Indonesia's pious Muslims boost Islamic financ

Nurhidayati is an enterprising businesswoman. The 28-year-old has been running a garment company with her husband Endri, making clothes for the Indonesian army for the past few years.

It's a lucrative contract, but one that requires large upfront capital in order for her to expand.

But borrowing money from a commercial bank just did not sit well with her.

"I needed cash for my business and for a new house that we wanted to buy," the devout young Muslim told me at the central Jakarta branch of Islamic bank, Bank Jabar Banten Syariah, as she adjusted her bright pink headscarf.

"But I've always been taught to avoid bank interest because it is forbidden in Islam. The other good thing about Islamic banks is that no matter how small your deposit, your money won't be reduced by bank charges."

Nurhidayati and her husband are among the Indonesian Islamic finance customers that have helped this industry grow by 40% a year.

Piety

Indonesia is the world's most populous Muslim nation, with close to 90% of the 250 million population Muslim.

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The market share that Islamic banks have is only 4% of the total banking system”

Riawan AminIslamic Banking Association

Although the country is secular, Islam plays a big role in daily life. Analysts say over the last few years there has been a marked increase in the piety of Indonesian Muslims.

This has been reflected, they say, in the way people dress, how much more regularly they go to the mosque - even in the way they choose to bank.

This increased piousness has led to a demand for the services of Islamic or Sharia banks in Indonesia.

Islamic or Sharia banks are financial institutions that are consistent with the principles of Islamic or Sharia.

That means you aren't allowed to accept interest or charge fees on loans, and that you can only invest in businesses that are not considered sinful.

The practice only started in Indonesia about a decade ago and has been competing with the more traditional forms of commercial banking.

'Huge potential'

"We're very satisfied with the growth of Islamic banking in Indonesia - it is growing by 40% a year," Riawan Amin, the head of Indonesia's Islamic Banking Association told me.

There are more Muslims in Indonesia than anywhere else in the world

"But as a country that claims to be one of the biggest Muslim nations, the market share that Islamic banks have is only 4% of the total banking system," he added.

"That's still very small. The conventional banking system has been around for more than 100 years in Indonesia.

"The country is so big so you need a lot of branches to have a presence here. And up till now Islamic banks only have about 1,500 branches in the country in comparison to the tens of thousands that other banks have. But the potential here is huge."

Foreign money

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Judging from their experience we thought it made sense to structure our Islamic Sukuk bond and issue it in Malaysia”

M RusydiThe Solar Guys

Islamic banking insists on ethical investments, which is why solar power projects - considered "green investments" - can raise huge amounts of money through Islamic finance.

The Australian-based power firm, the Solar Guys, plans on building five solar-powered stations across the Indonesian archipelago.

It has already secured a memorandum of understanding with the Indonesian government and is in the process of talking to provincial governments.

The company has also raised all the money it says it needs for the project - $500m (£310m; 383m euros) - all through Islamic finance.

But the money is coming from Malaysia and the Middle East - not Indonesia.

Growth

"Malaysia has already developed their Islamic finance industry for some time now," M Rusydi, an Islamic financial consultant with the Solar Guys told me.

"They haven't just focused on the retail banking side of the business - but they've also focused on the corporate and commercial sectors, infrastructure and project development.

"Judging from their experience we thought it made sense to structure our Islamic Sukuk bond and issue it in Malaysia."

Experts say Indonesia is poised to see a huge boom in Islamic banking.

Many banks who have ventured into this industry have seen spectacular growth over the last few years.

But critics say that in order for Islamic finance to truly take off in the world's most populous Muslim nation, the government needs to do more to encourage the maturing of this industry.

http://www.bbc.co.uk/news/business-20583530

Islamic finance to surpass trillion-dollar mark in 2012: Tharman

 Islamic finance is poised to expand over the next 10 to 15 years after surpassing the trillion-dollar mark in 2012, said Minister for Finance Tharman Shanmugaratnam at the World Islamic Economic Forum in Johor Bahru, Malaysia.

Mr Tharman, who is also Singapore's Deputy Prime Minister, said that he was optimistic about the potential for the sector after it chalked up growth of about 19 per cent a year since 2006.

This has lifted total Shariah-compliant assets to nearly US$1.3 trillion in 2012.

However there is considerable scope for development since Islamic finance now forms less than 1 per cent of the global financial industry, said Mr Tharman.

Even in Muslim countries, Islamic finance constitutes less than 5 per cent of the financial sector, he added.

The minister also noted that Islamic financial institutions have mainly escaped significant damage from the global financial crisis.

"They are well-placed to grow at a time when many of the global banks, especially the European banks, are deleveraging or focusing on consolidating their balance sheets," said Mr Tharman.

He adds that Islamic finance has the potential to diversify into new growth areas such as trade and infrastructure financing in Asia and emerging markets. 

This will allow Islamic banks to reduce their exposure to the real estate sector and take advantage of the stronger growth potential of the emerging market economies.

Another factor that can boost the growth potential of Islamic finance is its focus on transparency, price certainty and its risk-sharing framework. 

Mr Tharman says Islamic finance can ride this wave of demand for simpler and more basic investments. 

Yet, he also pointed out several challenges in the industry that need to be overcome to ensure continued growth.

Among them is the need to reduce fragmentation in Islamic finance markets due to differences in accepted standards of Shariah compliance.

"This has hampered the flow of liquidity between jurisdictions and is in part why there are presently no Islamic equivalents to the international monetary and bond markets." 

The minister also touched on the need to manage capital flows in Asia and emerging market economies.

Excessive capital inflows can cause volatility, and it would be "wise to strengthen our policy toolkits in Asia, so that we can deal with unpredictable and often excessive capital flows," said Mr Tharman.

One of the policy responses is to curtail volatility in the exchange rate in the short term, he said.

Mr Tharman also pointed to macro-prudential policies such as property cooling measures to discourage speculative demand for residential properties. 

"These targeted administrative and prudential measures are not conventional macroeconomic tools. But they are likely to remain part of our policy toolkit, at least for the foreseeable future."

The finance minister has also called for greater depth in Asia's capital markets, especially the corporate bond market.

"Broader and deeper capital markets will allow investors to invest for the long term while hedging risks," Mr Tharman said.

Separately, the minister also said that Singapore and Malaysia were happy with the progress of joint ventures on both sides of the Causeway.

The two countries will continue to take steps to improve connectivity, cross-border trade facilitation, and immigration processes, he said.

Mr Tharman also met Malaysian Prime Minister Najib Razak on the sidelines of the forum.

DPM Tharman said that bilateral relations between the two countries were well and that joint developments in Malaysia's Iskandar region, for example, will enhance the complementary space between both economies.

Prime Minister Najib expressed interest in moving ahead with discussions concerning the proposed high-speed rail link between both countries and also hoped for a joint launch of projects on both sides of the Causeway next year under the Points of Agreement with Singapore.

"There will, over time, also be increasing pressures on our smaller and medium-sized businesses because of shortage of labour in Singapore and shortage of land. And increasingly, they will assess where best to base their operations, particularly those that require more labour and more land. And Malaysia is of course, a very logical hop away, very easy in terms of operational flexibility and logistics," said Mr Tharman.

http://www.channelnewsasia.com/stories/marketnews/view/1241011/1/.html

Waqaf, zakat are areas of growth in Islamic finance

Waqaf and zakat (tithe) management are among areas of growth for Malaysia as the global hub of Islamic finance, according to Fajr Capital Ltd chief executive officer Iqbal Khan.

“There are a lot of areas of growth in the Malaysian Islamic finance as the country is well positioned for this purpose and the regulations are already in place,” he told reporters after giving a public lecture on “Our Markets, Our Values — A principles-based approach to creating value in Muslim majority markets” in Kuala Lumpur yesterday. The lecture focused on the developments and key issues in the Muslim-majority markets including values which had fundamentally driven the history and development of the Islamic finance industry.

Earlier in September, Bank Mualamat Malaysia Bhd had tied up with Perbadanan Wakaf Selangor to enable its customers and the public to contribute cash to waqaf.

Kicking off the fund, Bank Muamalat had made a RM1 million contribution, while the bank employees had chipped in RM75,040 to be mainly chanelled to improve and develop health and education.

In 2010, Maybank Islamic Bank Bhd had launched Waqaf, a structured community-giving initiative that allows its customers and the public to make waqaf contributions through its payment channels.

It had then signed a memorandum of understanding with Yayasan Waqaf Malaysia. It is understood that in the latest Bank Muamalat venture, the bank also plays a role in the management of the funds.

Besides that, Iqbal added another area of growth includes the corporate social responsibility (CSR) sukuk where Malaysia can excel and become the role model economy which can create a good demonstration effect for other countries.

He said the CSR sukuk can be issued by any institution or government which have got long-term commitment budgeted for CSR causes for the next five to 10 years.

“What the CSR sukuk will do in the current climate is to create the funding for priority social sector initiatives like others. I hope Malaysia will be again the first one to issue such a sukuk,” he said.

He said previously, there was such a CSR sukuk done in the conventional format including debt for equity swaps and debt for CSR swaps including bond issuance for the purpose of vaccination on budgeted commitment of the Organisation for Economic Cooperation and Development and Bill & Melinda Gates Foundation.

Meanwhile, the Securities Commission (SC) held a public lecture in Kuala Lumpur yesterday by Iqbal, who is a recipient of the prestigious Royal Award for Islamic Finance 2012.

http://themalaysianreserve.com/main/index.php?option=com_content&view=article&id=2676&catid=36&Itemid=120

Islamic Banking and Legislation in Oman

It had been reported that studies have shown that projects play a key role in reducing the problems and minimising the risk of failure.

As it seems, the Islamic banking legislation expected within the amendments added to the Banking Act comes in this context and they have taken a bountiful share of studies and discussions as a new experience in the Sultanate.

We all followed the progress in these legislation while moving between the relevant authorities for review and discussion in transparency and clarity. This made everyone interact with the issue, banks and the public alike, in addition to allowing the establishment of two banks working in accordance with Islamic law which are Nizwa Bank and Al Izz Bank. It was allowed also to commercial banks to open ports operating accordingly.

However, what is surprising is to allow banks to move forward before the issuance of the amendments on the law that could govern the Islamic banking.

How it was allowed to Nizwa Bank, the first bank operates according to Islamic law to raise its shares for public subscription and collecting money and proceeding to complete the operational legal and procedures and other steps before the issuance of regulation that govern the dealings, because the capital cannot be moved or invested without a law that preserves investors' money.

This bank, which was officially set to start its business in the third quarter of this year, is until today left like ink on papers without any real activity.

It is true that the bank benefited in the last period to set all papers ready to start activation of the bank, but the current situation which resulted in the delay in the issuance of amendments to the Banking Act entail many consequences and according to the opinion of religious scholars that the inclusion of shares of a company that doesn’t exist at the first place is something that does not comply with the provisions of Islamic rules.

Given that the Bank Nizwa commercial enterprise like any other institutions that seek to make a profit and capital operation in the aspects allowed for this type of transaction, there is other effects resulting from the survival of the bank without the work so far, including the stock did not rise to the value expected in the stock market, and therefore reflected in the shareholders, especially small investors.

Given that the Nizwa Bank is a commercial enterprise like any other institutions that seek to make a profit and operate capital in the aspects allowed for this type of transaction, there are other effects resulting from leaving the bank not activated until today. The stock did not rise to the value expected in the stock market, and therefore this is reflected in the shareholders, especially small investors.

Because subscription in Nizwa Bank was allowed for Omanis and other investors, these problems reflect negatively on attracting foreign investment to the Sultanate as the foreign investor who subscribed to shares of Nizwa Bank, for example, is not bind to hold off and wait long months before he could evaluate his investment in the bank and get a return on this investment.

There are many local banks that have sought to allocate large investments to open ports operating according to rights on preference shares subscription and decisions remained without activation waiting for amendments, while some of them exercised this kind of banking without having this legislation which is problematic issue that requires clarification by the Central Bank.

http://www.globalislamicfinancemagazine.com/?com=news_list&nid=2749

Prominent banker says commercial and investment banking should be separated

The global banking industry which is going through a confidence shakeup of late must go back to the heart of the GlassSteagall Act and separate their commercial and investment banking entities, said prominent Islamic banker Iqbal Khan (pic).

This should be done to ensure the overall health and sustainability of the banking industry moving forward, he said.

“An ethically enhanced Glass-Steagall Act as advocated by Paul Walker and as recommended by the Vickers Report will provide the systemic resilience which is needed to bring stability to our economies,” Iqbal told journalists after his public lecture here yesterday.

The Vickers Report, also known as the Independent Commission on Banking, released in the United Kingdom last year had recommended that Britain-based banks should “ring-fence” their retail banking divisions from the investment banking entities to safeguard against the latter's perceived higher-risk financial business.

“If you look at what has happened in the western banking markets, over the last 20-25 years there have been a gradual chiselling away of the Glass-Steagall Act which was put in place after the 1920's financial crisis where commercial and investment banking were separated,” Iqbal said.

“What this did was to create huge universal banks which were doing all kinds of risk-related activity while the fundamental activity that a bank does is to be a financial intermediary. At the same time, these banks were also controlling the payment systems,” he added.

Iqbal said after his public lecture at the Securities' Commission titled “Our Markets, Our Values” that the investment banking entity would come under pressure should an economic crisis or any slowdown in the economy come about because of highly-leveraged activities that it undertook such as what happened before.

“This had an impact on the banks where their share prices and equity values came down while Tier-1 capital ratios were also impacted. Non-performing loans also went up then. As a result, taxpayer's money were used to bail out the banks in many countries,” he said.

He said the likely reason the banking industry was bailed out was because they were the controllers of the payment system.

Meanwhile, Iqbal said the Islamic banking industry should aim to widen its appeal among the masses to ensure growth of the market moving forward.

This should be done by offering competitive products, educating customers of the benefits of their products and make these known through effective marketing strategies such as advertising, Iqbal explained.

“Finally, they can pursue cause related marketing' whereby the banks can say: if you bank with us we will donate a percentage of our profits to a (honourable) cause which is on the top of the customers' mind,” he said.

http://biz.thestar.com.my/news/story.asp?file=/2012/12/4/business/12408262&sec=business

First Saudi mutual fund to be launched from Dublin

The first international mutual funds run by a Saudi Arabian manager will be launched from Dublin this month.

NCB Capital, the investment banking arm of Saudi Arabia's largest bank, will launch equity funds investing in Saudi Arabia and the wider Gulf Co-operation Council (GCC) region, the Financial Times reported. They will be run in accordance with the principles of Islamic Sharia law.

"This is a continuation of our strategy to be a sizeable player in the sharia market," Faysal Badran, chief investment officer at NCB Capital, said.

"The macroeconomic story in the GCC is quite compelling in the current slow global economic environment."

Last month, Islamic finance company Amanie Advisors announced plans to set-up an operation in Dublin.

.....

http://www.businesspost.ie/#!story/Home/News/First+Saudi+mutual+fund+to+be+launched+from+Dublin/id/19410615-5218-50bc-83f2-827308123205

QIB UK closes seventh Islamic structured note

London-based QIB UK, a subsidiary of Qatar Islamic Bank, has closed its seventh Islamic capital-protected note with plans to roll out similar products every year, its head of asset management said.

QIB UK has now raised over US$190m since it launched its "Hemaya" structured note programme in 2010, having raised US$153m through the first six tranches.

"We are looking to launch several tranches every year," Anouar Adham told Reuters by email. "The idea is to offer different vehicles to [investors with] different risk profiles to match their requirements."

The latest tranche is a three-year note linked to Islamic bank stocks from the Qatar and Saudi Arabia stock exchanges.

"As far as I know we are the first and only institution that offered a capital-protected structure note that allows the client to get exposure to Islamic banks," Adham said.

The first three tranches of the programme, which had raised a combined US$62m, have also matured, he added.

In September, QIB UK announced it would also offer a structured note based on a five-year sukuk which Qatar Islamic Bank issued in October.

http://www.arabianbusiness.com/qib-uk-closes-seventh-islamic-structured-note-481579.html

Revisiting awards in Islamic finance

Rushdi Siddiqui (PARTICIPATION FINANCE/BANKING) / 2 December 2012

‘Hollywood has its Oscars. Television has its Emmys. Broadway has its Tonys. And Advertising has its Clios... And those are just the big ones...’ Joanne Lipman.

Its well accepted awards reward individuals and institutions for innovation, invention, performance, etc., based on absolute or relative (peer) basis. The recipient often issues a Press release and the award photo-ops, especially in competitive sectors like banking, which are incorporated in marketing and public relations (PR) campaigns.

In Islamic banking, deemed to have too many conference organiser/magazine awards, award winners, categories, etc., are the public, exiting and potential customers, influenced by the recipient’s award?

The question on the jaded minds concerning awards is not:

1.   The Islamic banker of the year award? or

2.   Best Islamic banking, takaful or asset management institution? or

3.   Best ‘Islamic’ regulator?

But, ‘does the Islamic finance award recipient have a responsibility to the award category, especially high level awards, like the Royal Award for Islamic finance in Malaysia?’

Thus, much like the Pulitzer Prize (for journalists), Noble Peace Prize, or, even, the Miss Universe/World contest (probably not ideal example in this context), the recipients of such awards, typically, travel, talk, reach out to the public at large to convey the ‘values’ espoused by such honours. The interactions are meant to not only encourage the message of the Pulitzer or Noble, but also to inspire others to achieve such awards.

CSR

The follow-up question is, ‘should the high level award recipient be mandated to take time off from their ‘day job’ for, say, three (3) months, and talk, travel and reach out?’ This would be part of the corporate social responsibility of not only the person, but also the institution they represent that would sponsor the ‘tour.’

Yes, its disruption at the very top, but it’s also a smart strategy as addresses key man risk and establishes a track for potential successors. Thus, it also has corporate governance benefit as it reduces some uncertainty (on successor) for shareholders.

The tour in emerging Islamic finance markets like certain African, CIS, or even G-20/OECD countries would be like the inaugural Islamic finance conferences in these countries.

The first Islamic finance conference is almost always well received in new jurisdictions. The locals want access to practitioners and scholars they have read about; they want to ask questions that locals cannot answer; they want to discuss opportunities with outsiders, etc.

The tour would allow the executive to (1) connect with people, (2) hear their words and spread his/her own words via one on one, town halls, etc., (3) gain insights (first hand) into business development opportunities, partnerships, joint ventures, etc., and (4) provide great pictures for marketing materials and public relations with real people in real situations. For example, His Highness Shaikh Mohammad bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, is one of the few leaders from the 57 Muslim countries that is not only a key stakeholder of Islamic finance, but also a supporter of the movement before it became fashionable to support it. 

Obviously, an Islamic finance executive would not generate the same level of enthusiasm as Shaikh Mohammad visit, but they can learn from His Highness’ trips.

IF award for environment

Islamic banks need to think outside the real estate box, and address something impactful that is local. For example, the GCC has a very large carbon foot print, hence, an opportunity to be part of environment, sustainability and governance (ESG). These are the ‘positive’ screens that build bridges to the ‘conventional’ ESG communities and movement.

It’s well-known that not one dedicated Islamic bank is a signatory to the carbon, climate or equator principles. Where are their stewardship responsibilities to the planet for future generations?

The global excitement created by the announcement of the massive Mohammad bin Rashid City, compromising of culture, entrepreneurship, retail and tourism (CERT), will augur well for Islamic finance, much like Qatar winning the FIFA 2022 mandate.

The leading Islamic banks have the opportunity to ‘green finance’ all aspects of CERT of the new city, including artificial turf golf courses and parks. 

For example, turf does not huge amounts of water (especially summer), spraying of chemicals, carbon monoxide and dioxide emissions associated grass mowing, etc.

Conclusion

Conference organisers need to examine awards with not only recipient commitment to the category, but also expanding it to include pressing issues, like the environment with, say, a ‘Green Sukuk’ to build the Mohammad bin Rashid City.

The writer is Global Head of Islamic Finance & OIC Countries for Thomson Reuters. Views expressed by the author are his own and do not reflect the newspaper’s policy

http://www.khaleejtimes.com/biz/inside.asp?xfile=/data/opinionanalysis/2012/December/opinionanalysis_December1.xml&section=opinionanalysis

Dubai Islamic Bank launches SME Business Solutions

Dubai Islamic Bank (DIB) announced today the launch of SME Business Solutions, a Sharia-compliant suite of products and services specifically developed to support the growth of small and medium enterprises (SMEs), including through the provision of Business Finance up to AED 1.5 million per customer.

Launched on the eve of the 41^st anniversary of the founding of the United Arab Emirates, the introduction of SME Business Solutions reflects the bank’s unique commitment to supporting the country’s economic development and diversification.

“Small business is the growth engine of the UAE economy. In Dubai, for example, SMEs make up 95 per cent of all companies, employ 42 per cent of the workforce and contribute 40 per cent to the emirate’s GDP,” said Dr. Adnan Chilwan, Deputy Chief Executive Officer of DIB.

“Today, as we celebrate the founding of our nation,” he said, “we are proud to launch SME Business Solutions, which will help sustain our country’s growth for many years to come.”

SME Business Solutions provides small business owners with a broad range of customised solutions, ranging from the establishment of business accounts and cash management tools to trade and treasury services, as well as business credit cards.

In particular, the bank’s Business Finance solutions have been designed to meet the specific needs of SMEs, which, worldwide, frequently face challenges accessing finance. By providing high finance amounts and rapid approvals, Dubai Islamic Bank will help unlock the potential of the thousands of small and medium enterprises across the UAE.

Working with dedicated Relationship Managers, SMEs will be able to access working capital finance, capital expenditure finance, and contracting and fleet finance – supported by flexible repayment options over periods up to 48 months.

SME Business Solutions offers a range of additional products and services, such as online business services, foreign exchange, letters of credit and guarantee, and much more.

http://www.albawaba.com/business/pr/dubai-islamic-bank-sme-business-453555

Jordan to establish regional center for Islamic banking

The Jordanian government will cement the role of Islamic banking in the kingdom and establish a leading regional center for Islamic finance, especially after the rapid growth of Islamic banking in the country, due to laws that organize the work of takaful insurance and sukuk, KFH-Research said in a report recently.

The assets of the four Islamic banks operating in Jordan is $4.6 billion and forms 5 percent of total banking assets. They achieve annual growth of 13 percent and are better than traditional banks in growth of deposits and financing. This reflects high demand for transactions; especially that they offer various unique services and products.

In addition, the report mentioned that Islamic insurance companies are still performing poorly, but after receiving a nod from the government regarding the takaful insurance, the performance is expected to get better. The Jordanian government plans to issue sukuk to face the deficit in budget, after a legislation that organizes that matter received a nod. The legislation allows the trading of sukuk in Amman bourse.

Islamic finance in Jordan is still at a very early stage of development. The Islamic finance started in the country when the Banking Law 13 was endorsed in 1978 which has allowed the establishment of an Islamic bank. Since then, the first Jordanian Islamic bank, the Jordan Islamic Bank for Finance and Investment ( JIB ) was set up. Even though it was established as a member of the Saudi -based Dallah Al Baraka network of Islamic banks, 90 percent of its capital was owned by the Jordanian citizens. By 1986, it had become the sixth largest Jordanian bank in terms of total assets and had financed numerous projects. This indicates that Islamic banking was welcomed by the Jordanian citizen which subsequently led to the introduction of the second Islamic bank, the Islamic International Arab Bank, in 1998.

As at end-2011, the total assets of Jordan’s Islamic banks stood at JOD3.25 billion (USD 4.58 billion) with 13.13 percent y-o-y growth (2010: JOD2.87 billion). Currently, there are 4 Islamic banks operating in the country. In addition to the Islamic banks mentioned above, two other Islamic banks operating in Jordan are Jordan Dubai Islamic Bank which was established in 2010 and Al Rajhi Bank which set up its branch in 2011.

Presently, Jordanian Islamic banks hold approximately 4.85 percent of the country’s banking sector total assets. Based on a compound annual growth rate (CAGR) of 18.3 percent between 2009 and 2011, Islamic banking assets in Jordan are expected to grow from JOD3.25 billion as at end-2011 to approximately JOD 3.84 billion by the end-2012, accounting for more than 5.4 percent of the country’s banking sector total assets. Based on the key financial highlights, total deposits and total financing of Islamic banks in Jordan have increased by 16.35 percent y-o-y and 15.58 percent y-o-y respectively as at end-2011. This indicates that Islamic finance is gradually being accepted in Jordan. In fact, it performs better than its conventional counterpart where conventional loans and advances and deposits grew at less than 10 percent per annum.

In terms of products and services, Jordan Islamic Bank offers a wide range of financial products and services to both individuals and corporations. The services include Murabahah and Ijarah Muntahia Bithamleek as well as some investment products such as Musharakah and Mudarabah. Other well established Islamic banks the likes of Islamic international Arab Bank, Al Rajhi Bank and the Jordan Dubai Islamic Bank offer services such as home and car financing as well as Musawwamah and Murabahah.

The Jordanian Islamic capital markets remain relatively nascent. Ijarah has been the main principle for fund raising activities. In 2011, Al Rajhi Cement Co. issued the first sukuk out of Jordan which was based on ijarah principle worth $119.6 million. The country is mulling tapping the sukuk market to bridge its budget deficit with debts worth $3.7 billion maturing 2012. – SG/Agencies

http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentid=20121202144662