April 2010 Issue

DIB expects to achieve 45% Emiratisation in 2010

Istock Analyst, Dubai | March 30, 2010

QIB Opens Doors to Islamic Banking Products in France

Gulf times Doha, Qatar | March 29, 2010

Al Baraka Bank Egypt Launches its New Identity

Zawya, Dubai | March 21, 2010

Al Baraka Bank of Egypt E.S.C launched its new identity in concurrence with the change of its name from the Egyptian Saudi Finance Bank to Al Baraka Bank Egypt.The launch ceremony was attended by senior Egyptian officials, businessmen, banking officials, chairman and members of the Board of Directors of Al Baraka Bank Egypt, senior members of the executive management and a host of guests as well as the press and the media. Al Baraka Bank Egypt E.S.C is one of the subsidiary banking units of the Bahrain-based leading Islamic banking institution Al Baraka Banking Group BSC. Al Baraka Bank Egypt was established in 1980 and currently has 20 branches in the governorates and major cities in Egypt, in addition to four foreign currency bureaus in Greater Cairo and Hurghada City. There are also four branches under construction that will be opened in succession beginning from April this year, to make a total of 24 branches by the end of the year, not including the foreign currency bureaus .......

The Current Economic Crisis - Is Islamic Finance a Solution?

University of North Florida, USA | March 29, 2010

Throughout the current economic and financial crisis one contrarian statistic has stood out. Financial assets offered by the Islamic Financial Services Industry (IFSI) and generally classified as "Shariah-compliant," were less affected by the crisis. Economist Loretta Napoleoni during a lecture at the University of New Mexico proclaimed, "Islamic finance ... [a] system [that] could help us to get out of the current crisis." Writing in the influential Turkish daily Today's Zaman, columnist Ibrahim Ozturk declared, "Islamic finance has entered a bright new stage of development, emerging after the global financial crisis as a more equitable and efficient alternative to the Western approach." The widely read Arabic daily Asharq Al Awsat opined, "Islamic banks are untouched by the current crisis due to the nature of Islamic banking especially that it does not deal in debt trading and distances itself from market speculation that takes place in European and American banks." How do such claims stack up against reality? Is Islamic finance different enough from conventional finance to avoid its pitfalls? .......

CIBN, Lotus Capital Unveil Benefits of Islamic Banking

Vanguard News, Nigeria | March 18, 2010

Great reprieve is coming on the way of investors, potential investors, banks and other financial operators and analysts as the Chartered Institute of Bankers of Nigeria and Lotus Capital Limited collaborate to unveil the immense benefits and opportunities available in Islamic banking products, despite the global financial meltdown. This is coming under the umbrella of the workshop on Islamic finance & investment products put together by CIBN and Lotus Capital which is scheduled from 22-26, March, 2010, at Colonades, 21, Alfred Rewane Road, Ikoyi, Lagos, at 9.00 am. Participants will have the rear opportunity of not only discussing and appreciating such critical issues and sub-topics in Islamic banking as The Road Ahead: Realizing the Potential of Islamic Finance and Investment; Islamic Finance Contracts; Successful Shari’ah Complaint Product Structuring; Islamic Finance: An Alternative Approach to Project Finance and Infrastructure Development and Creating Interest Free Bonds but....

Islamic Banks Accept 'The Brand Laureate Awards 2009-2010'

Borne o post, Malaysia| March 30, 2010

Bank Islam Malaysia Berhad (Bank Islam) was awarded 'The Brand Laureate Awards 2009-2010 (Corporate Branding - Best Brands in Banking - Islamic Bank)' from The Asia Pacific Brands Foundation (APBF) on 26 March According to press releases, business re branding was completed June last year with identity, brand, identity key values, ways of thinking and new work culture. Among the Islamic Bank for winning this award is due to the strength of cultural branding, financial improvement and good communication. "Winning this award, the customer would expect a best of us. "This means we must work harder to give commitment and service quality," said Managing Director Datuk Seri Bank Zukri Samat. Part of the branch design, branding the program also focuses on ensuring the delivery of quality customer service, innovative and value-added financial products and services to customers...

Rs 100 Billion Sukuk Bond Issue in May

Business Recorder, Pakistan | March 31 2010

ISLAMABAD : The Ministry of Finance is planning to issue Ijara Sukuk bond to retire mounting circular debts before the end of current fiscal year. Sources in the ministry told BR that Rs 100 billion denominated Sukuk bond will be floated in May 2010.Pakistan Investment Bond and Sukuk are permanent debts and this time the government wants to raise money from Islamic banks to pay off power sector circular debts once and for all. Initially, the ministry of finance had suggested floating Islamic paper with one-year maturity period. However, now it is considering other options because the central bank has already floated treasury bills with one-year maturity. The cut-off yield of upcoming Sukuk bond will be equal or slightly above the average 12.7 percent yield of PIB. The government of Pakistan is the sovereign guarantor of upcoming Islamic paper. The ministry official informed BR that "it's a reserve backing paper and Islamic banks can keep this paper to meet the State Bank's statutory liquidity requirement."......

Islamic Banking is the Answer'

Daily Trust, Nigeria | March 23, 2010

Islamic banking is the answer to Nigeria's economy because it "promotes infrastructural development which Nigeria critically needs," says Mrs. Hajara Adeola, the managing director and chief executive officer of Lotus Capital Limited. She said the establishment of Islamic financing in Nigeria is rife following the plan by the CBN to discontinue universal banking for specialized banks. The Jaiz  International Bank has not been able to take off due to the N25billion compulsory capitalization benchmark for banks. She said it is possible to have Islamic banking with the CBN relaxing the capitalization base for banks. She said banks categorization will: "bring banks nearer to the people and offering specialized service. Not all banks are international banks everywhere in the world" she said. Adeola spoke yesterday at the five-day training workshop on Islamic finance and investment products put together by Chartered Institute of Bankers of Nigeria (CIBN) and Lotus Capital Limited......

Emirates Islamic Money Market Fund Launched

Zawya. com Dubai | March 30, 2010

DUBAI -- Emirates NBD, the largest banking group in the Middle East in terms of assets, announced the launch of Emirates Islamic Money Market Fund (Fund), a daily dealing Shariah compliant open ended fund domiciled in Jersey. The Fund aims to achieve higher profit return than comparative Sharia-compliant bank deposits, predominantly from a diversified portfolio of Sharia-compliant money market instruments. "The Fund is one of the first of its kind globally and will look to access the growing range of Islamic cash or near cash investments. It will also seek to benefit from the yield pick-up in USD-pegged currencies and the current cost of funding for corporates and banks," said Deon Vernooy Head - Asset Management, Emirates NBD. "As Islamic investment draws increasing interest from large financial institutions worldwide, Emirates NBD continues to stay ahead of the curve by developing and managing innovative and sophisticated investment vehicles that adhere to the highest standards of Sharia-compliance," he continued. The Fund provides investors diversification from traditional equity and real estate investments and can form part of an investor's portfolio irrespective of their investment horizon. Further, the Fund can also be used as a parking facility during periods of surplus liquidity.....

Sharia Role for Bahraini Saudi

Gulf Daily News, Manama | March 31, 2010

MANAMA: Bahraini Saudi Bank yesterday re branded itself as Bahraini Saudi as part of its transition to a fully Sharia-compliant Islamic bank. The move comes as a result of Al Salam Bank acquiring 90.31 per cent of its equity last year in a two-for-one share swap deal. Bahraini Saudi chairman Dr Anwar Khalifa Al Sada expressed his optimism for the bank's future outlook and thanked the Central Bank of Bahrain and all stakeholders for their continued support to the bank's activities. "We are converting to an Islamic bank offering new products and services and this should be completed over the next few months," he said. "We will be focusing in Bahrain on small- to medium-sized businesses, retail customers and personal finance. "He added that the bank would be upgrading some of its operations, which are covered by eight branches in the kingdom.....

Islamic Finance development in Australia

Business with the Wall Street, The Australian | March 27, 2010

THE Rudd government is pressing ahead with plans to develop Islamic finance in Australia to help position the nation as a leading global financial services hub. Assistant Treasurer Nick Sherry told funds managers yesterday he would travel to the United Arab Emirates, Qatar and Bahrain at the end of next month for talks on the regulation, promotion and export of Islamic finance, banking and insurance. Estimated at $US729 billion at the end of 2007, the Islamic financial services sector has been growing rapidly, and the government sees it as an alternative source of capital for Australian business and consumers. "Australia sits as one of the closest neighbours to Indonesia, a rapidly growing developing economy and the largest Muslim nation in the world," Mr. Sherry said at a function hosted by the Investment and Financial Services Association and Deloitte...

DIB Signs AED 790 Million Financing Deal With Kuwaiti Company

Zawya. com Dubai | March 29, 2010

Dubai Islamic Bank (DIB) announced today that it has successfully arranged a multi-purpose financing deal of AED 790 million for Kharafi National, a Kuwait-based leading construction group in the Middle East and Africa. Under the agreement, DIB will cover the banking requirements for Kharafi National's sub-contract with JGC - Tecnimont Joint Venture to construct the Habshan 5 Process Plant, an integrated gas development project for Gasco, in Abu Dhabi. The project, with a value of US$ 728 million (equivalent to around AED2, 7Billion), aims to increase Abu Dhabi's offshore gas production capacity by 1 billion cubic feet per day."We are pleased to announce our deal with Kharafi National," said Ayman Adel Kamal, Chief of Real Estate & Contracting Finance at DIB. "DIB's arrangement of this landmark deal further emphasises its leadership position in supporting major strategic projects within the oil and gas industry in a Sharia-compliant manner. We are confident of Kharafi National's capabilities to execute this significant project based on our satisfactory experience with them on similar projects in the past."..

Major Economies are Based on Small Projects

Kuwait Times, Gulf | March 25, 2010

The Marketing and Public Relations Manager at Kuwait Finance House (KFH) Fahad Al-Mukhaizeem stressed that KFH prioritizes small Kuwaiti projects managed by youths, since it believes that major economies are based on small projects, in addition to the fact that it offers jobs, boosts production, and increases the skills of the youths in various fields, which is the essence of working in the private sector. He added in his speech during the opening of the training program that KFH organizes for a group of youths who own small projects that supporting them is one of the main objectives of KFH's social role, which leads to a bouquet of services and commercial, investment, and financial products that assist the small and medium project owners. Such a bouquet that was specifically designed for youths allows them to receive the best professional services from KFH employees based on the latest Islamic banking applications and international standards .....

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