IslamicFinance.de

2012 is considered to be a turning point for banking in compliance with Islamic principles. New markets and new regulations in the Middle East contributed very much to the flourishing of the sector. According to data from Ernst and Young, globally assets managed in line with Shari'ah will reach in 2013 record heights, amounting to 1. 8 trillion U.S. dollars, up from 1.2 trillion U.S. dollars in 2012. The ongoing turmoil in the Middle East and the Euro zone debt crisis were not able to stop Islamic banks in the Middle East from expanding their markets and business.

The marketing campaign of solar panel and heating installer The Solar Guys' first sukuk has been going on for a while. The Islamic bond, due in the first half of 2013, serves to fund a 250MW solar power plant in Indonesia. The Solar Guys and Mitabu have formed a joint venture called SGI-Mitabu. The joint venture aims to raise $500 million to build and finance the power plant.

The Finance Ministry has set stricter down payment requirements on Islamic financing concerning automotive purchases in order to to help curb consumer financing growth. According to the new regulation, a down payment of 20% for two-wheeled vehicle purchases and a 25% down payment for four-wheeled vehicles is required. The regulation will apply to all non-bank Islamic financing institutions. The requirements for the purchase of commercial four-wheeled vehicles, e.g. trucks or buses, are a 20% down payment.

Palestinian Sadara Ventures has made an investment of about $1 million in the mobile tech venture Souktel. The new venture matches job seekers and employers using basic mobile phone technology. According to the founder and the investors of Souktel, the company will contribute to the alleviation of dire economic situations for many families and help local businesses find qualified talent in areas of conflict.

Just in time for the beginning of 2013, Bank Indonesia (BI) introduced several new regulations serving to improve banks’ competitive and operating efficiencies, maintain stability via capital enhancement and ensure long-term sustainable growth among other things. Some of the rulings are higher CAR for higher-risk profiled banks, limitation in banking activities based on banks’ tier I capital, and productive loans with minimum MSME to limit credit risk.

Indonesia is developing into a significant takaful industry, demonstrating higher growth rates in gross written premiums generated than some of the GCC countries. Key factors for the dynamic growth of the industry are the relatively low penetration rates in combination with strong macroeconomic fundamentals, favorable demographics and an improved regulatory framework. Moreover, both domestic and international takaful insurance companies increase in number, thus supporting the overall growth of the industry.

Despite the common opinion that joining a cooperative means that an individual can get loans, cooperatives are actually an important part of economic activities such as banking and construction as well as of the industrial and service sectors. Due to the sector's contribution to the nation's Gross Domestic Product (GDP), cooperatives are recognized by the government. Koperasi Permodalan Felda Malaysia Berhad (KPF) is introduced as a cooperative establishment to ensure sufficient funds for its workers.

Dear Reader,

Islamic finance had another great year. Many of its market segments progressed, like for example the Sukuk market gaining more maturity. Despite the ongoing debt crisis a good sign of hope and happiness.

Nevertheless we are - as an industry - still not satisfied with the achievements. Islamic finance shall grow stronger in terms of social impact and in terms of substance:

Hence, please allow me to re-iterate my call for participating in international initiatives beyond just our own industry to learn and spread knowledge and experience:

Calling Islamic financial institutions to become member of the United Nations Finance Initiative
http://www.islamicfinance.de/?q=node/811

Inshallah we see more Islamic financial institutions taking a lead in SRI, Social Impact Investing and other approaches while contributing with Islamic finance knowdledge to the conventional industry. The time is now; and there are signs that Malaysia aims for a lead:
http://www.islamicfinance.de/?q=node/4151

•Managing the Teller Services functions at the counter and in the branch to ensure the delivery of quality service to customers.
•Help project a professional and warm image of the bank.
•Maintenance of operational controls and continuous improvement in operational efficiency.
•Maximize new business opportunities by building new relationships and Cross Selling.
•Assist the BSSM/BRM to ensure that all the Group & Local Regulatory guidelines are followed in operations of the branch.

Islamic finance in Malaysia prepares to compete more aggressively in the global financial market in order to continue its growth on a new level. In spite of the expected challenging year ahead and the slowdown in global economy, the continuation of the country's growth trajectory is very likely. The main reasons for the industry to remain favourable are the robust achievement recorded throughout the year combined with the “safe-haven investment” sentiment among investors.

This year's record of $46 billion in terms of global sukuk sales is very likely to be exceeded in the coming year. A key reason is that countries like Oman, Tunisia and Egypt are just entering the market. Borrowing costs on Sharia-compliant debt have decreased 11.4 percentage points reaching 2.82% since the end of 2008 due to central banks in Europe, the US and Japan pumping funds into their economies in order to enhance growth rates. A rise in the Islamic banking assets will drive the demand so that it can reach $1.8 trillion next year. Compared to that, in 2011 the demand was $1.3 trillion.

The government of Indonesia plans the issuance of rupiah-denominated sukuk next year which shall be used for financing state projects. Analysts welcome this move considering it a breakthrough in the development of the country’s undersized Islamic finance sector. According to the 2013 state budget financial note, up to Rp 1 trillion (US$103.5 million) will be borrowed by the Finance Ministry using sukuk issuance to finance state projects next year. Islamic bonds should be perceived as an alternative source of financing for the government’s infrastructure projects.

Islamic finance in India is strongly limited by the country's ban on sharia-compliant banking. However, the industry intends to create a work-around by developing specific products that can take this function. Due to the political and legal obstacles any progress is expected to be rather slow. Meanwhile, 177 million Muslims in India, which constitute the world's largest Muslim minority population, have no access to Islamic banking since laws covering the sector require banking to be based on interest, which is not allowed in Islam.

· To prepare the plan, analysis and report for post approval Shariah review.
· To assist post approval Shariah review activities on Islamic finance business activities.
· To liaise with the Group Internal Audit, staff at units/branches and commodity brokers before and after the execution.
· To assist in preparing and conducting the relevant Shariah training for the staff at branches/units.
· To do research in relation to Shariah Compliance and Review.

Item No. 9-19 (Jolo)
Qualification Standards:
· Educational Requirement: Bachelor's degree relevant to the job;
· Experience Requirement: None required;
· Training Requirement. None required; and
· CS Eligibility: C.S. Professional; Relevant Eligibility for Second Level
· Position, e.g. RA1080/PD 907

Manager, Fund Transfer Pricing, Finance
Main Responsibilities:
· To assist in the setting up of Fund Transfer Pricing (FTP) in BMMB with respect to policies, procedures and systems.
· To craft and review FTP periodic reports.
· To liaise with business units on allocation of costs.

Indian Islamic finance industry is still facing legal obstacles on allowing Sharia-compliant banking products in the country. Indian Muslim minority which is the largest in the word, nowadays cannot access Islamic financial services as the sector requires banking to be based on interest, which is forbidden in Islam. The issue of Islamic finance is being studied by the Reserve Bank of India since 2005.

The SGI-Mitabu launched the first ever Aussie sukuk in the Malaisian offshore tax haven Labuan, thus avoiding Australian rules that penalize Sukuk. The offshore paradise Labuan which has established a global financial hub in 1990 is located on the coast of eastern Sabah state on Borneo Island (Malaysia).

Malaysian car distributor UMW is going to launch a refinancing program worth 2 billion ringgit ($653 million) in order to refinance existing debt and fund investment. The 15-year plan will be arranged by Maybank Investment Bank and Standard Chartered

Malaysian's central bank governor has claimd that Islamic finance will contribute to the global agenda of developing sustainable growth. Providing financial services that add value to the real economy is the focal point of Islamic finance and tenets.