WORLD - REGULATONS - AAOIFI announces the finishing of new seven shari'a standards

www.ameinfo.com - The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) announces the finishing of new seven shari'a standards, which shall be added to the existing 41 shari'a standards and the 40 accounting standards which have been announced previously.

Minhaj Advisory, in its turn, organizes an event for announcing these standards, the event titled: "Ceremony for New AAOIFI Shari'a Standards 42 - 48" which shall take place on May 23rd at Grand Hyatt Dubai, to discuss these standards with the Islamic Bank industry practitioners, and how to implement them in their applications. (source)

WORLD - REPORTS - A.T. Kearney analysis suggests it's time for Islamic banks to tackle slowing growth rates and eroding profitability

www.ameinfo.com - Traditionally, Islamic banks have outperformed their conventional peers in most markets. However, a closer look suggests the market dynamics are changing, demonstrating a new trend. Two key indicators are cause for reflection: slowing growth rates and eroding profitability, according to A.T. Kearney, a global management consultancy. Declining growth rates are occurring in key geographies including KSA, Bahrain and the UAE, where growth rates have dropped to between 3% and 8% from double-digit figures. In parallel cost income ratios are increasing in most markets, putting pressure on profitability.

Up until now, Islamic banks have typically emulated the conventional bank offer, but the eroding profitability trend suggests it is now time for a new approach. A.T. Kearney says to sustain profitable growth a more sophisticated leveraging of the Islamic Banking potential is required.  (source)

MALAYSIA - REGULATIONS - The IFSB issues two new Exposure Drafts for Public Consultation

ameinfo.com - The Islamic Financial Services Board (IFSB) issues two new Exposure Drafts (EDs) for a three-month Public Consultation period starting today. The EDs are drafts of guiding principles on: 1) Liquidity Risk Management and 2) Stress Testing for institutions offering Islamic financial services (IIFS).

The drafts were approved for issuance by the Technical Committee, in its 25th meeting held in Abu Dhabi on 6 October 2011. The IFSB invites comments from among regulatory and supervisory authorities, international organisations, market players, academics and other interested parties on the two drafts.  (source)

INVESTMENT - Emaar Properties records 2010 annual net operating profit of Dhs3.034bn (Indonesia)

In a landmark year that highlighted the company's commitment to delivery of projects and creation of prime real estate assets, Emaar Properties PJSC recorded a net operating profit of Dhs3.034bn ($826m), 31% higher than the net operating profit of Dhs2.324bn ($633m) recorded in 2009. Annual revenue for 2010 was Dhs12.150bn ($3.308bn), 44% higher than the 2009 revenues of Dhs8.413bn ($2.29b) (source)