UK - LSE enhances its sukuk listing prowess

www.arabnews.com - The UK Treasury may have reiterated that a sovereign debut benchmark Sukuk is not currently prudent because it would not give “value-for-money” to UK taxpayers, but one UK entity of global repute that is enhancing its Islamic finance business is the London Stock Exchange (LSE). 

In January 2012, the LSE in fact attracted the listing of another two sukuk bringing the total number of sukuk which have listed on the exchange to 42 and the total money raised to over $23.75 billion.  (source)

UK - UK Treasury to rule out sukuk on 'not-value-for-money' basis

The United Kingdom is no where nearer to going to the wholesale sterling market to raise financing through a debut benchmark sovereign sukuk in 2012 than it was in January 2011 when Treasury last confirmed that it would not be “value for money” for the UK taxpayer to do so. (source)

SPAIN - EDUCATION - Madrid aims to become education hub of Europe

Islamic finance and business education has flourished over the last decade or so in line with the growth of the industry. Universities, business schools, colleges and professional bodies - both in the Muslim countries and in other countries especially Europe, Singapore and the US - have introduced courses on Islamic finance purportedly helping to meet the demand for trained human capital, the dearth of which is a major bottleneck threatening the continued growth of the industry.  (source)

FRANCE - French keen on learning from Saudi experience in Islamic banking: Envoy

JEDDAH: French academics have shown their keenness to make use of Saudi expertise and experience in Islamic banking and finance, said Saudi Ambassador to Paris, Muhammad bin Ismail Al-Asheikh.

The ambassador made this comment while holding a reception in Paris on the occasion of the launch of an academic chair titled "Financial morals and principles: Islamic banking as a model."  (source)

GERMANY - Why German blushes could have been saved by a vibrant sukuk market

Sovereign Germany might be disappointed that its recent Eurobond offering was not fully subscribed. Perhaps in hindsight, had it instead opted to issue a debut Eurosukuk for the same amount, the story might well have been different.

Sukuk issuers, whether conventional entities such as HSBC Middle East or Goldman Sachs (both of which tapped the sukuk market in 2011, or Islamic banks, agree that market conditions in the sukuk space is more favorable than in the conventional space. And this confidence and appetite for Sukuk is backed by rising demand from big institutional investors in the Middle East and Asia. (source)

UK - UK-based fund to treat sukuk as investment, not debt

MANAMA: British-based, Shariah-compliant investment firm Solum Asset Management will launch the first “investment sukuk” in the first quarter of next year, treating Islamic bonds as investment vehicles rather than debt instruments, its chief executive said.

Unlike traditional sukuk, which are akin to conventional debt products, the 200 million sterling ($310 million) Student Accommodation Investment Sukuk will use equity to provide holders with an annual yield of 4 to 6 percent, said chief executive Safdar Alam at the company’s launch in Bahrain. (source)

SPAIN - EUROPE - Saudi-Spanish Collaboration Seeks to boost Islamic finance values in Europe and beyond

Islamic finance in the European Union may be taking a back seat as the continent is gripped with a dire euro zone sovereign debt crisis which has even impacted on sovereign Germany's attractiveness as a bond investment asset class.

Similarly, London's role as a hub for Islamic finance, investment and trade - the declared ambition of the previous Labor government and the current Conservative-Liberal Democrat Coalition - is stalling because of the disappointment of the UK Treasury deciding not to raise funds in the wholesale sterling market through a debut sovereign Sukuk. Luxembourg and France have also introduced tax neutrality measures to facilitate sukuk and other Islamic financial products, but have yet to commit to issuing a debut sukuk, claiming as the UK does it is not the right timing nor at the right price. (source)

ALBANIA - FINANCE - ICD poised to boost activity with SR1 billion SME fund - Ijara / Leasing company for Albania in the pipeline

In the wake of the impact of the continuing global financial crisis, the euro zone debt crisis and the so-called Arab Spring - and their economic impact on global and regional markets including member countries of the Islamic Development Bank (IDB), the Jeddah-based Islamic Corporation for the Development of the Private Sector (ICD), the private sector funding arm of the IDB Group, is embarking on a new strategy to take its financing directly to its constituencies and to make its financing impact more on the real economy through the generation of employment and promoting growth. This includes opening regional offices; setting up two new departments at the ICD; launching more Ijara (leasing companies) in diverse markets such as Albania, Saudi Arabia and Algeria; establishing SME investment funds including a SR1 billion fund for Saudi Arabia; and establishing a mortgage finance company in Saudi Arabia in anticipation of the long-awaited mortgage law. (source)

UK - Oasis Group targets UK investors for Islamic funds

South African asset management company, the Oasis Group, a leading provider of Islamic and socially responsible investment products, is aggressively expanding its overseas operations and is set to open an office in London later this year as part of its expansion strategy. (source)

LUXEMBOURG - IFSB’s debut summit in Europe attracts widespread interest

This year’s 8th annual summit of the Islamic Financial Services Board (IFSB), scheduled to be held at the New Conference Centre Kirchberg in Luxembourg on May 10-13, is already making an impact.

The summit, hosted by the Banque Centrale de Luxembourg, is attracting particular interest from the European Union in addition to the traditional markets in the Middle East and Asia.

The summit indeed will be held for the first time in a EU country and Luxembourg is threatening to overtake the UK and France in spearheading Islamic finance in Europe. (full story)

BOSNIA - Saudi investors pledge to invest in Bosnia (IDB)

SARAJEVO: Saudi investors pledged on Wednesday to invest in Bosnia with $50 million starting capital and Turkey said that one of its banks will extend credit lines for infrastructure projects.

Officials from the Middle East and Turkey said they wanted to help development of Bosnia, a Balkan country.

The Islamic Development Bank (IDB), AlBaraka banking group and other Saudi investors have formed a joint investment company for Bosnia, said Saudi Arabia’s Saleh Kamel, the chairman of the Islamic Chamber of Commerce and Industry. (full story)