GERMANY - Albaraka Turk enters Iraq - plans for Germany, Albania, Kosovo and Bosnia in the medium term

www.hurriyetdailynews.com - Albaraka Türk has become the first Turkish participation bank to open a branch in the city of Arbil in northern Iraq. The bank also plans to branch out to Qatar, Bahrain and Dubai in the near term and Europe, specifically Germany, Albania, Bosnia and Kosovo, in the medium term. “We are in Iraq to increase the presence of Turkish firms in the region, to support the development of the region and to modernize the Middle East,” Albaraka Türk’s general manager, Fahrettin Yahşi, told daily Hürriyet. Yahşi said Arbil was the most developed region in Iraq and on the brink of a re-birth, adding that Albaraka Türk was there to help the city reach its target of becoming a future Dubai. (source)

FRANCE - Al Baraka to launch 100 mln euro bank in France by H1 2012

JEDDAH, Saudi Arabia, Aug 11 (Reuters) - Bahraini Islamic lender Al Baraka will expand to France next year and expects to launch a bank with a capital of 100 million euros ($142 million) by the first half of 2012, the bank's top official told Reuters.

Al Baraka had announced in 2009 its plan to launch operations in France but had to postpone it due to the financial crisis. (source)

UK - FRANCE - LUXEMBOURG - Fragile sukuk market clamors for sovereign issuances

The talk is big, but are potential sukuk originators walking the walk? Depending on who you speak to, the picture is mixed, marked on the other hand by the "irrational" exuberance and ambition of potential issuers, many of whom do not get near to an offering, and on the other hand those who are skeptical and indifferent based on an erroneous belief that sukuk origination is always more expensive than conventional bonds and is further complicated by the Shariah compliance requirement.

The real potential probably lies in between where issuers genuinely see sukuk as an attractive and competitive alternative way of raising funds and therefore a tool to diversify sources of funding. They would however go to the market only when the timing and the pricing is right. Such an issuance in question is the proposed issuance which is expected to be closed this week. (full story - arab news)

BANKING - Albaraka Turk Seeks Partnerships in Albania, Bosnia, Star Says

Albaraka Turk Katilim Bankasi AS, an Islamic bank based in Turkey, is in talks with two banks to set up strategic partnerships in Albania and Bosnia-Herzegovina, Star newspaper reported, citing Albaraka Turk Chairman Fahrettin Yahsi.(full story)

TURKEY - KATLM "Participation Index" for the IMKB/ISE Istanbul Stock Exchange

 As from Jan 6, 2011 a new "Participation  Index" (KATLM) will be listed on the IMKB/ISE Istanbul Stock Exchange, sponsored by the 4 Turkish Participation Banks (Albaraka Turk, Bank Asya, Kuveyt Turk and Turkiye Finans) and managed by BMD Bizim Menkul Degerler.

There is an industry screening and financial screening (max 30 % interest bearing debt - max 30 % cash and interest bearing receivables - max 5 % non permissible income model) that is further narrowed down to the 30 biggest companies listed (details HERE).

Unfortunately, the index apparently only targets the interests of Turkish investors, since the website uniquely caters for a Turkish speaking audience.

To give you an idea of the initial industry spread, see hereunder: