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

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.

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.

First Islamic bank set to open in Kochi

KOCHI: India’s first bank that will only deal in financial products compliant with Islamic law will open in Kochi by next year. The first project that the government is looking at the bank to finance is the 80-billion-rupee north-south high-speed corridor.

The Kerala State Industrial Development Corporation (KSIDC) has initiated the incorporation of the company with an authorized capital of Rs.5 billion. The company is expected to invest mainly in infrastructure projects and pay dividends to depositors, officials said. Besides KSIDC, which holds an 11 percent stake in the company, p. Mohammed Ali of Oman’s Galfar Group, C.K. Menon of Doha-based Behzad Group, M.A. Yusuf Ali who heads LuLu supermarket chain in the Gulf and Azad Moopen of Moopen’s Group are the company’s major promoters.

Islamic finance conference a first

September 08, 2009

THE first ever conference on Islamic finance will  be held in the north of England.

Opportunities and Challenges in the World of Islamic Finance is a two day conference which will take place between the 13 and 14 October at the Royal Armouries in Leeds.

The conference will provide an introduction to Islamic Finance, the rationale for growth in Shariah compliant financial products and the relevance of Islamic Finance in today’s world.

Said organiser, Joanna Lavan,”I am extremely excited about this ground-breaking conference which will lead to a better understanding of Islamic Finance.

The Islamic Mortgages

During  recent  years  there  has  been  an  unprecedented  expansion  in  the  range  of commercial  banking  products  labelled  as  “Shari`ah  compliant”  in  many  countries  of  the world.

Popular  interest  among  Muslims  in  the  Shari`ah  of  financial  transactions  has increased  likewise,  and  in  the  United  Kingdom  the  permissibility  of  so-called  “Islamic mortgages”  is  among  the  most  frequent  topics  of  enquiry.  We  therefore  thought  it
appropriate  to record here what we see as  the main problems associated with  this product class from  the perspective of Shari`ah,  knowing  that many  of our criticisms can be equally well applied  to other  types of  product  that are  currently available from the  Islamic banking sector.  Scholars who  have  approved  the  main  forms  of  Islamic mortgage  will no  doubt
disagree  with  some  elements  of  our  criticism. We mean  them  no  harm,  and  remind  the
reader  that  Allah  has  decreed  the  existence  of  differences  among  people,  including

Muslims, as one of  the  tests by which Paradise may be attained.

Download full book below

Islamic_mortgages

Source : Islamic-finance.com

Landmark US$ 2.5 Billion Murabaha financing facility to support Zain Saudi Arabia’s future growth

Zain Saudi Arabia (“Zain KSA”) today held the closing for a US$ 2.5 billion Murabaha financing facility. The funds will be used to repay its existing Murabaha, facilitating the mobile telecom operation’s ongoing network expansion and future growth. The term of the facility is two years with options of extending for a further twelve months. Al Rajhi Capital, Banque Saudi Fransi and Calyon acted as Financial Advisors, with a total of eight regional and international financial institutions participating in what is one of the largest Islamic financings this year.