Growth of Islamic Finance in Singapore

Singapore is eyeing to play a bigger role in the rising Islamic finance industry, with its central bank looking into tax and other regulatory policies to expedite the issuance of sukuk and other Islamic market instruments in the citystate.

“The growth potential for Islamic finance in Singapore has yet to be fully realised and Singapore can play a role in giving growth of cross-border Islamic financing an even greater push,” said Mr Lim Hng Kiang, Minister for Trade and Industry and Deputy Chairman of Monetary Authority of Singapore at the opening of 4th World Islamic Banking Conference.

The Islamic finance industry has seen strong growth over the past year. The Islamic Financial Services Board (IFSB) estimated that assets of the global Islamic financial services industry grew by 20.4 per cent year-on-year to reach an estimated US$1.6 trillion at end of 2012.

Industry estimates show that the assets of the global Islamic financial services industry grew by some 20 per cent on-year to US$1.6 trillion as at the end of last year and industry players said prospects ahead are bright.

Sukuk or Islamic bond issuances totalled US$137 billion in 2012, up from US$92b in 2011. Yet there is still a gap to fill in the Islamic capital market. According to Mr Ng Nam Sin, Assistant Managing Director (Development) at the Monetary Authority of Singapore, the increased volume of issuance is still insufficient to meet the huge demand for Islamic assets for investments and Islamic financial institutions to manage their liabilities. Moreover, there is also a need to broaden the range of Islamic capital market products. Singapore already has the right infrastructure and good regulations already in place. Experts say Singapore’s strong regulatory environment and the depth and diversity of its capital markets will enable it to capture a bigger slice of the Islamic financing market.

More than US$11 billion worth of Islamic bonds (Sukuk) was issued in January 2013 alone, according to the 3rd Edition Sukuk report by the International Islamic Financial Market.

The momentum is set to continue, leading to more financial centres eyeing a slice of the Islamic financial pie, say experts.

A big opportunity lies in the rising connectivity between the Middle East and Asia, as well as robust growth in both regions.

Growth of Islamic Finance in Singapore

Precious metal and the economy!!!

Gold has always had an impact on the world’s economy and in context of the Indian economy, it is one of the most important deriving force of economy. In the recent times Indian economy is facing a high fiasco in terms of maintaining its balance of payments. Reportedly around 95% of the requirement of gold is imported , in the month of May this year alone 162 tonnes of gold was reported to have been imported. Due to heavy import demands of gold and effect on balance of payments, rupee has lostheavily against the dollar and is now pegged around 58 to 59 to a dollar.

When it comes to demand, India holds only 9% of gold as its reserve yet demand is higher than China by 37%. The scenario of tumbling economy has relations with the selling off gold by the Cyprus which is seemed to be bailout soon. Accordingly, the highest reserve of gold in forex is possessed by USA with 77%, then Germany with 74%. European countries have been supporting the economy with their upper hand in the Gold reserves and International bodies for economic and banking reforms are providing all possible aides so that the economy does not have to face a crisis.

Gold has traditionally been considered an ideal form of security against financial emergencies. The stock market see-saws frequently causing enormous losses to investors, investing in real estate is full of risks and hassels and returns on deposits don’t beat the prevailing inflation rate. Investment in gold, however, is not only risk-free but also hassle-free. It can be bought right off the bazaar. Middle and upper classes, therefore, load their daughters with gold while marrying them off. The demand for gold for this purpose is born out of age-old tradition and has, of late, been effectively stoked by the daily TV soaps where women of the house are shown all the time loaded with gold ornaments from head to foot.

Gold, therefore, is something which is precious and continues to be chased by the rich or poor and by the corrupt. Its demand is highly unlikely to wane at any time soon unless restrictions are placed directly or indirectly for its acquisition. The Indian government had recently tried to curb its demand by increasing the import tax on it from 4 to 6%.

Gold has historically outperformed in the second half of the year. Bloomberg recently reported that even in gold’s bear market between 1980 and 2001 gold gains averaged 1.3% in the second half of the year. While 1.3% doesn’t compare to gold’s double digit percentage increases of the past decade, gold needs all the help it can get as it heads for its first annual loss in 13 years.

Precious metal and the economy!!!

DFM holds public hearing session on ‘Standard for Issuing, Acquiring and Trading Sukuk’

Dubai Financial Market (DFM) organised a public hearing session to discuss the draft of its “Standard for Issuing, Acquiring, and Trading Sukuk”, which it describes as the first comprehensive standard of its kind. The session was attended by 45 experts and Islamic financial services practitioners, who interacted heavily with the draft and submitted many suggestions that will enable the exchange to formulate the most comprehensive standard, according to a press release from the DFM.

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DFM holds public hearing session on ‘Standard for Issuing, Acquiring and Trading Sukuk’

Islamic bonds find favour in Australia

Insurance Australia Group became Malaysia’s biggest general insurer when its joint venture business AmG Insurance bought Kurnia Insurans in September 2012. Chief executive Mike Wilkins is keen to tap into the rapid rise in takaful, or Islamic insurance, which adheres to principles of co-operation as prescribed by Islamic law.

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Islamic bonds find favour in Australia

Linklaters brings ex-Norton Rose Islamic finance star on board

Miller joins the magic circle firm from accountancy firm KPMG. He joined KPMG two years ago from Norton Rose (25 January 2011), having developed a leading Islamic finance practice at the firm over around 20 years. Norton Rose moved Miller out to Dubai from London in 2009 (16 February 2009) in a bid to strengthen its Middle East practice. He previously headed Norton Rose’s Bahrain office from 1997 to 2000.

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Linklaters brings ex-Norton Rose Islamic finance star on board

Meethaq seminar highlights Islamic banking features

Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, hosted a seminar on Islamic banking in Nizwa, under the auspices of Saif bin Amer al Shaksi, undersecretary at the Ministry of Housing. Dr Abdullah bin Mubarak Al Abri from the Ministry of Awqaf and Religious Affairs addressed the seminar aimed at raising awareness and familiarising people with the main characteristics of Islamic finance. Meethaq products and services were highlighted at the event attended by dignitaries and prominent people.

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Meethaq seminar highlights Islamic banking features

Meethaq seminar in Nizwa highlights Islamic banking features

Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, hosted a seminar on Islamic banking in Nizwa, under the auspices of Saif bin Amer al Shaksi, Under-Secretary at the Ministry of Housing. Dr Abdullah bin Mubarak Al Abri from the Ministry of Awqaf and Religious Affairs addressed the seminar aimed at raising awareness and familiarising people with the main characteristics of Islamic finance. Meethaq products and services were highlighted at the seminar attended by dignitaries and prominent people.

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Meethaq seminar in Nizwa highlights Islamic banking features

Cautious approval for Dubai sukuk ambition

Some analysts see the ambition, and especially the goal of overtaking London as the world capital of the sukuk business, as a challenge perhaps too tough even for the emirate’s “can-do” mentality. Mohieddine Kronfol is in a good position to judge. He is the chief investment officer for global sukuk and fixed income business for Franklin Templeton, one of the world’s biggest asset managers with some US$800 billion (Dh2.93 trillion) of funds under management around the globe.

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Cautious approval for Dubai sukuk ambition

Barwa Bank eyes full-fledged sukuk platform by end-2013

“The sukuk market is limited but in the last couple of years we have seen quite a decent pipeline of issuances. There is a lot of appetite for Shariah-compliant products here,” Jallad said. “Obviously, the State of Qatar’s sukuk is one of the papers we like to have. Then there are sukuk issued by QIB, QIIB and other regional institutions,” Jallad said.

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Barwa Bank eyes full-fledged sukuk platform by end-2013

Saudi Electricity two-part dollar sukuk to price Tuesday

Saudi Electricity Co (SEC), the Gulf’s largest utility, is expected to price a two-part Islamic bond, or sukuk, on Tuesday, lead managers said, with investor demand for the transaction already proving strong. Order books for the planned ten-year and 30-year tranches are each in excess of $2.5 billion, a document from the managers said, ahead of the final day of investor meetings in London on Monday. Roadshows took place in the United States last week.

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Saudi Electricity two-part dollar sukuk to price Tuesday

Sukuk Market Will Increase as soon as the Legal Framework is Established

Sukuk will be sued to finance the upcoming Public Private Partnership (PPP) projects according to the financial advisor to the Ministry of Finance, Ahmed Al-Naggar. He made these confirmations during the 2nd Annual PPP Investment Summit held in the capital. The confirmation has been welcomed by stakeholders in the partnership. Waleed Hegazi, partner at Hegazy & Associates said it’s sukuks allow “high rates of return on investments” but calls for the implementation of the sukuk law which will be “a positive step and a quantum leap in establishing Islamic finance.” Conventional banks are also being urged to participate because they have “a social responsibility to finance PPP projects” according to the CEO and managing director of ADI Capital and acting wholesale banking head of National Bank for Development (NBD), Ahmed Al-Masry.

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Sukuk Market Will Increase as soon as the Legal Framework is Established

DFM holds public hearing session on the Standard for Issuing, Acquiring and Trading Sukuk

The session was attended by 45 experts and Islamic financial services practitioners, who interacted heavily with the draft and submitted many suggestions that will enable the exchange to formulate the most comprehensive standard. DFM has extended the consultation period until April 6th, 2013 to allow various stakeholders further opportunity to submit their suggestions and remarks.

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DFM holds public hearing session on the Standard for Issuing, Acquiring and Trading Sukuk

Saudi Electricity Sets Initial Price Guidance For Sukuk

Saudi Electricity Co (SEC), the Gulf’s largest utility, has released initial price guidance for the sale of a two-part Islamic bond, or sukuk, a document from lead managers said on Monday. State-owned SEC is eyeing a ten-year tranche at 175 basis points over equivalent U.S. Treasuries and a 30-year portion at 210 bps over. No time frame for pricing was given. Meetings with fixed income investors are scheduled to conclude in London on Monday, having taken place in the United States last week.

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Saudi Electricity Sets Initial Price Guidance For Sukuk

UAE’s Dana Sukuk Restructuring Vote Postponed To April 23

Dana Gas, the Abu Dhabi-listed energy firm, postponed the shareholder vote for restructuring of the $920 million sukuk to April 23 after a meeting on Sunday failed to meet the required quorum. This is the second time the meeting has been rescheduled after a majority was not reached at a shareholder meet on March 21. Dana announced the new date in a filing on the Abu Dhabi bourse.

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UAE’s Dana Sukuk Restructuring Vote Postponed To April 23

Depth of the financial market need to improve

While the sukuk or the Islamic bond market has been growing rapidly with increasing number of large and liquid issues, the depth of the financial market, especially in the GCC, is not at the level of the developed countries or at a level some global fund managers would ideally like it to be. For that to happen, global asset manager Franklin Templeton Investments believes that the policy makers should concentrate their efforts at developing more non-banking financial services.

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Depth of the financial market need to improve

Amanie Advisory holds workshop on Islamic finance

MUSCAT The Oman-based head office of global Islamic advisory firm Amanie Advisory House of Oman organised a knowledge-sharing workshop on principles and practical implementation of Islamic finance in Oman, at City Seasons Hotel on March 16. Highlighting the rapid growth in Islamic the finance sector and the need for broader discussions on the opportunities for Islamic Finance, Eng. Abdul Rahman Barham, Chairman, Amanie Advisory Oman, said: “Islamic finance is gaining pace in the Sultanate, and it is a great honour to be a part of this growth. At Amanie Advisors, we specialise in this sector and feel that the great potential of Islamic finance is yet to be fully harnessed. It is our duty to hold workshops to increase awareness and share insights with stakeholders from the Islamic finance sector.”

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Amanie Advisory holds workshop on Islamic finance

The Growth of Islamic Banking

In an increasingly globalised landscape, Islamic finance is beginning to play an increasingly important role in strengthening economic inter-linkages between key nations in the Organisation of Islamic Co-operation and beyond. Islamic finance activities continue to venture beyond national boundaries and the industry’s international growth is now stronger than ever, according to banking experts.

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The Growth of Islamic Banking

Show of support

Not to be outdone by the UK’s announcement of the set up of its Islamic finance task force last week, the Central Bank of Morocco this week said that it is looking to establish a Shariah board to catalyze the country’s aspirations of creating a well-regulated Islamic financial system. In the Middle East, Dubai-based issuers and financial institutions are also making their reaction to their ruler’s clarion call to make the emirate an Islamic finance hub, very much visible.

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Show of support

NBP wins ‘Renewable Deal’ award

National Bank of Pakistan has received the ‘Middle East Renewable Deal of the Year 2012’ award from Project Finance Magazine, a publication of Euromoney Plc, for its role in renewable energy projects, Foundation Wind Energy 1 and 2, the first such projects being developed with 100% Islamic financing. After completion, the projects will contribute 100 megawatts of electricity to the national power grid, says a press release.

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NBP wins ‘Renewable Deal’ award

QIB launches ‘TAMAYUZ’ Banking programme

QIB, the leading Islamic Bank in Qatar, has launched a new banking proposition – Tamayuz – aimed at providing exclusive products and services to its premium clients.  Tamayuz members will have qualified relationship managers who can provide the personalized advice and service to meet their advanced banking needs, a direct Tamayuz call centre 44533000 with agents available around the clock, seven days a week, dedicated branch located at C-ring road, and centres in Salwa, Rayyan and Fanar branches to ensure privacy and convenience.

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QIB launches ‘TAMAYUZ’ Banking programme