09/18/jeddah-based-idb-sets-busi...

As Islamic Microfinance gains popularity in Arab countries, AlHuda Centre of Islamic Banking and Finance and Yemen Microfinance Network plan a two-day training workshop on Islamic Microfinance. It will take place on 16th & 17th September, 2012 in Yemen's capital city Sana'a. The event's goal is to increase the reach of Microfinance Institutions. Topics such as the proper utilization of Islamic Microfinance for alleviation of poverty in poor countries, Islamic Microfinance Products and their structure, Shari'ah principles of Microfinance and MicroTakaful are part of the programme.

A microcapital event on November 6 – November 8, 2012 has been announced: 8th International Microinsurance Conference. It will take place in Dar es Salaam, Tanzania. The event serves practitioners, policymakers and academics to exchange experience to convey challenges, trends, and the current state of the microinsurance industry. Some of the topics included are failures in microinsurance, strengthening training institutions, process mapping and performance indicators. The event is organized by the Munich Re Foundation.

With the participation of a couple of major international banks, Al Baraka Turk Participation Bank has signed anIslamic finance deal worth $450 million making this a record. 32 banks from 16 countries are included in the facility. Among them are Standard Chartered Bank, Noor Islamic Bank, ABC Islamic Bank and Emirates NBD. Nominations for mandated lead arrangers are announced: Bank Islam Brunei Berhad Darussalam and Al Hilal Bank.

According to a recent economic report, the Islamic finance industry has great prospects of global growth since it has already achieved significant growth rates among global financial services sectors. This year, the total value of Islamic financial assets is expected to be as high as USD 1.6 trillion and the growth is expected to continoue the following year. As main reasons for the expansion the increasing demand for Shariah-compliant assets and the active promotion of the Islamic financial market are pointed out.

Al Jazira and Al Hilal Bank signed a sponsorship contract which starts with this seasons and continues for three years. Since Barclays Bank and Al Jazira put an end to their association, it was the perfect moment for Al Hilal Bank to come on board. Due to recent sponsorship, the logo of Al Hilal Bank will be seen on the UAE Olympic football team's apparel, the players dugout and other signage at the club’s facilities.

After Capital Market Authority (CMA) has approved of the prospectus for Alizz islamic bank's shares offering, the bank has set the launch date of its initial public offering (IPO) on September 22. The IPO consists of 400mn shares. Expextations are that the bank will draw unbanked sections of the population into the market and that by 2015 Islamic banking assets in the country will exceed RO2bn.

Insurance company Tokio Marine Middle East Ltd intendt to launch a new Saudi joint venture aiming to spearhead its activities in the Kingdom and beyond. Alinma Tokio Marine KSA, the joint venture between Tokio Marine Middle East, Saudi Basic Industries Corporation (SABIC), Saudi Arabia's Alinma Bank, and a number of local smaller investors will start working together in the very near future. The capital of the new company is estimated at SR100 million.

Dar Al Takaful plans to a number of products with small and medium enterprises, travel, medical and institutional business as a target group. Thus, profitable volumes are expexted to contribute to achieving the premium targets set for 2012. The companiy's intentions are to achieve a 40% growth a year in the next two years. So far, an 85 per cent year-on-year growth in its premium business are a fact after only seven months of the current year.

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.

According ot a report by Standard & Poor's Ratings Services, a trend to develop and globalize the sukuk market is being set. Since conventional banks worldwide tend to producing fewer and shorter loans, companies look for an alternative in terms of financing. In this case, it is very probable that Islamic financial instruments become a significant source of funding, particularly in the GCC and Asia. While these regions mark the center of a huge estimated $1 trillion market, they also need high capital for developing their infrastructure.

Capital Market Authority (CMA) of Saudi Arabia issued a strongly worded warning towards companies that operate without a license, thus surprising many people in the Gulf region. In the warning notice CMA states that non-licensed operations will be sanctioned since they are considered violating the relevant provisions of the capital market law and its implementing regulations. The problem that rises from this warning is obtaining a licence to operate in Saudi Arabia. For this purpose, an office and a minimum number of staff are required.

Al Izz Islamic Bank plans to launch an initial public share offer (IPO) for 40 percent of the bank. the bank has set a goal to raise 40 million rials ($104 million) in this way. The offer will be opened on September 22 and will run for one month. Shares in Al Izz's offering will be priced at 0.1 rials each. Both local and foreign investors can make use of the shares with the condition that foreign investors are only allowed to have up to 70 percent of the offering.

Seera Investment Bank has negotiated a Sharia-compliant structured financing facility wich will serve for developing a new purpose built student housing project and commercial property in central London. The project should be completed next year. The property will provide 339 rooms for students as well as a commercial space of 37,000 square feet. The property will be constructed in the vicinity of Aldgate East Station in Central London which location is not far away from a number of higher educational institutions. The first phase of the construction has recently been finished.

Qatar’s $4bn sukuk issue marks great success and is referred to as a milestone in the rise of Qatar’s sharia-compliant finance industry. The growth of Islamic financial services are supported by ambitious infrastructure investment programme and a growing wealth by capita. The sukuk was oversubscribed over six times which results in an order book of more than $24bn. During hte time of international economic uncertainty Qatar manages to show some stability. As a result, low yields of 2.09% and 3.24% of the five-year and ten-year bond of the two-tranche sukuk respectively are observed which is a sign of strong demand for Qatar’s sukuk.

The future financial regulation of Libya will face some new challenges and advantages. The question remains however, whether the absence of political stability and security will have a positive effect on the adoption of Islamic finance. The new Congress elected in July this year will appoint an interim government and a constituent authority to prepare the draft of the country's new constitution. On one hand, the Congress is influenced by liberals considerably more than by islamists. On the other hand, the liberals have vowed to accept and include Islamic principles in the new constitution.

Saudi Automotive Services' shares decreased by 0.50% to SR19.95. The company announced that it signed up for a SR255m Islamic credit facility with Banque Saudi Fransi. The financial means will flow into the realization of expansion plans.

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.

Arcapita Islamic investment bank, which finds itselb in Chapter 11 bankrupcty, plans a new financial move. It will make a $1.9m Murabaha financing with a profit rate of 15% possible. The money will flow into District Cooling - a joint venture with Dalkia Utilities Company serving for district cooling and other services to three developments in Bahrain and Abu Dhabi. The financing is supposed to play the role of a bridge. Meanwhile Arcapita and District Cooling are occupied to renegotiate a concession agreement with Abu Dhabi’s Tourism Development & Investment Company (TDIC).