Aircraft investment, Islamic finance key to growth: Boeing

source : traveldailymedia

Boeing Capital Corporation ‘BCC’ stressed on the need for airline to invest strategically into new aircraft and the long-anticipated growth of Islamic financing’s role in commercial airplane deliveries is also coming to fruition. Airplanes have been regarded as ideal for lending under Shariah law given their mobile nature and asset attractiveness.

These discussions were highlighted as financial institutions and airlines in the Middle East have significantly increased their capital investments in new Boeing commercial airplanes over the past two years, thus realizing substantial rewards for their investors as demand for new airplanes continues to expand.

“The region historically has seen about 20% of its deliveries funded by its own capital sources. That turned up to more than 30% in 2011, and, for 2012, it’s heading to nearly 60%,” said Rich Hammond, a BCC senior director in the region.

Read more : http://www.traveldailymedia.com/138359/aircraft-investment-islamic-finance-key-to-growth-boeing

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Islamic finance sector seen to reach $2 trillion by 2015

Source : Khaleej Times

The $1 trillion global Islamic finance industry is set to double in size between 2011 and 2015, recording an annual 20 per cent growth driven by increasing demand for this “credible alternative” to conventional banking in the GCC and Asia.

“The global crisis faced by conventional finance has led to Islamic finance increasingly being viewed as a credible alternative. Issuers and investors have realised that the risk-reward balance in both conventional and Islamic finance are not fundamentally different,” said Stuart Anderson, managing director and regional head for the Middle East at Standard & Poor’s, or S&P.S&P expects the $1 trillion global Islamic finance industry to grow 20 per cent over 2011-15 doubling in size over the period.

Read more at : http://www.khaleejtimes.com/kt-article-display-1.asp?xfile=data/uaebusiness/2012/September/uaebusiness_September222.xml&section=uaebusiness/

Islamic scholars propose new sharia board model

(Reuters) – A group of Islamic scholars is proposing a fresh solution to charges that banks’ sharia boards are open to conflicts of interest: create partnerships between the boards and Muslim depositors, to insulate the boards from pressure exerted by bank managements.

Sharia boards, composed of experts in Islamic financial law, supervise Islamic banks’ activities and products to make sure they conform to religious principles, such as bans on interest and pure monetary speculation.

Traditionally, banks appoint prestigious scholars to their sharia boards and pay them handsome fees and retainers. This has left the system vulnerable to charges of conflict of interest: the scholars are being paid by the institutions which they are supposed to be supervising impartially.

A group of scholars in South Africa, led by Durban-based Ebrahim Desai, a senior figure in the city’s Muslim community, proposes that Muslim depositors in each bank fund a sharia compliance body that would be created separately from the bank.

Read more :

http://in.reuters.com/article/2012/09/13/islamic-finance-scholars-idINL6E8JU8VU20120913

source : Reuters

What Ugandans need is Islamic banking

During the twelfth Bank of Uganda annual Eid party, held at the central bank on September 7, a group of Muslims under their umbrella Contact Group on Islamic Banking, managed to get a word on Islamic Banking in, with bank governor Emmanuel Tumusiime-Mutebile. He assured them that the central bank had already done its homework and submitted the proposed amendments to the Financial Institutions Act.

“We also had a word with Dr Anas Kaliisa, renowned Sharia expert who presided over the closing ceremonies. Dr Kaliisa appreciated the pioneering efforts of Contact Group on Islamic Banking and assured us of his full technical support,” Kalinge Nyago wrote on an Islamic social networking website, Uganda Muslim Brothers and Sisters.

The chief guest, Gen Moses Ali, also called for the introduction of Islamic banking in Uganda.

“The bank should exacerbate the introduction of other forms of banking systems that will entail justice and fairness. BoU should play a leading and encouraging role in the introduction of Islamic banking, which is a banking system that has been embraced by both Muslims and non – Muslims because of its unique characteristics,” said Moses Ali who was minister of Finance in 1976 at the age of 38.

source : observer.ug

http://www.observer.ug/index.php?option=com_content&view=article&id=20882:-what-ugandans-need-is-islamic-banking&catid=43:sizzling&Itemid=71

Muamalat plans Islamic finance in China

Bank Muamalat Malaysia will offer Islamic financing in China through booths as a step toward setting up the first full-fledged syariah-compliant lender in the world’s fastest-growing economy.
Malaysia’s second-oldest syariah bank plans to start offering loans and deposits by December at branches of local partner Bank of Shizuishan in the north-western region of Ningxia once it gets approval from regulators, Kuala Lumpur- based chief executive officer Mohd Redza Shah Abdul Wahid said in an Aug 28 interview.

read more :

http://www.businesstimes.com.sg/premium/malaysia/muamalat-plans-islamic-finance-china-20120905

source : business times

Islamic funds growth slows while the amount of investable assets increases,

The third report of Ernst & Young devoted to investment funds and Islamic investments have been made ​​public on the occasion of the International Conference on Islamic funds and capital markets, which was held in Bahrain, May 25.

This report indicates that the active region from the Persian Gulf and Asia, invested in accordance with the Sharia reached 736 billion U.S. dollars.

These assets include investments made ​​by many market participants using different instruments, such as Awqaf (donations to charities often recognized public utility), contributions to foundations, Takaful (insurance companies mutuals and co-operatives) and sovereign wealth funds. This translates into a potential source of income of 3.86 billion U.S. dollars for the industry Islamic asset management. Investment funds, however, remain small in size, since more than half of them have less than U.S. $ 20 million in assets under management.
The number of new funds launched has dropped from 271 in 2006-2007 to only 89 for the period of 2008 to the first quarter of 2009. This movement reflects the significant market correction initiated in the last year.

Google translated

read more at : http://www.ey.com/LU/en/Newsroom/News-releases/release_croissance-fonds-islamiques-june2009