IslamicFinance.de

The Islamic Bank of Britain (IBB) has appointed Investment management platform provider Praemium to launch the UK’s only Sharia compliant retail discretionary portfolio service.
IBB stated Praemium’s discretionary portfolio service would give investors the chance to set up investments through its independent financial advisers.

Getting Islamic finance to become more mainstream needs a significant change to take place in the industry.
During the three-day event at the Gulf Hotel in Manama, delegates heard of the challenges facing the proliferation of Islamic finance products.
Shebab Marzban, product development officer for Egypt-based Ideal Ratings, instigated the discussion when he warned that many Western fund managers fail to carry out correct due diligence on Islamic finance products.

Islamic banks will be offered a range of new money-market instruments in coming months, allowing lenders to earn larger returns from excess cash stored at central banks or locked into longer-dated securities.
The International Islamic Liquidity Management Corp will sell its first short-term bills in dollars early next year.
Money-market products will allow banks to invest idle cash more profitably.

In just four weeks, the world’s first Sharia-compliant movie fund has reached more than $40m.
The Black Knight is expected to reach $85-90m by April, half of which will come from UAE investors.
The movie, which is scheduled to be filmed in Morocco and could also include scenes shot in the UAE, is the first instalment in a trilogy of films and will be released in 2012.

The Islamic Development Bank is ready to help countries in the Gulf and Africa to formulate a joint plan to promote trade between the regions.
IDB has carried out projects and development programs in Africa valued at $15 billion, and member countries could take advantage of this program, which includes the presence of the Arab Bank for Economic Development in Africa.

In order to meet the banking needs of corporates in Bahrain and Bangladesh, HSBC Amanah has launched a range of products and services.
HSBC Amanah corporate banking products available in Bahrain include business accounts, investment solutions, working capital finance solutions, trade finance solutions.
HSBC Amanah is also planning to open a branch dedicated to Shariah-compliant banking in Bangladesh this December.

Fifa bought into the vision of new markets, notwithstanding the oppressive heat of the summer, big vision of small sized Qatar and the perceived instability of the region.
The World Cup should be seen as a new beginning for (economically established) Muslim countries.
A number of stadiums need to be built, infrastructure to connect, and accommodations to house participants, hence, an ideal situation for financing via 'FIFA World Cup sukuk' programme series.
The initial cost estimates of the public works is estimated to be nearly US$50 billion (RM157.15 billion).
Malaysian Islamic banks should look into merits of naming rights for the stadium, and it should be viewed as an investment.

Ratings agency Standard & Poor’s have upgraded the outlook of Dubai-based takaful insurer Aman from negative to stable.
According to S&P, Aman has displayed resilience during the downturn and has produced a good underwriting performance.

It seems that islamic bonds are not perceived as positively as conventional debt markets.
That was the message from LAU assistant professor of finance Dr Rima Turk Ariss, who was speaking on the sidelines of the fourth Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) conference at the Crowne Plaza.

A South Korean parliamentary panel has reached a tentative agreement to give tax breaks to sukuk bonds, clearing the way for domestic companies to start to sell Islamic bonds as early as next year.

Dar Al Arkan Real Estate Development Co., Saudi Arabia’s biggest property company by market value, can repay 7.8 billion riyals ($2.1 billion) of debt maturing within five years without tapping the bond market again.
Rental income from properties in Mecca, Medina and Riyadh will generate 300 million riyals a year and the company plans to raise money by selling residential properties and land in its portfolio, though not fixed assets.

Companies within the industry are continuing to debate the standards that need to be met to be considered a "Sharia-compliant" hotel.
One such company is Shaza Hotels. The luxury operator, which is a joint venture between Kempinski Hotels and Guidance Hotel Investment Company, based in Paris, is aiming to open hotels that are alcohol-free and "display the values and cultures of the Middle East and North Africa".
Shaza announced plans to manage a luxury hotel in Karbala, Iraq, which is being developed by Range Hospitality, based in Dubai.

The approval of the mortgage law was proposed to be delayed because a surge in inflation to nearly six per cent in October. The proposal was made by the Saudi Arabian Monetary Agency (SAMA), the Gulf Kingdom's central bank.
The study by the Saudi American Bank Group (SAMBA) showed consumer lending by the country's 12 commercial banks picked up in the first half of 2010, rising by almost 10 per cent over the corresponding period of 2009.

DBS Bank Limited, Sumitomo Trust & Banking and Nikko Asset Management of Japan have signed an agreement to combine DBS Asset Management and Nikko AM.
DBS and Nikko AM will enter into a non-exclusive distribution agreement, whereby Nikko's portfolio of investment products can be distributed through DBS' network in core regional markets.

A South Korean parliamentary panel has reached a tentative agreement to give tax breaks to sukuk bonds, clearing the way for domestic companies to start to sell Islamic bonds begining with next year.
The finance ministry had proposed a revision to the tax code with the aim of treating sukuk as a bond so that South Korean issuers of sukuk could enjoy the same tax advantages as those applied to conventional bond issuers.

An order for setting up an international insurance company aiming to overcome global sanctions in this field was issued by the finance and economic affairs ministry of Iran.
On 26 July, the European Union imposed sanctions on Iran, hitting the energy, transport, finance and insurance sectors, as well as expanding the number of ""listed"" individuals and entities with whom commercial dealings are prohibited.

Many jurisdictions are interested in Islamic finance and have taken initiatives to develop the industry through reviewing their legal framework to facilitate the introduction of a range of Islamic financial products, including more recently France, Ireland, Australia, Jordan, Japan, Hong Kong, Korea and Lebanon.
One of the key determinants for the successful development of Islamic finance in any jurisdiction is the existence of a conducive legal framework that supports the operations and growth of the industry.

HSBCAT is considered an important member of HSBC Group under Fitch's "Approach to Rating Insurance Groups".
The rating agency recognizes the support and benefits HSBCAT enjoys from the group's strong branding, product and distribution capabilities, and other management resources.
HSBCAT follows a modified Wakala (agency) model, whereby the takaful operator receives a Wakala fee for the management services it provides to the participants, as well as an incentive fee, expressed as a percentage of surplus from the risk funds. Under this model, HSBCAT's profitability is determined, to a large extent, by its Wakala fee income and expense level.

The Islamic Bank of Britain (IBB) opened its doors in 2004. Six years later in the summer of 2010, The Times newspaper described the venture as a flop. A couple of weeks after The Times article appeared, IBB had secured a £20 million capital injection from founding shareholder Qatar International Islamic Bank (QIIB), taking QIIB’s stake in the bank to over 80%.
However, some issues that still remain for IBB are:
- they have to come to grips is whether their position as a UK Islamic bank is tenable
- they will also have to deal with a more rigorous regulatory system.

Shariah-compliant funds manager, Crescent Funds Management, has been granted an Australian Financial Services Licence (AFSL).
Tax adviser and auditor was appointed Ernst & Young and custodian, JP Morgan.