IslamicFinance.de

Malaysia’s 2012 Budget is to provide incentives increases Islamic finance, extending tax breaks on Sukuk issuance for a further three-year period.
Prime Minister Datuk Seri Najib Tun Razak stated that a tax deduction on expenses incurred for Sukuk Wakala will be offered for a three-year period from 2012 to encourage more Sukuk launches.

It appears that Elaf Bank has accessed sharia-compliant bond mandates worth at least $1.5 billion from three Malaysian firms. The sukuk is being planned for the first quarter of 2012.

Governments in the Middle East were called by Dubai Asset managers in the region to unite their regulations governing the financial services industry.
Top executives stated that each GCC country — the UAE, Qatar, Oman, Bahrain, Kuwait and Saudi Arabia — posesses its own set of rules, which sometimes don’t conform to each other and make it difficult for them to sell products.

Alkhair International Islamic Bank Malaysia is asking approval from Bank Negara Malaysia to begin talks to obtain a Malaysian bank. The reason seems to be the fact that this will permit them to affirm into the ringgit business.
Alkhair International posesses a licence to carry out Islamic banking business in non-ringgit currencies.

Saleh Abdullah Lootah, Managing Director of Al Islami Foods, stated that the $1 trillion (AED3.68 trillion) global Islamic finance industry finds itself in the process of developing a road-map to gather $651 billion (AED2.4 trillion) halal market.
The statement was given during the 8th Kuala Lumpur Islamic Finance Forum 2011 (KLIFF), organized by the Centre for Research and Training (CERT), where Al Islami was the only halal food company from the Middle East invited to the international event.

Saudi Aramco Total Refining and Petrochemicals Company stated that it has gathered $1 billion for its 400,000 barrel per day refinery project by selling an Islamic bond.
It added that sukuk is 3.5 times oversubscribed and matures in about 14 years.

The Budget of 2012 will promote furthermore the comprehensive development of conventional and Islamic banking, insurance and takaful, investment banking and other financial services in terms of the range and offerings of products and services.
Datuk Seri Abdul Wahid Omar stated that it showed the Government’s effort to strike a balance between dealing with people, cyclical and structural issues.

A company official stated that Malaysia's stock exchange operator has the purpose to double the daily average trades on its murabaha platform from 1 billion ringgit ($313 million) next year as it develops its Islamic finance products in overseas markets.
One of the key challenges to the emerging Islamic finance industry is the lack of liquidity tools. The sharia banks being held back partly because of the limited range of products they can invest in.
Bursa Malaysia will develop its business in Middle Eastern countries such as the United Arab Emirates, Saudi Arabia, Kuwait, Qatar and Jordan. The statement was given by Norfadelizan Abdul Rahman, the exchange's Islamic markets' acting global head.

Datuk Seri Ahmad Husni Hanadzlah, Second Finance Minister, stated that Islamic finance practitioners should explore joint ventures and synergistic collaboration with formed global brands in private equity and asset management industries.
Furthermore, his oppinion is that this would be the most efficient way to evolve as local players have significant value proposition to develop such alliances attractive to their foreign counterparts.
Private equity, worldwide, has raised US$184 billion via Islamic financing, until this point.

Islamic banks in the country Malaysia have been encouraged to present more short-term syariah-compliant products in order to attract foreign investors.
Dr Mohd Daud Bakar, Amanie Islamic Finance Consultancy and Education LLC managing director, stated that they always have investors in Malaysia looking for syariah-shariah compliant products.
He added that liquidity is not a problem in Malaysia because they have many products that can absorb the liquidity in the Islamic financial intuitions.

Unicorn Investment Bank launches its new brand identity, as it has now officially changed its name to Bank Alkhair B.S.C. (c). The Bank’s subsidiaries in Saudi Arabia, Malaysia and Turkey will now officially perform under the names Alkhair Capital Saudi Arabia, Alkhair International Islamic Bank Malaysia and Alkhair Capital Turkey respectively.
Furthermore, the bank presented a streamlined and more modern logo and brand elements, in keeping with Bank Alkhair’s re-aligned and more focused approach and operating strategy.

Maybank Islamic Bhd anticipates its contribution from asset financing to the Maybank Group in the current financial year to be consistent with the previous year.
At this point 27 per cent of Maybank Group's total loan and advances come from Islamic banking.

Datuk Dr Awang Adek Hussin, Deputy Finance Minister, stated that several strategies must be taken in order to strengthen Malaysia's position as an international Islamic financial centre. He added that Islamic scholars should spread their horizon and not limit themselves to one field of knowledge.
His oppinion is that the establishment of research institutions that promotes the development of Syariah principles was still having issues in the move to obtain the desired objectives.

The list following borrowers are anticipated to sell Islamic bonds: Indonesia, ABU DHABI NATIONAL ENERGY CO, QATAR INTERNATIONAL ISLAMIC BANK (QIIK), TENAGA NASIONAL BHD. (TNB), MIDCITI RESOURCES SDN BHD., AL HILAL BANK, EMERY OLEOCHEMICALS GROUP, PT BANK MUAMALAT INDONESIA, INTERNATIONAL ISLAMIC LIQUIDITY MANAGEMENT CORP., ACWA POWER INTERNATIONAL, ISLAMIC BANK OF THAILAND, PT BANK SYARIAH BRI, Russia, Senegal, TOURISM DEVELOPMENT & INVESTMENT CO., KUVEYT TURK KATILIM BANKASI AS and many others.

Emirates NBD is taking into consideration the opening of a representative offices in China and a number of Asia Pacific countries and the expantion of its Islamic banking operations in the region, joining an increasing number of Middle Eastern lenders looking for a larger presence in some of the world’s fastest-growing economies.
Emirates NBD already opened a branch in Singapore where it gives the opportunity of wholesale banking, treasury and wealth management services to take advantage of increasing trade flows between South East Asia and the Middle East.

It seems that because of the economic uncertainty and the availability of Islamic finance, Middle Eastern real estate investors are begining to look East to markets such as Malaysia.
Middle Eastern investment into Malaysian real estate projects has boosted to 11.4% in the third quarter of 2011 compared with the same period in 2010.
The fact that Malaysia has been offering Shariah compliant financial services for over 25 years makes it very attractive to buyers from the Middle East.

The first-ever Code of Corporate Governance for SMEs was launched by Sheikh Ahmad Bin Saeed Al Maktoum, in the presence of HE Sultan Bin Saeed Al Mansoori, the UAE Minister of Economy, Mr. Sami Al Qamzi, Director General of the Department of Economic Development (DED); and Mr. Abdul Baset Al Janahi, Chief Executive Officer of Dubai SME.
The launch took place during the first-ever Conference for Corporate Governance for SMEs held by Dubai SME. The primary purpose of the conference is to develop awareness among Dubai’s SMEs the importance of embracing corporate governance early.

Tamweel will launch a $300-$500 million sukuk in the fourth quarter. The statement was given by Varun Sood, the acting chief executive of Tamweel.
He added that they are depending on the fact that there is demand for Islamic paper.
Three banks were chosen for the sukuk, but no details were given.

The banks that will advise the sukuk sale of Bahrain are: Citigroup, BNP Paribas and Standard Chartered. This is chasing Bahrain's government raising the public debt ceiling by BD1bn ($2.65bn) to BD3.5bn.

Compliant products globally, including equities that conform with Islamic principles, sukuk and Islamic funds, stands at over $1.5 trillion.
Abdul Rahman Al Baker, the Executive Director of Financial Institutions Supervision, Central Bank of Bahrain (CBB), stated that Islamic asset management industry is an area that has become larger to an increasingly substantial segment within the financial markets. He also added that Islamic financial products symbolize a class of investment which is adressed to those looking for a socially responsible or ethical investments.