World class hospital worth $200m on schedule to open in Al Barsha 2009

The Islamic Finance Company and Bait Al Batterjee Holding announced today that the Saudi German Hospital’s construction works have been completed.

The Saudi German Hospital - Dubai, a project undertaken by the Emirates Healthcare Development Company, is the result of a strategic joint venture between the Islamic Finance Company, that hold a 49% ownership stake and the Saudi Bait Al Batterjee Holding that hold the remaining 51% ownership stake.

Given the recent completion of the Saudi German Hospital’s infrastructure, the Emirates Healthcare Development Company is now in the process of procuring state-of-the-art medical equipment and supplies, at a cost of $40m, to prepare for the official opening of the hospital.

The Saudi German Hospital is being constructed on 90,000 square meters in Al Barsha. It will open in 2009 and will provide approximately 1500 employment opportunities. Sub-specialty departments inside the General Hospital will include; pediatrics, spinal cord surgery, open-heart surgery, a woman’s hospital, ophthalmology and an internal medicine department. The hospital aims to provide the best medical services in the U.A.E.

Hong Kong firms may sell Islamic bonds in Q4

HONG KONG - Hong Kong borrowers may issue sukuk, or Islamic bonds, in the fourth quarter of this year if credit market conditions improve, a newspaper said on Monday, quoting the head of a local capital market body. Frank Kwong See-wah, chairman of the Hong Kong Capital Market Association, said many companies in the territory were considering selling sukuk to tap a new pool of investors, the South China Morning Post reported.
Sukuk are financial instruments which adhere to the Islamic sharia principals under which interest payment is banned and the financing of certain business activities is prohibited. They are typically based on physical assets that pay rent. Kwong did not name any potential issuers.
Several countries in the region are keen to develop an Islamic finance market to attract investors from the booming Gulf economies.

Union National Bank launches first Islamic mutual fund

The minimum subscription to the Fund is AED 10,000 ($2722) and thereafter in multiples of AED 1,000. Investment in units is open to all individuals without restrictions. The subscription will start on 18 May until 11 June 2008.Union National Bank (UNB) is launching the Al Samaha Islamic Fund, a Shari’ah compliant fund which will invest mainly in the UAE, although it will have the flexibility to seek opportunities in other GCC, MENA and other emerging equity markets. The banks said that the fund will aim to invest in a balanced portfolio compliant with the Shari’ah creating a growth in the capital both in the short and long term.The fund will focus on Islamic equities in addition to other Shari’ah investment instruments that are compliant with the Shari’ah methodology. The fund is an open-ended fund with weekly liquidity.The minimum subscription to the Fund is AED 10,000 ($2722) and thereafter in multiples of AED 1,000. Investment in units is open to all individuals without restrictions. The subscription will start on 18 May until 11 June 2008. The subscription and redemption forms for the fund will be available at all UNB branches across the UAE. The fund will have weekly liquidity and its Net Asset Value (NAV) will be calculated and posted on a weekly basis.

Non-alcohol hotels grow in Dubai

Dubai: As Dubai's popularity among tourists and business people increases, there is a growing demand for Islamic, or Sharia-compliant, hotels that apply a no-alcohol policy and tailor their services to suit Muslim culture.
Some hotel chains follow a detailed set of Islamic rules for operating hotels, while others just adhere to Islam's ban on alcohol owing to local regulations or investor preference.
The first major dry hotel in Dubai was the Taj Palace Hotel, which is managed by leading Indian hotel chain Taj and opened nearly a decade ago. Since then, many local chains have emerged with exclusively Islamic-branded hotels.
Among the top names are Shaza Hotels, Tamani Hotels and Resorts, Hospitality Management Holdings (HMH), Flora Hotels, and Al Mmulla Hospitality. Shaza, Tamani and Al Mulla are planning dozens of Sharia-compliant hotels.
Seeing a market in this segment, Abu Dhabi-based Rotana has added a Sharia-compliant brand Reyhaan to its portfolio.
Several reasons underlie this trend. One reason, according to Michael Noblet, managing director of HMH, is that they are becoming fashionable.

TAIEX eyes launch of Shariah fund in H2 Reuters

Taiwan's stock exchange (TAIEX) will launch an Islamic exchange traded fund in the second half of this year to tap growing demand for Shariah-compliant investments, its chairman said yesterday. "The compilation of stocks for Taiwan's first Shariah exchange traded fund is expected to be completed in the next two to three months," Wu Rong-i told reporters on a visit to the Malaysian capital to woo investment.
"Since Malaysia is a Muslim country, we think a Shariah-compliant exchange traded fund may be marketable here."
The Taiwanese exchange has been stepping up efforts to attract oil money from the Middle East. In December, it entered into a preliminary deal to list its planned Shariah exchange traded fund in Taiwan and Abu Dhabi.

Citi launches Shariah-compliant products in UAE

Citigroup said on Monday it will be launching a series of Shariah-compliant banking products in the UAE first in order to help companies better manage their working capital needs.
The major bank said that the new banking products, which will initially be launched in the UAE before other markets, were designed for a growing number of its corporate customers who were looking for competitive Shariah-compliant alternatives to conventional products.
"The Citigroup treasury and trade Shariah-compliant services are in line with Citi's strategy to offer our clients Shariah-compliant working capital products in the UAE to be later introduced to various other markets," said Samad Sirohey, chief executive officer of Citi Islamic Investment Bank and head of Global Islamic Banking.

First International Halal Logo On Colgate Packaging Soon

KUALA LUMPUR -- The first international Malaysian halal logo issued by Halal Industry Development Corp Sdn Bhd (HDC) will be placed on Colgate-Palmolive's toothpaste and mouthwash packaging.

"Over the next few months, this much-coveted logo will be placed on our toothpaste and mouthwash packaging," said its marketing director, John Hazlin, at a press conference here, Tuesday.

Colgate-Palmolive (Thailand) Ltd, which produced the toothpaste and mouthwash, is the first company to get the halal certification from HDC.

The production is for the South-East Asian markets including Malaysia, Indonesia, Brunei and Singapore.

Until recently, only locally-manufactured products were eligible to receive the Malaysian halal logo.

Attractive Incentives To Draw Businesses To Halal Industry In Malaysia

KUALA LUMPUR - The government is offering attractive incentives to draw businesses in the halal industry in Malaysia.

They include investment tax allowances, perks for export of halal products and exemption of duties for the import of raw materials, Prime Minister Datuk Seri Abdullah Ahmad Badawi announced here, Monday.

He said there would also be goodies for halal parks and logistics operators to facilitate an optimal supply chain and infrastructure as well as pioneer status for cold room storage operations.

Elaborating, Abdullah, who is also Finance Minister, said there would investment tax allowances or exemption on statutory income from export sales for industry players in specialty processed foods, cosmetics and personal care, pharmaceuticals, halal ingredients and livestock and meat products.

"There will be exemption from import duty on raw materials as well as double deduction on expenses incurred in obtaining international quality standards," he said in the keynote address at the World Halal Forum 2008.

Toyota considers Shariah bond to help Malaysian business

Toyota is considering issuing a bond that complies with Islamic law to help its expanding business in Malaysia, a company spokeswoman said.

The Malaysian financial authorities have given UMW Toyota Capital, based in Petaling Jaya, Malaysia, permission to issue up to 1 billion Malaysian ringgit, or $312 million, in Islamic bonds.

Under Shariah, or Islamic law, interest is banned and purchasers of Islamic bonds, or sukuk, instead would receive a dividend from UMW Toyota Capital.

"We are looking to issue Islamic bonds with a view to expanding our loan and lease business in Malaysia," said Mio Sugito, an assistant manager at Toyota Financial Services. "We are considering when to issue, and could go ahead as early as this month."

The company began offering Islamic loans in Malaysia in November 2005, and it started leases in August 2007, using cash borrowed from banks under Islamic law.

Apart from reducing the dependence on bank loans, the move would make it easier for local people to take out a loan with the company, Sugito said.

This would be the first time Toyota has raised money using Islamic finance.

Dubai Islamic Bank launches new virtual training centre

The initiative will provide bank staff with advance training, experience, skills and insights to better meet the needs of the bank's clients in retail banking services. The DIB Retail Banking Services Virtual Training Centre is located at the DIB branch on Al Ittihad Road in Dubai.

The opening ceremony for the centre was attended by Khaled Kamda, DIB Group Managing Director and Chief Executive Officer, and several other senior executives from the bank. The training centre is based on a partnership with SnapShot, a leading human resources consultancy and training firm.

The training centre is one of the most sophisticated centres in the country. The centre is seen as a means for DIB to develop and improve the level of service for the banking sector throughout the region. "This initiative is a reflection of our commitment to being a financial services institution that delivers the highest level of service to its customers," said Kamda.

Harvard Islamic Studies Program Opened

Prince Alwaleed bin Talal at the inauguration ceremony of the Islamic Studies Program at Harvard on Thursday. (AN photo)

CAMBRIDGE, Mass., 10 May 2008 — Prince Alwaleed bin Talal, chairman of Kingdom Foundation, had endowed $20 million in 2005 to establish an Islamic Studies program at Harvard University. He was at Harvard University in Cambridge, Massachusetts, on Thursday to inaugurate the program. The program was named “Prince Alwaleed bin Talal Islamic Studies Program.” Roy P. Mottahedeh, professor of history in the Faculty of Arts and Sciences, had been appointed director of the program. Prince Alwaleed and the accompanying Kingdom Foundation delegation were briefed about the program. The program is building on Harvard’s strong commitment to the study of the religious traditions of the world. It is also augmenting Harvard’s existing strength by increasing the number of faculty focused on Islamic studies, providing additional support to graduate students, and making rare Islamic textual sources available in digital format.

Bangladesh: Local company signs deal to export halal meat to Malaysia

Premium Halal Abattoir, a local company, has signed a deal to export halal meat to Malaysia as local processors are eying to grab a portion of US$ 50 billion global halal meat market.

Premium Halal Abattoir, under a memorandum of understanding with Barakah Import of Malaysia, will export 50 tonnes of meat a year, with industry people demanding more government supports to explore potential market.

The government meanwhile is likely to get clearance soon from the Department of Veterinary Services of Malaysia. The certification will enable Bangladeshi companies to export processed halal meat to Malaysia.

Another meat processing company, Peninsula Abattoir, is in talks with buyers to export processed meat to Europen countries.

The pioneer in halal meat processing industry in the country, Bengal Meat Processing Industries Limited, is exporting to the UAE and Kuwait. Bengal Meat has almost trebled its export growth in a span of nine months.

Turkey Impressed With Malaysia's Promotion Of Halal Standards

KUALA LUMPUR. Turkey has complimented the efforts taken by the Malaysian government to promote halal standards, its Deputy Undersecretary for Foreign Trade, Omer Faruk Dogan said Friday.

He said the issue had become more and more important to the Muslims and that it could be another key to establishing stronger relations among the Muslim population.

He was speaking to reporters after presenting a trade briefing at the Malaysia International Halal Showcase (MIHAS) 2008 here today.

Malaysia's halal standards, set by the Department of Islamic Development Malaysia (JAKIM) previously is recognised globally. The halal certification in Malaysia is now conducted by Halal Development Corp (HDC).

Malaysia's contribution to the formulation of uniform halal standards is seen as crucial and timely as some 17 standards are being used globally for the halal industry.

Almulla, UK group in Islamic hotel chain tieup

Dubai-based Almulla Hospitality and UK-based Jasper Capital have joined hands to set up a real estate company that will develop international chain of Cliftonwood, Adham and Wings hotels.

Almulla Hospitality plans to tap into the growing Muslim travel market with a hotel chain operating under universal codes such as no alcohol and Halal food only, said a company official.

The deal with the Jasper Capital Group of the UK will help structure the financial real estate company to develop plans for an international chain of Islamic-compliant hotels with 150 properties worldwide.

The company plans to set up 90 of such hotels n the Middle East and North Africa, said Abdulla Mohamed Almulla, chairman of Almulla Hospitality.

"At the launch of Almulla Hospitality we had announced that our goal is to achieve, within five to seven years, 150 properties worldwide under management," Almulla said. "We are very pleased to assign Jasper Capital Group of the UK to structure a plan toward achieving our goal."

Maybank buys into Pakistan

After asking last month whether the media should be more positive about Pakistan – the comments on the whole seemed to suggest we should be, while not being blind to the risks– it was interesting to see that Malaysia's top lender, Malayan Banking, had no such doubts.

 Maybank said it had bought a 15 percent stake in Pakistan's largest listed lender MCB Bank for $680 million, the largest banking acquisition into Pakistan, as it bet on a bright economic future despite the recent political turbulence.  It said the acquisition would give it access to "a high-growth and under-penetrated banking market with a large population", and that it was confident about Pakistan's political outlook.

Part of this is clearly due to the booming business in Islamic banking. Reuters Bahrain correspondent Mohammed Abbas, who covered a Reuters summit on Islamic banking and finance in February, tells me it is no surprise that a Malaysian bank would invest in Pakistan.  Pakistani bankers basically run the Islamic finance industry in the Gulf and say Pakistan has done a lot to encourage Islamic finance. Since Malaysia's Islamic banking industry is one of the deepest and most developed, and since  Malaysian banks have been trying to build bridges with other Islamic lenders, Pakistan is an obvious place to go. "Given how active Pakistanis are in the industry, the fact that Malaysia is finding Pakistan fertile for expansion is logical," he says.

Dubai Holding creates global Shariah-compliant investment company

(MENAFN - Khaleej Times) Dubai Holding announced yesterday that it has consolidated its investments in Dubai Islamic Investment Group and Dubai Bank under Dubai Banking Group, to form a global Shariah-compliant investment company.

This consolidation is in line with Vision 2015, which highlights the development of the financial services sector in Dubai as a catalyst for future growth and economic diversification of the Emirate's resources.

Mohammed Al Gergawi, Chairman of Dubai Holding said: "The UAE's financial services sector is one of the fastest growing sectors in our economy. This is a tremendous opportunity for our group and we are confident that this strategic step will enhance growth and value creation in the industry and solidify Dubai's position as a leading global financial centre."

Mohammed Al Shaibani, Chairman of Dubai Bank said: "Dubai Bank has made significant progress on all fronts and across various business initiatives within retail, corporate and investment banking. I am confident that through Dubai Banking Group, we will be able to capitalise on the opportunities presented and also expand its banking and investment portfolio on a global scale."

First western Islamic insurer opens in London

The first British Islamic insurance company has been launched, with forecasts of attracting more than 200,000 policyholders over the next five years.

Principle Insurance is the first Islamic-compliant insurer in Western Europe and will allow Britain's estimated 2m Muslims to insure their car or house in line with Shariah law.

Bradley Brandon-Cross, chief executive of Principle Insurance, said London was becoming the centre of Islamic finance and predicted strong growth in Principle's business in the coming months.

He said: "This company will give Muslims in this country the opportunity to buy products in line with their beliefs. At the moment, there are half a million British Muslims who are car owners and this will benefit them."

Islamic hotels spread beyond Gulf

Shariah-compliant hotels are mushrooming throughout the Middle East and elsewhere, boosted by an increase in the number of Arab tourists. The developers of these hotels believe these establishments will appeal to Muslims and non-Muslims alike as they provide a culturally unique and relaxing atmosphere for travellers.

Demand for Shariah-compliant accommodation is on the rise and currently represents 10% of the world tourism market, according to Abdulla Almulla, chairman of Dubai-based Almulla Hospitality.

Speaking at the Arabian Hotel Investment Conference, Almulla said his firm plans to have an international chain of 150 Shariah-compliant hotels by 2015, with up to 90 of them located in the Middle East and North Africa.

High-growth market
The market for Shariah-compliant hotels is expanding in line with the growth in the number of Arab tourists. Travellers from the GCC spend over $12bn annually on leisure travel, according to the World Tourism Organisation. UAE travellers spend an average of $1,700 per vacation, which is $500 higher than the European average.

Almulla aims to establish a brand identity that Muslim travellers will recognise and trust. Some hotels categorise themselves as Islamic but are not Shariah-compliant, he noted, citing one example in which a 'dry' hotel served non-alcoholic drinks at a 'juice bar'. 'We would not call it a 'bar' because that word should not be used at a Shariah-compliant hotel,' he said.

TAMANI Hotel Marina gets business travellers approval

Since opening its doors to the public in mid-February this year, the TAMANI Hotel Marina is enjoying positive feedback and increased bookings from business and leisure travellers particularly those from Saudi Arabia and GCC.

Adapting to changing demands from both the corporate and leisure markets; the five star TAMANI Hotel Marina is bent on making its property the leading hotel choice for Dubai inbound travellers who are out to enjoy spaciousness and personalised service for those coming to Dubai on leisure or business.

Muin Serhan, General Manager of TAMANI Hotel Marina stated, "My team at TAMANI Hotel Marina are happy with the warm response we got from the travel, tour and trade sectors. We are continuously working on enhancing our guests experience at the hotel and shall continue adopting strategies that will help us face the challenges of the market demand by being innovative in our product offering."

TAMANI Hotels and Resorts is currently recognised as the first UAE branded Islamic hotel operator with no less than H.E. Khalid bin Sulayem, Director General of Dubai's Department of Tourism and Commerce Marketing announcing the landmark achievement made by TAMANI in Islamic hospitality arena in Dubai last February 2008.

Meezan Bank launches Shariah compliant fund

KARACHI: Meezan Bank in collaboration with Al Meezan Investment on Monday announced launching of first Shariah compliant Capital Protected Fund titled Meezan Capital Protected Fund.

The Initial Public Offering (IPO) of the newly issued fund is expected to commence on May 19, 2008, which would continue for three days. Chairman of the Al Meezan Investment, Arif ul Islam said Meezan Capital Protected Fund (MCPF-1) is country's first Shariah compliant Capital Protected Fund and has been jointly developed by Al Meezan Investments and Meezan Bank.

He said MCPF is an open-end mutual fund with a maturity period of three years and six weeks, as it would provide investment opportunities to investors desirous of protecting their capital.

He said protection of the total amount invested by the customer in this fund would be provided by Meezan Bank Ltd, which has a long term entity rating of A plus and a short term entity rating of A one.

Chief executive officer of Al Meezan Investments, Mohammad Shoaib said Meezan Capital Protected Fund would provide maximum protection to the investors. staff report

Dubai hotel group, Almulla Hospitality to establish Islamic hotel properties

Almulla Hospitality, Dubai-based Shariah-compliant hospitality chain, has signed an agreement to establish financial real estate company with the Jasper Capital Group, UK-based investment banking consultancy, to develop international chain of Islamic-compliant hotels with 150 properties worldwide and up to 90 in the Middle East and North Africa. The hotel chain will operate under the brand names of Cliftonwood, Adham and Wings.

Abdulla Mohamed Almulla, Chairman, Almulla Hospitality, said, ""We are very pleased to assign Jasper Capital Group of the UK to structure a plan toward achieving our goal".

Dubai's Almulla Hospitality plans to grow its property portfolio through management contracts, joint venture investments and selective acquisitions across the world using a variety of investment structures. All financial structures involved will conform to the Islamic ban on interest.

Shariah-compliant hotel sector grows

(MENAFN - Bahrain Tribune) The Islamic hospitality market, or Shariah-compliant hotels, is pegged to be one of the fastest growing hospitality segments, according to Jonathan Worsley, conference co-organiser, Arabian Hotel Investment Conference (AHIC). He said Dubai-based hospitality group Almulla Hospitality, recently launched its Shariah-compliant hotel portfolio, comprising three brand tiers.

The group has also cited plans to target development in Saudi Arabia, the United Arab Emirates, Jordan, Egypt and Malaysia in the first instance, with Thailand and Europe following closely behind. "Almulla joins other UAE-based players including Shaza Hotels from Kempinski and Tamani Hotels and Suites from KM Group among others," he said.

Rotana, too, has tickled the sector recently launching Rayhaan Hotels and Resorts with an offer-specific no-alcohol label. Almulla chairman, Abdulla Almulla said the demand for Shari'a-compliant accommodation is on the increase, representing 10 per cent of the world tourism market.

''In less than a decade Middle East leaders have transformed the landscape and created one of the world's fastest growing regions, with hospitality investment at its core,'' the chairman said. "UAE travellers alone spend more than $4.9 million on travel annually, and the Islamic hotel product will be in high demand, certainly reaching 10 per cent in the short term."

Meanwhile, Rezidor Hotel Group has estimated that the Shari'a-compliant hospitality market will grow by staggering 20 per cent per year over the next decade. Rotana agrees that there is a high demand, and Selim el Zyr, group president and chief executive officer, said this is driven by the desire for individual choice. "In this ever-changing world, individuality of choice is important to the traveller with some guests seeking to reflect the values they hold in the accommodation they choose," he explained. "We have introduced the Rayhaan brand to Rotana's hotel and resort portfolio after considering the diverse needs of our guests. Rayhaan offers world-class standards synonymous with the Rotana name while being an entirely new concept with inherent appeal, particularly to guests of Middle Eastern heritage and desires." This year's AHIC will spotlight new hospitality trends in its session dubbed "Multi-faceted future of Islamic hospitality" and will further beg the question, are Shari'a-compliant hotels the next big thing or a short-term trend?

Session moderator is Naseem Javed, president of ABC Nameback International. Alongside him, panellists include Christopher Hartley, chief executive, Shaza Hotels; Mohmood Al Koofi, CEO, Reef, and Sayed Hadi Al Alawi, chairman, Al Hayat.

China looks at Malaysia to develop halal industry

By JACK WONG

KUCHING: China, which has more than 18 million Muslims, is looking to Malaysian companies for collaboration to develop its halal food and consumer goods industries.

Vice-Consul (Economic and Commercial) of the China Consulate in Kuching Ma Yu said the Chinese Government had provided preferential policies and financial support to foreign investors in the development of the halal food and consumer goods industries in the country's western region.

''It has set up a halal food and goods industrial base in Ningxia,'' he added in a paper presented at a ''Business opportunities in China'' at Kuching Hilton on Wednesday.

The event was jointly organised by the Malaysia External Trade Development Corp (Matrade) and Federation of Malaysian Manufacturers (FMM) Sarawak.

Ma said Malaysian and Saudi Arabian business delegations had taken part in the annual halal food and goods exhibition in Xining, capital city of Qinghai Province, last year.

He hoped that more Malaysian companies could participate in this year's expo in September.

''Malaysian Muslim food and consumer goods have their own special features.

''I believe a win-win situation can be achieved with good cooperation among Chinese and Malaysian business sectors,'' he added.

Ma said most of the 18 million Muslims in China resided in the Ningxia autonomous region, Qinghai and Gansu.

He said the industrial output of Muslim food and consumer goods was valued at hundreds of millions of Yuan each year.

Ma said through Matrade's efforts, more Malaysian firms had taken part in the various trade expos in China, and that more Malaysian businessmen were now conducting business in China.

Statistics have shown that Malaysia's trade with China has increased significantly over the past five years.

Malaysia's total exports to China jumped from RM25.8bil in 2003 to more than RM53bil last year. The country's total imports from China has soared from RM27.6bil to RM64.9bil during the same period.

Ma advised foreign investors to learn to coordinate with the Chinese authorities, especially the administration of foreign trade and economic corporation, when they carried out business activities in China.

This, he explained, was because China's economy was still largely controlled and managed by the government.

Dubai hotel group, Almulla Hospitality to establish Islamic hotel properties

Almulla Hospitality, Dubai-based Shariah-compliant hospitality chain, has signed an agreement to establish financial real estate company with the Jasper Capital Group, UK-based investment banking consultancy, to develop international chain of Islamic-compliant hotels with 150 properties worldwide and up to 90 in the Middle East and North Africa. The hotel chain will operate under the brand names of Cliftonwood, Adham and Wings.

Abdulla Mohamed Almulla, Chairman, Almulla Hospitality, said, ""We are very pleased to assign Jasper Capital Group of the UK to structure a plan toward achieving our goal".

Dubai's Almulla Hospitality plans to grow its property portfolio through management contracts, joint venture investments and selective acquisitions across the world using a variety of investment structures. All financial structures involved will conform to the Islamic ban on interest.

Reliance Money to launch Shariah-compliant investment scheme

1 May, 2008, 1642 hrs IST, PTI

NEW DELHI: Reliance Money today joined hands with Parsoli Corp to launch the country's first Shariah- compliant Portfolio Management Scheme for investors in India and West Asia seeking to invest as per the Shariah Laws.

The brokerage and financial products distribution arm of Anil Ambani group, Reliance Money would offer this PMS for as low as Rs 5 lakh, the company said in a statement.

Reliance Money plans to market these schemes extensively in India and West Asian Countries.Terming it as first-of-its-kind tie up, Reliance Money said the schemes would be launched in partnership with Parsoli Corp, which has been recently awarded as the 'Best Islamic Brokerage Firm' in the world for 2007.

The tie-up was announced by Reliance Money CEO Sudip Bandyopadhyay and Parsoli Managing Director and CEO Zafar Sareshwala, it added. "A significant part of India's population has not been offered appropriate financial products in compliance with the relevant religious sentiments. Shariah-compliant PMS, proposed by Reliance Money with Parsoli Corp, would enable us to tap this sector and reach out to a large section of such investors," Bandyopadhyay said.

As per the understanding, Parsoli would work with Reliance Money to ensure compliance with Shariah Laws for the relevant schemes being launched by Reliance firm. Parsoli would also market other financial products and services being introduced by Reliance Money from time-to-time.

"Currently we offer PMS for as low as Rs 5 lakh with an aggressive and competitive fee structure. We do not charge any fee for returns up to 8 per cent, charge 10 per cent fee for returns up to 20 per cent and charge 20 per cent fee for over 20 per cent returns. We would replicate the same model for the Shariah Compliant Schemes as well," Bandyopadhyay added.

Indonesia plans retail sharia bonds, T-bills

By Adriana Nina Kusuma

JAKARTA, April 30 (Reuters) - Indonesia's finance ministry said on Wednesday it planned to issue sharia-compliant bonds for retail investors as well as Islamic T-bills to help develop the local Islamic finance industry and plug its budget deficit.

It would also issue separate Islamic bonds, or sukuk, to finance government projects, the ministry said in a statement.

Last week the government said it would raise up to $2 billion this year by selling its first Islamic bonds to fund the budget deficit. It plans two bonds in the second half of 2008 in domestic and overseas markets.

Sukuk comply with sharia, or Islamic law, which bans lending for interest. Bond holders are paid income derived from assets such as rent from property, or from commercial transactions such as trade in goods and services.

Analysts said news of the latest planned issuance should be well received and the debt could help the government overcome problems raising funds in the traditional bond market, which has been hurt by the subprime crisis.

Britain’s first Islamic insurance company given stamp of approval by FSA

1/ 5/2008

BRITAIN'S first independent Islamic insurance company has received authorisation by the Financial Services Authority (FSA).

Principle Insurance will provide unique, shariah-compliant (or halal) motor and home insurance to British residents from later this year.

It will be the first independent shariah-compliant insurance provider in Britain and will meet the needs of the country's estimated two million Muslims.

Principle chairman, Mr Abdulaziz Hamad Aljomaih said: "I believe Principle will go some way in altering the perception of Islamic Finance in the UK, by showing that progressive, sensible and profitable businesses can be established in accordance with Islamic law.

"Achieving FSA authorisation is a clear vindication of my belief that shariah-compliant financial products are not only equitable and profitable but also conform to the modern day principles of international finance, especially from a regulatory standpoint"

Principle chief executive, Bradley Brandon Cross, added: "Some elements of conventional UK insurance, such as the earning of interest, the investment of policyholders' funds and uncertainty mean that it is not in accordance with Muslim beliefs.

"We are going to be offering unique insurance products that meet a genuine need and are also competitively priced."

While Islamic insurance is very different to conventional insurance in that it is fully shariah compliant and does not use interest or invest in any industries that go against Islamic teachings (alcohol, for example) - it bears some similarities to co-operative insurance.

As with co-operative insurance, policyholders contribute money to a common pool (the Takaful fund), which is then used to pay claims.

Any surplus in the Takaful fund is returned to policyholders, while any deficit is protected by the company's shareholders.

The insurance company is usually remunerated in one of two ways - either by an agreed management fee (Wakala) or a share of the surplus (Mudharaba).

Principle Insurance has adopted the Wakala model, as it provides greater transparency. All the activities of the Takaful Fund are supervised and agreed with a board of shariah scholars.

Boustead eyes Islamic banking ops in China

KUALA LUMPUR: Boustead Holdings Bhd plans to establish an Islamic banking operations in China via a joint venture with its foreign partner the Bank of East Asia (BEA).

It was now "exploring that opportunity with BEA," group managing director Tan Sri Lodin Wok Kamaruddin said, adding that the proposal was subject to approvals from the authorities concerned.

He said the potential for Islamic banking operations in China was "quite great" as there were some 100 million Muslims in the north-western region of the republic alone.

Speaking after the company AGM yesterday, Lodin said the group's plantation division delivered substantial profits last year as a result of steady crude palm oil (CPO) prices and he was confident CPO prices would remain bullish on the back of strong demand from India and China.

"We believe CPO prices would continue to be around RM3,000 to RM3,500 (per tonne) for a while," he said.

Lodin also said Boustead had implemented various yield improvement programmes to increase its yield from 20 tonnes per hectares to about 25 tonnes per hectare.

"We are also looking at introducing various processes to further improve the yield of the plants.

Malaysia's Affin Islamic unveils new lending tool

KUALA LUMPUR, April 1 (Reuters) - Malaysian lender Affin Islamic Bank Bhd launched on Tuesday an Islamic financing strategy to help small firms raise funds and increase the industry's share of domestic banking assets.

Under the new strategy, banks will be partners instead of just lenders in the development of projects such as the construction of homes.

In its pioneer project, Affin Islamic will team up with small Malaysian property firm Mutiara Goodyear Development (MGDE.KL: Quote, Profile, Research) to develop a 180 million ringgit ($56.30 million) apartment project in northern Penang state.

Under the deal, the two companies will form a special purpose vehicle that will buy land to be used for the development and jointly undertake the project. Profits and losses from the project would be shared equally between the parties.

Mostly Muslim Malaysia is prodding its Islamic lenders to develop products to draw more investors as part of a plan to make the country a global hub for the $300 billion Islamic finance sector.

Record crude oil prices have fuelled a surge of petrodollars into Asia, with cash-rich Gulf investors hungry for investments that comply with the sharia or Islamic law.

Malaysian Islamic assets such as property and bonds are popular with investors who want exposure to Asia's growth story while complying with the sharia, which forbids interest-bearing loans and investments in alcohol and gambling.

Mutiara Goodyear Chief Executive Kee Cheng Teik said Affin Islamic's financial backing would boost investor confidence in the development.

"Purchasers do not only look at the strength of the development and design, they also look at the strength of the financials, that we can carry through all the project, " Kee told reporters.

Islamic finance can give early warning of debt woes

Fri Apr 4, 2008 4:43am EDT

HONG KONG (Reuters) - The transparency and structure demanded of Islamic finance that is attracting investors burnt by the subprime crisis could well have provided warning signals of the impending debt turmoil.

The subprime crisis has seen an exodus from riskier asset classes, partly as investors veer away from sophisticated products such as collateralized debt obligations that are difficult to fathom.

Investors say Islamic finance products demand greater transparency and accountability from company management, so it would be more obvious when companies are getting into debt problems.

Under Islamic finance, because the lender is also an investor, he remains an active participant through the life of the transaction and is in a position to rectify mistakes before the situation worsens, bankers say.

This appeal has added to the growth in Islamic finance.

Global bond and loan offerings issued according to Islamic guidelines have jumped 64 percent to $5.5 billion so far this year, data from Thomson Financial shows.

Islamic finance assets are growing at an annual pace of 20 percent and are set to hit $2 trillion in 2010 from the current $900 billion, fuelled in part by a flood of petrodollars generated by the rise in energy prices.

Islamic finance principles stipulate that deals must be based on tangible assets and require tight controls on debt levels, features analysts say offer some protection to investors and ensure corporate accountability.

Faith-based indices less hit in recent market meltdown

2 Apr, 2008, 0210 hrs IST,Shailesh Menon, TNN

MUMBAI: Blessings of Allah be on him who is mild and gentle in his business transactions... The trader who plies his trade cleanly will rise in the Hereafter" — says the Holy Koran.

The God above seems to have upheld the Prophet's word, as faith-based investors — more particularly Islamic investors who follow the ideals of Shariah investments — have not really burnt their fingers in the recent market meltdown. While broader indices have fallen in the range of 20-25%, Indian faith-based indices have only dipped 12-17% over the past three months.

Faith-based indices include stocks that strictly support an ideology. Though there are not many faith-based investment opportunities in India, investments in Shariah-compliant stocks are fast catching up. Shariah, the canonical law of Muslims, has strictures regarding finance and commercial activities permitted for believers.

Dow Jones Islamic Market India Index (DJIMII), S&P CNX 500 Shariah, S&P CNX Nifty Shariah and Parsoli Equity Index are the available benchmarks as far as Shariah-based equity investments are concerned.

Shariah-based equity investments, in severe terms, do not allow investors to invest in excessive debt companies (no investments in companies that have a debt-to-market cap exceeding than 33%), companies with high outstanding receivables (net receivables in excess of 45% of m-cap) and companies that do not have at least 25% of its capital in fixed assets.

Though this is a thick screen, about 85% of stocks on Nifty are Shariah-compliant, said experts. The current share of Indian Shariah compliant m-cap (at around 61%) is highest even when compared to the number in Islamic countries.

Scholars Lay Down Rules On Sukuk

Move Aimed At Clearing Up Religious Doubt Over World's Fastest Growing Financial Instruments To Be Debated At International Islamic Finance Forum

Dubai, UAE - April 1, 2008:  New guidelines aimed at clearing up religious doubt over the booming Sukuk (Islamic bond) market – the world's fastest growing financial instruments – are to be debated at the premier international Islamic finance event in Dubai next month.

"The guidelines drawn up by a panel of Islamic scholars are vitally important to the Sukuk market which has grown to a total value of around $100 billion in under ten years," said Swati Taneja conference manager for the International Islamic Finance Forum. "In their guidelines, the scholars are making it clear that in future Sukuk must be clearly asset-backed rather than just asset-based."

The forum takes place at the Jumeirah Beach Hotel, Dubai, from 13-17 April 2008 under the patronage of HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, who has supported the forum since it was launched in Dubai in March 2002.

Following concerns that many Sukuk may not be fully conforming to the teachings of Islam, the guidelines were drawn up by the board of 18 religious advisors to Bahrain-based Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). The organisation's Secretary General Dr Mohamad Nedal Alchaar will give a keynote address on the harmonisation of Islamic finance practice at the forum.

NBK Plans to Open Islamic Private Bank in Switzerland, FT Says

March 31 (Bloomberg) -- National Bank of Kuwait SAK, one of the Middle East's largest lenders, is planning to open an Islamic private bank in Switzerland, the Financial Times reported, citing the bank's Chief Executive Ibrahim Dabdoub.

Dabdoub said the bank has applied for regulatory approval in partnership with an undisclosed Saudi financial institution, according to the newspaper.

National Bank would target wealthy individuals looking for bank products compliant with Islam, the FT said. Islamic finance is one of the fastest growing areas of banking in the Arab world, the newspaper reported.