Qatar Islamic Bank eyes $1.04bn through wealth fund

by Daliah Merzaban

Qatar Islamic Bank has decided to issue new shares worth 3.8 billion riyals ($1.04 billion) to the Gulf state's sovereign wealth fund, a newspaper reported on Wednesday 2008.

Qatar Islamic Bank (QIB) signifies the beginning of a new era of development and growth at the Bank, while still adhering to the fundamental principles, values and directions stipulated by the teachings of Islam, upon which the Bank was founded as a Qatari shareholding company 25 years ago.

The new identity reflects the Bank’s present focus to sustain its position as a pioneering international Islamic banking organisation. It also signifies the Bank’s commitment to expand its presence in the international markets such as Europe, Asia, Middle East and North Africa and at the same time continue to effectively contribute to the development of the national economy.

The new logo symbolizes the Bank’s aspirations for international expansion and its dedication to remain transparent and credible. This stems from its vision to be a pioneering international Islamic bank; its mission to provide innovative Islamic financial solutions and its values of integrity, transparency, justice, cooperation, teamwork, loyalty, commitment and excellence.

Qatar Islamic shareholders approved a proposal to issue about 39.38 million new shares at their Oct. 12 closing price of 97 riyals to the Qatar Investment Authority, Gulf Times reported after a shareholder meeting.

In October, the QIA launched a $5.3 billion plan to buy stakes in listed banks to shore up investor confidence in the banking sector during the global financial crisis, which triggered a regional stock market rout.
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The QIA capital increase amounts to 20 percent, Gulf Times said.

Banks including Commercial Bank of Qatar and Doha Bank have announced similar plans as they strive to keep project financing on track in Qatar, the world's biggest exporter of liquefied natural gas.

Source : Reuters

Dream fulfilled helps Muslims realize theirs (2)

George Bailey's lesson

Abdul-Rahman, an imam — or Muslim scholar — likens himself to the small-town banker with a good heart played by actor Jimmy Stewart in It's a Wonderful Life. He screens an edited version of the movie for new employees and often retells the hallowed Hollywood tale of how townsfolk who invested small savings together created a better life for all.

Since Lariba's founding in 1987, in a room with a broken window over Abdul-Rahman's garage, the state-regulated finance company has underwritten more than $200 million in automobile, business and mortgage loans. It originated nearly half that total in 2003, the most recent year for which Federal Reserve data are available.

In turn, secondary-mortgage marketers Fannie Mae and Freddie Mac purchase the mortgages from Lariba for their portfolios, recycling cash back into the business.

Last year, Abdul-Rahman took the helm of a small national bank, the Bank of Whittier, with $26 million in assets, as a vehicle to expand into 49 states. Clients who require more funds or more competitive terms than Lariba can provide are referred to the bank. Competitors:

• Guidance Financial Group in Reston, Va., a sharia-compliant mortgage finance company founded by French-Syrian economist Mohamad Hammour. It is building a nationwide retail presence, supported by funding from secondary-mortgage marketer Freddie Mac.

Guidance Senior Vice President Rehan Dawer likens the swift development of Muslim mortgage products in this country to the advent of bottled water: initially expensive, eventually indispensable.

• Devon Bank in Chicago, a Jewish family-owned bank, launched Muslim real estate and business-loan products in January 2003 in one of the country's most diverse neighborhoods. It joined a handful of traditional financial institutions, including HSBC in New York and University Bank in Michigan, in exploring the Muslim market.

Bank attorney David Loundy, a son of Devon's founder, says he solicited approvals from federal banking regulators and the Sharia Supervisory Board of America for the bank's Muslim mortgages, which now account for half of its small but fast-growing mortgage portfolio. He also developed savings accounts that replace interest income with profit sharing. The deposit accounts await Securities and Exchange Commission approval.

• Several Muslim-Americans, including principals of Samad Group in Kettering, Ohio, and Shape Financial in Falls Church, Va., are developing other sharia-compliant financial products.

Abdul-Rahman, the son of a former Egyptian undersecretary of education, came to the USA as a chemical engineering graduate student at the University of Wisconsin in February 1968. He had $17 in his pocket and no scholarship. With a job as a teaching assistant, he earned master's and Ph.D. degrees.

He was destined for good fortune. Upon graduation, Abdul-Rahman joined oil company Atlantic Richfield, later Arco, in Texas, and earned several patents for his work extracting oil from shale.

Best Islamic Bank in the Middle East : Dubai Islamic Bank (Euromoney)

Dubai Islamic Bank has the unique distinction of being the world’s first fully-fledged Islamic bank, a pioneering institution that has combined the best of traditional Islamic values with the technology and innovation that characterise the best of modern banking. Since its formation in 1975, Dubai Islamic Bank has established itself as the undisputed leader in its field, setting the standards for others to follow as the trend towards Islamic banking gathers momentum in the Arab world and internationally.

Since its formation in 1975 as the world’s first full-service Islamic bank, DIB has established itself as the undisputed leader in its field, setting the standards for others to follow as the trend towards Islamic banking gathers momentum in the Arab world and internationally.
Today, Islamic banking is increasingly recognised as a fairer alternative to traditional commercial banking and is consequently attracting many non-Islamic customers – motivated by the system’s inherent commitment to transparency and ethical values.
That’s why Islamic banking now one of the world’s fastest-growing economic sectors, comprising close on 200 institutions responsible for assets estimated at more than $200 billion.

And Dubai Islamic Bank still leads the way, remaining true to its roots as a customer-centred organisation where close personal service and understanding form the basis of all its relationships. Tradition and heritage join with a commitment to flexibility, innovation and modernity, so that customers of every nature are provided with comprehensive solutions to all their financial needs

Whether you are already a customer, or looking for a bank that’s refreshingly different, you will discover why Dubai Islamic Bank is always the first choice for discerning clients who are seeking quality, service, and value for money. Use this website take advantage of our ‘Al Islami On-line Banking’ facility to manage all your finances. You can save time, money, and effort by using Al Islami to handle all your banking requirements quickly and efficiently. Just click the links to register or to log-on.

Islamic banking and finance is now one of the world’s fastest-growing economic sectors that comprise more than 400 institutions with assets under management in excess of US$ 1 trillion (US$1,000 billion).

In this context, the role of Dubai Islamic Bank is even more impressive. Yet, the bank remains true to its roots as a customer-centered organisation where close personal service and understanding form the basis of all its relationships. Tradition and heritage join with a commitment to flexibility, innovation and modernity, so that customers of every nature are provided with comprehensive solutions to all their financial needs.

DIB Awards

* Dubai, June 22, 2008:Dubai Islamic Bank named ‘Best Islamic Bank at Banker Middle East Awards
* Dubai, May 13, 2008:Dubai Islamic Bank named world’s Best Islamic Retail Bank by Global Finance
* Dubai, April 30, 2008:Dubai Islamic Bank awarded “Superbrand” status
* Dubai, February 27, 2008: DIB named UAE’s best Islamic bank
* Dubai, February 3, 2008: Dubai Islamic Bank wins Best Islamic Credit Card Product Award
* Dubai, January 28, 2008: Dubai Islamic Bank receives Best Islamic Bank Award and Best Call Centre Award
* Dubai, December 12, 2007: DIB wins Best Islamic Bank and Best Islamic Wealth Management Firm Awards
* Dubai, October 6, 2007: Dubai Islamic Bank wins Real Estate “Best Investment Management” Bank Award
* Dubai, September 12, 2007: Dubai Islamic Bank wins Middle East e-Banking Award
* Dubai, May 19, 2007: Dubai Islamic Bank wins best Islamic Bank Award from Banker Middle East
* Dubai, March 13, 2007: Dubai Islamic Bank wins Dubai Human Development Award
* Dubai, March 5, 2007: H.H. Dr. Sheikh Sultan Al Qassimi presents Emiratisation award to Dubai Islamic Bank CEO
* Dubai, February 3, 2007: Dubai Islamic Bank wins Euromoney “Best Islamic Bank in the Middle East” award
* Dubai, January 3, 2007: DIB named Best Islamic Finance House in UAE
* Dubai, December 5, 2006: Dubai Islamic Bank wins “Bank of the Year - UAE” Award
* Dubai, June 8, 2006: DIB wins Euromoney’s Best Debt House Award in the UAE
* Dubai, May 17, 2006: Dubai Islamic Bank wins Best Islamic Bank and Product Innovation awards from Banker ME Magazine
* Dubai, March 26, 2006: Dubai Islamic Bank wins Golden Trophy in UAE Web Awards Ceremony
* Dubai, March 21, 2006: Dubai Islamic Bank wins two Sheikh Mohammed Bin Rashid Al Maktoum Islamic Finance Awards
* Dubai, March 5, 2006: DIB awarded top HR award for banking sector
* Dubai, February 13, 2006: Dubai Islamic Bank wins Best Islamic Bank in Middle East at Gulf Wealth Forum
* Dubai, January 27, 2006: Dubai Islamic Bank wins Euromoney’s Best Islamic Bank in Middle East and Best Global Sukuk House Awards
* Dubai, November 27, 2005: GCC Labour and Social Affairs Ministers Council awards Dubai Islamic Bank
* Dubai, August 26, 2005: Dubai Islamic Bank wins Best Consumer Internet Bank Award by Global Finance
* Dubai, June 2, 2005: Dubai Islamic Bank receives JPMorgan Chase 2004 Elite Quality Recognition Award
* Dubai, May 18, 2005: DIB rated one of the top three banks in the Middle East
* Dubai, March 8, 2005: DIB wins top HR award for banking sector
* Dubai, November 1, 2004: UAE ranked top as DIB rated world’s No1 Islamic finance Deals lead manager
* Dubai: July 28, 2004: Dubai Islamic Bank wins J. P. Morgan Chase Quality Recognition Award

New Sharia products in Asia sought

The booming Islamic finance industry has yet to rub off on wealthy Asians who say there are far too few Sharia products to invest in, the private banking arm of Malaysia's second largest lender said yesterday.
Sharia investing is a key pillar in the Middle East and has caught the interest of non-traditional centres such as London and Singapore, but rich Asians are still cool on it.
Asia is a big potential market for the $1 trillion Islamic finance sector, with the Asia-Pacific home to 28 per cent of the world's high-net-worth-individuals, who are defined as those with investible assets of more than $1 million.
Even in Malaysia, which has the world's largest Sharia bond market, wealthy individuals have limited interest in Islamic assets.
"The appetite is still quite small because they continue to nibble," said CIMB Private Banking co-head Carolyn Leng.
The bank says it is Malaysia's top private banking firm with assets of 4.4 billion ringgit ($1.23bn). The bank expects to increase this to about 7bn ringgit by 2010, Leng said.
"Offering of Islamic products are not that great here, what you have is probably what the market (outside) has as well. Product innovation is key, we need to be a lot more creative."
Structured products and Islamic bonds are the main sharia products that wealthy Malaysians put their money into, Leng said.
In contrast to Asia, Middle East investors have a wider choice of Islamic offerings as banks tap their global resources to structure innovative products, Leng said.
"There are a lot of derivatives-based kind of products. The way they structure some options into their products is interesting because it's done in such a way that it's a profit-sharing method," she said.
Islamic banking products can be bought and sold by all investors, regardless of individual religious belief, and is premised on the notion of ethical investing.
Islamic banks have been barely bruised by the global financial crisis, although falling property and commodity prices and slowing economies are starting to affect the sector.
Source : Gulf Daily News

Best International Islamic Bank : HSBC Amanah (Euromoney)

HSBC Amanah is the global Islamic banking division of the HSBC Group, and was established in 1998 with the aim of making HSBC the leading provider of Islamic banking worldwide. With more than a hundred professionals serving the Middle East, Asia Pacific, Europe and the Americas, HSBC Amanah represents the largest Islamic banking team of any international bank.
HSBC has a rich tradition of community banking, and HSBC Amanah was established to serve the particular financial needs of Muslim communities. Our mission statement and corporate values reflect this vision.
The HSBC Amanah mission statement:
HSBC Amanah is committed to improving the lives of our customers worldwide by providing them with the highest quality Islamic banking solutions.

HSBC Amanah´s corporate values:
In developing our products and services, we are committed to the highest Shariah standards in the Islamic banking industry. We constantly strive to address the needs and concerns of our customers. Our teamwork with HSBC colleagues around the world harnesses the knowledge and resources of HSBC Group for the benefit of our customers. We are an organisation that demands and rewards excellence. We maintain high ethical standards in our business relationships and invest in the future of our communities.
HSBC Amanah considers Shariah compliance of its business operations as its most important & strategic priority. This is reflected in its Corporate Values, "In developing our products and services, we are committed to the highest Shariah standards in the Islamic banking industry." In addition to Global Shariah Advisory Board and Regional Shariah Committees, HSBC Amanah employs a team of qualified professionals to ensure that the guidance and advice received from the Shariah Committees is implemented in letter and spirit.
HSBC Amanah Global Shariah Advisory Board
The Global Shariah Advisory Board (GSAB) advises HSBC Amanah on research activities intended for further development of the Islamic finance industry. GSAB comprises of representative scholars from all Regional Shariah Committees (RSC) of HSBC Amanah in addition to other Shariah scholars of international standing. The presence of renowned scholars from various geographies at GSAB will provide an opportunity to achieve further harmonization of Shariah standards and practices of Islamic Finance Industry. The following independent Shariah scholars are currently members of GSAB.
Sheikh Justice (Retd.) Muhammad Taqi Usmani (Pakistan, Sheikh Hussain Hamid Hassan (Egypt), Dr. Muhammad Achmad Sahal Mahfudh (Indonesia), Dr. Mohammed Daud Bakar (Malaysia), Sheikh Dr. Mohamed Ali Elgari (Saudi Arabia), Sheikh Nizam Yaquby (Bahrain),and Dr. Mohammad Akram Laldin (Malaysia)
HSBC Amanah operations are closely supervised by four Regional Shariah Committees (RSCs) in addition to a Central Shariah Committee (CSC). The CSC supervises HSBC Amanah businesses as well as operations in UAE, Qatar, UK, USA and Bangladesh. The CSC comprises of following well-known scholars: Sheikh Nizam Yaquby, Sheikh Dr. Mohamed Ali Elgari and Sheikh Dr. Muhammad Imran Ashraf Usmani.

HSBC Amanah operations in Saudi Arabia, Malaysia, Indonesia and Singapore are supervised by following independent RSCs.
HSBC Amanah has won the Euromoney 2005 awards for Best Islamic Wholesale Bank and Best for Private Banking Services.
HSBC Amanah has won the following awards:
Euromoney awards : Best International Provider of Islamic Financial Services (2004), Best International Sukuk House (2004), Best Islamic Wholesale Bank (2005), Best for Private Banking Services (2005).
Award-winning transactions : Emirates ECA-backed financing 2001, (Euromoney, Jane´s Transport Finance, Institutional Investor, Airfinance Journal), Government of Malaysia Global Sukuk - 2002,(Euromoney, Institutional Investor, Asiamoney, FinanceAsia), Emirates IV, with Islamic Development Bank - 2003 and (Jane´s Transport Finance)

Obama Favored in Key Muslim Countries

Gallup Polls conducted in May-August 2008 in six predominantly Muslim countries show that public interest in who wins the U.S. presidential election ranges from comparatively high in Saudi Arabia and Lebanon to very low in Pakistan. Those who do express a preference tend to prefer Democratic candidate Barack Obama to Republican candidate John McCain by margins of at least 2-to-1.
Attributable to the historic nature of the 2008 U.S. presidential race and presumed foreign policy differences between Obama and McCain, the conventional wisdom is that the race has generated unprecedented levels of interest worldwide. Yet only in Saudi Arabia and Lebanon do majorities of those Gallup polled voice a preference for a presidential candidate. In Saudi Arabia, more than two-thirds of those polled do so, with 50% preferring Obama versus 19% for McCain. This is similar to Lebanon, where 45% favor Obama versus 18% for McCain.
Fewer than half of Palestinians and Kuwaitis voice a preference for Obama or McCain, however, as do just 30% of Turks. In each of these countries, the margin of preference for Obama among those who do state a preference is about 3-to-1. Among Palestinians, where 33% favor Obama compared to 11% for McCain, the bulk of those who offer an opinion live in the West Bank and East Jerusalem, with few Gaza residents stating a preference.
Interestingly, the 10% of Pakistanis who express an opinion about the election are evenly split in their preferences between Obama and McCain. Pakistanis' disinterest is noteworthy considering the high-profile nature of Pakistan's relationship with the United States.

The Obama Factor
In each of the six countries surveyed a majority of those who do say the winner of the U.S. presidential election makes a difference to their country favor Obama. There is little evidence that people in the Muslim world view Obama in the context of his father's religious origins in Kenya, as the Arab media only typically mention this connection when there has been a stir about it in the U.S. media. For the most part, the Arab media simply portray Obama as an American.

Perceived Relevance of U.S. Election
Across the six Muslim countries surveyed, the percentage of respondents who say the outcome of the election makes a difference to their country ranges from a high of 42% in Lebanon to a low of 10 % in Pakistan.
Though country variations can't be pinned to a single factor, the presence of U.S. troops in Iraq and other Muslim countries -- as well as the possibility of an impending conflict with Iran -- make the perceived lack of relevance across all six countries somewhat surprising. However, among the majorities who say either the outcome of the election does not make a difference to their country or did not express an opinion on the issue, the default reaction may be to simply expect foreign policy as usual -- whichever candidate is elected, reported by Jihad Fakhreddine

Survey Methods
Results based on face-to-face interviews with 1,150 Saudis, aged 15 and older, conducted in May 2008; 1,000 Lebanese, aged 15 and older, conducted in May 2008; 804 Pakistanis, aged 15 and older, conducted in June 2008; 1,004 Turks, aged 15 and older, conducted in July 2008; 1,000 Palestinians, aged 15 and older, conducted in August 2008; and 484 Kuwaiti nationals, aged 15 and older, conducted in June 2008, For results based on the total sample of national adults in each survey, one can say with 95% confidence that the maximum margin of sampling error is ±5 percentage points. In addition to sampling error, question wording and practical difficulties in conducting surveys can introduce error or bias into the findings of public opinion polls.

The first sharia bank in Kuwait

Kuwait Finance House (KFH) was established in the State of Kuwait in 1977, as the first bank operating in accordance with the Islamic Shari'a. KFH is listed in Kuwait Stock Exchange (KSE), with a market capitalization of KD 3.133 billion as of 31 December 2006. Assets total KD 6.314 billion and deposits amount to KD 3.730 billion, representing 25% of the total deposits in the Kuwaiti market as per the balance sheet of 2006.

KFH has been highly rated by prestigious international agencies. Standard & Poor's rated KFH A-/A2 for short and long term investments, respectively. Capital Intelligence rated KFH A/A1 for short and long term investments, respectively. Fitch International also rated KFH A, and Moody's rating was Aa3. KFH has been awarded by The Banker magazine as the world's Best Islamic Financial Institution, and for third successive year it has been awarded by EuroMoney magazine as the best bank.

KFH provides a wide range of Islamic Shari'a compliant products and services, covering banking, real estate, trade finance, investment portfolios, and other products and services.

Since the 1980's, KFH has witnessed multi-activity in international expansion. It has established independent banks in Turkey, Bahrain, and Malaysia. Moreover, it has stakes in other Islamic banks. Its investment activities in the US, Europe, South East Asia and the Middle East contributed tremendously to achieving the ever-growing profit of KFH, in collaboration with the world's leading companies and banks, such as Citibank, Deutsche Bank JP Morgan, Chase, BNP Parisbas, ABN Amro, HSBC, and Islamic Development Bank (IDB).

KFH has always endeavored to expand its local branch network, covering 42 branches, in addition to special sections for ladies. It adopts the out-of-branch client concept. KFH has maintained its foothold as a pioneering entity in utilizing the latest technologies to meet the requirements of the various activities in which it operates, using online, SMS, as well as phone service (Allo Baitak), which has received the highest accreditation from the US Purdue University for outstanding customer service level.

KFH is proud of its manpower skills. It employs a number of outstanding human resources, and is a pioneer in manpower Kuwaitization, where Kuwaiti manpower exceeded 52%.

Islamic Banking: Opportunity or Threat?

According Rodney Wilson, director of postgraduate studies at Durham University's Institute for Middle Eastern and Islamic Studies, Islamic banking, which implies the avoidance of interest, has become a substantial industry during the last four decades. One obvious question is whether its emergence further segregates Muslims from Western values and norms, creating a financial ghetto. An alternative view is that as increasing numbers of people in the West are dissatisfied or skeptical about the banking services they receive, and see them as exploitative or even unethical, the emergence of Islamic banking with its own distinctive morality results in Islam projecting a much more positive face.

Many Western bankers view Islamic finance as a curiosity, and perhaps even a business opportunity, but seldom as a threat comparable to that from Muslim extremism. Indeed, Islamic banking and finance can be regarded as a gentler aspect of Islam, and one that lends itself to dialogue between Westerners and Muslims.

Islamic retail financial institutions, including the Islamic Bank of Britain, the European Islamic Investment Bank, and Lariba Bank in California, are now well-established in a number of Western countries. Furthermore, the leading international banks, including Citibank, HSBC Amanah, Deutsche Bank and UBS of Switzerland, all offer Islamic deposits and Shari'a-compliant financing facilities.

There has been much dialogue between the Western bankers working in these institutions and the Shari'a scholars who advise what is, and what is not, permissible. This dialogue extends to insurance, where Islamic takaful companies have become increasingly active, their distinguishing feature being that they do not hold conventional interest-yielding bonds, and that shareholder funds and premiums paid by policy holders cannot be co-mingled, which could result in the former exploiting the latter's misfortune.
As Shari'a is about universal, divinely inspired principles rather than national laws, leading international law firms have also become involved in Islamic banking and finance, as contracts need to be drafted under English or American law in a way that is consistent with Shari'a. Indeed, the main job of the Shari'a committee members who serve on the boards of Islamic banks and conventional banks offering Islamic products is to ensure that new contracts are compatible with Shari'a principles and, if they are not, to pursue a dialogue with the lawyers concerning amendments and redrafting.

The aspiration of many Islamists is to have divinely inspired Shari'a replacing man-made laws, perhaps even the establishment of a universal caliphate under which everyone, Muslim and non-Muslim, should live. Not surprisingly, such an aspiration is unacceptable for most non-Muslims, and indeed for many Muslims, as it denies choice.

Islamic banking and finance can point to the way forward: it is about extending choice, not restricting options. As each institution has its own Shari'a board, Shari'a compliance is effectively privatized, rather than being a matter of national law. Indeed, each Shari'a board passes its own fatwas, or religious rulings, which further extends choice in the marketplace for religious ideas. Religion, of course, flourishes under competitive conditions and Islam is no exception, whereas when it is nationalized, its adherents soon become alienated.

The Islamic Republic of Iran can be regarded as an example of how not to encourage the development of Islamic banking and finance. There, all banking has been Shari'a - compliant since the Law on Interest Free Banking was passed in 1983. Bank clients have therefore no choice but to use the Shari'a system. The banks, however are state-owned and have little autonomy, even in determining what deposit and financing products to offer. They also do not have Shari'a committees, the argument being that this is unnecessary as the law ensures Shari'a compliance in any case.

The result has been that banking development has been slow, there is little financial innovation, and most Iranians do not have bank accounts. In contrast, on the Arab side of the Gulf and in Malaysia, where Islamic and conventional banks compete, Islamic banks have attractive products on offer and a growing client base. Al Rajhi Bank of Saudi Arabia has become the world's largest Islamic retail bank, and its range of services and delivery channels compares favorably with the best that Western banks can offer.
Islamic banking is here to stay, it is an opportunity rather than a threat, and it has an exciting future. Gaps remain-there is no Islamic bank in Israel, for example, to serve its Muslim population. But if the Central Bank of Israel licensed such an entity it could create much goodwill. It might also encourage the Jewish population living there to question whether the operations of their own banks are compatible with religious teaching in Leviticus and Deuteronomy.

Ultimately Islamic banking and finance is about the emergence of a distinctively Islamic form of capitalism that may co-exist and interact with Western, Chinese, Russian or any other capitalism. Such a development should be welcomed and facilitated, and not hindered or suppressed.