INDONESIA - CAPITAL MARKETS - Islamic bankers to meet next week

emirates247.com - JAKARTA: Indonesia raised 790 billion rupiah ($88.8 million) from a sukuk auction on Tuesday, above a 500 billion rupiah target, but failed to sell its first project-based sukuk, the finance ministry said in a statement.

The ministry aims to raise 39.9 trillion rupiah in debt this quarter, after failing to sell as much debt as targeted last quarter due to investor risk aversion amid worries over eurozone debt. (source)

TRADE FINANCE - Islamic trade finance sector to see expansion

Islamic trade finance has benefitted from shifting preferences towards Shariah-compliant banking and could serve as one of the key growth drivers to help the nearly $1 trillion Islamic finance industry double in size. 

The global Islamic finance industry, which has been growing between 15 to 20 per cent a year, is widely expected to reach $2 trillion in the next three to five years.

While Islamic banking and Islamic bonds, or sukuk, are expected to lead growth, bankers say Islamic trade finance could serve as the dark horse emerging to propel the industry further.

Trade finance, the lifeblood of global commerce, underpins 60-80 per cent of the $12-13 trillion trade in global merchandise and practitioners say it is safer than other forms of lending. (source)