IslamicFinance.de

Universities are expanding Islamic finance courses as demand for professionals qualified in Shariah law outstrips supply in the $1 trillion industry.
After enrollment for its general program in finance complying with Muslim tenets tripled in the past year, the International Islamic University of Malaysia plans to start postgraduate courses specializing in Shariah-compliant capital markets, banking and insurance. La Trobe University in Melbourne, which started classes this year, is working with officials in Malaysia to offer industry-recognized qualifications.

In order to reduce risks of financial transactions, member countries of the International Islamic Financial Market (IIFM) may soon enjoy a hedging facility.
IIFM member countries would sign a master agreement, called a tahawwut agreement, to accommodate the hedging facility.
The agreement, according to Mulya Siregar, Bank Indonesia’s director for sharia banking, was needed to ease the risks of currency-related transactions amid currency concerns affecting both developed and emerging economies.

Rajhi Bank has formed a strategic partnership with as-Salihin Trustee Bhd for distribution of Islamic Estate Planning Services (IEP). as-Salihin as a trust company will offer its knowledge and expertise in the IEP industry.

UAE banks with exposure to indebted conglomerate Dubai World have been directed by the country's central bank to book "appropriate" provisions in consultation with their auditors.
In order to try to bring the banking system in line with international standards, the central bank released guidelines early last month directing banks to take provisions for bad loans on a quarterly basis.

Total assets of lslamic banks globally is expected to hit $700 billion, out of which two thirds is in the Arab Gulf region.
Saudi Arabia's Al Rajhi Bank is the biggest Islamic lender in the region, holding assets of $48.41 billion, followed by Kuwait Finance House at $41.57 billion.

Kuwait Finance House (KFH) reported a net profit of $10m following the liquidation of a real estate fund targeting the Turkish market.
The liquidation process seem to come with a return on investment of 14 percent.

The annual convening of the World Congress of Muslim Philanthropists, widely recognized as the premier forum on Muslim Philanthropy worldwide, welcomes social investors, grant-makers, government and business leaders, visionaries, and civil society executives to a solicitation-free collaborative environment.

The 4th World Congress will initiate a dialogue around the potential roadmap for Muslim Giving in the next decade. This discussion will be enriched by the collective wisdom and experience of leading philanthropists and intellectuals from around the world. The forum will also examine challenges unique to Muslim societies, and offer options for managing them.

Update 17th Feb 2011:

The organizers of the 4th World Congress of Muslim Philanthropists regret to announce the change of meeting venue due to circumstances beyond their control. This unpredicted situation came about in response to the directives we received today from the Moroccan authorities. While we feel extremely disappointed, we believe it is prudent that we do not compromise on the safety of our guests.

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Ras al Khaimah (RAK) is paying back US$519 million (Dh1.9 billion) of government debt early and replacing most of it with longer-dated borrowings.
RAK also wants to consolidate its debt within RAK Capital.
Acting through its Investment and Development Office (IDO), the Government last month told investors it was willing to buy back or exchange up to about $600m of debt.

The National Assembly has blocked the government attempt to attract Middle East oil money by making it easier for local companies to issue Islamic bonds. The reason for this blockage is that some lawmakers objected on religious grounds.
Islamic investors had grown worried about Korea’s ability to tap the Islamic financial market because the sukuk bill had been delayed several times.
The sukuk law would have provided tax breaks for companies that issued the Islamic bonds.

Indonesia’s Islamic bonds may extend this year’s rally that drove yields to record lows on prospects of further ratings upgrades.
PT Bhakti Asset Management’s BIG Dana Muamalah fund bought rupiah-denominated government sukuk in March.

Malaysia's government-owned Pelaburan Hartanah Bumiputra launched an investment trust in order to encourage its majority Muslim Malays to invest more in property.
The sharia-compliant Real Estate Investment Trust (REIT) would allow Muslim Malays and indigenous groups to increase their stake in real estate assets.
As part of the plan the government would roll out programmes to enhance bumiputra capabilities.

A new REIT was established Dubai this week, and is likely to list in London within the next 18 months.
The REIT is a collaboration between Dubai Islamic Bank and Eiffel Management.
Before undertaking a dual listing in the next 18 months, Emirates REIT will initially list on the Dubai Nasdaq stock exchange.

Kuwait Finance House (KFH) made an early payment of $250 million that had the due date in March 2011.

QInvest, in collaboration with India’s Ambit, have announced the launch of the Ambit QInvest India Fund, an open ended Shari’ah-compliant Indian Equities Fund.
The fund offers an entry point for investors to leverage the potential for long term price appreciation underpinned by strong growth drivers in the Indian market.

Fitch Ratings has affirmed Islamic Development Bank's (IDB) Long-term Issuer Default Rating (IDR) at 'AAA' and its Short-term IDR at 'F1+'. It seems that the Outlook for the Long-term IDR is stable.
IDB's non-equity portfolio includes a large proportion of speculative-grade counterparties. Exposure to credit risk is mitigated by strict internal country and counterparty limits, and by preferred creditor status, which grants the bank priority over other creditors in a sovereign default.

The Central Bank of Indonesia has an aim: to create a strong sharia banking industry by 2015. This development strategy, as well as a broader sharia religious revival in the country that is helping to increase the popularity of sharia banking products, will lead to continuous strong growth in this sector during the forecast period.

The assets of sharia banks in Indonesia are anticipated to reach around Rp 399.6 Trillion in 2013 over Rp 107.1 Trillion in 2010.

Editorial Note: The news is linked to an outdated report: "Publish Date: Feb, 2009"

Halal Takaful Nigeria is set to introduce composite insurance products in line with Islamic tenets. The insurance firm will be providing a substitute for conventional insurance.
The company’s Managing Director, Mr. Livingstone Magorimbo, stated that the establishment of a Takaful arm is part of the company’s strategic drive to offer specialised insurance products and services to all Nigerians with Takaful being targeted at Muslims who are looking for Shariah compliant Insurance policies run and managed in the most ethical and professional manner.

Mohamed Al-Mady, SABIC Vice Chairman and CEO, has the strong oppinion that the Islamic finance industry is currently going through its brightest phase. Some concepts, such as those based on partnership in profits and risks, which control the relationship between financiers and borrowers, have become a catalyst for more responsible financial practices, which are now widely accepted among the banking community.
The workshop was opened by Dr. Sulaiman Abdullah Aba Al-Khail, the Rector of the university, at the university’s conference building in Riyadh on November 29. The event was attended by Saud Al-Saleh, Secretary General of the Supreme Economic Council, Dr. Fahd Abdulaziz Al-Askar, Dean of the Scientific Research and Secretary General, Research Chairs Programs, Dr. Mohammed Ibrahim Al-Suhaibani, Professor SABIC Chair for Islamic Finance Market Studies, and members of the Scientific Commission of the SABIC Chair, and faculty members of Saudi universities, consultants and practitioners in securities trading industry in the Kingdom.

Dar Al Arkan shares are down almost 40 per cent in the past six months and the company said this week it would need to sell some assets in order to pay down debt. And all this inspite of the fact that the Saudi property market is booming.
The problem is that the company's margins on land sales have fallen somewhat and it has had to cut prices to attract buyers.

The Palestinian central bank is attracting local banks to its first sale of Islamic bills.
Palestine Islamic Bank will submit a bid for as much as $10 million, and Arab Islamic Bank said it probably will participate.
Palestinian Authority Prime Minister Salam Fayyad is seeking to expand Islamic finance to reduce reliance on aid from the U.S., Europe, Saudi Arabia and others as the territory starts building institutions for a future state.