BANKING - DIB Shari’a compliant solutions in banking (presence in Turkey confirmed)

pakistantoday.com - In an exclusive interview with Profit, Junaid Ahmed, President & CEO Dubai Islamic Bank Pakistan Limited discussed the prospects of finding shari’a compliant solutions in the banking industry.

DIBPL’s five years in Pakistan

While giving a brief introduction he said Dubai Islamic Bank Pakistan Limited (DIBPL) commenced its operations in Pakistan in 2006. The Bank currently enjoys a short-term credit rating of A-1 and long-term credit rating of Single A. ‘We are proud to be one of the fastest-growing banking networks of Pakistan currently standing at 70 branches in 27 cities. We have plans for further expansion of our network to 75 by the end of year 2011,’ he said.  (source)

ARTICLES - Forbidden fruit: Turkey’s tempting Islamic banking sector

IFN.COM - Cover Story - 29-Aug-2011 - Volume8.Issue34

Forbidden fruit: Turkey’s tempting Islamic banking sector economic powerhouse

Turkey has been one of the few economic success stories emerging from the recession, with the highest economic growth rate in the world (11%) in Q1 2011. Despite a dip in 2008 with GDP contracting 14.6%, the economy rapidly returned to growth and GDP grew by 8% in 2010 with a 5% expansion predicted for 2011. Turkish banks were largely unaffected by the global financial crisis, with limited exposure to toxic securities and high retail deposit levels providing a liquidity buffer. The regulator maintains firm control with a focus on preventing excessive credit growth and a ban on foreign currency retail lending, meaning that banks have experienced little funding stress.  Fitch Ratings recently changed Turkey’s ‘BB+’ sovereign rating outlook from stable to positive suggesting that a future upgrade could be on the cards, which will only enhance Turkey’s attractiveness to foreign investors. (source)

SUKUK - PRIVATE EQUITY - Dubai Private Equity Invests in Europe With First Sukuk: Islamic Finance

Millennium Private Equity Ltd., a Dubai government-linked investment company with about $5 billion in capital, plans to use Islamic financing for venture capital in Europe after buying the first corporate sukuk in the U.K.

Millennium, part-owned by Dubai Islamic Bank PJSC, the United Arab Emirates’ largest Shariah-compliant bank, bought $10 million of four-year convertible notes in July that were sold by International Innovative Technologies Ltd., a clean energy company in Gateshead.

“We are looking at transactions in Europe and other areas,” Vally Khamisani, a director at Millennium said in an interview in Dubai yesterday. “They can tap into capital which is focused on Shariah principles. The structures can fly well here.”