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Shariah Finance

Jordan Begins Studying Mechanism to Issue Islamic Sukuk

Jordan works to speed up issuance of sukuk and implementation of Shariah-compliant Finance “to provide funds for carrying out vital and top priority projects.”

The Jordan Times
September 19, 2010
Amman, Jordan

The government is working to speed up the use of Islamic-based financing tools as it has recently formed a committee to study mechanisms of issuing sukuk, Finance Minister Mohammad Abu Hammour said Saturday. In a statement to The Jordan Times, the official said the government is serious about using Islamic sukuk to provide funds for carrying out vital and top priority projects. He indicated that a government committee was formed recently to study legislative issues for issuing sukuk.


Islamic Development Bank Plans Sukuk Offering to Raise $850m

The Islamic Development Bank, the financial arm of Wahhabi dawa’h operations, issues yet another sukuk to raise $850 million in funds.

Kaleej Times
September 18, 2010
Jeddah, Saudi Arabia

The Islamic Development Bank (IDB) based in Jeddah is gearing up for its latest sukuk offering under its Medium Term Note (MTN), or Trust Certificate Issuance Programme, which was officially increased this month from $1.5 billion to $3.5 billion.

Mohamed Tariq, senior adviser to the IDB President Ahmad Mohammed Ali, said the bank was poised to go to the international financial markets this month to raise funds in excess of $850 million in a sukuk issuance under its $3.5 billion MTN Programme.

In Kuala Lumpur Abdul Aziz Al-Hinai, vice-president, finance, IDB, confirmed that the bank plans to go to the market in the last quarter of 2010 to raise $1 billion through a sukuk issuance of 5, 7 and 10-year tenors and which would be listed on the London Stock Exchange and the Bursa Malaysia.

Another sign that the IDB is gearing up to an issuance is the reaffirmation on August 25 by international ratings agency Fitch Ratings of its ‘AAA’, the rating of the IDB Trust Service Limited’s $3.5 billion MTN Programme which benefits from a liquidity facility provided by the IDB.


Muslim Brotherhood's Family Ties to Mercy-USA

Mercy-USA is one of the biggest Islamic charities in the U.S. Iman Elkadi is its chairperson. Her late husband was a former member of the Muslim Brotherhood and her charity was implicated in the 1998 East Africa embassy bombings.

Money Jihad
September 16, 2010
Tampa, FL

Ahmed Elkadi was the head of the U.S. Muslim Brotherhood from 1984 to 1994.

As a young man, Ahmed Elkadi (also spelled Al-Qadi), studied medicine in Austria. In 1963, Ahmad married a woman named Iman in Cairo. The Chicago Tribune reported that, “Iman Elkadi’s father, Mahmoud Abu Saud, was particularly involved in the Brotherhood’s beginnings in Egypt and remains well-known in the Arab world. An accomplished economist, he is widely regarded as a pioneer in Islamic banking, which requires that interest not be charged for loans.” Ahmed’s own father was also involved in the Brotherhood.


After their marriage, the Elkadis moved to the U.S. where “He was instrumental in helping the fledgling Muslim Students Association of the United States and Canada in the 1960s. He was a founding member of the Islamic Medical Association of North America (IMA) in 1967, which later became IMANA. He was its president from 1974-1975.”


Bank Targets Japan in Asian Push

"The Malaysian bank is negotiating with institutions in Japan regarding a strategic alliance to finalise Islamic banking deals in Hong Kong, Thailand, India and Indonesia," Kuwaiti daily Al Anbaa said.

Islamic Finance Expert
September 14, 2010
Kuala Lumpur, Malaysia

The Malaysian unit of Kuwait Finance House (KFH) is having “strategic alliance” negotiations in Japan, a newspaper said yesterday.

“The Malaysian bank is negotiating with institutions in Japan regarding a strategic alliance to finalise Islamic banking deals in Hong Kong, Thailand, India and Indonesia,” Kuwaiti daily Al Anbaa said.

It said that KFH Malaysia is interested in China, particularly after making profits from investing $275 million in a real estate project last year.


Malaysia Aims to Be Islamic Finance Hub


You Web News
September 8, 2010
Kuala Lumpur, Malaysia

Malaysia, the world’s largest market for sukuk, plans to improve its legal system to become an alternative location to the U.K. for resolving international Islamic finance disputes.

The goal is to position Malaysian “laws as the law of choice for Islamic finance transactions globally,” the central bank said in a statement Aug. 30. Disputes about compliance with Shariah principles are a risk to the industry’s expansion, it said. Persian Gulf companies have traditionally based cross- border contracts on U.K. law to take advantage of the country’s developed legal system and neutrality, according to Unicorn Investment Bank BSC in Bahrain.

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