IslamicFinance.de

Tariq Al-Rifai, Director – Islamic Market Indexes at Dow Jones Indexes, wrote an article in which he underlined the fact that Islamic banks need to strengthen their sales and marketing, perhaps even going as far as targeting non-Muslim investors. He points out its salient features and how Islamic banking differs from the conventional banking. His aim is to highlight the many attractive features of Islamic banking.

The new development bank is named Al-Emar Bank (the Construction Bank) and is founded under the support of the Organisation of Islamic Conference (OIC).
It is expected to formally be launched during the OIC meeting in the State of Qatar December 2011.

Tunisia is trying to become a centre of Islamic finance in the Maghreb, especially taking in consideration the newly liberated political atmosphere and developing free market.
The July 15th-16th conference had the main focus on Islamic banking and innovation and training in the emerging field.
Tunisian Finance Minister Jelloul Ayed announced that currently 96% of financial resources from Islamic banking are invested outside Muslim states, something he considered a lost opportunity.

Kerala Finance Minister K M Mani uncovered the plans for special counters to be opened in state treasuries to collect interest-free deposits, saying the state Government was ‘not against’ the idea of Islamic banking.
But it seems that inspite of this, the Reserve Bank of India and the central Government has pointed out loud and clear that Islamic banking may not be implemented under current legislation.

he Islamic finance industry is estimated to grow at 15-20 per cent per year. 63 per cent of Islamic finance institutions are positioned in the Middle East, controlling more than 50 per cent of Islamic banking assets. These Statistics were concluded at the first ever Oman Islamic Banking Conference.
The gathering included speakers from prominent Islamic financial institutions around the region and high-level delegates from Omani financial institutions and banks that debated regional best practices and map out a strategy for the nation to become a part of the rapidly growing Islamic finance industry.

A licence for the bank to create Asia's first multinational Islamic bank will awarded in the third quarter. This has the possibility to increase the ability of syariah-compliant lenders to carry out larger sukuk deals, after global sales more than doubled to US$14.7bil this year.
Five Pillars, an Islamic finance advisory firmfrom Singapore revealed its oppinion that it thinks that the amount may grow to about US$10bil in six to 10 years.

In order to help mobilize funds for businesses around the world, Malaysia will launch a license for an Islamic “mega bank” in the third quarter of this year. The statement came from the country’s central bank governor.
It seems that in the same period, the Southeast Asian nation is also going to start a cross-border clearance platform for sukuk.

ISLAMIC leaders have the whish that Australia recognises sharia banking practices so Muslims can get interest-free loans for religious reasons.
An Advertiser survey of the nation's Islamic leaders has also shown:
STRONG condemnation of MPs who criticise Muslim women for wearing the burqa/nijab.
CONCERN that ordinary Muslims are still being linked to terrorism.
DISGUST that innocent people in Muslim countries are being killed in the "war on terror".

Companies in Bahrain and Bangladesh can choose now to use either conventional or Shariah-compliant banking products and services from HSBC. HSBC Amanah has launched a range of products and services to meet the banking needs of corporates in these countries.
Begining with this December, the following HSBC Amanah corporate banking products are available in Bahrain:
- Business accounts: Funds deposited are used only in a Shariah-compliant manner and customers get related facilities such as cheque books, debit cards and internet banking
- Investment solutions: Meets investors’ short-term investment needs in a Shariah-compliant manner
- Working capital finance solutions: Short to medium-term financing solutions for working capital and liquidity needs based on goods or commodity Murabaha concepts
- Trade finance solutions: Meet the importer's trade and finance requirements based on Murabaha

THE Omani government has embraced its doors to Islamic banking.
At the end of May, the Central Bank of Oman (CBO)’s board of governors had agreed upon the legislation for the establishment of sharia-compliant institutions and Islamic branches in conventional banks. The CBO also approved afterwards the creation of Bank Nizwa, which will be the first Islamic institution operating in the Sultanate.

Al Baraka Banking Group has signed an agreement for a Murabaha facility of $20 million to finance foreign trade with the International Islamic Trade Finance.
Adnan Ahmed Yousif, Board Member and President & Chief Executive of Al Baraka Banking Group, undelines the fact that this agreement comes within the framework of the Memorandum of Understanding signed with the International Islamic Trade Finance at the beginning of the year, and this agreement is one of the fruitful results of this Memorandum.

Islamic finance is playing each day goes by an even more important role in today’s global financial village.
Operators of Islamic banking disputed tha fact that Islamic banking cannot be fully Sharia based unless there is Takaful to take care of their insurance businesses.
Mallam Sanusi Lamido Sanusi, Governor of the Central Bank of Nigeria, stated that Nigeria is the most populous black nation in the world with a population of about 150 million, boasts of a significant Muslim population, majority of whom yearn for such financial services.

After all the messages on the billboards and that are streaming over the net and mobile phones, Emirati teens and their counterparts in Saudi Arabia know what they can expect from their banks and how they intend to go about getting it. Moreover, Islamic banking services and products are much preferred by this demographic.
On the other side, banks are also aware of the potential and what needs to be done.

Dubai Islamic Bank has launched a brand new concept: the first exclusive Al Islami Private Banking branch. This offers greater convenience and a range of exclusive services for Al Islami Private Banking customers.
At the Al Maktoum Road branch, Private Banking customers will be allowed to the personalised services of highly-experienced relationship managers who will help them identify and achieve their financial goals.

R. Seetharaman, Chief Executive Officer of Doha Bank, stated that Islamic Banking is the right platform to boost ‘green financing’ as it is based on the concept of promoting good practices and values.
He also added that Islamic banking is not just a financial system but it is part of a total value-based social system that searches to enhance the general welfare of society as a whole.

Stanbic IBTC Bank Plc (IBTCCB) was finally given approval by Nigeria’s central bank to provide Islamic banking services in Africa’s most populous nation.
Nigeria’s 150 million population is divided in an almost even way between Muslims and Christians, providing it with a market for Islamic banking products. The oppinion of Central bank Governor Lamido Sanusi ist that Nigeria wants to be a “hub of Islamic finance” in the region and plans to sell its first sukuk within 18 months.

Earlier this year, the Istanbul Stock Exchange issued an index of Sharia compliant banks and companies. That attracted the media very much.
It has been made clear that these banks do not charge interest, or “riba”, because it is forbidden according to Islamic law. The way that these banks operate remains unknown.
Four participation banks are currently operational in Turkey: al Baraka, Bank Asya, Kuveyt Türk, and Türkiye Finans. These banks offer a wide range of services, including savings and checking accounts, house and automobile financing, and even Islamic bonds.

Jaiz is widely associated with non-interest banking in Nigeria. The bank has begun its activity in 2002 when the movement for the creation of Jaiz gathered momentous.
Before Jaiz there were many other attempts: starting with WAPA (West African Pilgrimage Agency), which was established during the colonial era to cater for the financial arrangements of Muslim pilgrimage, a name that is still common in places like Kano; to Habib Bank and numerous community and later micro finance Banks established for the same purpose.
But Jaiz is special because of the scale of the project and the hope that is place on the institution by millions of people among them ordinary investors who put their hard earn savings in the institution.

Central Bank of Oman (CBO) arranged a seminar on Islamic banking in collaboration with Ernst & Young, Bahrain.
Speakers at the seminar were worried that the growth prospects for the banking sector would increase by 20% over the next decade, especially since the Islamic banking system was less affected by the recent global financial crisis compared to conventional banks.
The seminar was attended by a large number of chief executives and officials of commercial banks operating in the Sultanate.

A draft framework for non-interest banking was issued in March 2009 by the Central Bank of Nigeria (CBN). Inspite of this, its position on Islamic banking did not become much of an issue until a few months ago when the final guidelines were released.
D.A. Eke, acting director of banking supervision at the CBN, stated that the objective of the framework is to provide minimum standards for the operation of non-interest banking in Nigeria while serving as an exposure for comments, suggestions and/or inputs by stakeholders. The problem is that suggestions and/or inputs from stakeholders never came.