PHILIPPINES - BANKING - Enabling Islamic finance in the Philippines

www.manillatimes.net - FINANCIAL institutions from the United Kingdom are at the forefront of showcasing the possibilities and capabilities of Islamic Finance (IF) commercial operations, and the opportunities offered by the growing global demand for Sharia-compliant financial instruments—with British Ambassador Stephen Lillie as a significant supporter.

The participating banks— KPMG, HSBC, PruLife UK, and Standard Chartered—shared their expertise with members of the Philippines financial sector at a forum organized by the British Embassy where Lillie was a keynote speaker. The banks played a role in legal reforms that support Islamic Finance in the UK that were instrumental in propelling its status as the most successful non-Islamic country in Islamic banking. (source)

HONG KONG - HK ready to roll

www.theislamicglobe.com - The Hong Kong government is pressing ahead with legislation to make it become an Islamic finance player.
Financial secretary, John Tsang, used his annual Budget speech to flag up the territory’s plans to amend current legislation and put Sukuk on an equal footing with conventional bonds.
He said: “We are close to finalizing the draft amendments to the relevant kegislation with a view to leveling the playing field for common types of Islamic bonds vis-à-vis their conventional counterparts as far as profits tax, property tax and stamp duty are concerned.” (source)

WORLD - HALAL - MARKETING - Sizeable Islamic market neglected by global brands, argues Oxford branding expert

LONDON, June 29 (APP)- A leading expert on Islamic brands is highlighting the untapped potential in Islamic markets which most companies are failing to exploit.The global Muslim market is now over 20% of the world’s population at around 1.6 billion, and is expected to increase to 2.2 billion by 2030,  situated in those regions where Muslims are in the majority, but also in other countries where Muslims are a significant and growing minority, including those in the West. The value of Muslim trade is assessed as worth trillions of dollars worldwide.“The Muslim market represents a significant untapped market,” says Dr.Paul Temporal, an Associate Fellow at Saïd Business School’s Executive Education Centre,  University of Oxford. (source)

CAPITAL MARKETS - Islamic Development Bank dual lists $750 million Sukuk in London, Kuala Lumpur

The Islamic Development Bank’s (IDB) Trust Certificates are being listed on the London Stock Exchange and Bursa Malaysia. Despite the volatile economic environment around the world, IDB achieved both a larger deal size and tighter pricing, with the deal pricing 3bps inside secondary market levels

"This transaction is important because it sets a benchmark yield for IDB risk," said Rizwan H. Kanji, a debt capital markets partner with the Middle East and Islamic finance practice of King & Spalding in Dubai, United Arab Emirates. "It also is expected to help re-energize the Sukuk market after a period of relatively low issuance of Sukuk."

King and Spalding advised the IDB on the $750 million benchmark Sukuk which has been dual-listed on the London Stock Exchange and Bursa Malaysia. The joint lead managers on the transaction were BNP Paribas, Deutsche Bank A.G. (London branch), HSBC and Standard Chartered Bank. (full story - source)

CAPITAL MARKETS - Fragile sukuk market clamors for sovereign issuances (Indonesia, Bank Muamalat)

The talk is big, but are potential sukuk originators walking the walk? Depending on who you speak to, the picture is mixed, marked on the other hand by the "irrational" exuberance and ambition of potential issuers, many of whom do not get near to an offering, and on the other hand those who are skeptical and indifferent based on an erroneous belief that sukuk origination is always more expensive than conventional bonds and is further complicated by the Shariah compliance requirement.

The real potential probably lies in between where issuers genuinely see sukuk as an attractive and competitive alternative way of raising funds and therefore a tool to diversify sources of funding. They would however go to the market only when the timing and the pricing is right. Such an issuance in question is the proposed issuance which is expected to be closed this week. (full story - arab news)

BANKING - UK’s Gatehouse Bank Strengthens Ties with Indonesia

01 April, 2011

Gatehouse Bank plc, a fully Shari'ah-compliant investment bank in London has entered into a memorandum of understanding (MOU) with PT Bank Syariah Mandiri and PT Bank Negara Indonesia to strengthen ties with both parties and agree upon Islamic banking initiatives that will benefit each other through closer working cooperation. (full story)

The Polemics of Governing Law in Islamic Finance: Recent Developments and the Way Forward

The 2nd annual thematic workshop organised by the Institute of Islamic Banking and Insurance (IIBI) and the International Shari’ah Research Academy for Islamic Finance (ISRA) in collaboration with Thomson Reuters on 29th November, 2010 was a huge success with more than 120 delegates managing to attend despite adverse weather and a tube strike on the day. The workshop held in London was sponsored by Westlaw Business.

NEW YEARS THOUGHTS - Will dawn of new year take Islamic finance to next level?

By MUSHTAK PARKER | ARAB NEWS

Published: Jan 3, 2011 00:42 Updated: Jan 3, 2011 00:42 

The dawn of the new Hijrah year and 2011 could either signify more of the same as in the last year or a leap toward the first steps to taking the global Islamic finance industry to the next level as Malaysian Prime Minister Mohd Najib Tun Abdul Razak's government says it aspires to do.

UK - EVENTS -SPEECH - Deputy Governor's Keynote Address at the ISRA-IIBI 2nd Annual International Thematic Workshop 2010: "The Polemics of Governing Law in Islamic Finance"

Speaker : Dato' Muhammad bin Ibrahim Venue : The Thomson Reuters Building, London Date : 29 November 2010 Language : English

Let me first thank the organizers for inviting me to speak at this ISRA-IIBI 2nd Annual International Thematic Workshop 2010. Although I very much regret not being able to be in London in person, I am thankful for the many advances of modern technology for the opportunity to briefly address all of you this morning. I am also happy to note that this event is a continuation of international collaboration between the organizers, the International Shariah Research Academy for Islamic Finance (ISRA), the Institute of Islamic Banking and Insurance (IIBI) and Thomson Reuters, following the success of the inaugural workshop held last year. The theme of this year's workshop, 'The Polemics of Governing Law in Islamic Finance: Recent Developments and the Way Forward', is most apt. With the emergence of Islamic finance as a new growth area in the global financial landscape, this Workshop provides an excellent forum to exchange views and information on topical legal issues in Islamic finance. As Islamic financial activities are increasingly crossing national boundaries, it is critical for more such dialogues to take place at an international level, in order to gain wider perspectives that can contribute to the development of a legal framework for Islamic finance that is internationally facilitative.

DISCUSSION - Islamic banking terms need a ‘western label’

Moinuddin Malim, chief executive for Mashreq al Islami Bank, said that financial products that adhere to Islamic teachings will only appeal to the wider western world if they adopt the phrase ‘ethical banking’ instead.

He said that too many people in the UK do not equate ‘ethical’ finance with ‘Sharia’-based products.

Mr Malim said: “What is Islamic banking? It is ethical banking. A lot of people just think that it is only for Muslim, and it is not - it is for everyone.

OPINION - SUKUK - UK firm to launch first European corporate sukuk (earlier post)

original post :  http://islamicfinanceindonesia.blogspot.com/2010/08/uk-firm-to-launch-first-european.html

My mind has been pondering a bit on this news item.

Trad-able Sukuk with 4 years maturity (regular) with a prospect return of 10 % per annum (acceptable) for a UK SME (rather strange, but exciting news for the Indonesian SME), for 10 million USD (interesting small amount for a Sukuk - again interesting for the Indonesian SME).

And then : because of the size, probably no rating - so difficult to place - though a secured structure (as Sukuk Ijara) would probably be helpful.