Persian Gulf government spending will help drive what may be a record year for Islamic bond sales,Fitch Ratings said, echoing HSBC Holdings Plc (HSBA) forecasts.
Sales will probably match the 2012 high, the rating company said in a note last week even amid the slowest start to issuance since 2010. Mohammed Dawood, global head of sukuk financing at HSBC, said last month that sales will rebound from a decline last year. Borrowers sold $133 million of syndicated sukuk to Jan. 19, the least since $47 million in the same period four years ago, according to data compiled by Bloomberg.
Khadijah Sahak, 59, sits in the family room of her neatly-kept townhouse in Sterling, Virginia. The Afghan news program broadcasting from her wall-mounted flat-screen television is discussing the Taliban.
This leafy Washington suburb is a long way from the refugee camp in Pakistan where Khadijah’s family says they lived after leaving Kabul in 2002.
With stock markets the world over recording huge losses over the last week and the volatility in the markets set to continue due to the euro zone sovereign debt crisis, concerns over the down grading of the US credit rating and the weak US and EU growth figures, investors are pondering which asset class to seek refuge in. Do they place safe by moving their funds into cash or commodities such as gold, or do they stay put in bonds and equities, or go for investments in “bricks and mortar” property investments?
Malaysia's Axis REIT Management Sdn Bhd has delayed the listing of the world's largest sharia-compliant real estate investment trust (REIT) by a month after the Japan earthquake damaged several buildings in the REIT's portfolio, a source with direct knowledge of the plan told Reuters. According to the source, two of the Japanese properties, valued at 1.8 billion yen ($21.8 million) included in the portfolio were badly affected by the quake, and have now been removed from the REIT's initial asset composition.
American Finance House Lariba and Guidance Residential LLC have become the biggest providers of Islamic financial services to the 7 million Muslims in the U.S., a market Citigroup Inc. and HSBC Holdings Plc aren’t developing.
Home loans that comply with the religion’s ban on interest rose to about $2.5 billion last year, from $2 billion in 2006, Yahia Abdul-Rahman, founder of Lariba in Pasadena, California, said in an interview this month. Reston, Virginia-based Guidance had provided more than $2 billion as of October, according to an e-mail from the company on Oct. 6.
Islamic banks should diversify into areas such as asset management after real estate industry investments caused them greater losses during the credit crisis than conventional banks, according to McKinsey & Co Inc.
One third of the assets of Islamic banks in Qatar are “directly exposed in some way to real estate” compared with 15 percent for other banks, Amer Afiouni, Islamic finance associate principal at the consulting firm, said in Singapore.
Islamic finance will likely outpace mainstream banks and top one trillion dollars in total assets this year as demand for ethical investments increase, officials said Monday.
But Islamic financial institutions must guard against straying from the basic tenets of Sharia law if they are to avoid the excesses that led to the global economic crisis, an industry conference was told.
Judging by the number of deals closed, funds launched and the presence of new institutions, 2010 is turning out to be a very active year for the Islamic finance market in Saudi Arabia.
What is the "elevator" pitch of Islamic finance to the non-Muslim and the sceptical Muslim? Why do news releases often become articles in Islamic finance?