London Heart of the Islamic Finance Revolution

Source: City AM

  • This Monday, many of the world’s leading investors and experts will meet in the heart of the City of London. They are gathering to discuss one of the oldest but – conversely – also one of the most under-developed elements of the global financial market: Islamic finance. Delegates to the summit will focus in particular on the Sukuk: a bond structured to generate returns to investors without infringing Sharia Law...

Islamic Finance Case Pits London Against Sharjah

Source: CDR News

  • The Dana Gas case highlights the potential for conflict between courts in rival jurisdictions and between Islamic and western finance.
    An ongoing dispute, split between London and the United Arab Emirate of Sharjah, has raised alarm bells for customers of Islamic finance and illustrates ongoing conflicts in the approaches taken by courts in different jurisdictions....

Pakistan Drafts Governance Rules for Islamic Firms

Source: Arab News

  • Pakistan’s capital market regulator has drafted governance rules that cover sharia-compliant companies and securities, the latest government initiative aimed at developing the country’s Islamic finance industry The move by the Securities and Exchange Commission of Pakistan (SECP) marks the first time a regulator has defined comprehensive requirements for companies that deem themselves to be compliant with Islamic principles....

How Does Islamic Finance Work?

Source: The Conversation

  • Interest fuels the financial world. The money sitting in your bank account accrues it, and the credit cards in your wallet charge it. If you ever want money quick, you’re going to being paying a decent amount of interest for having that money now rather than later. But under Islamic law, interest is explicitly forbidden. In fact, the guidance comes directly from the Quran....

Kazakhstan Getting Closer to Implementing Islamic Finance

Source: Trends News

  • Kazakhstan will host a meeting on the implementation of Islamic finance on March 5, the regional office of the ICD (Islamic Corporation for the Development of the Private Sector) in Almaty told Trend. The meeting is expected to touch such issues as "Islamic finance as an alternative tool in financing projects in Kazakhstan", joint plans of Entrepreneurship Development Fund "Damu" JSC and Islamic Development....

ITS Upgrades Al-Jazeera Islamic Finance Platform

Source: Kuwiat Times

  • International Turnkey Systems Group (ITS), the market leading provider for comprehensive Islamic financial solutions suite, has announced the successful replacement of Al-Jazeera Finance financial solution to its world-class range of Islamic ETHIX solutions suite. This latest project’s ‘Go Live’ marks a key milestone for ITS, with all finance companies in Qatar now operating on ETHIX Solutions....

Getting to Grips with Islamic Finance

Source: Financial Review

  • With most eyes fixated on US and European markets during what has been a tumultuous fortnight, an equally volatile fracas has erupted within the Islamic finance community, which, albeit nascent and smaller, has immediate and direct consequences for Australian investors. In late 2017, Dana Gas, an Abu Dhabi gas exploration company, refused to redeem $US700 million ($895 million) of maturing Islamic bonds, known....

Uganda Readies for Islamic Banking Takeoff

Source: Africa News

  • The government of Uganda has approved regulations covering Islamic banking with the central bank expecting to publish them soon as part of wider efforts to boost financial inclusion in the East African country. Once the regulations are gazetted, the central bank would be open for applications from financial institutions to offer sharia-compliant products, Governor Emmanuel Tumusiime-Mutebile said in a speech to the Uganda Bankers’ Association.....

Russia to Offer Islamic Finance Products to its Clients

Source: Trend news

  • The MoU will reinforce SBR efforts to develop Russia as a strong hub, hosting activities such as project development, structuring, and financing, catalyzing project opportunities for Russian companies and individuals to meet the needs in the region. ICD, strong with its experience in Islamic finance, will help share its knowledge to develop the corporate, retail and private banking as well as the training needed,” said Taghiyev...

SECP Introduces Auditing Standards for Islamic Finance Sector

Source: The News

  • The Securities and Exchange Commission of Pakistan (SECP) on Friday introduced three new international auditing and accounting standards to improve regulation and governance of shariah-compliant financing sector. “SECP granted approval to its Islamic finance department for the adoption and notification of the three additional shariah standards,” the commission said in a statement.....

A Bond Dispute Threatens the Future of Islamic Finance

Source: The Economist

  • Gulf do not observe Christian holidays, but still had a generally quiet day on December 25th. Shares in Dana Gas, an exploration business listed in Abu Dhabi, however, did make some noise, leaping by 13.2% on Christmas Day, to complete a buoyant six months for the stock (see chart). The surge may owe something to the company’s recent arbitration victory against the regional government of Iraqi Kurdistan, over $2bn it and its ....

Islamic Development Bank aims for $2.5bn Mega Sukuk

Source: ISlamic Finance

  • The 57 member AAA rated development bank is a regular issuer of Sukuk having last issued in September 2017 with a $1.25 billion issuance which was priced at 2.261%. As part of its stated capital market objectives, the multilateral bank is looking to develop a liquid yield curve as well as undertaking issuance in different currencies, such as its private issuance in 2016 of a €300 million Sukuk....

Qatar's Islamic Banks is the Third Largest Contributor

Source: Peninsula News

  • Minister of Finance Ali Shareef Al Emadi said that Qatar's Islamic Banks is the third largest contributor to global growth in Islamic banking, with Qatari Islamic banking accounting for about 25% of the country's banking sector. Addressing the 4th Doha Islamic Finance Conference on Tuesday, HE the Minister of Finance said that the State of Qatar has demonstrated its ability to continue in this field....

SBP Voted as Best Central Bank for Promoting Islamic Finance

Source: Financial View

  • State Bank of Pakistan has been voted as the Best Central Bank in Promoting Islamic Finance by a poll conducted by International Finance News (IFN), an arm of Red Money Agency, Malaysia. According To the State Bank of Pakistan, the central bank has also won this award in 2015. It is also important mentioning that in 2016, Pakistan was awarded Global Islamic Finance Award (Advocacy Award) by Edbiz Consulting Limited, UK....

VAT and Islamic Finance: A Complicated Relation

Source: Gulf Times

  • The agency argues that due to the complexity of Islamic finance products, VAT would have a higher impact than on conventional financial transactions. Therefore, if the planned tax treatment for Islamic finance activities is not made clear in the underlying regulatory framework of each country, the uncertainty could reduce Islamic finance activity and attractiveness in the short term....

Islamic Finance and the Blockchain are Getting Closer

Source: Globe News

  • GOLDX was awarded the Sharia-compliant certificate because of the certainty, transparency, and the immediate nature of its issuance process. Launched in late 2017, GOLDX is based on a unique business model wherein the issuance of a token is backed by physical gold stored in a vault in Singapore. Another strong-point that could potentially make it a success would be that all GOLDX transactions are mandatorily....

MinDA to Ask BSP to Craft Islamic Finance Policy

Source: Rappler

  • The agency overseeing development in Mindanao plans to expand Islamic banking through the Bangko Sentral ng Pilipinas (BSP), even without legislation from Congress. Romeo Montenegro, executive director assistant secretary at Mindanao Development Authority (MinDA), said their policy team has teamed up with consultants to see what existing polices are....

UAE Leads Arab Markets in Islamic Fintech

Source: CPI Financial

  • Published in light of the UAE’s Innovation Month, the analysis finds that tailored regulation and clarity on rules could aid the small and medium-sized fintech outlook. Crowdfunding and peer-to-peer (P2P) financing could be a game-changer in Islamic finance, giving wider reach and potential to close the gap for SMEs, which generated about 60 per cent of UAE GDP in 2014, with Dubai’s regulator....

Dubai Islamic Bank Issues $1bn Islamic Bond

Source: Trade Arabia

  • The issuance emanating from DIB’s $5-billion sukuk programme carries a profit rate of 3.625 per cent and is the first US dollar benchmark sukuk transaction from the GCC in 2018, once again reopening the regional FI and corporate Debt Capital Markets, as was done a year earlier. The deal clearly points towards the continued existence of the strong demand for DIB’s credit as well as the confidence which global....

Develop Formal Governance Framework for Waqf

Source: Eur Asia Net

  • The institution of waqf needs to develop its own formal governance framework in order to strengthen governance within waqf infrastructure and develop a broader strategy to revive the use of waqf as a platform for Islamic social finance. Sultan of Perak Sultan Nazrin Shah said the framework might include clear specification of the roles and responsibilities of the waqf trustee and authority, as well....

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