Archive for December 2008
Islamic Banking Set to Emerge as a $4 Trillion Industry
Points of Essence:
- Islamic banking is poised to reach $4 trillion in the next 5 years due to its resilience from the global financial crisis. With good governance and prudence in place, no wonder Moody’s has been favoring the potential growth of Islamic banking. Good discipline imposed on the Islamic financial institutions has worked greatly in averting risky banking ventures thus strengthening the institutional system of Islamic finance in the process. Khaleej Times has the report.
By Issac John
DUBAI – Islamic banking, which is predicted to become a $4 trillion global industry over the next five years, is the least affected sector in the current global economic meltdown triggered by subprime tsunami in the United States, experts said.Khaled Al Aboodi, CEO and general manager of Islamic Corporation for the Development of the Private Sector (ICD), was quoted as saying that since Shariah did not allow Islamic banks to invest in subprime product, they were safer from the toxic subprime assets when compared to conventional banks.
Standard & Poor’s cuts ratings on UAE banks
Points of Essence:
- UAE based Islamic financial institutions have been snubbed rating-wise by S&P by according them a revised down rating and outlook for the upcoming year. This was largely contributed by the uncertainties in the economic outlook of the UAE due to the gloomy global financial sector. CPI Financial has the report.
Rating agency Standard & Poor’s has revised down its ratings on Dubai Islamic Bank, Emirates Bank International, National Bank of Dubai and Sharjah Islamic Bank.
Standard & Poor’s has lowered its long- and short-term counterparty credit ratings on Dubai Islamic Bank to ‘A-/A-2′ from ‘A/A-1′ and revised its outlook on the bank to negative from stable; revised its outlook on Emirates Bank International and National Bank of Dubai to negative from stable and affirmed its ‘A/A-1′ counterparty credit ratings on the two banks; and revised its outlook on Sharjah Islamic Bank to stable from positive and affirmed its ‘BBB/A-2′ counterparty credit ratings on the bank.
Aseambankers deals
Points of Essence:
- Malaysia based Aseambankers is seeking to forge an alliance with Japanese financial institutions to develop Islamic capital market products. This being part of the plan to enhance the sukuk market in Japan via the MIFC platform. As the investment arm of Malaysia’s largest bank, Maybank, Aseambankers is strategizing for a global expansion to Indonesia through Maybank’s latest aquisition of BII and also leveraging on Maybank’s strong presence in Hong Kong and Singapore. Business Times has the report.
By Roziana Hamsawi
A few financial conglomerates from Japan have expressed interest to work with Aseambankers Malaysia Bhd in developing Islamic capital market products, its chief executive officer Mohammed Rashdan Mohammed Yusof said.
Emirati woman becomes world’s first ever recipient of CIMAs Islamic finance certificate
Points of Essence:
- Rehab Lootah, a senior vice president of the UAE based Mawarid Finance has emerged the world’s first female recipient of CIMA’s Islamic finance certificate. The certificate comprises professional study of Islamic commercial law, Islamic banking and takaful, Islamic capital markets and instruments and Islamic corporate finance accounting, with comprehensive case study on contract-based Islamic banking transactions. Eyeof dubai.com has the report.
Rehab Lootah, Senior Vice President, Mawarid Finance pjsc
Rehab Mohammed Lootah has been awarded CIMA’s Certificate from the Chartered Institute of Management Accountants, a London-headquartered institute with eight branches in China, Hong Kong, India, Ireland, Malaysia, Singapore, South Africa and Sri Lanka. With this achievement, Rehab Lootah becomes the world’s first woman ever awarded a certificate in this highly specialized professional area.
“The importance of this professional specialization stems out of the vital role played throughout the world by Islamic banking industry including Islamic financing and investment governed by the principles and provisions of Islamic Sharia;” said Rehab Lootah, Mawarid’s SVP-Business Development, Products and Corporate Communication and CEO-Tamaiaz Award.
Rehab added: “Islamic banking constitutes for the Islamic world a basis of economic and social development and is viewed as a practical realization of concepts and rules of Islamic economy.”
Japan’s biggest bank to launch Islamic Finance in Middle East, Asia
Points of Essence:
- Japan’s Bank of Tokyo Mitsubishi UFJ plans to extend a full range of Islamic financial services products in the Middle East and Asia which are to be launched from its Malaysian based unit.
TOKYO, Dec 16 (KUNA) Bank of Tokyo-Mitsubishi UFJ, a unit of Japan’s biggest bank by assets, will offer a broad range of Islamic financial services in the Middle East and Asia, with the business set to kick off with its local unit in Malaysia, a major Japanese financial daily reported Tuesday.
Sharia-compliant banking looks north
Points of Essence:
- Islamic banks in the UAE seem to be venturing out of Dubai by setting up branches in the northern side of the Emirate.This was spurred by the demand in the Islamic financial services offerings. The Arabian Business has the report.
by Jason J. Nash
Islamic banking and insurance services are gaining ground in the Northern Emirates, as consumers, companies and public institutions increasingly come to rely on such services to meet their financing needs.
Japan moves carefully toward Islamic finance
Points of Essence:
- The current global financial crisis and the fact that Japan is in recession have not put a restraint to the country’s interest to introduce Islamic finance. Substantial legal framework has already been put in place to allow Islamic finance operations in Japan. At the global front, Japanese institutions play significant role in Islamic finance by getting involved directly in issuing Shariah compliant financing. Membership with the IFSB has also put Japan on the global Islamic finance radar. Asahi has the report.
BY MANABU HARA, STAFF WRITER
The Japanese government has taken a small but important step toward introducing Islamic finance here amid the global financial crisis triggered by unsustainable subprime loans in the United States.
Earlier this month, the Financial Services Agency (FSA) amended financial regulations to let bank subsidiaries handle Islamic finance operations.
Malaysia’s RHB Islamic drops controversial contract
Points of Essence:
- Malaysian RHB Islamic Bank has decided to do away with the controversial contracts of Bai Inah and Bai Bithaman Ajil which are prominently used by Malaysian financial institutions including RHB Islamic. This will bring the institution closer to the globally accepted Shariah compliant legal documents.
KUALA LUMPUR, Dec 9 (Reuters) – Malaysian sharia lender RHB Islamic Bank Bhd will no longer use a contract rejected as un-Islamic by Middle Eastern scholars, in a bid to adopt globally accepted sharia standards, a newspaper said on Tuesday.
IFSB – FSC/FSS of Korea to organise Seminar on Islamic Finance in Seoul
Points of Essence:
- The Islamic Financial Services Board will be organizing a seminar on Islamic finance next January in Seoul. It will collaborate with the Financial Services Commission/Financial Supervisory Service of Korea to create awareness of Islamic finance in Korea.
Kuala Lumpur, December 3, 2008 – The Islamic Financial Services Board (IFSB) is organising a Seminar on Islamic Finance on 13 – 14 January 2009 in Seoul, Korea. The Seminar, which is the first for the IFSB in Korea, is co-organised with the Financial Services Commission/Financial Supervisory Service of Korea. The Seminar aims to create awareness of Islamic finance in Korea to facilitate sufficient recognition among its financial community, as well as to highlight the industry’s potential opportunities in the country.
Islamic finance sector needs more sharia scholars
- The stringent requirements to be Shariah scholars contribute to the shortage of the experts to cater for the Islamic financial industry. One would have to endure a long period of study and level of qualifications as well as being well versed in the area of finance before attaining recognition as a scholar. The rapid growth of Islamic finance worldwide is thus hampered due to a scarce supply of the scholars. The Arabian Business has the report.
MOON-LIGHTING: Experts says there is a shortage of scholars qualified in both sharia and finance.
Experts steeped in the Muslim scriptures are critical to Islamic finance, which requires a religious stamp of approval before a bond, mortgage contract or other financial product can be marketed as moral according to the standards of the Koran.
But qualifying for this work takes much more time and effort than other jobs in finance require. Candidates must first study Islamic law or sharia for many years, and then master finance.
“Globally, and especially in Europe and America, there is a shortage Read the rest of this entry »
Riding The Islamic Banking Tide
Points of Essence:
- Hong Kong is still firm on the Islamic financial hub race despite the onslaught of global financial crisis. All the right infrastructures are being installed to accommodate Islamic finance. With a priority to develop Islamic bond market, Hong Kong is eyeing a strategic alliance with the established Islamic financial like Malaysia to boost its profile. Bernama has the report.
From Tham Choy Lin
HONG KONG, Dec 2 (Bernama) — Last October, Hong Kong Chief Executive, Donald Tsang, announced the island’s financial hub would establish itself as an Islamic finance centre.
