IslamicFinance.de

The Central Bank of Nigeria (CBN) , the Infrastructure Concession Regulatory Commissiosn (ICRC) and the Debt Mangement Office (DMO) have begun the discussions on finding the best ways to explore an option of sukuk (Islamic) bonds for financing the infrastructure requirement in the country.
The DMO had shown some interest in partnership with the CBN to develop and issue Islamic bonds for the Nigerian financial system.

Tenaga Nasional is going to sell as much as 5 billion ringgit in 20-year Islamic bonds.
The bonds will be formed according to the ijara or Islamic leasing contract.

More than 500 capital management companies and investment funds that are signatories to the United Nations Principles for Responsible Investment (PRI) will be required to disclose information about their investment decisions, under a revision of the PRI rules.

The PRI is backed by the UN Environment Programme and the Global Compact, and has signatories from 45 countries with more than $25tn of assets under management.

The CEO of Kuwait Finance House-Turkey, Ufuk iwan, emphasized that the Islamic banking industry has reinforced its competitiveness during the economic crisis, and that Islamic banks weren't so vulnerable any more in front of the impact of the crisis that their traditional counterparts, since they deal in real products instead of relying on offering loans.
He added that by the end of 2010, Islamic banking assets reached 83 % of total Islamic assets in general, followed by sukuk 11 % and Islamic funds 4.6 %.

Abdullah Bin Mahfoudh revealed that some 63,000 Saudis could face prison over the next two years for failing to pay back debts. It seems that none of them can pay the money back.
Bin Mahfoudh added that most of the debts were taken on when the stock market collapsed, while considerable sums were also loaned out for trade, consumer, and industrial purposes.

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.

ACWA Power International announced the implementation of its inaugural corporate credit facility structured on Murabaha basis ("Facility"). Standard Chartered was co-ordinator for the facility. The Facility is appreciated at up to US$300 million.
Besides the fact that it is the maiden medium term murabaha facility at the corporate level, the fact that it is secured by its own balance sheet without any shareholder credit supports is a testament to the confidence in ACWA Power's capability, capacity and credit standing.

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.

It seems that Islamic financial institutions (IFIs) are not willing to leave wealth management to conventional foreign banks any longer. In the UAE, all IFIs have established wealth management centers in recent years. At Dubai Bank this segment is named Royal Banking.

The 36th Annual Meeting of the Board of Governors of the Islamic Development Bank (IDB) didn't came with a crucial answer at a time when many of its member countries are experiencing drastic challenges to their political and economic governance.
It seems that some member countries continue to live in self-denial, while some others attend these meetings as civil service and diplomatic tourists who see the IDB Group as a mutual admiration club. Only a few countries who are on top of their brief are trying to confront the problems their countries and the IDB as a group are faced with.

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.

It seems that Islamic finance is still misunderstood by some people. Some think that Islamic finance is related to terrorist financial activity.
Rushdi Siddiqui, Global Head of Islamic Finance at Thomson Reuters, the $1 trillion sector has done a bad job in educating the people about what Islmic finance really means. He added that the industry has failed to promote what Islamic finance is, from a PR and a marketing point of view.

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.

Pope Benedict stated that financial trading based on “selfish attitudes” is spreading poverty and hunger and called for more regulation of food commodity markets to guarantee everyone’s right to life.
The Rome-based Food and Agriculture Organisation’s (FAO) food price index hit a record high earlier this year, reviving memories of soaring prices in 2007-08 that engaged riots in developing countries.
A controversy exists over how much a new wave of investments by funds into commodities has contributed to pushing up prices.

Datuk Seri Musa Aman, Chief Minister, stated that Sabah wants more foreign Islamic banks, especially from the Middle East, to invest in the state.
He also added that as the state continued to grow and prosper, it would offer vast investment opportunities.
Musa thinks the diversity of products and services would help enrich the state's financial markets and position Kota Kinabalu as a vibrant and growing city, apart from encouraging new opportunities in other towns, especially Sandakan and Tawau.

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.

Remarkable growth
Between 2006 and 2010 Islamic Finance has brought the compound annual growth rate to an estimated global value of USD 1 trillion. The future predictions are even more positive. It seems that it could continue to grow at more than four times the rate of conventional finance.
Global significance
There can be seen an increasing awareness of Islamic Finance in the non-Muslim world. The reason could be his strong growth.

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.