Burj Khalifa : Pinnacle of Civilization

Burj Khalifa ( formerly known as Burj Dubai ) has evolved from a vision that has translated into reality. H.H. Shiekh Mohammed bin Rashid Al Maktoum PM , V.P of UAE and ruler of Dubai, has set a definite vision for Dubai to be a world famous destination. With the wise vision of His highness and the hardwork of his country men and women, The dream has evolved from its cradle stage to reality. In 2009 The Burj has claimed Today in 2011 , visitors from all over the globe flock to Dubai to have their life time experience in Burj Khalifa, which in turn offers spectacular views of Dubai in addition to a one of a kind experience in dining and staying.

Forward Contracts and Bay Al Salam

Bay Al salam : is the islamic version of future contracts, that been said ,both of them have their own properties that be similarities or differences.

Islamic forward contracts Bay al Salam

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Thursday, March 31, 2011

Musharaka Islamic Joint Venture

Musharaka is the islamic form of joint venture, where two or more parties form an investment venture , and where they both share profits and losses accordingly.

All parties involved in the Musharaka should have agreed on terms and conditions prior to engaging in this deal. Roles or capitals contributions are assigned and agreed upon by all parties.

Thursday, March 3, 2011

Thursday, January 27, 2011

Mauritius Islamic bank to start operation in Q1


PORT LOUIS (Reuters) - Mauritius's first Islamic bank will be operational by the end of the first quarter of 2011, the central bank governor said on Thursday.
The palm-fringed island's growing offshore financial sector pitches itself as a financial platform bridging Africa, the Indian sub-continent and Asia.
Mauritius is seeking to tap into the $1 trillion Islamic finance industry, and the central bank also plans to offer sharia-compliant short-term liquidity tools.
The Bank of Mauritius granted its first Islamic Banking licence in October 2009 to provide an alternative mode of financial intermediation to bank customers, central bank Governor Rundheersing Bheenick said
"We expect the bank to be operational by the end of the first quarter of 2011," Bheenick said in his annual end-of-year letter to stakeholders.
No further details about the new bank were immediately available.
Islamic banking is one of the world's fastest growing financial sectors, WITH industry estimates putting annual growth at 15-20 percent

Monday, January 24, 2011

Get Amazing Furniture Plans !


Are you a woodworker ? do you want to be an Awesome woodworker ?
how does saving money on furniture sounds to you ? 

If you are like me and enthusiast , you will appreciate what i am talking about here.

Wood working is an amazing craft, it takes skill , dedication and passion to create what is simply a piece of ART.

Woodworking traces back to early ages when man needed to create spears to hunt and survive, Well we came a long way since then ! we created weapons , furniture , and utilities Using this amazing Craft .

Why not become a wood worker yourself ? or improve your skill if you were one ? check out

Sunday, January 9, 2011

Islamic Forward contracts (Bay Al Salam) Applications

The Concept of Bay al Salam is a part of the Islamic Finance "" it was permitted by the Prophet Mohammed (peace be upon him) in order to enable contracts with delivery cannot take place at once, but in the future in addition it can be also utilized as the Islamic version of Hedging.

In this Article we will discuss a simple example on how Hedging and bay al salam works.

in this example we have two farmers Mohammed and Abudullah.

We will assume three scenarios:

Codes will be (M) for Mohammed and (A) for Abdullah:

Mohammed decided to go with bay al salam to ensure that he gets a Hedge from Price fluctuation.
Abdullah decided not to Hedge. ( he is exposed to Price volatility )

(M)

Agreed upon price of Bay al salam is (110)
Scenario 1
price Rise 25%

price rise to $100 X1.25 = $125
actual profit 110 - 100 = $10
potential loss 125-110 = $15

Scenario 2
no price change = 0 gain on future

Scenario 3
Price decline by 25%
100 / 1.25 = $80 profit
110-80 = $30  profit

(A)

Scenario 1

price rise 125-100 =$ 25 as profit

Scenario 2
no price change = 0 gain on future

Scenario 3

Price decline by 25%

80 - 100 = $20  loss on future

end of example

In the example above we have demonstrated simple Future contract following the islamic Bay al Salam method , which does not permit selling the future or forward position to profit from the intangible asset.

For more info please contact me on IslamicFinancier@gmail.com and i will answer any of your concerns in the example above.

A. (Islamic Financier )

Saturday, January 8, 2011

Forward contracts and Bay Al Salam

Bay Al salam :

is the islamic version of future contracts, that been said ,both of them have their own properties that be similarities or differences.


Bay al salam

main difference between the Forward contracts and Bay al salam

full contract price is agreed upon and payed at purchase time

Similarities 

delivery in Both take place in the future.

Prohibition

Gold, silver and gems cannot be applied to those currencies backup with Gold.

the Selling should own the item that he intends to sell , and he might mortgage goods to the buyer to guarantee forfilling the contract.

Friday, January 7, 2011

Burj Khalifa : pinnacle of civilization

Burj Khalifa 

pinnacle of civilization



Burj Khalifa ( formerly known as Burj Dubai ) has evolved from a vision that has translated into reality. H.H. Shiekh Mohammed bin Rashid Al Maktoum PM , V.P of UAE and ruler of Dubai, has set a definite vision for Dubai to be a world famous destination.

With the wise vision of His highness and the hardwork of his country men and women, The dream has evolved from its cradle stage to reality.

In 2009 The Burj has claimed

Today in 2011 , visitors from all over the globe flock to Dubai to have their life time experience in Burj Khalifa, which in turn offers spectacular views of Dubai in addition to a one of a kind experience in dining and staying.



The burj has claimed the Tallest of the Supertall title as well , it is the first skyscraper to do you.

Not only is Burj Khalifa the world’s tallest building, it has also broken two other impressive records: tallest structure, previously held by the KVLY-TV mast in Blanchard, North Dakota, and tallest free-standing structure, previously held by Toronto’s CN Tower. The Chicago-based Council on Tall Buildings and Urban Habitat (CTBUH) has established 3 criteria to determine what makes a tall building tall. Burj Khalifa wins by far in all three categories.

Height to architectural top

Height is measured from the level of the lowest, significant, open-air, pedestrian entrance to the architectural top of the building. This includes spires, but does not include antennae, signage, flagpoles or other functional-technical equipment. This measurement is the most widely used and is used to define the Council on Tall Buildings and Urban Habitat rankings of the Tallest Buildings in the World.
          
Highest occupied floor

Height is measured from the level of the lowest, significant, open-air, pedestrian entrance to the highest continually occupied floor within the building. Maintenance areas are not included.
        
Height to tip

Height is measured from the level of the lowest, significant, open-air, pedestrian entrance to the highest point of the building, irrespective of material or function of the highest element. This includes antennae, flagpoles, signage and other functional-technical equipment.



The burj has an observation deck on it's 124 floor and a spectacular fine dining restaurant on it's 122 floor.

Visiting burj khalifa is a life time experience don't miss it !

Some contents from emaar's Burj Khalifa website

Citroen GT on the Streets of London (HD)

At CES: Peeking into the Future of Tablets

At CES: Peeking into the Future of Tablets

Offerings at the Consumer Electronics Show in Las Vegas signal that the tablet is the new PC

Click here to find out more!
For the last few years, the International Consumer Electronics Show, held each January in Las Vegas, has been a disappointment. In 2009 tech's most important annual gathering found itself in the icy grip of a global recession, with attendance down by 30,000. Last year the highlights included a new class of 3D televisions that are now on sale for deep discounts. Did you buy one? Apparently no one else did either.
That's the setup for this year's show, on Jan. 6-9, which is shaping up to be one of the most significant in recent memory. Many of the prevailing trends in high tech—often tidily summarized by the word "convergence"—are now mature enough to start changing the way regular people interact with technology. The HDTVs and in-car entertainment systems on display at CES will connect to the Internet; movies, music, and games will make their way to all manner of devices as the PC finally relinquishes its spot as the dominant way to access multimedia and the Web. Embodying these trends, and sure to draw most of the attention at the conference, is a torrent of new tablets from Asus, HTC, LG Electronics, Motorola (MOT), Toshiba (TOSYY), and many others—each hoping to replicate the success of Apple's (AAPL) eight-month-old iPad.
The stakes of the emerging tablet wars are huge. Apple has an early lead, with an estimated 10 million iPads sold in 2010, and is likely to keep it. But analysts believe the market is set to explode. The research firm iSuppli predicts 57 million tablets will be sold in 2011 and 171 million in 2014. "These companies aren't trying to steal away from Apple. They are betting the overall pie will expand," says Richard Doherty, research director at the Envisioneering Group, who estimates that more than 100 tablets are being introduced at CES this year.

GOOGLE'S CHALLENGE

As with smartphones, Google (GOOG) and its hardware partners, including South Korea's LG and Motorola, are in the best position to loosen Apple's grip. At CES, Google was expected to demonstrate a forthcoming version of its mobile Android operating system, called Honeycomb, customized for tablets. Microsoft (MSFT), too, was expected to preview a version of its operating system that will run across all types of devices, from phones to PCs and tablets, and is compatible with low-power, mobile-device chips called ARM processors. "Two of the most influential companies in the world are going to put a stake in the ground and say this is your personal computing platform going forward," says Jen-Hsun Huang, chief executive officer of graphics and mobile chipmaker Nvidia (NVDA).
For Microsoft, this year's CES is both an opportunity to make up for lost time and a reminder of a painful past. At CES in previous years the company has demonstrated duds such as Internet-connected watches and $12,000 multitouch tables. Last year, CEO Steve Ballmer showcased a tablet running Windows, made by Hewlett-Packard (HPQ). It went on sale in late 2010 and appealed only to a few business buyers. Windows "is still kind of heavy and optimized for devices with a physical keyboard," says Yongseok Jang, vice-president for business strategy at LG Electronics. His company plans to show an Android-powered tablet at the conference.
The new tablets will come in a variety of shapes and sizes. Some will have only Wi-Fi access, and others will also connect to speedy new 4G networks. While the iPad has no camera, many of the new tablets have two—one in the front, one in the back. Toshiba, the Japanese electronics giant, plans to announce an as-yet-unnamed tablet with a 10-in. screen, two cameras, and a removable battery. Vizio, the Irvine (Calif.) company that has seized a lead in the U.S. market for HDTVs, is unveiling an 8-in. tablet with a high-resolution screen and a front-facing camera for videoconferencing.

APPS MARKET

Both Toshiba's and Vizio's tablets will run Android, but neither company wants to be confined to selling undistinguished, me-too hardware. They also want a piece of the highly competitive market for mobile software apps. Toshiba says it will introduce its own e-book store and marketplace for tablet applications, while Vizio has created an interface to allow users to watch the same content and play the same games across multiple Vizio devices. Both companies will have a challenge getting customers to use their offerings rather than more popular and familiar ones in the apps marketplace provided by Google.
Chinese manufacturer Lenovo has a unique approach with what it calls its IdeaPad U1 Hybrid with LePad slate. It's actually two computers in one—a slick, 10.1-in. Android tablet that becomes a PC running Windows 7 when it connects to a keyboard. "We're showing that Apple does not have a corner on the market for innovation," says Peter Gaucher, Lenovo's executive director for mobile Internet devices.
Many past technology battles highlighted at CES have been bad for consumers—such as the Blu-ray vs. HDTV format wars, which left some early adopters stranded with useless devices. Competition in tablets should drive down prices, limit Apple's near-monopoly on digital content distribution, and stimulate a round of creativity among the small developers who write applications for mobile devices. At the last two CESs, what happened in Vegas pretty much stayed in Vegas. Not this year.
The bottom line: Roughly 100 tablets are being introduced at this year's CES. They're becoming a viable alternative to PCs.
With Cliff Edwards. Stone is a reporter for Bloomberg Businessweek.
Disclaimer : Article By (BloomBerg) i do not hold any copy rights on this article to check the original post click Here

Thursday, January 6, 2011

Homeless man w/golden radio voice in Columbus, OH (Update-FINAL)

Tuesday, January 4, 2011

Using Twitter To Market Your Business

Check out this SlideShare Presentation:

Monday, January 3, 2011

Australia sees Islamic finance changes in 2011


from Alarabiya.net
SYDNEY (Reuters)
Australia will outline laws in the second half of 2011 to equalize the tax treatment of Islamic finance and conventional banking, a government official said on Thursday.
The comments from Nick Sherry, Australia's assistant treasurer, mark the first time that the government has indicated a timeline for the change.
 I think in the second half of next year we will be able to outline specific legislative change  
Nick Sherry, Australia\\\\\\\'s assistant treasurer
Australia joins a growing number of non-Muslim countries, which include Hong Kong, looking to develop their Islamic finance sector by changing regulations to attract investors who can only put their money in sharia-compliant assets.
Islamic financial transactions can be costlier than conventional deals as they often involve multiple sale and purchase transactions, which create a greater tax liability.
"I think in the second half of next year we will be able to outline specific legislative change," Sherry said in an interview.
More countries have been exploring Islamic banking since the global financial crisis and Australia, which is dependent on foreign capital for its growth, is keen to become an Islamic finance centre.
Sherry said the government wanted to develop the industry as a whole, rather than specific areas such as sukuk financing or wealth management products.
"I favor as comprehensive a set of changes as possible in one-go. I don't see (it) as the government's role to target particular areas," Sherry said.
HSBC and Australia's investment bank Macquarie are among those that want to offer sharia-compliant products in Australia, he said.
Islamic finance is derived from the sharia which forbids charging interest and favors profit-sharing arrangements or structures that resemble rental agreements. These transactions are underpinned by physical assets.
Sherry, who recently met bankers and investors in the Middle East, said Islamic finance investors were interested in Australian assets such as ports and railways, property, agriculture and resources.

Al-Shorfa.com : Size of Islamic financial services to reach $4 trillion by 2020

Size of Islamic financial services to reach $4 trillion by 2020

By Hamdan Al-Muhairi in Dubai
For Al-Shorfa.com
2010-12-04
     Islamic banks are expected to grow rapidly over the next decade. [REUTERS/Jumana El-Heloueh]
Islamic banks are expected to grow rapidly over the next decade. [REUTERS/Jumana El-Heloueh]
Dr. Nasser Saidi, Chief Economist of the Dubai International Financial Centre, predicted in a company report on December 1st that in 8 to 10 years, Islamic banks would handle 40 to 50 % of the total savings of the Muslim population.
He pointed out that the size of Islamic financial services would total $4 trillion by 2020, given the population increase in the Muslim world in addition to the strong, continued need and demand to finance infrastructure and major real estate projects.
UAE gross domestic product
UAE Minister of Economy Sultan Bin Saeed al-Mansouri predicted a 3% to 3.5% rise in the gross domestic product (GDP) of the United Arab Emirates next year.
He said GDP would reach $272 billion, after dropping to $249 billion in 2009. Figures for 2008 were $254 billion, according to the Khaleej Times on November 27th.
The UAE's economic performance will likely be below other Gulf economies in 2010 given the continued refusal of banks to provide lending because of the debt restructuring for Dubai World Group, worth $23.5 billion.
Proceeds of the Hajj season
Tourism revenue from the Hajj reached $17.6 billion, according to the Saudi Ministry of Tourism in a November report. Revenues are expected to double by 2015.
The housing sector in Mecca accounted for the biggest share of revenues, followed by the accommodation sector in the holy capital and at holy sites.
Other major sources of revenue include domestic tour companies and organisations, followed by the transportation sector, the arbab al-tawaif associations and shops.
Remittances of foreign workers in Saudi Arabia
The International Migration Organisation announced Tuesday (November 30th) that Saudi Arabia ranked fourth in the world in total remittances of foreign workers, amounting to $15.2 billion or 3.7% of total global remittances in 2009, according to alwatan.com.
The organisation revealed there are 240 million international migrants worldwide who transferred $414 billion last year. The number of international migrants is expected to increase to 405 million by 2050, an increase of 68%.
The number of migrants in the Gulf Co-operation Council (GCC) countries reached 15.1 million in 2010, an increase of 2.4 million people (19%) compared with 2005.
Central Bank of Kuwait
Sheikh Salem Abdulaziz al-Sabah, governor of the Central Bank of Kuwait, said on November 26th that the central bank reserves reached $35.5 billion during October, the Kuwait Times reported. He said the total assets of domestic banks reached $145.4 billion. At the end of October the volume of assets grew at a rate of 2%.
Al-Sabah called on Arab banks to merge to enlarge their capital base and global reach. He praised Arab banks for dealing with the global economic crisis effectively while pointing out that the size of Arab banks is still small.
Central Bank of Oman
The Central Bank of Oman reported that the total value of money circulating in the Sultanate as of the end of October of 2010 amounted to $2.1 billion, compared with $1.9 billion during the same period in the year 2009
The value of increase was 6.5%, alrroya.com reported November 28th. The total amount of money circulating in the Sultanate as of the end of December 2009 amounted to $2 billion.
The bank held a session for the issuance of Omani Certificates of Deposit, bringing the total value of allotted certificates to $1.7 billion.

Businessweek : Islamic Finance Comes of Age

Islamic Finance Comes of Age

Amid rapid growth, Sharia-compliant banks are looking to expand beyond their traditional markets

From Standard & Poor's RatingsDirect

Click here to find out more!

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After more than three decades of modern Islamic finance, the industry's build-up continues at a rapid pace. Double-digit growth rates for assets compliant with Sharia—Islamic law based on the Koran—over the past decade, have naturally driven Islamic financiers to look beyond historical boundaries to explore new territories, both within and outside the Arab world.
In response to the increasing competitive pressure stemming from the entrance of new players into the market, existing Islamic banks have started to leverage their natural competitive advantages, which include customer loyalty, sensitivity to religious practices, and a stable base of cheap deposits.

POTENTIAL MARKET

Even conventional banks have moved to open Islamic branches, create Sharia-compliant subsidiaries, or undergo complete conversions to become fully Sharia compliant. The retail market, the key profit driver of banking in the Gulf, is attracted by what Islamic banking can offer.
The size of global Sharia-compliant assets is estimated today at up to $400 billion, whereas Standard & Poor's Ratings Services believes the potential market for Islamic financial services to be closer to $4 trillion, meaning that Islamic finance currently has only a 10% market share among the Muslim community globally and still has a long way to go.
Islamic banks in the Gulf have displayed, and should continue to show, strong profitability, so long as oil revenues pour into the Gulf economies, maintaining economic momentum through a powerful multiplier effect. It is important, however, that the Islamic banking industry does not become complacent.

GROWTH IN COMPLIANT NOTES

A number of issues must be tackled, among which size and concentration risks are two of the most important. And the realization of a common conceptual framework that unites the approaches of the two historical centers of Islamic banking—the Gulf and Southeast Asia—would go a long way to enabling the Islamic banking industry to expand and diversify.
The market for Sharia-compliant notes, also known as sukuks, is set to expand rapidly. Standard & Poor's currently rates more than $5 billion of the $10 billion market for listed sukuk, which is expected to grow to more than $20 billion by the end of the decade. In the Gulf, investing in sukuk has become part of mainstream asset allocation and diversification, with Islamic banks in particular seeing these instruments as an important tool in managing their assets and liabilities, and recycling liquidity.
Islamic finance is currently being expanded beyond its historical borders of the Gulf region, where it began to emerge domestically in the 1970s as a result of the oil boom. Other Arab and non-Arab Muslim countries, particularly in Asia, are increasingly attracted by the principles of Islamic finance.

NEW HORIZONS

For the first time in the industry's history, several Islamic banks headquartered in the Gulf have recently set up business operations in Malaysia, while making clear that on their radar screens are Indonesia and China—large and deep markets only a short hop away from the Malaysian platform.
New horizons are also emerging for Islamic finance within the Arab universe: Lebanon, Syria, Egypt, Turkey, and, to a lesser extent, North Africa, have been identified as potential engines for unlocking franchise value.
Beyond the natural borders of the Muslim world, the advanced markets of both Europe and the U.S. promise niche segments in which Islamic finance can profitably gain momentum, as shown by the financial community's bullish welcoming of both the Islamic Bank of Britain and its investment banking counterpart, the European Islamic Investment Bank. This is internationalization, but not yet globalization, to which some challenges remain.

BUSINESS MODEL SHAKE-UP

The current market positions of existing Islamic banks are subject to significant competitive pressure. Although "historical" Islamic financial institutions—such as Al Rajhi Bank (S&P credit rating, A), Kuwait Finance House (A-), Albaraka Banking Group (not rated), and Dubai Islamic Bank (A)—still have bright prospects within their own marketplaces, new entrants are looming.
Sharia-compliant investment banks such as Gulf Finance House (BBB-), Arcapita Bank (not rated), and Unicorn Investment Bank (not rated), are shaking the old rules of Islamic finance with more aggressive (and so far, very successful) business models.
Plus, new heavyweight contenders are making their debuts, pushed by the proactive ambitions of Gulf entrepreneurs and governments: Al Rayyan Bank, Al Masref, Boubyan Bank, and Bank Albilad are examples of institutions that could reshape the entire industry, given the relatively large size of their capital bases, by regional standards, and very focused strategies.

THE RADICAL APPROACH

Even deeply entrenched conventional financial institutions have found it relevant, if not necessary, to make inroads into the promising territory of Islamic finance, although strategic approaches vary. Some have opted for the route of opening Islamic branches (particularly in Saudi Arabia and Qatar), some for creating fully fledged Sharia-compliant subsidiaries (like Emirates Bank International (A) and Mashreqbank (BBBpi), and others) for complete conversion to Sharia compliancy.
This last alternative—taken up by Sharjah Islamic Bank (BBB), Kuwait Real Estate Bank (not rated), Emirates Islamic Bank (not rated), and Dubai Bank (not rated)—is the most radical, and has so far been the strategy of choice for smaller entities that have found themselves with their backs against the wall and faced with the alternatives of merge, specialize, or disappear. While the first option is obviously difficult, the second, specialization, is a challenging opportunity.
The Islamic identity tends to provide a bank with an immediate and true element of differentiation, which helps in building barriers to entry at a time when domestic, regional, and foreign competition in the Gulf is becoming more intense by the day.

LONG JOURNEY AHEAD

It is difficult for a conventional competitor to replicate the natural reputation an Islamic financial institution has with retail clients, who are far more sensitive to religious considerations than are corporations, which care more about service and price. This intangible but powerful asset bodes extremely well, as the key profit driver of Gulf banking today is the retail market, which displays the most attractive risk-return trade-off.
Islamic banks should not rest on their laurels, however, as they still have a long journey ahead to build stronger recognition, longer track records, and greater scale. Otherwise, they run the risk of being ghettoized amid increasingly globalized financial markets, at the expense of 30 years of progress. To keep on track, they must tackle certain issues.
Size is a serious a matter as are concentration risks. Even the largest Islamic banks remain small by international standards, and their portfolios continue to focus on a limited number of asset classes and market segments.

IMPROVEMENT WITH INTERACTION

Consolidation within the Islamic finance industry does not seem to be on the horizon, while the two historical centers of Islamic banking—the Gulf and Southeast Asia—have just started actively talking to each other. Intellectual competition and differing interpretations of the fundamental rules of Islamic finance have so far kept these two universes apart.
Greater interaction between them could eventually contribute to the emergence of a common conceptual framework for Islamic finance. This in turn could translate into improved accounting, governance, transparency, and management practices at Islamic banks—the sine qua non for their global aspirations.
Institutions such as the Accounting & Auditing Organization for Islamic Financial Institutions (AAOIFI), the Islamic Financial Services Board (IFSB), and the Islamic Development Bank (IDB; AAA/Stable/A-1+) would certainly be instrumental in achieving these goals. Ultimately, however, the marketplace itself, including all stakeholders of the Islamic banking community, should take responsibility for the sustainability of a business model that is about to come of age.
Standard & Poor's ratings analysts Anouar Hassoune and Emmanuel Volland contributed to this report

Sunday, January 2, 2011

The Islamic Finance Blog

Islamic finance education and news

interesting post, someone had to come and say it, it is the sad truth that we face everyday in some islamic banks

Saturday, January 1, 2011

Nakheel plans sukuk sale in 2011 after slump: Islamic finance




National Commercial Bank, Saudi Arabia’s largest lender and Dubai developer Nakheel are among five borrowers in the Arabian Gulf that may offer Islamic bonds next year after sales dropped 40 percent in 2010.
Companies in the region announced this quarter plans to sell as much as $3bn of sukuk, according to data compiled by Bloomberg. Five companies in the Gulf raised $4bn through Islamic bonds this year, down from the $6.7bn raised in 2009 by seven issuers, the data show.
“There is a good opportunity to take advantage of the liquidity level among Islamic investors, which has remained high due to the shortage of sukuk sales this year,” Mohammed Dawood, Dubai based director of debt capital markets at HSBC Holdings, the second biggest underwriter of sukuk this year, said in a telephone interview Nov 28.
He added: “We have a number of mandates for the first half of next year for this region and beyond.”
Arabian Gulf companies plan to tap the Islamic debt market after state owned Dubai World’s agreement with creditors to alter terms on $24.9bn of debt boosted confidence. Ernst & Young estimates assets held by Shariah compliant funds are at around $52.3bn. Global sales of sukuk slumped 31 percent this year as concern about defaults prompted investors to demand higher returns from property related issuers. Islamic debt, which pays asset returns to comply with the religion’s ban on interest, is often linked to real estate.
Islamic bonds from Gulf Cooperation Council nations returned 11.5 percent this year, according to the HSBC/NASDAQ Dubai GCC US Dollar Sukuk Index. The GCC comprises Saudi Arabia, Kuwait, the UAE, Qatar, Oman and Bahrain. Bonds in developing markets returned 12.8 percent, JPMorgan Chase & Co.’s EMBI Global Diversified Index shows.
Dubai’s government hired CIMB Investment Bank, a Kuala Lumpur based unit of CIMB Group Holdings, the world’s top sukuk arranger this year, to manage a sale of between $1bn and $1.5bn of Islamic securities in Malaysia, a person with knowledge of the plan said Nov 24. Emirates Telecommunications, the UAE’s largest telephone company, will borrow as much as $8bn by issuing Islamic and non Islamic debt, the company said Nov 11.
Managers of Islamic endowments with $105bn in assets are seeking to diversify from bank deposits, providing Shariah compliant funds with the chance to capture new business, Ashar Nazim, Manama based executive director and head of Islamic financial services for Ernst & Young, Bahrain, said Nov 9. These “largely untapped” endowments have as much as $40bn of cash parked at commercial banks, he said.
Issuers from emerging markets, including China Investment Corp and Petroleos Mexicanos, raised $665bn from bond offerings this year, according to data compiled by Bloomberg. That compares with $633bn sold in all of 2009.
“If the conventional market becomes crowded with issuers, the marginal Islamic investor base may become more significant to companies that aren’t Shariah-compliant but can still issue sukuk,” Khalid Howladar, a Dubai based senior credit officer at Moody’s Investors Service, said in an emailed response to questions on Nov 28 from London.
Investors pulled money out of emerging market bond funds in the week ended Nov 24, snapping a 25 week run of net inflows, according to data from Boston based EPFR Global released Nov 29. Ireland joined Greece in the past week in accepting European Union led bailouts and North Korea shot artillery shells at a South Korean island, killing four people and prompting retaliatory fire.
“I don’t feel like we’re going to see a huge boom of sukuk issuance,” next year, Lilian Le Falher, the Manama based head of treasury, financial institution syndication and asset management at Kuwait Finance House Bahrain said in an interview yesterday.
He added: “There are a lot of people that are keen and ready to go but there’s still a lot of nervousness in the market and you need to have the right deal.”
The average yield on sukuk sold by Gulf Cooperation Council issuers jumped 10 basis points yesterday to 5.95 percent, climbing for an eighth day, according to the HSBC/NASDAQ Dubai GCC US Dollar Sukuk Index. Yields advanced four basis points last month, the first increase since May.
The yield on Dubai’s 6.396 percent sukuk due November 2014 rose eight basis points to 6.89 percent today, data compiled by Bloomberg show. The difference in yield between Dubai’s notes and Malaysia’s 3.928 percent Islamic note due June 2015 rose eight basis points to 406.
National Commercial Bank, Saudi Arabia’s biggest lenders, plans to sell its first Islamic bond in the second quarter, Abdulrazzak Elkhraijy, executive vice president, said in an interview in Manama, Bahrain, on Nov 22.
Nakheel, the developer of palm shaped islands off Dubai’s coast, may issue a sukuk to trade creditors in the first quarter, Faisal Mikou, executive vice president at the Investment Corp of Dubai, said in Dubai on Nov 28.
QInvest, a Qatari Islamic investment bank, is in discussions with a borrower in the Gulf nation to arrange the sale of an Islamic bond in the first half of next year, Shahzad Shahbaz, chief executive officer, said Nov 28.
Paris based Credit Agricole is working on two or three sukuk from GCC countries, Simon Eedle, global head of Islamic banking at the bank, said Nov 23.
Noor Islamic Bank, a lender controlled by Dubai’s government, is working on two sukuk sales for the first quarter and may underwrite four to five Islamic debt offerings in 2011, Hussain Al Qemzi, chief executive officer, said on Nov 23 in an interview in Manama, Bahrain.
“As soon as this dust from the Irish crisis settles, the market will be very vibrant and you will see more GCC companies coming to the market,” Naeem Ishaque, senior manager of the international division at Abu Dhabi Islamic Bank, the UAE’s second biggest bank complying with Shariah banking rules, said in a telephone interview from Abu Dhabi Nov 29. “Those who didn’t tap the market in the first go will definitely come back.”

Murabaha

Banking Murabaha : mediate the bank to buy a commodity at the request of his client and then sell them on credit price is equal to the total cost of purchase plus profit known
Agreed between them.

Murabaha does not apply to deals that are of an against sharia nature
It can't be applied to gold and silver or debt and cash.

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