IslamicFinance.de

At least five years later than initially supposed, Saudi Arabian and Malaysian Islamic finance experts start again their efforts to create common regulations for scholars. Together with its Middle Eastern counterpart, the Malaysian International Shariah Research Academy for Islamic Finance has started its work on guidelines which will be targeted at the number of boards on which scholars can sit to reduce conflicts of interest. Also, an institution aiming to provide global accreditation will be established. Thus, the industry's need to boost confidence and improve transparency can be met.

MNRB Holdings Bhd has planned the launch of a Sukuk Mudharabah programme worth up to RM150mil. At the same time, the company has secured a RM200mil revolving credit-i facility from Standard Chartered Saadiq Bhd. According to the reinsurer, RM120mil will be used for refinancing the short-term revolving credit facility maturing on December 10th 2012. The remaining money will flow into the group's general working capital. The Sukuk programme has a five-year tenure and will be issued without a prospectus via direct placement.

Read more on: http://biz.thestar.com.my/news/story.asp?file=/2012/10/15/business/20121...

Axiata launched a multi-currency sukuk programme followed closely by a dim sum sukuk issue. This is seen as a new level of flexibility for underlying assets in an individual deal. In September, an issue of RMB 1 billion ($158.7 million) was launched which is so far the largest RMB-denominated dim sum sukuk. For the programme itself $1.5 million were designated.

Read more on: http://www.iflr.com/Article/3101307/Capital-markets/Axiata-sukuk-signals...

Sabah’s state banks have been positively assessed which results in rising confidence about the potential of its financial services sector and Islamic finance in particular. The “AA1” and “P1” issue ratings of the corporation have been reaffirmed by RAM Ratings in July. A month prior to that, Sabah Development Bank (SDB) received long- and short-term issue ratings of “AA1” and “P1”. All in all, a stable outlook and a leading strategic role of the Corporation are pointed out.

Read more on: http://www.oxfordbusinessgroup.com/economic_updates/sabah-islamic-bankin...

Bank Negara has given its consent on negotiations between BIMB Holdings Bhd on one side and Dubai Financial Group LLC (DFG) and Lembaga Tabung Haji (LTH) on the other on the topic of BIMB Holdings Bhd's proposal to acquire DFG's stake in Bank Islam Malaysia Bhd. The negotiations are to be competed no later than March 31, 2013. According to BIMB, all partiesfirst need to receive approval from the Minister of Finance before entering into any agreement.

Read more on: http://biz.thestar.com.my/news/story.asp?file=/2012/10/9/business/121436...

It is expected that Malaysia will permit business trusts which will be listed on the local exchange. The purpose is to increase primary-market volume and attract domestic infrastructure companies in order to prevent them from being lured abroad. Berjaya Sports Toto has already made its plans directed abroad. It is about to raise an amount of nearly S$500m (US$401m) from the IPO in Singapore of Sports Toto Malaysia. The choice of destination of the issuer of the business trust has alerted local companies.

See more on: http://www.malaysia-chronicle.com/index.php?option=com_k2&view=item&id=3...

Middle East Islamic financial institutions are seen to be more Syariah-compliant than Malaysia's. This is the result of a research on "Developing a Model for Harmonization of Syariah Rulings in Islamic Finance" conducted by Dr Amir Shaharuddin from Islamic Science University of Malaysia.

See more under: http://www.bernama.com/bernama/v6/newsbusiness.php?id=699667

The Islamic financial market has boomed over the last decade and is more than ever at the top of the agenda for sustainable growth and development. The world's most actively traded Islamic finance product is the Sukuk, which is becoming more and more accepted in non-Muslim countries.

See more under: http://www.ibtimes.co.uk/articles/391214/20121004/iqbal-sacranie-islamic...

Turkey's Islamic bond market continues to improve after government sold its first lira-denominated sukuk. Major domestic companies are now considering the issuance of their own corporate bonds. The government's sukuk has also lured Middle East investors aiming to diversify their portfolios which could drive the sales of Sukuk-compliant products on Turkish market.

See more under: http://www.businessweek.com/news/2012-10-03/sukuk-taking-flight-as-airli...

The Islamic capital market is prospering as the current growing expectations are rising. But in order to progress the industry, there must be strong governance, disclosure, proper due diligence, transparency, ethics, and corporate as well as social responsibility. It is also necessary to promote the syariah-based approach and increase international cooperation on syariah research and product development as well.

See more under: http://biz.thestar.com.my/news/story.asp?file=/2012/10/3/business/121171...

Turkey announced it had raised its sovereign sukuk to 1.62 billion lira as response to a high demand for the two-year lease certificate that attracted an order book nearly five times the issue size of initial 1-5 billion lira.

See more under: http://www.reuters.com/article/2012/10/02/turkey-lira-sukuk-idUSL6E8L23A...

Turkish Treasury explores opportunities for a possible Sukuk issuance in value of $1.5 billion that was initially valued at $1 billion. The demand for it is high as the overall market conditions became increasingly challenging. The Turkish Treasury's entrance to the sukuk market shall provide a trustable benchmark to the sector and help boost private issuance around the Gulf and worldwide.

See more under: http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentid=20...

Malaysian government plans to introduce tax exemption for companies with Tun Razak Exchange (or TRX) status. It is considered to be an important move in government's efforts to position Malaysia as a central investment destination for foreign investors. According to analysts, the development of TRX financial hub should attract about 250 international financial services companies and offer 40.000 new job opportunities.

See more under: http://www.bernama.com.my/bernama/v6/newsbusiness.php?id=698332

DRB-Hicom wants to sell 30% of its 70% stake at the Bank Muamalat Malaysia that is partly owend by the Malaysian state. Malaysia's central bank has allowed AFFIN Holdings to enter talks with DRB-Hicom in order to reduce its stake to a maximum of 40%. Should the deal be successful, AFFIN would become the forth-largest Islamic bank measured by assets.

See more under: http://in.reuters.com/article/2012/09/20/malaysia-drbhicom-bank-idINL4E8...

MAA Takaful's CEO had proclaimed the confidence of the group to maintain the market leadership in the segment of investment-linked business. As he said, it is not the size of agency staff but rather its professionalism and productivity that should move the investment-linked segments forward. This is why the group is going to double its agents' productivity in upcoming years.

See more under: http://biz.thestar.com.my/news/story.asp?file=/2012/10/1/business/120750...

Despite the recent global economic crisis, the Islamic finance industry has continued pushing forward strongly. The industry increased its total assets by 23.8 per cent by the end of 2011. This comprised a hefty 22.4 per cent of the total assets of the banking system. As evidenced by The Banker Magazine’s 2011 rankings of top Islamic financial institutions,global recognition has not been in short supply either.

More on: http://www.nst.com.my/red/cover-story-strong-legal-framework-needed-for-...

Prime Minister Manmohan Singh has been urged by The Jeddah-based Indian Forum for Interest-Free Banking to clear huddles for granting license for Shariah-compliant banks and financial institutions to operate in India.

In a petition submitted to the prime minister at the Emerging Kerala Global Connect they said it would open floodgates infrastructural funding for India.

More on: http://india.nydailynews.com/politicsarticle/cec9a20cf6a8ec24c8b2ccffbed...

On Thursday Turkish Islamic lender Bank Asya said it had mandated investment bank Is Yatirim for a sukuk issue worth up to 150 million lira with a one-year maturity.

More on: http://in.reuters.com/article/2012/09/27/bankasya-sukuk-idINL5E8KRCSF201...

According to Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz, there is more renminbi financing in the pipeline after the two issuances of offshore yuan sukuk out of Malaysia and a yuan bond issuance by Malaysian corporations. She said that the reason for this was that there was greater potential to raise funds in the currency, especially investments in China.

More on: http://biz.thestar.com.my/news/story.asp?file=/2012/9/28/business/120915...

Since the enactment of the Islamic Banking Act in 1983 Malaysia has been operating with both conventional and Islamic banking systems. According to Islamic principles money lending and investing in businesses that are considered haram are prohibited. Islamic finance is all about accumulating all the available resources and providing financing based on pre-determined profits rather than dealing with interest.

More on: http://www.nst.com.my/red/cover-story-should-you-get-an-islamic-mortgage...