IslamicFinance.de mission is to support the Islamic finance, banking and takaful industry with news abstracts, opinions, a free encyclopedia, a Twitter page and networking.

Creation of the Sharia Finance Committee Senegal

A multidisciplinary study group composed of lawyers, tax experts, businessmen, scientists and clerics have decided to build a national and regional promotion body for Islamic finance in Senegal.

Mr Karim Ahmed Al CISSE, President of the 'Comité national Charia Finance Sénégal' has announced this to have officially received the recognition of this body by the Senegal Ministry of the Interior of Senegal. Mr. Karim Ahmed CISSE, sees the committee's mission asessential to participate in the emergence of a legal and fiscal environment conducive to the development of Islamic finance. It is also a part of capacity building for clerics to allow them to play their role in the Shariah Board.

Shariah-compliant SET index has formal launch

The Stock Exchange of Thailand (SET) will formally launch its first index tracking shariahcompliant Southeast Asian stocks on Monday, in a bid to attract Muslim investors. The FTSE SET Shariah Index, which has been available since April 23, comprises 55 stocks from the SET Index, representing 44 % of the SET's market capitalisation.

Prudential Malaysia Records 17 % rie In New Business Sales

Prudential Assurance Malaysia Bhd (PAMB), part of UK-based Prudential Plc, has posted a 17 % growth in new business sales in first quarter 2009 compared to the same period last year. The company's new business annual premium equivalent (APE), which consists of retail life insurance sales and takaful contributions, rose to RM122 million from RM105 million previously.

Mena debt market can grow to $1.6trn

The debt market in the Middle East and North Africa (Mena) has the potential to grow to $USD 1.6 trillion p.a. but currently remains in its nascent stage, according to economic experts speaking at an event organised by the Dubai International Financial Centre (DIFC). Debt securities form just 3 % of of the Mena capital markets, while global capital markets have a ratio of 42 %.

Malta appointed working group for Islamic finance

The Malta Financial Services Authority (MFSA) has set up a five-person working group chaired by its director for strategic development, Dr Michael Xuereb, to identify further necessary legal and regulatory changes and related implementation procedures with respect to Sharia Institutions and Sharia Funds.

QInvest buys 44% stake in 130-year old UK Panmure stockbroking firm

QInvest, trumped two other bidders to buy a 44 % stake in Panmure Gordon & Co, investing USD 36.3 mn in the 130-year-old British stockbroking firm. The deal would involve a placing of 67.5 million shares, priced at 34 pence per share a 15 % discount on Wednesday's closing price.

Panmure said the cash injection would enhance its balance sheet and give it the financial strength to grow into new business areas and locations, including the Gulf.

World Bank analysis on Pakistan's informal and formal financial sector

Microcapital sumarized the World Bank report written by Tatiana Nenova, Cecile Thioro Niang and Anjum Ahmad , released May 2009, 187 pages, available at: http://go.worldbank.org/0KKMYAT130 :

This World Bank report measures and describes the current state of formal and informal financial services in Pakistan for underserved populations and enterprises. Currently 14 percent of Pakistanis use savings, credit, insurance, payments and remittance services from the formal financial system. This is compared to India, Bangladesh and Sri Lanka where 48 percent, 32 percent and 59 percent respectively have access to formal financial services. In addition about 36 percent of Pakistanis use moneylenders, committees, family and friends. The State Bank of Pakistan (SBP), which regulates the banking sector, has grown over the past few years yet it has not met demand. Further details about the market and players in Pakistan are found in Chapter 1.

Joint Africa program of develoment banks

MICROCAPITAL STORY: African Development Bank Group, Agence Française de Développement Group, European Investment Bank, Development Bank of Southern Africa, KfW Bankengruppe, Islamic Development Bank Group, and World Bank Group Launch USD 15bn Joint Action Plan for Africa Including Support for Microfinance Programs.

The Islamic Development Bank Group, through the Islamic Corporation for the Development of Private Sector, will contribute up to USD 250 million over the next five years, including USD 50 million for the development of Islamic banking industry and USD 50 million for SME development.

Saad Group And Related Entities Outlook To Negative On Increased Real Estate Exposure; 'BBB+' Long-Term Rating Affirmed

Press Release

LONDON (Standard & Poor's) May 22, 2009--Standard & Poor's Ratings Services said today that it revised to negative from stable its outlook on Saudi Arabia-based Saad Group and related entities, owing to our view of its increased real estate exposure resulting in the reduced liquidity and geographic diversity of its portfolio. At the same time, the 'BBB+/A-2' corporate credit ratings were affirmed.

The outlook revision reflects our view of Saad Group's reduced portfolio liquidity and diversity, with real estate holdings in Saudi Arabia constituting a substantially larger portion of Saad Group's asset base than previously. Due in part to current economic conditions, we are applying more conservative metrics for Saad Group's ratings, by altering our previous treatment of some of Saad Group's assets and liabilities. We also lowered our loan-to-value (LTV) threshold for the rating to 25% from 30%.

Sovereign wealth funds interested in Dubai's conventional bond 2nd tranche

Nasser Al Sheikh, Dubai said that it received interest from sovereign wealth funds for the second tranche of the USD 20 bn bond, which will only be issued if needed.

Islamic Bank of Asia aims to localise Tawarruq transactions

The Islamic Bank of Asia, (IBA) a venture of Singapore’s DBS Group Holdings Ltd., aims to stop using London Metal Exchange transactions.The bank is in talks with Olam International Ltd. to use its trading in commodities such as rice, coffee, cotton and cocoa as the basis for financing.

Vincent Cook is CEO.

Qatar Financial Centre (QFC) Authority and Paris EUROPLACE signed a Memorandum of Understanding

The Qatar Financial Centre (QFC) Authority and Paris EUROPLACE signed a Memorandum of Understanding defining the range of cooperation.

Mrs Christine LAGARDE, Minister of economy, industry and employment sees the MoU to improve the relations between the countries, and to increase the attractivity of the financial market place of Paris on the long term including the Islamic finance players.

International Investment Bank's total income USD 1.8 mn, loss USD 900.000

Bahrain-based International Investment Bank's (IIB) total income reached USD 1.8 mn in Q1. This was mainly derived from investment banking fees generated from the structuring, underwriting and placement of new investments, together with profit earned on funds placed with financial institutions.

Total expenses reduced to USD 2.7 mn in the period, reflecting the lower business activity as compared to a year ago. A net loss was incurred of USD 900,000 compared to a net profit of USD 5.4 mn earned in the same period last year.

UK government still interested in issuing Sukuk when market recovers

The UK government could turn to Islamic investors to finance part of its debt if market conditions improve, Business Minister Ian Pearson told Reuters in an interview wrote Cecilia Valente.

The UK government was expected to announce an Islamic-compliant short-term debt programme of up to 2 billion pounds ($3.03 billion), but in November the pre-budget report shelved the plans, citing deteriorating markets.

Dubai Islamic Insurance and Reinsurance Co released its Q1 results for 2009 being AED 10 mn

Dubai Islamic Insurance and Reinsurance Co released its Q1 results for 2009 being AED 10 mn, a 68 % increase.

OIC ruled Organised Tawarruq impermissible

The contemporary definition on organized tawarruq is: when a person (mustawriq) buys a merchandise from a local or international market on deferred price basis. The financier arranges the sale agreement either himself or through his agent. Simultaneously, the mustawriq and the financier executes the transactions, usually at a lower spot price.

It is not permissible to execute both tawarruq (organised and reversed) because simultaneous transactions occurs between the financier and the mustawriq, whether it is done explicitly or implicitly or based on common practice, in exchange for a financial obligation.

Full text: English and Arabic at the link below.

Islamic finance enters Spain retail market

Islamic finance is coming to Spain, where it estimates it will find a potential market of two million clients reported Paola Del Vecchio on Ansamed.

According to financial newspaper Negocios, the Halal Institute - the centre of Islamic quality certification in Cordoba operating under the Spanish Islamic Commission - is shortly to sign an agreement with the Sa Nostra building society in the Balearic Islands for the creation of an Islamic current account.

According to market research carried out by the Halal Institute, potential clients in Spain have good earnings, a high level of loyalty to their bank and a low rate of payment default. Thanks to the agreement soon to be sealed by the Halal Insitute and Sa Nostra, Muslim residents of the Spanish archipelago will also be able to open special current accounts to collect the funds needed to be buried in the first Islamic cemetery in the Balearics, without the bank taking any commission or adding any interest to the holder's deposits.

Qinvest set to launch USD 250 mn equity fund

QInvest will soon launch a USD 250 mn private equity fund and another sector-specific fund as well as two other funds by the third quarter of this year reported Santhosh V Perumal in Gulf Times

The Qatar Financial Centre-based firm, whose principal shareholders are Qatar Islamic Bank and Gulf Finance House, also said it would also embark on brokerage and wealth management services.

CEO is Shahzad Shahbaz.

Investment Dar Co. defaults on Sukuk

Investment Dar failed to pay a “periodic distribution” due on April 27 to holders of its Sukuk maturing in 2010.

Central Bank of Iran Supports Cooperatives Bank

Governor of Central Bank of Iran (CBI)Central Bank of Iran (CBI) Mahmoud Bahmani has promised to supply the initial capital for the establishment of Cooperatives Development Bank. Managing Director of Cooperatives Fund Mashallah Azimi told Mehr News Agency that the proposed bank would start operation this year.

Syndicate content