IslamicFinance.de

Steve Troop, CEO of Barwa Bank, reveals that the bank is focused on providing a ‘different kind of customer experience’. In his oppinion, the bank must fit around the customers. He added that they will not become a big network bank, the branches will be added selectively.
Barwa Bank’s strategy is to grow its customer base and become a leading Shariah-compliant financial group in the region.

Dubai Investments PJSC stated that it will initiate its first Corporate Social Responsibility (CSR) Report 2010 which points out the conglomerate's initiatives in the areas of CSR and environment protection, undertaken during the past year.
The report covers the period between January 2010 and January 2011.
Dubai Investments has supported many projects and social institutions active in the fields of education, sports and care for individuals with special needs, either through financial contributions or other forms of support.

The European Bank of Reconstruction and Development is ready to expand to North Africa and the Middle East next year. A potential country for operations is Egypt. The bank plans to invest €2.5bn ($3.54bn) in the region per year.

Fitch Ratings has downgraded UAE-based Dubai Bank's Individual Rating to 'F' . After the intervention by the Government of Dubai, taking full control of the bank, and providing a significant capital injection, the bank has also been removed from Rating Watch Negative (RWN).
Fitch downgraded Dubai Bank's Individual Rating in March 2011 because of its weakening financial position.

After the regulatory approval given by the UAE Ministry of Economy on 17th May 2011 approving its planned capital increase in relation to its 08 Sukuk, and the earlier approval by 08 Sukuk holders for Tabreed’s tender offer as disclosed by Tabreed on 28th March 2011, National Central Cooling Company PJSC Tabreed reveals that it has completed the tender offer in relation to its 08 Sukuk by way of delivery of the relevant shares.

Bank of London and The Middle East (BLME) stated that that they will launch a Light Industrial Building Fund (LIBF). This fund is a Sharia'a compliant UK real estate fund which invests in sustainable property assets.
The five core areas that set the foundations for BLME's competitive offering are Private Banking, Asset Management, Corporate Advisory, Corporate Banking and Markets Division.

Oman has finally bowed to the demand dynamics of Islamic banking.
The first application to launch an Islamic bank, Nizwa Bank, has already been submitted. This could take over a year because Oman must develop and adopt a regulatory and supervisory regime for Islamic banking and the government has yet to introduce an enabling Islamic banking law.
Omani banks have in general been very hostile and indifferent to Islamic banking, considering it unworkable. Some banking sources reveiled that the decision to allow Islamic banking was partly because of the growth of new demand especially from young Omanis for Shariah-compliant financial products.

Because of the the new guideline on Non-Interest Financial Institutions (NIFI) by the Central Bank of Nigeria (CBN) a big legal battle is going to take place.
The guideline was signed by the Acting Director, Financial Policy and Regulation Department of the apex bank, Chris.O. Chukwu and became operational on January 13, 2011. It introduced religion into Nigerian banking, although it was forbidden by the Banks and Other Financial Institutions Act 1991. Four Senior Advocates of Nigeria (SAN) have been engaged by some Nigerians to fight the new guideline at the Federal High Court, Abuja.

Analizing social principles and the power to provide financial assistance, Islamic microfinance has huge, untried potential.
Islamic Finance is growing very fast. The interest comes from financial institutions in designing Islamic or "sharia-compliant" products and services to attract Muslim investors.
Specific attention has focused on promoting sharia-compliant microfinance for low-income populations. Islamic financial institutions (IFIs) and development practitioners are also beginning to explore the role that Islamic finance can play in supporting development.

It is now official that the Dubai government, acting under directions from His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE, Ruler of Dubai, has taken over Dubai Bank with no delay.
It seems that the government will put an unspecified amount of cash into DB, completely weakening the holdings of Dubai Holding and Emaar Properties.

Fitch Ratings announced the downgrade of Dubai Bank's Individual Rating to 'F' from 'D/E'. After the the announcement by the Government of Dubai that it will take full control of the bank, and it will provide a significant capital injection, it has also been removed from Rating Watch Negative (RWN).
The agency has also declared Dubai Bank's Long-term Issuer Default Rating (IDR) at 'BBB-', Short-term IDR at 'F3', Support Rating at '2' and Support Rating Floor at 'BBB-'.

The world is already used to radical intervention by governments in the banking sector. This is the case of banks like Royal Bank of Scotland, Lloyds, Citicorp and many others.
That's the reason why it's no surprise that the Dubai Government is taking over Dubai Bank.
The move could also be seen as a bit of internal accounting by the emirate's authorities. It also lightens the financial burden for Emaar Properties, which held a 30 % stake.

It seems that Malaysia will plan a 10- year dollar-denominated Islamic bond, this being its second sovereign sale of Shariah-compliant debt in a year.
The anonimous sources also stated that three local investment banks submitted pitches proposing a size of $500 million to $1.7 billion.

Mohammed Abdullah, CEO of Sharjah Islamic Bank (SIB), stated that the bank will issue a global dollar-denominated Sukuk that will be listed on the London Stock Exchange.
The size of the issue is yet to be decided as they are waiting for market response after the investor road show which is taking place in the Middle East, Asia and Europe.

Bolat Zhamishev, finance minister, stated that the government would consider the size and timing of the issue after senators clear the regulation on Islamic financing. The process is expected to be completed in a month.

According to two bank sources, HSBC Holdings and Deutsche Bank were picked for a potential dollar-denominated bond issue by Saudi Electricity Co.
They couldn't say when this will happen.

Ebrahim Fayez Al Shamsi, the chief executive of Emirates Islamic Bank, has resigned. His replacement will be deputy chief executive Abdullah Showaiter. Faisal Aqil, general manager of retail banking, will be the new deputy CEO.
Emirates Islamic and ENBD didn't want to comment.

After the Government of Dubai obtained 100% shares in Dubai Bank, bankers and analysts think that the merger is more acceptable.
One of the reasons is that they now don't have to fear for value destruction stemming from acquisitions.

AlHuda Centre of Islamic Banking & Economics (CIBE) and AKHUWAT from Pakistan will be the hosts of World’s Largest Conference on Islamic Microfinance. The conference will be held on June 13, 2011 at Faisal Auditorium Islamabad and delegates from 12 countries and 800 participants will attend this event.
Through this event light will be shed on topics like methodology of poverty reduction, Zakat, Shariah implications, Dard-e-Hasna, Waqf models, latest trends of islamic microfinance, technological application of poverty alleviation, usage of islamic microfinance in non muslim societies and other issues.

Background
The current size of the Islamic Banking Industry at the global level is $1 trillion, and could grow to $5 trillion over time.
Nigeria is inclined to this global trend. In March 2011 the country has signed an agreement with Malaysia's Central Bank to cooperate in Islamic Financial Service1.
Principles of Islamic Finance
The most important principles of Islamic Finance involve the forbiddance of:
- interest earnings, money lending or usury (riba)
- sinful activity (haram), such as direct or indirect association with lines of business involving alcohol, pork products, firearms, tobacco, and pornography
- speculation, betting, and gambling (maisir), including the speculative trade or exchange of money for debt without an underlying asset transfer
- trading of the same object between buyer and seller
Conclusion