IslamicFinance.de

Quarterly Result Update
1. Net profit rose 30.4% to KWD 2.11 million from KWD 1.62 million.
2. The operating income of KWD was 15.46 million during 1Q11, increasing 40.7% from KWD 10.99 million in 1Q10.
3. The FY2011E total operating income is revised upwards by 20.1% anticipating higher non-financing income. Accordingly, the net profit estimate stands 13.7% higher.

Clifford Chance recently advised HSBC Bank Middle East Limited (HBME) regarding the update of its US$5 billion sukuk issuance programme and a US$500,000,000 issuance under the Programme.
As part of the update of the Programme, the existing Wakala structure of the programme had to be overviewed again in light of recent amendments to the UAE's laws. That is why HSBC and Clifford Chance spent a considerable amount of time developing an innovative structure, which utilised Mudaraba and Wakala arrangements, which sought to address the new laws in a manner that complied with the Shari'a requirements of HSBC whilst at the same time being marketable to Islamic investors globally.

An Australian Islamic association is offering new scheme of interest-free loans to low-income Muslims for the purchase of essential household goods and services according to the Islamic Shariah.
It seems that NILS offers small, interest-free loans of up to $1000 to people on low incomes for the purchase of essential household goods and services.

Islamic finance has grown about 14% over the past 15 years.
Zainal Izlan Zainal Abidin estimates the Islamic finance industry at about US$1 trillion. It seems that the Islamic finance is penetrating new markets such as in Europe and Africa.
Zainal Izlan Zainal Abidin underlined the fact that guidelines to govern the issuance and offering of a wide range of capital market products and services had been put in place to ensure orderly development of Islamic capital market, and these guidelines were regularly reviewed to ensure their relevance and effectiveness

Sheikh Ahmed bin Saeed Al Maktoum is expanding his responsabilities, having now a presence at or near the top of virtually all of the entities that make up Dubai Inc.
For example, as chairman of The Emirates Group and its eponymous airline, he transports the tourists and businessmen whose spending is a vital part of Dubai's GDP. At the same time, he is chairman of the Supreme Fiscal Committee, the ultimate holder of the emirate's purse strings, and chairman of the Supreme Council of Energy.

Of all the country indexes in the DJIM series, the Dow Jones Islamic Market (DJIM) Pakistan Index posted the highest first-half 2011 advance with a profit of 18.24%.
Pakistan has partly recovered from the tragic flood catastrophe in mid-2010 and the country is looked at as a breakwater in Islamic finance -- bridging the Middle East with East Asia.

TV journalist Riz Khan has revealed the role of the Islamic Development Bank in mobilizing local talent and resources to boost the development of member countries. He added that the bank should present itself in a better light so that people would appreciate its activities in order to give people a better perspective about what IDB is doing.

The Islamic Bank of Thailand is going to sell Bt5 billion of domestic sukuk and US$150 million of global sukuk. The statement was given by Dheerasak Suwannayos, the bank's president.
He added that the Shariah-compliant bonds, which will be denominated in the Thai baht, will probably be sold in third quarter of this year and the global issue will follow.

Danajamin Nasional Bhd has given Antara Steel Mill Sdn Bhd’s RM300mil 7-year Islamic Securities guarantee, to assist Antara in obtaining long term financing via the sukuk market. AmBank is also participating in the transaction to provide short term working capital financing.

It seems that the Islamic finance industry is curious in tapping Middle Eastern oil money to help fund Thai infrastructure projects, which could help it win a foothold in a market with only a small Muslim population.
During this week Malaysia issued a $2 billion sukuk, almost 30 % of which was consumed by Middle Eastern investors.
Infrastructure investment is expected to have a great start in Thailand as well as other Southeast Asian countries.

The Islamic Corporation for the Development of the Private Sector (ICD) is macking an effort to accept issues related to the financing of small and medium enterprises (SMEs), and projects providing food security and housing among member countries.
The ICD is considering the financing of projects for providing food security among member countries on priority.

Jamal Hijres, Chief Executive Officer at Capinnova Investment Bank, has the strong belief that Bahrain will continue to be one of the leading financial centres in the region due to the efficient regulatory policies adopted by the sector.
He added that Bahrain has tremendously benefited from the solid foundations laid by the country’s efficient economic and financial policies outlined over the preceding years.

It seems that the government is going to arrange for Ireland to become a centre for Islamic Finance (IF).
IF differs from western finance in several ways. Banks are forbidden to charge interest on loans, while investors cannot put money into businesses related to gambling, pork or pornography.

United Arab Bank (UAB) has initiated an innovative business loan initiative to support the development of Agriculture in the UAE and Abu Dhabi Emirate in particular.
The facility has been designed in collaboration with Abu Dhabi Food Authority (ADFA) with an aim to support young farmers develop their businesses and promote agricultural production in the UAE in general and Al Ain in particular.

Malaysia plans a $2 billion global sukuk offering, with the sukuk launch arranged to be issued in early July.
The issue is Malaysia's second offering in two years and comes at a time when the global sukuk market is showing tentative signs of recovery.

As companies are applying the "part philanthropy/part corporate strategy" business model, they are developing markets AND contributing to bettering the lives of millions of people. One of the examples is Intel's World Ahead program in China. The tech company has planned to spend $1 billion over five years to improve Internet access in developing countries and train teachers on how to use technology.

Mary Robinson, Ireland’s first female president, has called on organisations and companies to leverage on CSR for improved growth and development of emerging economies like Nigeria’s. Her actions are sustained by the fact that she describes Corporate Social Responsibility (CSR) as a key driver to the future of the African economy.
She added that the emerging business environment in Nigeria is the one to look out for in the future of the emerging economies.

National Bank of Abu Dhabi (NBAD) was the only Bank from the Middle East of 17 banks from across the globe, that was shortlisted for the Financial Times/IFC Sustainable Bank of the Year Award.
The Award acknowledges banks that have prooven excellence in integrating environmental, social and governance considerations into their business and, along with NBAD, Access Bank of Nigeria and Exim Bank of Tanzania were finalists in the Africa/Middle East region.

The 1st Quarter 2011 issue of the Malaysian ICM quarterly bulletin published by the Securities Commission Malaysia (SC) is now available online.

The Singapore Exchange (SGX) has initiated a guide on sustainability reporting to cater to increasing demand for greater transparency. The guide underlines the principles of sustainability reporting for the listed companies.
It seems that of the 800 companies listed in Singapore, it is estimated that around 20 do sustainability reporting.