Islamic Finance News Portal – Bringing you the latest updates in global Shariah finance

Watch out for news alert!

Posts Tagged ‘Financial Crisis

Qatar to prop up its banking system

leave a comment »

Points of Essence:

  • Qatari Government is on the offensive to boost a stalling financial system in the country to avert impact from the global financial crisis. The investment fund bail-out from 7 local banks has been in the pipe line to spur liquidity in the banking system and ensure solvency of the lender institutions. The International Herald Tribune has the report.

DUBAI: Qatari shares soared Monday after the government said it would buy investment funds from banks to help shield the financial system from the global credit crisis.

“Such procedures reflect the due concern of the government in the banking sector,” the government said.

Prime Minister Hamad bin Jasim bin Jaber of Qatar announced Monday that the government would buy investment funds owned by seven local banks to protect lenders after the benchmark stock index dropped 31 percent this year, ranking it among the world’s 10 worst performers with Iceland, Ukraine and Romania.

Read the rest of this entry »

Written by Suapi Shaffaii

March 10, 2009 at 12:47 pm

Opportunities lurk in financial gloom

leave a comment »

Points of Essence:

  • Hong Kong sees every opportunity to come its way despite the worrying global financial meltdown. It sets to boost its financial hub status by going aggresively to woo Islamic finance players to the island city. Providing appropriate tax incentives to bolster growth of the newest industry, other institutional and regulatory framework will certainly guide Hong Kong to reach out to a larger Islamic financial community. The address of Hong Kong’s Chief Executive says it all.

Chief Executive Donald Tsang

Donald Tsang The Asian Financial Forum was launched in 2007, partly to celebrate the 10th anniversary of Hong Kong’s reunification with the Mainland of China, and partly to address the challenges of a rapidly changing economic environment in Asia. At that time the sub-prime lending problem in the US was beginning to take hold, but no one could have predicted how deeply rooted the problem was or how quickly things would unravel in what some people like to describe as a “flat” world.

Read the rest of this entry »

Written by Suapi Shaffaii

January 21, 2009 at 4:33 pm

Islamic Banking in 2009, industry at a crossroads

with one comment

Points of Essence:

  • Islamic finance is facing a crisis of its own. The global financial downturn may have dragged down the industry to some extent but the most challenging thing is how to package Islamic financial products in accordance to the true Islamic values. The conventional product adaptation may have to take a back seat to spur innovation in Islamic finance for the Islamic financial industry’s survival.  Ameinfo has the report.

The drop in the issuance of Sukuk proved that Islamic banks could not escape from the financial crisis. The industry might therefore have to go back to its roots in 2009.

Islamic banks may have to adopt a 'back to basics' approach in 2009

Islamic banks may have to adopt a 'back to basics' approach in 2009

Noor Investment’s press conference on the sixth of January was set up to announce the creation of Noor Takaful, the latest Islamic insurance firm.

But in fact, Noor had to two messages, with the second no less important than the first: Noor Islamic Bank (NIB) will put its planned expansion abroad on hold in order to focus more on domestic affairs.

NIB was created almost a year ago, and it was announced at the same place, in the 27th floor ballroom of the Burj Al Arab.

But twelve months ago the future was looking much brighter. Stock indices were advancing on all fronts in the GCC. Conventional banking got into trouble step by step, but Islamic Finance did not follow.

Read the rest of this entry »

Written by Suapi Shaffaii

January 13, 2009 at 11:15 am

Moody’s sees slower Islamic banking growth

leave a comment »

Points of Essence:

  • Moody’s predicted a slower growth for Islamic banks despite them showing some resistance to the global financial crisis. The available data on the financial performance and liquidity in the 4th Q suggested a slow down next year. The fact that Islamic banking does not work in isolation from the crisis prone financial system, whatever issues boggling the financial system, the Islamic banking may be as well implicated. Zawya has the report.

Saturday, Nov 29, 2008

Gulf News

Dubai: Gulf-based Islamic banks, which have displayed resilience amid the current global financial turmoil, will see a slowdown in asset growth next year, ratings agency Moody’s said in a report.

Read the rest of this entry »

Written by Suapi Shaffaii

November 29, 2008 at 10:00 pm

Lessons Islamic finance can learn from current crisis

leave a comment »

Points of Essence:

  • Central Bank of Bahrain has urged the Islamic finance stakeholders to learn from the current financial crisis despite Islamic finance being sheltered from the impact. The in-built crisis resilient elements i.e risk diversification, effective liquidity management and sound corporate governance will need to be installed to ensure a stable Islamic financial system.

By Habib Toumi, Bureau Chief
Published: November 25, 2008, 23:15

Manama: The Islamic financial industry must remember the importance of risk diversification, good liquidity management, and sound corporate governance if it is to continue to enjoy a framework for stability against the background of global financial turmoil, the governor of Bahrain Central Bank has warned.

Read the rest of this entry »

Written by Suapi Shaffaii

November 29, 2008 at 12:03 am

Islamic banking: Sharia-compliant institutions buck trend

with one comment

Points of Essence:

  • Islamic banks in the UK continues to record growth while their conventional counterparts are in shambles in the aftermath of the credit crisis. Financial Times has the report.

By David Oakley, Capital Markets Correspondent

The banking community in the City of London has been hit hard by the economic crisis. But one area of the UK’s financial sector has emerged relatively unscathed from the credit crunch – the new Islamic banks.

Read the rest of this entry »

Written by Suapi Shaffaii

November 25, 2008 at 1:23 am

Posted in General Issue

Tagged with ,

UAE intervenes in merger as property woes mount

leave a comment »

Points of Essence:

  • As the real estates in Dubai plunged deeper into crisis, the Government of the United Arab Emirates had to intervene in the recently announced merger of Amlak and Tamweel, the UAE’s largest mortgage lenders.  The Government-owned Real Estate Bank was set up to address the issues of funding, liquidity and solvency faced by the two troubled institutions. The new Islamic bank bank will boost real estate sector in the UAE as more housing loans will reach the UAE nationals. The bank can now solicit for deposits from the public and have access to the federal funding, the privileges mortgage lenders are not allowed. Reuters has the report.

By Lin Noueihed

DUBAI (Reuters) – Two of the United Arab Emirates’ largest mortgage lenders, already on track to merge, will be brought under a government-owned bank, the UAE finance ministry said on Sunday, in the first sign of federal government intervention in Dubai’s troubled property sector.

Trading in both Amlak AMLK.DU and Tamweel TAML.DU, which have been struggling amid the global credit crunch, was suspended after the finance ministry said it would supervise their merger under the government’s Real Estate Bank to ensure a fair valuation and protect shareholders.

Read the rest of this entry »

Written by Suapi Shaffaii

November 24, 2008 at 6:14 pm