IslamicFinance.de

Please note the following redemption, received on 22/12/2010:
Issuer: RAKIA SUKUK CO LTD
ISIN: XS0333617420
Paying Agent: MTN
Redemption Type: Full Call
Call Price: 100.00%
Partial Call Price:
Currency: USD
Outstanding Balance: 325,000,000.00
Redemption Date: 23/12/2010

Islamic bonds are outperforming emerging-market debt for a second month as new note sales rebound, Malaysia boosts spending on roads and power plants and confidence returns to the Persian Gulf.
Islamic debt sales increased 34 percent in the second half compared with the first six months.

Global total Sukuk issuance increased to $27.9 billion in the first nine months of 2010, 62.3 percent higher than in the same period last year.
The report forecast that the Sukuk market in 2011 would be driven by the recovery made in the global economic activities, flexible monetary policies, and sovereign fund-raising efforts to support economic growth as well as the revival of private sector projects.
More sovereign issuers are anticipated to tap the Sukuk market in 2011 as governments will continue to raise funds to support economic growth and fund fiscal deficits.

NCB Capital will continue its plan to expand its asset management and brokerage services throughout 2011 as the largest investment bank in the Kingdom works to increase its market share in the Arab world’s largest economy.
In February, NCB Capital launched the first Shariah-compliant, US dollar-denominated open-ended fund in order "to provide investors an opportunity to participate in a new expanding asset class-sukuk.”

The Board of Directors of the African Development Bank (AfDB) approved on Friday 17 December 2010 in Tunis, a €70-million senior loan to finance construction of the Blaise Diagne International Airport on a new site located 45 km east of Dakar in Senegal.
The AfDB also acted as Mandated Lead Arranger (MLA) for the conventional financing tranche and facilitated €140 million additional senior loans.

The construction and real estate sectors in Dubai have seen a decrease of almost 5%.
Opportunistic investment funds see a 6 month window to capitalize on Dubai's growing inventory of distressed commercial and residential property, often sold below original purchase price.
The property and construction sectors are the worst hit in the emirate by the global economic downturn.

Country Head, Al-Baraka Bank (Pakistan) Limited, Shafqat Ahmed informed business community that it is very possible to start issuing credit cards by 2011.
Al-Baraka Bank was also working on some new products including personal loan, which will probably be introduced next month.

Fitch Ratings has upgraded Turkey-based Asya Katilim Bankasi A.S.'s (Bank Asya) Long-term Foreign Currency and Local Currency Issuer Default Ratings (LT IDRs) to 'B+' from 'B' and Kuveyt Turk Katilim Bankasi A.S's (Kuveyt Turk) Long-term Local Currency IDR to 'BBB' from 'BBB-'.
The upgrade reflects Bank Asya's reasonable performance in an improving operating environment, the bank's diversified deposit base and low exposure to market risk. However, the ratings also reflect the loan portfolio's concentration in the construction sector and large borrowers and potential asset quality risks due to rapid loan growth.

CIMB Group Holdings Bhd. is seeking to boost its business in the Persian Gulf to fight off HSBC Holdings Plc’s challenge to its dominance.
CIMB’s only Persian Gulf deal this year was a $125 million sale in October for a unit of Saudi Arabia’s Islamic Development Bank.

Kuwaiti Islamic firm Investment Dar appointed a new panel of creditors to negotiate its debt restructuring after a previous committee quit over a disagreement.
Four banks from the previous group remain on the coordinating committee and will be joined by two new lenders after a dispute over the terms of the restructuring led to a breakdown in negotiations in November.

The Scottish Government is looking again at using Islamic finance to bankroll major infrastructure projects.
The Islamic Finance Council says it held talks with Scottish Enterprise and Scottish Development International on December 10, describing it as “a joint round table with the IFC exploring opportunities for renewable energy sector investments using Islamic finance”.

Etihad Etisalat Company secured a SAR 1.2 billion facility through short-term Islamic financing at a competitive Murabah rate for 12 months through a consortium of five banks: Samba Financial Group, National Commercial Bank, Riyadh Bank, the Saudi Arabian British Bank and Saudi Fransi Bank.
The new financing will be used to expand and upgrade Mobily's current data communication infrastructure to grow Mobily's mobile and fixed broadband business in line with the company's strategic Growth, Efficiency and Differentiation (GED) objectives.

Standard Chartered Plc and Bank Islam Malaysia Bhd. plan to offer Shariah-compliant derivatives in Malaysia that will allow investors to hedge against interest rates and commodity prices.
Bank Islam Malaysia, the country’s oldest Islamic lender, will offer swaps that allow two parties to exchange different forms of payments from an underlying asset. Standard Chartered, the U.K. bank that earns most of its profit from emerging markets, will begin selling contracts in the first quarter that provide protection from fluctuations in the cost of items such as rice and oil.

KFHR Limited prepared a report on the Islamic Sukuk market.
The report notes the following:
- In 2011 the Sukuk market will be driven by the recovery made in the global economic activities, flexible monetary policies, and sovereign fund-raising efforts to support economic growth as well as the revival of private sector projects
- the entry of new players in the emerging markets, as well as new non-Islamic exporters willing to take advantage of Sukuk market with potential debut in Thailand, Japan and Europe, which will boost demand for Islamic Sukuk

The affirmation of ADIB's Long- and Short-term IDRs and Support Rating reflects the extremely high probability of support from the UAE authorities, if needed.
The affirmation of the Individual Rating reflects the bank's sound liquidity and funding, its good franchise, adequate capitalisation and high concentrations in financing and rapid growth.
ADIB's main shareholders are Emirates International Investment Company (41%), which is owned by members of the Abu Dhabi ruling family, the Abu Dhabi Investment Council with 8% and the UAE pension fund (2.3%).

The appointment last week by the council of governors of the Islamic Financial Services Board (IFSB) of Jaseem Ahmed as its new secretary-general comes at a time when the prudential and supervisory standard setting organization of the global Islamic finance industry is poised to enter its next stage of development since it was first established in 2002.
Ahmed’s appointment was confirmed at the 17th meeting of the council of governors that was held in Jeddah.

Saudi Arabia is at the forefront of countries that offer humanitarian aid to calamity-hit people across the world.
The Kingdom offered 1.9 percent of its national income last year in humanitarian aid and relief assistance to people suffering from calamities and crises across the world.
Minister of Higher Education Khaled Al-Anqari opened the conference on Sunday on behalf of Custodian of the Two Holy Mosques King Abdullah.
The event has been organized by Madinah Islamic University in collaboration with the King Abdulaziz Foundation for Research and Archives (KAFRA).

Nakuru town's friendly business environment has brought along escalating costs of doing trade such as higher rates of renting housing, whether residential or for commercial purposes.
There is a 100 per cent increase with prices still on the upward swing. This rise has partly been blamed on the influx of foreigners who pay for rental housing for up to two years in advance, effectively locking out those who can only pay rent by the month.

Alinma Investment has announced the launch of official public operations with licenses to engage in all investment related activities including dealing, managing, arranging, advisory and custody services.
Abdul-mohsen Al-Fares, chairman of the board of directors of Alinma Investment, said that time was right for launching the business and the price-to-earnings ratios of local and international companies were suitable for investment.

Beginning with next year the annual grant for the Congress of Unions of Employees in the Public and Civil Services (Cuepacs) will be raised to RM2 million.
The government had earlier raised the quantum of the annual grant to the congress from RM350,000 in 2009 to RM1 million this year.