IslamicFinance.de

Bank Nizwa is expected to open its doors either towards the end of the year or early next year.
Hamoud bin Sangour Al Zadjali, Central Bank of Oman (CBO) executive president, thinks that the bank will have a capital of RO150 million from which 40 % will be offered to the public through an initial public offering.
The CBO chief also added that existing banks, that intend to start window operation for Sharia-compliant products, can offer them through an existing branch and there is no need for opening an exclusive branch.

G Capital in partnership with Gürmen Group, has acquired Adabank in Turkey for US$ 75 million. Gulf Finance House (GFH), G Capital’s parent company, has a long track record in establishing and operating financial institutions across the MENA region, institutions like: Arab Finance House (Lebanon 2003), Solidarity (Bahrain – 2004), First Leasing Bank (Bahrain - 2004), Khaleeji Commercial Bank (Bahrain - 2005), Asian Finance Bank (Malaysia - 2006), Qinvest (Qatar - 2006) and First Energy Bank (Bahrain -2008).

Sub-Saharan Africa (SSA) is often seen as a region that has exciting potential for the Islamic finance market, being home for more than 250mn Muslims. Beside the obvious religious aspects, the products are typically based on tangible assets and prohibit excessive risk-taking.
At this point, Islamic finance in SSA is focused in a few key markets and there are only a few dedicated institutions. South Africa is one of the leaders, thanks to Al Baraka Bank and Oasis Group.

Although sales have doubled this year, it seems that global Islamic bonds are approaching record lows. Yields dropped for a fifth month to an average 3.66 per cent on July 29.
PT Danareksa Investment Management and Franklin Templeton Investment Management Ltd stated that Asia and the Middle East will keep attracting foreign investment as economic growth outpaces that in developed markets this year. As oil prices are being kept above the five-year average, demand for sukuk in the Gulf Cooperation Council (GCC) nations after Dubai World and Nakheel PJSC restructured debt is more an more.

Aktif Bank has won a US$10mn two-step murabaha financing facility from the International Islamic Trade Finance Corp, that is a part of the Islamic Development Bank Group.
It seems that the facility will be used in trade finance-related transactions and will support intra-OIC (Organisation of the Islamic conference) trade.

Tariq Al-Rifai, Director – Islamic Market Indexes at Dow Jones Indexes, wrote an article in which he underlined the fact that Islamic banks need to strengthen their sales and marketing, perhaps even going as far as targeting non-Muslim investors. He points out its salient features and how Islamic banking differs from the conventional banking. His aim is to highlight the many attractive features of Islamic banking.

Taking the general agreement, that the fundamental principles underpinning Islamic finance offer the potential for a different and perhaps sounder way for undertaking financial transactions, into consideration, and afterwards analyzing common Islamic finance products in detail, it can be concluded that Islamic finance will not always be less risky when compared with conventional finance products.
Mudaraba and musharaka are the best form of Islamic finance. Taken in their purest form, they represent a different approach to conventional financing, its return solely depending on the profitability of that investment.
Many transaction structures and agreements were approved with the idea that they will start up the industry, although they would need improvements.
But sometimes these imporvements never took place or the focus was on the form of the documents rather than analysing the real intent underpinning the Islamic finance transaction and the intention of the parties.
All this could mean that the secular courts need to revisit these issues with more urgency.

In any chosen business it is well known that meeting customer expectations is a hard task. But taking Islamic finance and socially responsible investing (SRI) into consideration, the gap between expactations and practice is even larger.
In practice, other than refusing to finance ‘sin' industries, these expectations are hard to meet. Although it is expacted a profit sharing, most of the financing in the Islamic financial sector is debt based, therefor the form of financing is changed to that of a sale or a lease without necessarily changing its economic substance.

Iraqi private banks are battle against decades of state dominance to win a slice of the asset base from government-run enterprises. It is no surprize than that they have it very hard raising their capital.
The poor credit culture, lack of a modern banking system, and the dominance of state banks aren't helping at all. That is why most business from this country is made with cash especially because they are worried about the security.

PT ANZ Panin Bank (ANZ) insituted a first-of-its-kind credit card that would recognize its ANZ Signature Priority Banking customers in Indonesia on two levels.
The bank stated that the ANZ Infinite credit card gives out benefits to ANZ priority banking customers for their banking relationship with ANZ and offers a range of luxury lifestyle and travel rewards.

Al Rajhi Bank has accessed the Jordaniani market, being the first bank in Jordan that provides a Shariah-compliant, Murabaha-based personal finance program to individuals that also allows them to consolidate debts in a single installment, all this while enjoying a variety of added benefits, including one-hour approvals and 24-hour financing.
The banks main objective is to introduce quality products and services specifically tailored to meet the demands of the local market.

Islamic certificates of deposits (CDs) launched by the UAE central bank in late 2010 rised by nearly Dh13 billion at the end of June as it seems that banks are investing heavily in such tools issued in the country for the first time.
The figures prooved that UAE banks are turning heavily to the central bank to invest excess liquidity and offset a sharp slowdown in their credit to the private sector which they now see as a high-risk field.

The new development bank is named Al-Emar Bank (the Construction Bank) and is founded under the support of the Organisation of Islamic Conference (OIC).
It is expected to formally be launched during the OIC meeting in the State of Qatar December 2011.

Tunisia is trying to become a centre of Islamic finance in the Maghreb, especially taking in consideration the newly liberated political atmosphere and developing free market.
The July 15th-16th conference had the main focus on Islamic banking and innovation and training in the emerging field.
Tunisian Finance Minister Jelloul Ayed announced that currently 96% of financial resources from Islamic banking are invested outside Muslim states, something he considered a lost opportunity.

The Investment Dar Company stated that the investors' coordination and liaison committee has been concluded.
The committee will mediate with the company at regular face-to-face meetings, establish regular reporting processes and will assign a qualified individual to be the first contact point for all TID banks and investors to disseminate information.
Some of the members of this committee are: Al-Rajhi Bank, Bank of Bahrain & Kuwait, and Arab Banking Corporation.

An official statement brings up the fact that the Indonesian government plans to sell IDR1 trillion of Islamic treasury bills on Aug. 2.
Rahmat Siamat, a Shariah director at the finance ministry, the purpose is to diversify the government's funding sources.

The Investment Dar (TID) Investors' Coordination and Liaison Committee (the Committee) has been finished.
TID stated that the Committees task is with coordinating with the company through regular meetings in order to establish regular reporting processes in addition to appointing an individual to become the main contact for all TID banks and investors for information and updates.
According to media reports, TID has been busy getting ready for the implementation of the debt restructuring deal after Ramadan, as the company will start repaying its debts to some creditors. Local reporters say that TID is reportedly looking to set relevant mechanisms in light of the verdict issued in May, which allows the company, which is listed on the Kuwait Stock Exchange (KSE) to benefit from the Financial Stability Law.

NGO World has closed an agreement with Shariah certified Islamic microfinance institution ‘Farz Foundation’ to replicate its Islamic Microfinance Methodology in poverty alleviation programs.
Together they will make and raise awareness for Shariah compliant finance products by conducting training sessions, workshops with the poor community.

Kerala Finance Minister K M Mani uncovered the plans for special counters to be opened in state treasuries to collect interest-free deposits, saying the state Government was ‘not against’ the idea of Islamic banking.
But it seems that inspite of this, the Reserve Bank of India and the central Government has pointed out loud and clear that Islamic banking may not be implemented under current legislation.

Besraya is a Malaysian highway operator that is going to launch a RM700m ($233m) Mudarabah Sukuk. The statement came from the local press.
The sukuk has the purpose to part-finance the development, design and construction of the 12.3km Besraya Eastern Extension as well as other project-related expenses and working capital requirements.