IslamicFinance.de

Bankers have an optimistic attitude towards a full-scale restructuring of the US$10 billion (Dh36.72bn) debts of Dubai Holding. They consider such a move to be imminent following the settlement of a legal action against a unit of the conglomerate. Four banks, one of which Royal Bank of Scotland, have reached an agreement on the terms of restructuring debts of Dubai Group, the financial arm of the holding company. This will include their dropping a controversial legal action against the Dubai company.

Since the collaboration between the Ethica Institute of Islamic Finance and Haifx Consult is working properly, professionals mow have local access to global Islamic finance certification at subsidized rates. The partnership includes on-the-ground Islamic finance learning centers and mentorship programs. More than half of Nigeria's population of 150 million are Muslim, which explains the striving for growth in the field of Islamic finance in the country.

Gatehouse Bank is making efforts to attract Oman's Sharia-compliant institutions to invest their funds in the UK and vice-versa. They are showing keen interest in establishing a business relationship with all Islamic banks. Gatehouse already have treasury services, capital market products like sukuk and real estate financing. There will be an official meeting between Gatehouse Bank's officials and such of Bank Nizwa and Bank Muscat. The goal of the meeting will be to explore cooperation possibilities and opportunities.

According to a recent announcement, Abu Dhabi Islamic Bank (ADIB) has achieved a huge number of the Global Village visitors through its Financial Education Campaign. As the main sponsor of the campaign for the second year, ADIB supports the event as part of its strategy to help and promote initiatives launched by the government endorsing the UAE’s tourism and entertainment industries. Some of the exclusive services the bank offers at the venue are providing ATMs as well as setting up specially designed mobile branches. There, visitors have the opportunity to receive information about financial management and ADIB’s unique products and service.

The headquarters of Bank Nizwa will open today at Al Qurum. At the same time, its branches in Sohar and Nizwa will be opened as well. Gradually, several further branches will be opened. The launch of the bank was announced after the Central Bank of Oman (CBO) released the Islamic Banking Regulatory Framework (IBRF). It is expected that Bank Nizwas launch will push Islamic banking and economy in Oman and attract more deposits from Omanis, who have their deposits outside the country.

The merger between three Islamic banks based in Bahrain - Elaf Bank, Capital Management House and Capivest - has been successfully closed by Kuwait Finance House-Bahrain (KFH-Bahrain). The merger will enable a strengthened financial institution with a total equity reaching approximately $340 million. The total assets in excess will be $400m spanning the Middle East and North Africa (Mena), Europe and Asia. KFH-Bahrain played the role of transaction and lead adviser. The discussions and procedures started in late 2011 leading now to the creation of a robust merged entity which is more competitive in the field of global Islamic banking and investment industry.

CIMB Group Holdings Bhd received its underwriting for global and local sukuk issuance fall in 2012. Meanwhile, the market share of HSBC Bank plc grew significantly during the same period. The total issuance for global sukuk of CIMB fell from US$7.77 billion in 2011 to US$6.21 billion (RM18.82 billion). As a result, its ranking dropped to second place and its market share eased to 12% from 17.7% in 2012. HSBC reached first place with total global issuance increasing to US$11.35 billion from US$4.88 billion in 2011. Its market share rosealmost double to 21.9% from 11.1% in 2011.

On Thursday , Dubai Islamic Bank announced its board's approval of the plans to fully acquire its mortgage unit Tamweel. The bank already holds 58.2% of the stakes. It further intends to make a tender offer to buy all shares off Tamweel's other shareholders. Every shareholder of Tamweel will be offered 10 DIB shares for every 18 Tamweel shares. As soon as the offer is closed, DIB will make an application to the regulator to delist Tamweel from the Dubai Financial Market.

Islamic Bank of Britain reported an increase of 63% in home financing and an increase of 43% in long-term savings deposits for the first three quarters of 2012. Key factors in stimulating the growth and demand were the launch and development of new savings products, the IBB Home Purchase Plan (HPP, the Sharia compliant mortgage alternative) and Buy to Let Purchase Plans, which were strongly supported by effective sales and marketing strategies. Currently, IBB is the leading provider of retail Islamic financial products in the UK and is searching for ways to increase the number of Islamic Banking products it offers to the market.

Recently, United Arab Bank (UAB) held its year-end Board Meeting at the new regional office in Al Khalidiya, Abu Dhabi. Including its network of 20 branches across the UAE, the bank reported net profit of Dh298 million and operating profit of Dh382 million for the first nine months of 2012. The meeting was called to order by the founder and chairman of UAB - His Highness Sheikh Faisal bin Sultan Salem Al Qassimi. The purpose of the meeting was to discuss and review the performance in 2012 and the outlook for 2013. According to His Highness Sheikh Faisal, The opening of our new and up-market regional office in Al Khalidiya, Abu Dhabi will enable UAB to offer their discerning customers a superior banking experience.

Despite the common opinion that joining a cooperative means that an individual can get loans, cooperatives are actually an important part of economic activities such as banking and construction as well as of the industrial and service sectors. Due to the sector's contribution to the nation's Gross Domestic Product (GDP), cooperatives are recognized by the government. Koperasi Permodalan Felda Malaysia Berhad (KPF) is introduced as a cooperative establishment to ensure sufficient funds for its workers.

Dear Reader,

Islamic finance had another great year. Many of its market segments progressed, like for example the Sukuk market gaining more maturity. Despite the ongoing debt crisis a good sign of hope and happiness.

Nevertheless we are - as an industry - still not satisfied with the achievements. Islamic finance shall grow stronger in terms of social impact and in terms of substance:

Hence, please allow me to re-iterate my call for participating in international initiatives beyond just our own industry to learn and spread knowledge and experience:

Calling Islamic financial institutions to become member of the United Nations Finance Initiative
http://www.islamicfinance.de/?q=node/811

Inshallah we see more Islamic financial institutions taking a lead in SRI, Social Impact Investing and other approaches while contributing with Islamic finance knowdledge to the conventional industry. The time is now; and there are signs that Malaysia aims for a lead:
http://www.islamicfinance.de/?q=node/4151

According to an announcement by Abu Dhabi Islamic Bank (ADIB), the bank plans to expand its original footprint by launching its branch in Khartoum in Sudan. Thus, ADIB becomes the first UAE-based Islamic financial institution which has received a banking license from the Sudanese Central Bank. A Wealth Management and a Corporate Banking Centre will be established alongside the provision of the bank's award-winning products and services. This way ADIB will ensure a leading platform for Shari'a-compliant banking in Sudan and will be able to contribute to the economic development of the country.

The deadline for discussions about the takeover of the Islamic Bank of Britain (IBB) by Masraf, the biggest Qatari bank, had been extended to January 7. IBB which is majority-owned by Qatar International Islamic Bank is trying to invigorate its business after the profit downturn in 2011 when it reported a loss of 8.9 million pounds. According to a separate statement released last week, IBB registered a 63% growth in home financing and a 43% up in long-term savings deposits in the first nine months of 2012. Management of the bank will continue focusing on secured financing and increasing of the loyalty of young savers.

HSBC will have to pay $1.9bn to US regulators after admitting its faults. The money-laundering probe of the bank focuses on the transfer of billions of dollars on behalf of nations under international sanctions such as Iran. Also, through the US financial system, money from from Mexican drug cartels was transferred. HSBC admitted its control was not strong enough and made an apology in a statement. The bank further announced that it had reached a deferred-prosecution agreement with the US Department of Justice.

Jordan Islamic Bank's Shari'a Quality Rating (SQR) was reaffirmed as AA by the Islamic International Rating Agency (IIRA). This is an indication that the bank conforms with very high standards of Shari'a compliance in regard of all aspects of Shari'a quality analysis. JIB, owned in majority by the Al Baraka Banking Group (ABG), is set to maintain and enhance the level of compliance with the spirit of Shari'a principles in Islamic finance.

Despite the worldwide domination of a few credit rating agencies, two not-for-profit rating providers announced their alliance. The agencies are Wikirating and Public Sector Credit Solutions (PSCS). They both use crowdsourcing techniques, thus aiming to improve credit ratings. Wikirating employs a technology similar to that of Wikipedia in order to gather and aggregate information and views about credit quality for multiple categories of bonds. PSCS has provided an open source software tool which is used to calculates default probabilities for government bonds. It also has fully transparent sample models and data sets.

Qatar's emir has eventually given his approval to the regulatory reform which is expected to simplify the slow and complex process of doing business in the country. However, no timetable for the completion of a reform first mooted five years ago was given. According to a central bank spokesman, the law ensures an umbrella body which will regulate banks, financial services and insurance companies and the country's bourse as well as banking, financial and insurance companies licensed by the Qatar Financial Center.

The Financial Strength Rating of Tadhamon International Islamic Bank (TIIB) has been downgraded to 'b+' from 'BB-' by Capital Intelligence (CI). The downward change of the rating reflects the deterioration in TIIB's financial profile. The ratings of TIIB's Long- and Short-Term Foreign Currency are 'b-' and 'c' respectively. Weakening asset quality and a subsequent large provision charge were the reason why the bank recorded a loss last year.

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) is eyeing revision of existing standards and the introduction of new ones. Thus, they hope to stay abreast of the challenging requirements of industry in financial reporting. This year they already issued a new standard for investment in real estate. It will take effect on January 1 and will ensure more detailed guidelines on the matter of accounting real estate investments.