IslamicFinance.de

Geneva-based Faisal Private Bank has warned it could face foreclosure on parts of its real estate portfolio unless investors stump up cash to keep lenders at bay, documents seen by Reuters show.

A subsidiary of Saad Group, a Saudi Arabian conglomerate, has said it is unable to meet repayments on a sukuk (Islamic bonds) issue worth $650 million, which matures in 2012.

A UN Food Agency is co-operating with Islamic Development Bank (IDB) to help advance agriculture in poor countries.

Salaam Halal insurance, part of Principle Insurance Holdings and the first independent takaful provider in the UK, has stopped accepting new business, following a failed rights issue. It is now in a ‘solvent run-off’ situation, whereby its existing polices (there are about 10,000 policyholders) will operate until expiry, when they cannot be renewed

Bahrain-listed Takaful International Co. BSC said it has signed an agreement with Hannover Retakaful to increase its family takaful insurance coverage up to US$5 million per individual, aiming to improve its insurance services and portfolio expansions.

Despite the postponement by South Korea's National Assembly's Strategy and Finance Committee of pushing through a vote to approve a bill aimed at facilitating tax neutrality for the issuance of sukuk at end December 2009, local supporters of the introduction of Islamic finance products are confident that the delay is a minor setback.

Kuwait Finance House (M) Bhd (KFH) has refuted YNH Property Bhd’s claim that it is in a legally binding agreement with the latter and can be made liable for backing out of a deal to purchase Menara YNH, a 45-storey office tower worth RM920mil.

Global Shariah Shipping Fund, jointly sponsored by Cyprus-listed SFS Group and Kuwait Finance House (Malaysia) and Global Shipping Investments Management Ltd (equally owned company by SFS and KFHAM), is being launched with the aim of raising $150 mln for the acquisition of offshore vessels and other types of ship.

The Singapore stock exchange is poised to welcome the city state’s first Sharia-compliant REIT, in a move that could broaden the real estate investor base and develop the Islamic finance market there. However, it is not clear that the regulator is ready for the new asset class. Daniel Stanton reports.

Gulf Finance House announced that the Board of Directors has reluctantly accepted Mr. Ahmed Fahour's resignation as a Board Member and Group CEO of the Bank. Mr Fahour has been appointed by the Australian Government as the Managing Director of Australia Post. Dr Janahi announced the departure of Ahmed Fahour and the appointment with immediate effect of Ted Pretty as Acting CEO of GFHGFH

Gulf Finance House (GFH), the leading Middle Eastern Islamic investment bank announced today that the Board has appointed Mr. Ted Pretty as Group Deputy CEO of the Bank.

The Government of Dubai announced that, with the backing of the Emirate of Abu Dhabi (AA/Stable/A-1+), it would be providing US$10 billion in financing to Dubai World and its subsidiaries, through its financial support fund.

The ruler of Dubai, Sheikh Mohammed Bin Rashid Al Maktoum, today announced the setting up of a tribunal to decide the disputes related to the settlement of the financial position of Dubai World and its units reported Bloomberg, citing a statement from his the ruler's press office.

A number of Mediterranean basin countries are promoting themselves as Islamic finance hubs in an effort to attract sukuk, trust and investment funds business.

In continuation of its efforts to develop and diversify investment channels in the capital markets via offers of securities, the Capital Market Authority (CMA) approved Saudi Hollandi Bank’s request to offer SUKUK. Of which the value will be determined at a later stage by the company.

Al Jazeera Islamic Company, which will be known as Al Jazeera Finance now on, plans to broaden its business portfolio and become a sector leader in Qatar.

The Dubai International Financial Centre Authority released the “DIFC Sukuk Guide” - a comprehensive introduction to various sukuk structures, as well as legal and regulatory information on issuing sukuk from the DIFC and listing sukuk on NASDAQ Dubai. Prepared by Clifford Chance, Amanie Consulting, the DFSA and the DIFC Authority, the guide provides a summary of sukuk structures and information on issuing sukuk in DIFC.

The full report is for download at the link below:

King & Spalding published a briefing on the recent request by Dubai World that all its creditors agree to a standstill on any amounts payable to them until at least 30 May 2010 and the new law issued by the Ruler of Dubai, HH Sheikh Mohammed Bin Rashid Al Maktoum, setting out what will occur in the event that Dubai World or any of its subsidiaries are in an insolvency situation.

The briefing is authored by Michael Rainey and Sara Carmody of King & Spalding London and Dubai offices.

The Secretary-General of OIC, Professor Ekmeleddin Ihsanoglu has underscored the need for both inter-OIC cooperation and international partnership to enhance the popularization of knowledge-based economies in OIC countries.

Following recent events in Dubai, there has been a flurry of articles on sukuk defaults, with some commentators suggesting Islamic finance will wane. While many seem sure that defaults will occur, others have suggested sukuk holders’ rights and the resolution options available to them are no different from conventional bondholders’. Oliver Ali Agha and Claire Grainger offer a counter-argument to that perception.