RUSSIA - Indonesia shares experience in Islamic banking

The training of economists and bankers from Russia on various aspects of Islamic banking began on June 13, 2011, in Jakarta, in the Islamic bank Bank Muamalat Indonesia (BMI).

On the first day of the training, BMI Head of International Relations department, Mr. Farouk Alvini, welcomed the Russian delegation and informed them of the recent performance of the bank. Particularly, he noted that BMI is the second largest Islamic bank in Indonesia with the asset growth of 30% per year. (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)