IslamicFinance.de

It seems that Islamic banking has numerous advantages and capabilities that gives it permission to play an important role in solving many economic problems in the GCC. The statement cam from Kuwait Finance House-Bahrain Chief Executive Officer and Managing Director Abdul Hakim Al Khayyat.
He added that Islamic banking services have made the way for the future easier, and have become one of the most important alternatives that many economies worldwide search.
He explained that Islamic banks can have an efficient role in solving the housing problem through its role in construction projects and real estate development, not to mention several instruments that finance that sector, such as murabaha, ijarah, and others.

Salah Jaidah was appointed chairman of Islamic finance at Deutsche Bank. Also, the new head of Islamic finance structuring is Ibrahim Qasim.

Mr James Caan talks about expanding his investment advisory firm into the UAE and why he left the TV show.
He states that as a result of the credit crisis, the general appetite for Sharia-compliant investments is a growing market. They want to place their capital in an environment that submits to their religious requirement.
He thinks that a credit crisis could have been avoided. He adds that short-selling is one of the biggest factors for turmoil in markets. Giving people mortgages at interest rates that are deteriorated is a fundamental principle that Sharia law doesn't accept.

Solum Asset Management will launch the first “investment sukuk” in the first quarter of next year, considering Islamic bonds as investment vehicles rather than debt instruments.
The 200 million sterling ($310 million) Student Accommodation Investment Sukuk will use equity to supply holders with an annual yield of 4 to 6 %. Risk in the investment sukuk will be based on the assets that are bought by the fund.

In this column, Mohammed Khnifer reveals, after examining the offer circular thoroughly, three possible flaws in the overall structure.
1- Strong indication from the proposed structure and the prospectus as well that the sukuk is not, as they claim, Murabaha, but a Reverse Tawarruq.
2- Strong indication that Goldman will be using, eventually, the proceeds to fund its conventional activities.
3- The so called Murabaha sukuk is listed on the Irish Stock Exchange (ISE). There are some concernes on how the ISE will make sure that the securities will be traded at par value.

Kuwait’s Beyoo Investment and Finance Co is switching its attention from financing to asset and wealth management as the investment arm of Al Imtiaz Investment Company.
Arabic language daily Al Anba announced that Beyoo's shareholders approved changing its name into Dima Capital Investment to reflect this change in activity.

Following the resignation of Bara'a Al Qenaei, CEO of International Investment Group (IIG), the board of directors of IIG gathered on 7 September 2011 to discuss the resignation. The Kuwaiti firm’s board accepted the resignation and agreed terms with a view to appointing Faisal Al Busairi as CEO.
However, ultimately an agreement with Al Busairi was not reached and he did not accepted the position.
Therefor, Ghassan Al Sultan (Board Member) is temporarily managing the Shari’ah-compliant business in a caretaker's capacity.

The Indonesian government will start proposing retail Islamic debt papers (sukuk) to individual investors in March, after previous issuances drew strong interest, despite the shaky global financial market.
Sales agents would be nominated on January 4 and the offering would take place in March. Government debt papers were appealing to individual investors because the return rates were higher than bank deposits and it was also viewed as safe because of government guarantees.

The launch of Sharia compliant buy-to-let purchase plan has entered Islamic Bank of Britain into the buy-to-let mortgage market.
The IBB’s buy-to-let purchase plan can be accessed by landlords of any faith searching for ethical and Sharia compliant finance with a deposit of only 25%.
In order to mark the launch IBB have also announced a promotional procuration fee of 0.5% gross, payable on referrals that drawdown prior to March 31 2012.

The Syrian currency presents itself weakest level since the beginning of political unrest, descending 30% against the US dollar.
The Syrian pound fell almost 20% against the dollar immediately after economic sanctions were constrained on the Syrian regime. The currency dropped from 47 Syrian pounds to 61 pounds against the US dollar.
The League’s sanctions, which have influenced transactions with Syria’s central bank, come with a threat to freeze Syrian assets in other Arab states, and Arab investments in Syria.

The growth of low-cost carrier flydubai is almost double compared to its launch in October 2010 in Pakistan despite heavy competition and slump in the industry.
The aviation industry has an important role in strengthening ties between UAE and Pakistan, which is evident from the growing number of air travellers between both countries.
The event was organised at Karachi Expo Centre parallel to UAE Expo 2011.

Tamweel hired banks for a possible bond sale as it looking for financing to repay liabilities and increase lending. The shares presented a jumprecord in a month.
Citigroup, Standard Chartered and Dubai Islamic Bank will make appointments for investor meetings in Asia, Europe and the United Arab Emirates.
Tamweel plans to raise at least $300 million to $500 million from Islamic bond sale in the fourth quarter.

Bank Simpanan National (BSN) has the purpose to aggressively grow its newly launched wealth management division by embracing the underserved takaful market.
Winston E. Jeyaprakas is the deputy chief executive of credit management and business support. He stated that they are looking for the wealth management division, which was launched in June, to provide between 12% and 15% to the bank's revenue by end-2012.
The divisions aim is to supply a full range of financial planning products and services to complement the overall business of the bank with further value-added products and services.

The World Congress of Muslim Philanthropists (WCMP) and Pakistan’s Islamic microfinance institution Farz Foundation have singed a Memorandum of Understanding to further empower their partnership.
The two will work together in developing Shariah compliant, need based and market driven innovative products. They will also design the strategies to carry out the products' operations to kick start the Halal income generating cycle.
WCMP will copy Farz Methodology in Pakistan and outside, especially in the less developed Muslim countries.

UK entrepreneur James Caan has the strong oppinion that the global financial crisis could have been avoided if banks had submitted the Islamic rules that forbid investment in collateralised debt obligations and other toxic assets.
Sharia-compliant banks advanced better than conventional lenders during the downturn, thanks to rules that forbid speculation. Banks are also discouraged from repackaging debts, as financial instruments generally have to sell for face value.

It seems that the Emaar Properties PJSC agreed on an $800 million Islamic loan with three banks that pays 3.5 per cent more than the benchmark rate.
The developer of the world’s tallest tower will also pay fees for the facility, which is supplied by Dubai Islamic Bank PJSC, Standard Chartered Plc and National Bank of Abu Dhabi PJSC. The financing is backed by Emaar’s flagship Dubai Mall.
The so-called profit rate is about 4%, compared with a yield of 8.55% on November 30 on Emaar’s Islamic bond maturing August 2016.

Takaful, or Islam-compliant insurance, operators will have to center the attention on underwriting quality, cost management and investment discipline as financial performance is still a challenge for many markets in the current fluctuating investment environment.
Marcel Omar Papp, head of retakaful at Swiss Re, stated that investment is one challenge for takaful operators, who tend to count on equities or real estate.
Takaful operators generally raise capital through debt, equity or decreasing risk. Papp added that most operators "seem to be well capitalized" as many companies have only been set up in the past few years and their business volumes are not yet important.

The euro zone crisis has constrained investment in gold-backed exchange-traded assets so high that newcomer Source now owns the world's sixth largest physically-backed gold product and sees no need to promote it actively outside Europe and the Middle East.
It is owned by major investment banks BofA Merrill Lynch., Goldman Sachs, J.P. Morgan, Morgan Stanley and Nomura.

Investors from the UAE have invested UGX12bn ($4.8m) in the National Bank of Commerce, formerly Kigezi Bank of Commerce, with the purpose of raising shareholder dividends and introducing Islamic banking in Uganda.
There are more than 200 local shareholders and a lobby group from them approached NBC’s management to ask for loans to help them invest in agriculture – something that the Emiratis were very interested in so they can secure food stability.

Saudi- based Alahli Takaful Company stated that it had assigned US law firm, King & Spalding as advisor to its SAR80m ($21.3m) rights issue and which opened for subscription.
The Takaful firm was originally searching a rights issue of 150% in February of this year, this was pared back to 80% in May and on Sunday at an EGM a 66.67% rights issue was approved by shareholders.