Words of wisdom: Goal

Goals in writting are dreams with deadlines. 

Goals that are not written down are just wishes.

People with goals succeed because they know where they're going.

Without goals, and plans to reach them, you are like a ship that has set sail with no destination.

First say to yourself what you would be; and then do what you have to do.

An archer cannot hit the bullseye if he doesn?t know where the target is.

Begin with the end in mind.

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Words of wisdom

Gratitude is the best attitude.
Honesty is the best policy.

Before you speak, listen.
Before you write, think.
Before you spend, earn.
Before you invest, investigate.
Before you criticize, wait.
Before you pray, forgive.
Before you quit, try.
Before you retire, save.
Before you die, give.

"When we seek to discover the best in others, we somehow bring out the best in ourselves."

“A true friend knows your weaknesses but shows you your strengths; feels your fears but fortifies your faith; sees your anxieties but frees your spirit; recognizes your disabilities but emphasizes your possibilities.”

“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.”

“Teaching is more than imparting knowledge, it is inspiring change.
Learning is more than absorbing facts, it is acquiring understanding.”

“The mediocre teacher tells. The good teacher explains. The superior teacher demonstrates. The great teacher inspires.”

Rise and shine,
Be nice and smile.

"‎You can't do anything about the length of your life, but you can do something about its width and depth.
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Words of wisdom: Determination

“The experienced mountain climber is not intimidated by a mountain -- he is inspired by it. The persistent winner is not discouraged by a problem -- he is challenged by it. Mountains are created to be conquered; adversities are designed to be defeated; problems are sent to be solved. It is better to master one mountain than a thousand foothills.”


Obstacles don't have to stop you. If you run into a wall, don't turn around and give up. Figure out how to climb it, go through it, or work around it.


It's never too late to realize your ambitions. Take the first step by daring to dream big dreams. Then have the confidence to take a few risks and make those dreams a reality. You'll be glad you did.

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Words of wisdom: Action

In life, lots of people know what to do, but few people actually do what they know. Knowing is not enough! You must take action.

For every failure, there's an alternative course of action. You just have to find it. When you come to a roadblock, take a detour.

Follow effective action with quiet reflection. From the quiet reflection will come even more effective action.

High achievers spot rich opportunities swiftly, make big decisions quickly and move into action immediately. Follow these principles and you can make your dreams come true.

It is easy to sit up and take notice, What is difficult is getting up and taking action.

You must take action now that will move you towards your goals. Develop a sense of urgency in your life.

A pyramid isn't built from the top down. The apex is attained only by laying strong foundation stones, one by one. The same is true of achieving a lofty objective. The crucial thing is to lay the first stone, to take the first step.

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Philanthropy in Islam

PHILANTHROPY, in simple words, signifies acts done for the welfare of mankind. Every religion has philanthropic components to it. Islam is no exception; in fact, Islamic injunctions make acts of charity obligatory.

However, for many in the West, the concept of philanthropy is not a feature that is likely to be associated with Islam. Instead of kindness, compassion, mercy, generosity and love of mankind, ordinarily westerners tend to characterise Islam by such features as violence, terrorism, intolerance, authoritarianism, oppression of women, etc. There are two reasons for this grave misconception: their ignorance of the Quran and the traditions of the Prophet (PBUH); and the irresponsible attitude of certain Muslims. In fact, Islamic texts contain numerous injunctions to perform good deeds and to serve fellow humans.

The Quran says: “But righteous is the one who… gives away wealth, out of love for Him to the near of kin and the orphans and the needy and the wayfarer and to those who ask, and to set slaves free” (2:177). “So give to the near of kin his due, and to the needy and the wayfarer. This is best for those who desire Allah’s pleasure” (30:38).

Similarly, there are various sayings of the Prophet describing the significance of philanthropy: “You shall not enter Paradise until you have faith; and you cannot attain faith until you love one another. Have compassion on those who are on earth, and He who is in heaven will have compassion on you. God will show no compassion to him who has no compassion towards all human beings.”

“Doing justice between two persons is alms; and assisting a man upon his beast, and his baggage, is alms; and pure words, for which are rewards; and answering a questioner with mildness is alms; and every step which is made towards prayer is alms; and removing that which is inconvenience to man, such as stones and thorns, is alms.”

Philanthropy, in Islam, is of two kinds: obligatory and voluntary. Obligatory philanthropy consists of zakat and zakat-ul-fitr or fitrana; whereas, voluntary philanthropy includes the institutions of sadaqa and waqf.

Zakat is the share or portion of wealth that is obligatory upon a Muslim to give to fixed categories of beneficiaries, if the value of his assets is more than a specified limit. The beneficiaries of zakat are mentioned in the Quran: “(Zakat) charity is only for the poor, and the needy, and those employed to administer it, and those whose hearts are made to incline

(to truth), and (to free) the captives, and those in debt, and in the way of Allah and for the wayfarer” (9:60). In an Islamic state, the government is responsible for the collection and administration of zakat. Zakat-ul-fitr or fitrana is the charity which every Muslim, having a certain amount of wealth, pays at the end of the month of Ramazan. Zakat-ul-fitr is

mandatory on every Muslim not only on his own behalf, but also on behalf of all the persons he is in charge of.

Sadaqa not only means charity in the form of money or food, but includes every act done for the benefit of fellow men. The Prophet said: “Every act of goodness is sadaqa”; and “there is a sadaqa due on every Muslim. If he cannot give because he has no money, let him work so he can support himself and give charity; if he is unable to work, then let him help someone

in need of his help; if he cannot do that, let him adjoin good; if he cannot do that, then he should not do evil or harm others: it will be written for him as a sadaqa.”

Waqf is the permanent dedication, by a Muslim, of any property for any purpose recognised by Islamic law as religious, pious or charitable. Waqf causes the transfer of ownership, of the thing dedicated, to God. But as God is above using or enjoying any property, its profits are reverted, devoted, or applied to the benefit of mankind.

Any property can be the subject of waqf. The validity of a waqf is determined by the possibility of everlasting benefit being derived from it by any form of dealing of which it is capable, or by converting it into something else. It is only where the subject matter is totally unfit for being turned into profitable use that its dedication fails.

The Islamic institution of waqf has a wider scope and purpose than that of a trust in the English law. The institution became so popular and important in Islamic countries that, in most of them, a special ministry was established to deal with the administration of waqf properties.

Islam lays great emphasis on supporting the destitute. The Quran and Sunnah declare in clear words that it is the responsibility of the wealthy to look after the deprived sections of society. Muslims are not only instructed to do good to fellow humans, but are also told to treat animals well and to protect the environment.

Though other religions too preach and encourage philanthropy, Islam takes a step further by making it compulsory in the form of zakat. Islam has made it the responsibility of the Islamic state to ensure that people perform this obligation. Thus, a non-payer of zakat not only incurs the displeasure of God, but can also be proceeded against by the state. In other words, philanthropy has been made a legal duty as well.

(by Syed Imad-ud-Din Asad: Dawn.Com: 25 Feb2012)

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Islamic banks need mergers to fill Western funding hole Read

LONDON: Small and medium-sized Islamic banks may need to merge if they want to become bigger regional players capable of filling the funding hole left by shrinking Western banks, the head of Islamic finance at Deutsche Bank, told Reuters.

"There are mismatch challenges," Salah Jaidah said on the sidelines of the Euromoney Islamic finance summit in London.

"Their size, their appetite for long term funding, their ability to finance at competitive pricing. I see this as a big challenge and not happening already now," he added.

Most Islamic banks in the Middle East and North African region hold less than $13 billion in assets. Conventional banks, by comparison, hold an average of $38 billion in assets, a report by Ernst and Young estimated.

In the past, said Jaidah, it was the international banks which led oil and gas development and infrastructure projects in the region because they had the balance sheet, pricing mechanisms and appetite for long term funding.

Whilst Islamic banks might not immediately be able to face the challenge, Jaidah believes that within time they will be able to reposition themselves.

"They might raise capital, might have more competitive prices and ultimately there might be some mergers between small-to-medium sized banks who want to become bigger players regionally."

The Gulf Cooperation Council area has over 100 Islamic banks, ranging from Al Rajhi Bank of Saudi Arabia with a $25 billion market cap to small unlisted lenders, a Deutsche Bank report published in November said.

Deutsche Bank selected a list of potential winners which included Al Rajhi -- the world's largest Islamic bank -- and Alinma bank in Saudia Arabia, AMMB Holdings in Malaysia and Bank Mandiri in Indonesia.

The idea of a so-called Isla

mic "mega-bank" has already been touted in the region by Bahrain-based Al Baraka banking group .

READY TO REPOSITION

Islamic finance prohibits the lending of money for interest and other activities such as speculation that violate religious principles.

Deutsche Bank, which first established a presence in the UAE in 1999, says that despite the current global economic turmoil there are still opportunities within the industry.

"With the changes taking place in MENA and our eagerness to reposition ourselves as a lead player within the industry, I expect that the portion of profit and earnings will be lucrative and will grow year after year," said Jaidah.

He sees encouraging signs from Oman, home to around 3 million Muslims, where the central bank last year reversed its secular stance on finance, allowing Islamic banks and subsidiaries to establish themselves in the country.

There might also be new geographic openings in North Africa, following the upheaval in the region and countries such as Turkey where the government plans its first-ever issue of Islamic bonds this year.

Globally, Islamic bond issuance rose to $23.3 billion last year from $13.9 billion in 2010, according to Thomson Reuters data.

On the corporate front, Deutsche Bank, which has advised on deals including Saudi Aramco Total Refining and Petrochemical Company's (SATORP) $1 billion sukuk also sees more non-Islamic corporates tapping Islamic finance.

"Now more than ever we see a growing demand from conventional corporates for sharia structures," said Jaidah.

Dubai shopping mall developer Majid Al Futtaim, which is the sole franchisee for Carrefour in the Gulf, hopes to raise between $350 million and $500 million from its debut sukuk offering.

Emirates airlines said it is looking at the Islamic finance market to fund aircraft deliveries as international banks back out of plane deals. Goldman Sachs is also planning a $2 billion sukuk.

Dana Gas has appointed Deutsche Bank to advise on its $920 million convertible sukuk, three sources told Reuters in January, in a move to address investor concern over how it will repay the Islamic bond.

Jaidah would not comment on the deal.

Deutsche Bank estimated in a report in November that Islamic finance would almost double to $1.8 trillion in assets by 2016 as stagnant conventional lending pushed companies to seek alternative financing methods. 

(Editing by David Cowell)

(TheDailyStar, 23 Feb2012)

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Islamic banking set to triumph in Oman

MUSCAT — Adnan Ahmed Yusuf, Chief Executive Officer of Al Baraka Banking Group and Chairman of the Union of Arab Banks, said that the Islamic banking in the Sultanate will spread and will achieve more than 20 per cent of the domestic banking during the next five years.

Adnan Yusuf revealed in an interview with Oman Economic the interest of ABG to enter the Islamic banking sector in the Sultanate but due to factors related to the policy of the group towards the form of ownership, Al Baraka Group is currently considering the possibility of managing a bank in the Sultanate or engaging in Islamic finance if the new banking laws permit so.

Adnan Yusuf said that the Sultanate’s late entry to the field of Islamic banking is a positive factor, as the experience of Islamic banking has reached a state of maturity and the Omani market will benefit from the experiences of other countries that preceded it in this area.

He believed that the conditions of the Arab banking sector, whether Islamic or the traditional one are in good condition as they are not conflicting with what is happening in the international markets. The European countries, despite the crisis they are currently facing, they will be able to get out of the bottleneck, although it takes time to achieve this.

“For the ABG, we are currently available in 15 countries and we have our own policy in the form of ownership. We have our own way of practicing business as it is a must that the bank that we are collaborating with carries the name of the group and that the administration is in the hands of the group and we have the majority stake in the bank’s capital,” he said.

“We have the desire to assume the management of banks, as we have extensive experience in Islamic banking. We now have 450 branches in various parts of the world in 15 countries and 10,000 employees work in these branches in a volume business of $18 billion. We have the option of managing a bank in the Sultanate, but this is not the only option we have, we have another proposals. We now await the new laws, which are about to be issued in the Sultanate after allowing to practice Islamic banking for the first time and we’ll see whether these laws will allow us to exist across the Islamic finance companies,” he said.

“In general, all the options are on the table for us and for the past six or seven years, we have made studies of the Central Bank of Oman and the views of business on the Islamic banking, therefore our relationship is very old and good in the Omani market,” he said.

“I expect the success of this activity in the Sultanate, as it is known that the Omani people are conservatives and always have the desire of having Islamic banks in the country. I think the mistakes and risks will be less as there is the necessary expertise. It can request expertise in Islamic products and can find them easily, especially as some neighbouring countries to the Sultanate such as the UAE has gained much experience in Islamic banking,” he added. Expectations points out that the rate of growth of the global economy in the current year will reach about 3.4 per cent, and this calls for a kind of optimism despite the presence of many of the negative warnings.

What the world needs now is to restore confidence in the ability of the international financial system to take corrective actions sufficient to remove the fears of investors and to stimulate consumer for spending incentives to attract the owners of cash reserves to invest in the infrastructure of the developed economies.

This will help economies in trouble and will make them work to streamline their programmes that have been developed to solve debt and budget deficits.

(OmanDailyObserver, 24 Feb2012)

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Zeti cautiously upbeat on prospects for Islamic finance industry in Malaysia

The issuing of three mega Islamic banking licenses in Malaysia; starting the implementation of the new Financial Sector Blueprint (FSBP) 2011-2020 including Islamic financial inclusion and microcredit and the internationalization of Malaysia's Islamic finance industry; and helping the International Islamic Liquidity Management Corporation (IILM) launch its first sukuk as part of an ambitious issuance program, are just some of the priorities for Bank Negara Malaysia, the central bank, and its experienced Gov. Zeti Akhtar Aziz in 2012.

Gov. Zeti is under no illusion about the challenges facing the Islamic finance industry going forward and the impact the global financial crisis and the euro zone sovereign debt crisis continues to have on the industry.

"The Islamic finance industry," explained Zeti at a recent briefing in Kuala Lumpur "was insulated from the first round of the crisis (the global financial crisis). Islamic financial institutions (IFIs) are more resilient because they are closely linked to the real economy, with in-built checks and balances such as profit-sharing and risk-sharing. As such, there are greater elements of responsible lending. As economies slow down and financial markets experience a correction, these will impact financial institutions including IFIs. That is why it is important to have capital buffers, risk management and governance practices that are sound. We are continuing to develop mechanisms, institutional arrangements and financial infrastructures such as greater liquidity management and more so that the Islamic finance industry would continue to be resilient."

On the other side of the stakeholder coin, Bank Negara considers financial inclusion, microcredit and the financing of small-and-medium-sized enterprises (SMEs) as an important agenda. "We are also focusing on financial services outreach including mobilization of deposits from the lower income groups. Microfinance and microtakaful are also part of this. Our new Financial Sector Blueprint has a whole section on new measures that we will put in place to enhance financial inclusion mostly through outreach programs but also through institutional arrangements such as agent banking. We have also gone in a very major way into financial education and literacy to raise the level starting from the schools to factory workers and housewives on how to manage your finances," she explained.

The Malaysian Islamic banking industry indeed has shown impressive and steady growth over the last decade - growing from 6 percent in 2001 to 22 percent of the banking sector at the end of 2011. The previous Financial Sector Master Plan 2000-2010) has targeted a 20 percent market share for the industry, but the new Financial Sector Blueprint is careful not to include any performance or market share targets. Instead the aim according to Zeti is consolidation of the achievements thus far and achieving the various recommendations outlined in the blueprint.

Bank Negara is also processing three applications by foreign promoters for so-called mega Islamic bank licenses which would have a minimum paid-in capital of $1 billion each.

"The applicants for the Islamic megabank licenses are still in the process of fulfilling all the necessary requirements for licensing under the Islamic Banking Act 1983. Assessments will thereafter take place which, upon satisfactory fulfillment, will be recommended for the granting of license by the minister of finance," confirmed Zeti.

Banking sources stress that there is a timeframe for these institutions to meet all the conditions and that the applications will be resolved during 2012. None of the three promoters are from the West which rules out any of the remaining major global banks which do not have an Islamic banking license in Malaysia. The investors according to the sources are from the GCC countries.

The sukuk and Islamic capital market is an important component of the Malaysian Islamic finance industry. As such, the Malaysian government keen to boost the country as a multi-currency origination center. Already Khazanah Nasional Berhad, the Malaysian sovereign wealth fund, has issued a US dollar sukuk, a Singapore dollar sukuk and a Chinese renminbi sukuk in 2010 and in 2011.

Zeti is a keen supporter of the IILM and expects the first sukuk issuance by the corporation within the next 6 months. "The IILM," she revealed, "is currently obtaining the required rating, as well as fulfillment of all other parameters for the issuance including high quality underlying assets. The first issuance, which is a pilot issuance, will be relatively small, designed to test the system and to ensure that it is functioning as intended. Subsequent issuances are expected to be larger, more regulated in the range of $2 billion to $3 billion per issue and will be in major currencies."

The corporation's sukuk program is designed to be high quality short-term liquidity instruments and therefore demand will probably be generated from other institutions and managed funds such as pension funds etc. as it is another asset class that would be attractive as a liquid instrument. "During this crisis we saw liquidity becoming an important issue. The internationalization of Islamic finance and greater cross-border transactions require effective short-term liquidity management not only in stressful conditions but also in normal times," she added.

The IILM issuances are expected to play a major role in liquidity management in the global Islamic finance industry. At least that is the ambition. In conventional finance, it is US Treasury bills that are highly traded for liquidity management. For Islamic finance, there are no sovereign short-term debt issuances or papers of that nature. But whether the IILM sukuk can effectively play the role of US Treasury Bills only time will tell.

Zeti, however, believes that the IILM, which is a collaboration between 10 central banks and two multilaterals, has come out with something concrete, which will be an important financial infrastructure for the development of Islamic finance. "Given collaboration between central banks that come from different parts of the world that also include Europe, Middle East and Asia, it has required a consensus building on all the issues. Compared to other collaborations, I believe this IILM is a great achievement," she added.

She welcomes any move by European sovereigns to enter the euro sukuk market. Several of the European countries including the UK, France and Luxembourg have introduced enabling legislation to facilitating sukuk such as tax structures. This has been a major step forward. "They are currently focused on conditions that are highly challenging, therefore it is very difficult. Of course if there were a sovereign issuance out of the euro market, we would certainly support it. I have always encouraged our sovereign issuances which has contributed depth to the market. This, despite the fact that we have many domestic sukuk issuances, and therefore liquidity in the market. We have decided that it is also important to have a number of international issuances. It certainly contributes to creating a benchmark yield curve," explained Zeti.

The euro zone sovereign debt crisis has impacted on economic growth including in Malaysia and in the rest of Asia. She predicts that "all of us will experience a moderation in growth across the board, but to a much lesser extent than ten years ago. We in Malaysia have domestic demand which is more significant in our economy. We have a stronger domestic economy. We have strength from our regional trade and investment activities. This has had a mutually reinforcing effect on our economies. We also have resilient financial sectors that are still providing credit. We also have low unemployment and have not over-leveraged."

Asked if Malaysia will take the great leap forward by adopting a Shariah-compliant monetary policy she stressed that the country has already implemented liquidity management operations whereby Shariah-compliant instruments are used to manage the liquidity in the Islamic financial system. Bank Negara issues short-term instruments to manage liquidity by absorbing or releasing the liquidity into the system.

(Arab.News, 15 Jan2012)

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Turkey's government plans its first-ever issue of Islamic bonds this year

ISTANBUL, Feb 22 (Reuters) - Turkey's government plans its first-ever issue of Islamic bonds this year, overcoming sensitivities about Islamic finance in the secular republic as it seeks to tap a rich pool of investors flush with oil money.

A sovereign sukuk issue from an economy regarded as one of the most progressive and successful in the Muslim world would signal intent on Turkey's part to play a bigger role in Islamic finance. The size of the global sukuk market is estimated at more than $100 billion.

"It will be like ringing a bell and attracting all the attention," said Murat Cetinkaya, deputy chief executive for treasury at Kuveyt Turk, an Islamic bank that has been a trend-setter for corporate sukuk issues in Turkey.

"Other issuances will follow the sovereign and Turkey will be on the agenda in this market constantly...as a frequent issuer."

Despite espousing Islamic values, Prime Minister Tayyip Erdogan's government shied away from taking the plunge with a sukuk issue during its first decade in power, out of fear of giving ammunition to critics who accuse the ruling AK Party of seeking to roll back state secularism by stealth.

"For a few billion dollars of funding there could be negative results in domestic politics," said a deputy chief executive at a leading Turkish bank, who declined to be named because of the political sensitivity of the subject.

In 2008, the Supreme Court came close to shutting down Erdogan's AK Party after ruling it was a centre of Islamist activity. But since then, the government has won the upper hand over old foes in the military and judiciary.

Few Turks question the AK Party's economic management, and having overseen a near tripling in per capita income, the party was re-elected for a third term in office last June.

Moreover, even borrowers outside the Islamic world have entered the sukuk market in the last few years, giving less reason for Turkey to hold back.

"Now the sukuk has become an instrument that even Germany and France are using," the banker said. "And in domestic politics, Erdogan is much stronger."

So there was hardly a murmur of dissent when Deputy Prime Minister Ali Babacan, who oversees the economy, announced last month that the government planned to issue a sovereign sukuk this year, using legislation already in place.

"Turkey could very easily issue a couple of billion dollars worth of sukuk. It will probably issue $500 million or $1 billion at first and see how it goes," said Osman Akyuz, secretary general of the Participation Banks' Association of Turkey.

"An issuance by the Treasury would provide depth to the instrument and it will be sold with confidence."

Royal Bank of Scotland economist Timothy Ash, a Turkey watcher, was also upbeat. "The market is potentially big - guess the sovereign could easily raise several billion."

Islamic finance bans the use of interest, so theoretically, investors in a sukuk acquire partial ownership of an asset and share in its returns rather than receiving a stream of coupon payments.

BY ANY OTHER NAME

Although the sukuk market is tiny compared to the trillions of dollars of conventional international bond issuance, sukuk have been a relatively stable source of funding during the global financial crisis because of their conservative Islamic investor base.

Because of secular sensitivities, Islamic banks are called "participation banks" in Turkey and sukuk are referred to as "participation certificates".

The country has used Islamic finance methods since the late 1980s through private financial institutions that were recognised as participation banks in 2006. There are four participation banks now operating in Turkey: Albaraka Turk , Bank Asya, Kuveyt Turk and Turkiye Finans. Kuveyt Turk, a unit of Kuwait Finance House, issued the country's first sukuk in 2010.

Last October, following legislative changes to accommodate sharia-compliant transactions, Kuveyt Turk issued another sukuk for $350 million, and the strong demand demonstrated Turkey's potential to become a major fresh source of Islamic bonds for investors keen to diversify their portfolios.

Albaraka Turk, the Turkish unit of Bahrain's Albaraka Banking Group, and Bank Asya have formulated plans for sukuk issues of as much as $500 million, but have so far held back because of weak market sentiment globally due to the European debt crisis.

Despite that, the Turkish economy's buoyancy, which produced growth of over 8 percent last year, and high yields compared to other emerging markets have increased investor appetite for Turkish assets, including sovereign debt issues.

POSSIBLE PROP FOR BRIDGE PROJECT

Ratings agency Fitch said last month that plans by sovereign borrowers outside the Middle East and other largely Islamic regions to tap the sukuk market could meet pent-up demand from Islamic institutional investors and banks to diversify their bond holdings.

That is good news for Turkey as it needs backing for huge infrastructure projects, having run into difficulties due to an international financing crunch. The government was forced to cancel a tender in January for the North Marmara Motorway Project, which involves a highway looping north of Istanbul and includes construction of a third bridge across the Bosphorus strait dividing Turkey's European and Asian sides.

In April, the government will launch a fresh tender, and some bankers see the sukuk market providing a possible solution to the financing problem.

"Turkey needs investments and the sovereign sukuk could be used for financing of some projects, especially the third Bosphorus Bridge and highway projects," said Akyuz of the Participation Banks' Association.

Not only could a sukuk be specifically designed for the project, according to Is Investment Strategist Ugur Kucuk, it would also pull in investors who want to avoid international capital market volatility.

"A sovereign sukuk issue which is indexed to revenues to one of the Bosphorus bridges, or to some highway revenues, could be both attractive for investors and for the Turkish Treasury doing its first issue," said Kucuk. (Editing by Simon Cameron-Moore and Susan Fenton)

(Reuters, 22 Feb2012)

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Russian-Led Development Bank Plans to Expand Islamic Financing

MOSCOW, 29 Rabi al-Awwal/22 Feb.(IINA)-Eurasian Development Bank, a Russian-led lender backed by six former Soviet republics, wants to expand Sharia-compliant financing, Chief Executive Officer Igor Finogenov said.

“Islamic finance is an opportunity for us to enter new credit markets,” Finogenov told reporters in Moscow recently. “We hope it will allow us to diversify our liability base.”

The bank is looking to boost lending that complies with Islam’s ban on interest after serving as mandated lead arranger for a $60 million syndicated Murabaha facility for Kazan, Russia-based AK Bars Bank in September. The Almaty-based development bank was founded by Russia and Kazakhstan in 2006 and also includes Armenia, Belarus, Kazakhstan, Kyrgyzstan and Tajikistan.

“We’re a Eurasian bank, and many of our member countries are in areas that are traditionally close to Islamic culture,” Finogenov said. That raises “the possibility of finding projects that meet the criteria required for Islamic finance.”

(IINA,  22 Feb2012)

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