Greater harmonization in accounting standards, prudential regulations, development of standardized instruments and practices is crucial for rapid growth and internationalization of Islamic finance, Central Bank of Bahrain Governor Rasheed Al-Maraj said yesterday.
He said the existing differences create additional costs for internationally-active firms and competitive distortions as well as reduce transparency for investors and counterparties.
Trade finance group CCH International, which specialises in Islamic finance, said 2006 was a year of "great success" as profits surged.
The group, which was the fourth best performing stock on AIM in 2006, saw pre-tax profit for the year to December surge to "3.8m from "690,000 last year. Turnover rose 293% to "19.1m from "4.8m for the 14-month period to December 2005.
It continues to offer innovative Sharia-compliant trade finance products, the demand of which remains unabated, said the group.
The demand of sukuk or Islamic bonds stands at $500 billion with total issuance expected to reach $150 billion by 2017, Agil Natt President and CEO, International Centre for Education Centre for Education in Islamic Finance (INCEIF), told the audience at the 2nd International Islamic Financial Market Conference yesterday.
Fitch Ratings has today affirmed Dubai Islamic Bank's ('DIB') Support rating at '1'.
This reflects the extremely high probability that it would be supported by the UAE authorities, should the need arise, given the government of Dubai's 30% ownership of DIB, the UAE authorities' strong history of providing support to local banks, and the importance of Islamic banking in the UAE.
Gulf Weekly has a good article about Islamic banking.
Islamic banking began as a theological dream, but today it has become a practical reality across the Middle East.
The big question now is how far will Sharia boards and Western regulators let it spread?
As salaamu alaikum brothers and sisters,
General Electric Co expects rapid growth in the Middle East in the coming years, thanks to soaring sales of aircraft engines and power generation equipment and a possible entry into the Islamic finance business, a senior executive said on Wednesday.GE International's chief executive, Ferdinando Beccalli-Falco, said he expected sales to have grown 250 percent by 2010 to $10 billion in the Arab Middle East."The Middle East is going to be, in the next three to five years, the fastest growing area in the world (for GE)," he told reporters on the sidelines of the FT Glo
A number of barriers remain in the expansion of the Islamic finance industry, including a lack of qualified Islamic bankers, weaknesses in financial reporting and transparency, and the issue of regulatory capital according to a KPMG survey conducted by the Economic Intelligence Unit (‘EIU’).The EIU conducted interviews with a number of leading figures on behalf of KPMG and the report entitled “Growth and Diversification in Islamic Finance” sought their views on the current and future development of Islamic finance.
Saleh Kamel, president of Dallah Albaraka Group and chairman of the General Council of Islamic Banks and Financial Institutions (GCIBFI), has called for a streamlining of the Shariah Council system to help deal with the different interpretations of Shariah compliance across the Islamic world.In an exclusive interview with Oliver Cornock, country editor for Oxford Business Group (OBG), which was released yesterday — the authoritative UK-based publishing, research and consultancy services company — Saleh expressed his concern that some institutions tended to simply rebrand conven