Fitch affirms Abu Dhabi Islamic Bank at 'A+'; outlook stable

The affirmation of ADIB's Long- and Short-term IDRs and Support Rating reflects the extremely high probability of support from the UAE authorities, if needed.
The affirmation of the Individual Rating reflects the bank's sound liquidity and funding, its good franchise, adequate capitalisation and high concentrations in financing and rapid growth.
ADIB's main shareholders are Emirates International Investment Company (41%), which is owned by members of the Abu Dhabi ruling family, the Abu Dhabi Investment Council with 8% and the UAE pension fund (2.3%).

ADIB arranges for financing deal for MAF

Abu Dhabi Bank (ADIB) announced that it is going to financially help UAE's Majid Al Futtaim (MAF) Group. because the bank is going to arrange for a syndicate that will look after the financing worth Dhs1.14 billion.

UAE banks told to book Dubai World provisions

UAE banks with exposure to indebted conglomerate Dubai World have been directed by the country's central bank to book "appropriate" provisions in consultation with their auditors.
In order to try to bring the banking system in line with international standards, the central bank released guidelines early last month directing banks to take provisions for bad loans on a quarterly basis.

First Sharia compliant movie fund raises $40m

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.

Shariah-compliant certificates of deposits auctioned

The Central Bank of the UAE has announced the successful inaugural auction of Shariah-Compliant Certificates of Deposit (ICDs).
The inaugural auction was held on Wednesday, 10th November 2010. The ICDs, which are based on Murabahah concept, are the first Islamic liquidity management tools issued by the Central Bank of the UAE.
The ICDs are the first Islamic liquidity management tools issued by the Central Bank of the UAE.

UAE may need investment ?in agriculture sector

The United Arab Emirates needs to boost investment in the agriculture sector, which can supply only 37 per cent of its annual food demand and makes it vulnerable to fluctuating prices.
In 2008 the UAE was forced up to import their bills. Since then they are trying to improve security of food supplies.

UAE Islamic certificates auction successful: central bank

The country's shariah-compliant certificates of deposit (CDs) was successful amid the Islamic banks participation in issuing the newly launched Islamic finance product.
The initiative is seen as an important move towards bolstering Islamic finance and banking movement in the UAE.

Central Bank begins issuing Islamic CDs

The UAE Central Bank started issuing the country's first Islamic certificates of deposits (ICDs) as part of a plan to create a new investment tool for Shariah-compliant banks in the country.
The new ICDs would be issued in dirham, US dollar and euro and their maturity date would range between one week and five years.

Banks must mind their own back yards

With trouble at financial institutions in the Middle East concentrated in the Gulf, particularly in the UAE, Kuwait and to some extent Bahrain, the banks know that putting all of their investment eggs in the Gulf's basket makes for inadequate and ultimately dangerous geographical narrowness.
Given the Gulf's unique circumstances, it may make more sense for banks to sell off lines of business where they are weak and acquire parts of other banks where they want to become stronger.

Islamic home financier Tamweel sees Q3 income fall

Tamweel reported a 28.6 per cent decline in third-quarter profits as income from its home financing activities dipped.
Dubai Islamic Bank's (DIB) purchase of a controlling 57.3 per cent stake in Tamweel in September, followed by the resumption of mortgage lending this month.
Now DIB plans to transfer most of its mortgage activities to Tamweel.
Tamweel shareholders are set to meet tomorrow to discuss appointing a new board and approving financial statements for 2008 and 2009. Sheikh Khaled, who sits on numerous company boards in the UAE, is planning to leave his position as Tamweel chairman to make room for DIB executives who will integrate its mortgage business with the bank's.

UAE ready for Islamic CD auctions-c.banker

The United Arab Emirates' central bank is ready to hold Islamic certificate of deposit auctions to help the Gulf Arab state's Islamic banks to manage cash.
The UAE central bank's monetary policy is limited by its dirham peg to the U.S. dollar. It uses CD auctions and repurchase facilities among other tools to regulate liquidity in the banking system.
Islamic finance has 16 percent of the UAE's banking assets, while Pakistan has only 5%.

Sukuk for UK company

North east company International Innovative Technologies (IIT), UK, issued a Sukuk. The 4-year, USD 10 mn musharaka sukuk – small by international capital markets standards – was placed privately with Millennium Private Equity and regulated by Dubai Financial Services Authority.

Tharawat Family Business Forum,Borsa Italiana,Rothschild to share knowledge of external funding and IPO with Arab family busines

Tharawat Family Business Forum is a non-profit organization representing the first Arabian network for family businesses. Tharawat bases its activities around the four main pillars networking, research, education, and advocacy, thereby catering to the heart of family business needs. The forum, founded in 2006, has the clear vision of becoming the prime knowledge resource, research hub and networking forum for family-owned and -controlled firms in the Middle East and North Africa.
The Tharawat members are some of the largest and oldest family businesses in the region and the network accepts members upon application. While hosting activities across the entire Arab world, Tharawat has its headquarters situated in Dubai, UAE.

A.T. Kearney says mergers and acquisitions essential for Islamic banking sector

With the room for further organic growth being limited, mergers and acquisitions should be considered as an avenue for sustained growth, says A.T. Kearney.
According to A.T. Kearney, the global financial crisis has put an end to the heydays of growth in the banking sector and the current market outlook suggests that these days are not returning quickly. Islamic banks, which traditionally grew faster than their conventional peers, are also affected.
The global financial crisis highlighted the need for consolidation in the Islamic banking industry in the region. Growing out of their niche and becoming mainstream business is considered one of their major challenges and if Islamic banks do not succeed, the room for further organic growth is limited as the market space in some GCC countries is already overcrowded.

SIB launches UAE's first zero per cent profit Hajj financing service

Sharjah Islamic Bank (SIB) has announced the launch of zero per cent profit financing service for Hajj under the theme "Perform Hajj this year and pay it off over the year with no profit".
The service, the first-of-its-kind to be offered by an Islamic bank in the UAE, will enable a lot of people to perform Hajj and pay back the cost via easy and affordable monthly instalments for one year without any profit, fees or extra costs.

UAE working on mortgage law

The UAE is working on a mortgage law which will make it easier for people to buy residential units, UAE Central Bank Governor said.
Speaking at the seminar, the Central Bank governor said the government has also set up a committee to look into the Amlak issue.
The UAE government said in late 2008 that it would merge Amlak Finance and Tamweel and has been working on a plan to restructure them. Shares in the two firms have not traded since. But last month, Dubai Islamic took majority stake in Tamweel leaving Amlak's fate hanging in balance.
Sources told Emirates 24|7 on Wednesday that three Islamic banks - Emirates Islamic Bank, Dubai Bank and Noor Islamic Bank - are considering merger and then the merged entity will take over Amlak.

Dubai banks present merger plan to Central Bank

Two UAE banks have presented a plan for their merger to the Central Bank despite conditions made by one of them not to shoulder any losses suffered by the other bank.
The Emirates Islamic Bank (EIB), which has been locked in negotiations to merge or acquire Dubai Bank (DB), stipulated that the government should handle DB’s losses which could range between Dh500 million and Dh2 billion.
Dubai’s Government holds around 29.8 per cent of Dubai Bank, which has an authorised capital of nearly Dh3.4bn. It is controlled by the Dubai Banking Group, an affiliate of the government-owned Dubai Holding.

54% Consumers Uncertain Over The Difference Between Islamic And Conventional Banking Services Survey results to be announced at

A recent survey conducted by YouGov Siraj, to understand consumer banking preferences in the region, with a focus on Islamic banking, revealed that 54 percent of consumers cannot differentiate between Islamic and conventional banking services. The reason cited was both banks provide similar products and services.
The findings are crucial particularly, during a period when Islamic banks are differentiat-ing themselves with a renewed emphasis on fundamental ethics at the heart of Islamic banking model.
The survey has also been conducted with an aim to answer an important question: “Would the average customer prefer a bank that promises moral salvation or one which offers friendly, convenient service, value for money, and an envy inducing credit card?” The complete results of the survey will be released exclusively at the International Islamic Finance Forum

Fitch raises Tamweel rating to positive

Fitch Ratings has revised the Rating Watch on UAE-based Tamweel's Long-term Issuer Default Ratings (IDR), Short-term IDR, Support Rating and Support Rating Floor to 'Positive' (RWP) from 'Evolving' (RWE). The move follows the acquisition by Dubai Islamic Bank of a majority stake in the Shari'ah-compliant mortgage lender. The rating agency also affirmed Tamweel's 'E' Individual Rating, reflecting its weak standalone risk profile.

GCC Islamic banking sector grows at 20% per annum representing 17% of banking system total assets, reveals KFH Research report

The report pointed out that Kuwait ranked first among the GCC countries in terms Islamic banks assets to total banking assets, while Saudi Arabia and the UAE have risen among the countries that promote Islamic finance products and services. It added that there are many opportunities still available for Islamic finance solutions in the region where real estate finance tops other areas of interest prevalent in the UAE and Saudi Arabia.
The existence of financial centers in Bahrain, Qatar and the UAE, as well as a number of Islamic finance organizations such as the Accounting and Auditing Organization for Islamic Financial Institutions, Liquidity Management Centre, and the International Islamic Financial Market will continue to attract new players to the region and further propel the Islamic banking industry to greater heights.

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