Back From Vacation

Hello Reader

After A Long vacation, We will back to write and update our Isec blog, by news and articles concerning the Islamic Economics and Finance.

Thanks all and sorry for the delay.

Kuwait Energy secures $50m Murabaha loan

Kuwait Energy Company, leading Middle East based major independent exploration and production company has announced that it has bagged a $50 million ( around Dh183.65 million) loan from the International Finance Corporation (IFC).

The sources informed that the company has secured this loan in order to speed up the development as well as exploration of its oil and gas assets in Egypt and Yemen.

The sources further informed that this is the first time that IFC is offering monetary resource to Kuwaiti company. The package includes a $35 million reserve based facility as well as a $15 million income participation facility. The financing from IFC will be carried out through murabaha transaction.

As per reports of media, Kuwait Energy has grown importantly in reach and asset allocation, quickly allowing it to gain the reputation of the fastest growing independent E&P company in the Middle East.

Source : Topnews.ae

Islamic finance poised for big leap in China

KUALA LUMPUR: China is the next big Islamic finance market, as demand grows for ethical funds, but Asia’s fastest growing economy must first sort out tax issues, a unit of British insurer Prudential said yesterday.

A large Muslim population and growing wealth provide a ready retail Islamic banking market in China, a senior executive of Prudential’s Kuala Lumpur-based fund management unit said.

The US$1 trillion Islamic finance industry is targeting rapidly growing Asian economies such as China and India and new markets like Kazakhstan and Sri Lanka to offset slowing growth in its traditional base of Gulf Arab states.

Mr Volcker : Voice Of An Economist

The world economy, feels actually the pain of risks, that financial crisis fever still alive in world economy’s body, what seems a propagating risk-flu heavier and not less spreading slower than swine-flu.

It’s  a big time, for voices like Mr Volker to be heard, before it is too late, since there is a crisis, a solution is needed, and the question is how long the world economy can survive with this fiancial fever, before the catastrophic disaster.

Making banks less risky, is the first step forward, donating blood to the economy,  the fact that sharia compliant solutions applied by islamic banks risk-free, or at least sharing-risk-profit, still widely far from being affected by this worldwide financial fever, and risk-flu, All add a great value to Mr Volker suggestions to the economy of market and the administration of obama.

“Extensive participation in the impersonal, transaction-oriented capital market does not seem to me an intrinsic part of commercial banking.”

- Paul Volcker

Kuwaiti government sets up Islamic bank

A new Islamic bank in Kuwait is to be 76% owned by the country’s 1.1 million citizens.

The remaining 24% of Warba Bank will be owned by the state-run Kuwait Investment Authority, the country’s sovereign wealth fund.

The Kuwaiti government has given the bank a capital of 100 million dinars ($350 million), making the stake owned by the public worth $265 million, or $240 per citizen.

Warba Bank is the fourth Islamic bank in the oil-rich emirate.

Other Islamic banks in the country include Kuwait Finance House, one of the world’s largest Islamic banks, Boubyan Bank, and Kuwait International Bank.

Islamic banks comply with Sharia law, which prohibits the payment of interest fees in exchange for the lending of money.

Source : Financemarkets.co.uk

Zakat ul-Fitr by SMS

Maldives News

Over 68,000 people have paid Zakat

The ministry of Islamic affairs has said more than 68,000 people have paid Zakat as of Sunday, reports Haveeru.

Ahmadullah Jameel, assistant director general, said a total of Rf1,673,486 (US$130,200) has been received so far, including those who paiF via SMS and those who deposited the money at ward offices.

Over Rf10,000 (US$778) has paid Zakat from the SMS service introduced by Dhiraagu, he said. After Wataniya offered a similar service, over 600 customers have paid Zakat via SMS.

Source :Minivannews.com/

Al Hilal plans to open two branches in Kazakhstan

By :  Reuters

Abu Dhabi’s government-owned Al Hilal Bank plans to open Kazakhstan’s first Islamic bank in December, starting with two branches, and wants to expand to other former Soviet Union states, its CEO said.

The lender is on track to break even by end 2009 and will be profitable in 2010, said Mohamed Berro.

Al Hilal will headquarter the new bank called Al Hilal Islamic Bank in Almaty, with an initial capital of about Dh100 million ($27m).

Finbank to Open Islamic Bank in Sokoto

The Group Managing Director/Chief Executive Officer of FinBank Nigeria Plc, Mrs Suzzane Iroche, weekend said the bank will open its Islamic Banking Division in Sokoto State in the next three months.

She made the disclosure at the launch of Buses Loan Scheme jointly financed by the Sokoto State government and FinBank Nigeria Plc, pointing out that it will be a huge success to the bank and the State.

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She said: “We held our last Annual General Meeting here in March and our Islamic Banking Division is taking off from the State soon. This is beside our huge presence in retail and corporate banking services to the State through our business offices located in the seat of the Caliphate”. According to her, the presence of Islamic bank in the state will meet the desire of their customers who demand for Islamic banking.

Examining the Conceptual, Legal and Institutional Issues in Takaful

Published by John Wiley & Sons (Asia) Pte Ltd, the new book, “Takaful Islamic Insurance: Concepts and Regulatory Issues” provides an in-depth and comprehensive treatment of the issues governing the industry and its future direction. Edited by Professors Simon Archer, Rifaat Ahmed Abdel Karim and Volker Nienhaus – three eminent scholars and practitioners in Islamic finance – this authoritative book is a distillation of their expertise combined with contributions from some of the greatest thinkers and industry practitioners in this field.

Takaful Islamic Insurance:
Concepts and Regulatory Issues
Published by John Wiley & Sons, Inc.
Publication Date: July 21, 2009
US$120.00; Cloth; 300 pp.; ISBN: 978-0-470-82352-1

Source : Infozine.com

Qatar Islamic Bank to raise QR3.5bn for European investments

Qatari Diar Real Estate Investment Company (Qatari Diar), the leading Qatari real estate developer and investment firm, has appointed Qatar Islamic Bank (QIB), the leading Islamic bank in Qatar, as Initial Mandated Lead Arranger and Bookrunner to raise a five year QR3.5bn Sharia’-compliant syndicated facility to finance European investments.

This is the first time that a local Qatari bank has been appointed as the sole MLA and Bookrunner for such a high-profile transaction. The Islamic facility will be subject to the final regulatory approvals.