Islamic finance faces lacklustre growth in 2016-17

Source: Gulf News

The Islamic finance industry, which encompasses Islamic banking, Islamic capital markets and Takaful (Islamic insurance), is expected to face slower growth this year and the year ahead as key markets for Islamic finance are facing economic slowdown according to Standard & Poor’s. Islamic finance remains concentrated primarily in oil-exporting countries such as the GCC countries, Malaysia and Iran, which account for more than 80 per cent of the industry’s assets the year ahead as key markets for Islamic finance are facing economic slowdown according to Standard & Poor’s...

Slowdown in Islamic finance to run into 2017

Source: Daily Sabah

The slowdown in Islamic finance growth is likely to continue through 2017 due to low oil prices and lack of regulation, Standard and Poor's Global Ratings said yesterday. The asset growth of Islamic banks fell to seven percent last year from 12 percent in 2014 when oil prices began to decline, the ratings agency said in a report. Islamic finance remains concentrated primarily in oil-exporting countries, with Arab states of the Gulf, Malaysia and Iran, accounting for more than 80 percent of the industry's assets. The agency projected that low economic growth in core markets of Islamic finance, mainly in the Gulf states...

Sukuk growth to remain stagnant this year

Source: The National

After many years of rapid growth, Islamic finance is slowing down in tandem with the price of oil as demand from the Arabian Gulf wanes, according to a report by S&P Global Ratings. As a result, growth in Sharia- compliant assets around the world is likely to remain unchanged next year at 5 per cent, the rating agency said. The drop in demand for Islamic finance is especially noticeable in the issuance of sukuk, or Islamic bonds, said Mohamed Damak, the global head of Islamic finance at S&P in Dubai...

As Raghuram Rajan departs, RBI opens door to Islamic finance

Source: The Economic Times

India's central bank has proposed working with the government to introduce interest-free banking to tackle financial exclusion for religious reasons, potentially opening Islamic finance to the largest Muslim minority population in the world. The Reserve Bank of India (RBI) made the proposal in its annual report last week, as departing central bank governor Raghuram Rajan hands over the reins to close ally Urjit Patel. The proposal marks a shift in stance by the RBI, which.has previously said Islamic finance could be offered through non-bank channels such as investment funds or cooperatives...

Russian state banks get on the Islamic finance bandwagon

Source: Al Bawba

Russia, the latest entrant into the Islamic finance sector, continues to open new avenues to finance its banks and to provide new instruments for international investors from emerging markets through Islamic finance. In the latest move, representatives of major banks and a high official of the Russian central bank will partake in the 23rd World Islamic Banking Conference scheduled to take place between December 5 and 7, 2016, in Bahrain’s capital Manama, a conference seen as one of the most important and influential Islamic finance gatherings worldwide....

Islamic finance arranged to develop Phase Two of King Abdullah Port

Source: CPI Financial

The funding is backed by project partners and by collateral that includes the land on which the second phase of King Abdullah Port will be built. The port development funding will provide liquidity for capital expenses needed to develop the second phase of King Abdullah port capacity of up to 5 million container berths, capacity of 600,000 cars a year and bulk cargo of 4 million tons per year The funding is backed by project partners and by collateral that includes the land on which the second phase of King Abdullah Port will be built. The port development funding will provide liquidity...

Islamic finance sees modest growth amid oil-price woes

Source: Saudi Gazette

The first opportunity lies in the natural connection between the principles of Islamic finance and some of the UN’s 17 sustainable development goals. In our view, both aim to achieve more responsible, equitable, and real-economy-oriented financing. A higher involvement of multilateral lending institutions (MLIs) in Islamic finance through sukuk issuance and Islamic product offerings, on the one hand, and a more stringent application of the principle of profit- and loss-sharing, on the other, could create some future growth opportunities...

Bank Nizwa successfully concludes Islamic finance summer course at SQU

Source: CPI Financial

Over the course of the program, SQU students were educated on the Islamic economic and financial system as well as the sector’s intermediation and instruments. Reporting, governance and regulatory framework in Islamic finance was also covered and discussed extensively during special sessions hosted by the Central Bank of Oman. To ensure the students have an in-depth understanding of the sector, Bank Nizwa’s team of experts delivered a series of sessions covering financial markets, wealth and risk management, the Islamic insurance Takaful and the challenges facing the industry today...

Islamic finance faces slowing growth in 2016, 2017

Source: Zawya

The Islamic finance industry, which encompasses Islamic banking, Islamic capital markets and Takaful (Islamic insurance), is expected to face slower growth this year and the year ahead as key markets for Islamic finance are facing economic slowdown according to Standard & Poor’s. Islamic finance remains concentrated primarily in oil-exporting countries such as the GCC countries, Malaysia and Iran, which account for more than 80 per cent of the industry’s assets. Given the dependence of core Islamic finance markets on oil, S&P expects the economic growth in some of these markets to remain muted...

Boost for Islamic finance

Source: News Strait Times

Bursa Malaysia-i — the world’s first end-to-end integrated Islamic securities exchange platform — will underscore Malaysia as the leading Islamic finance marketplace and attract global syariah funds to the local bourse. Second Finance Minister Datuk Johari Abdul Ghani said with Bursa Malaysia-i, the country would be recognised as the global marketplace for syariah listings and investments. Bursa Malaysia has taken the role to champion exchange-based syariah-compliant investing and is providing new options for those who wish to invest based on the principles of Islamic finance...

Islamic financing costs limit use in public projects

Source: Times of Oman

The costs include one-off administration fees, legal or notary fees as well as tax on some types of transactions — some of which are applied despite being against the principles of Islamic finance. The study — which is formulated as a working paper still awaiting fine-tuning — was conducted by Wahida Mohammed of One Oak Consultants that specialises in monitoring and evaluation of development programmes. It is being presented at a conference called by the KBA as part of improving understanding of the Kenyan banking sector...

New study launched on outlook of Islamic finance

Source: Pak Observer

The Islamic Research and Training Institute (IRTI), a member of the Islamic Development Bank Group, and Thomson Reuters in collaboration with the Centre for Excellence in Islamic Finance (CEIF) at the Institute of Business Administration (IBA), has launched the Pakistan Islamic Finance Report titled “Innovation at Asia’s Crossroads”. This is the eighth report in a series of Islamic Finance Country Reports published jointly by IRTI and Thomson Reuters, aimed at supporting the development of the global Islamic finance industry through the provision of information and insights...

RBI Opens Door To Islamic Finance As Raghuram Rajan Departs

Source: The National

Some sections of Indian society have remained financially excluded for religious reasons that preclude them from using banking products with an element of interest. “Towards mainstreaming these excluded sections, it is proposed to explore the modalities of introducing interest- free banking products in the country in consultation with the government,” RBI said in its annual report for 2015-16. Islamic or Sharia banking is a finance system based on the principles of not charging interest, which is prohibited under Islam...

Stock market integration and Islamic finance advance together

Source: African News

Edoh Kossi Amenounve is an executive on the go. As chief executive officer of the BRVM (Bourse Régionale des Valeurs Mobilières), the stock exchange serving eight West African countries, he is forever promoting the institution to potential investors, whether in New York, Dubai, London or Johannesburg. He stresses that capital markets in Africa urgently need rationalisation and to move towards greater regional integration. As chairman of the West African Capital Markets Integration Council (WACMIC), he knows what he is talking about. “There are currently 24 separate capital markets in Africa,” he says...

Islamic finance body IILM auctions first four-month sukuk

Source: AME Info

Malaysia-based International Islamic Liquidity Management Corp (IILM) has lengthened maturities in its Islamic bond programme by auctioning $500 million of four-month sukuk, its first sale of that tenor. Previously, the IILM has issued three-month and six-month paper, which were introduced to meet a shortage of liquid, investment-grade instruments Islamic banks could trade to manage short-term funding needs. The IILM sold the four-month sukuk at a profit rate of 1.37389 percent, attracting 17 bids worth a combined $1.3 billion, the Malaysian central bank’s website showed...

Islamic Finance Funding as core to Infrastructure Development

Source: Islamic Finance

Table 1 sorts instruments based on several dimensions. The left hand margin describes modes of investment, recognizing that there are broad asset categories (fixed income, mixed, equity), followed by principal instruments. Besides the fact that investors can be creditors or equity-holders, some investments, particularly PPP contracts and concessions, may have debt-like characteristics due to contracted cash flows. Thus for consistency, categories are defined by their nature, with the distinction drawn from whether an investor receives priority claims in corporate or project cash flows (creditor)...

Islamic Finance is ideal for Agricultural, Micro & Rural Financing

Source: Zawya

Islamic Finance provides an ideal mechanism to facilitate Agricultural, Irrigation, Livestock, Micro & Rural financing products to boost the green economy, it's not only provides the a sustainable solution but creates the positive economic impact in lives of the farmers and rural communities. It was stated by Muhammad Zubair Mughal, the Chief Executive Officer, AlHuda Center of Islamic Banking and Economics (CIBE) during the International Conference "Best Practices in Rural & Agricultural Finance" which was jointly organized by African Rural and Agricultural Credit Association (AFRACA) in partnership with...

Pakistan ranks 9th in dev of Islamic financial services

Source: Pak Observer

Pakistan ranks ninth in terms of development of Islamic financial services industry. In 2015, Pakistan was ranked 10th in the ranking, according to the Global Islamic Finance Report (GIFR) 2016. According to a report, compiled by Edbiz Consulting, a London-based Islamic financial advisory company – out of approximately 50 countries of the world ranked in terms of their role in development and promotion of the Islamic banking and finance, Pakistan comes after Malaysia, Iran, Saudi Arabia, UAE, Kuwait, Indonesia, Qatar and Bahrain. However, the report says countries like Pakistan...

Islamic finance, FinTech potential growth drivers

Source: Borneo Bulletin

This was said by Pehin Orang Kaya Indera Pahlawan Dato Seri Setia Awang Haji Suyoi bin Haji Osman, the Minister of Education and Deputy Chairman of Autoriti Monetari Brunei Darussalam (AMBD) while delivering a keynote address at the 12th Annual Brunei Darussalam Roundtable yesterday. He described 2016 as being “a year of great uncertainty for the global financial market”. Amidst all these challenges, investment managers must still deliver positive returns to meet investors’ expectations. “Thus, capital markets, especially in Asia...

Islamic Finance: Demand for more shariah-compliant products

Source: The Edge Markets

While the number of Islamic products has grown tremendously in the last 10 years, there still aren’t enough to cater for the needs of local investors, according to Rohani Mohd Shahir, president of the Association for Islamic Financial and Wealth Management Malaysia (AIFiWM). She says the growing demand is due to a greater awareness of compliance for religious purposes, especially among high-net-worth investors. The demand also comes from those looking for investments aligned with their core principles and investment objectives. But more needs to be done. There is a lack of Islamic...

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