Japan will Publish Islamic Sukuk in Malaysia

Dream Japan to be able to publish Moslem law obligation or of sukuk form will during near by. international Defrayal institute of state, Japan Bank of for International Cooperation ( JBIC), ascertaining plan publish October sukuk come Malaysia. Interest of Japan to publish sukuk triggered by country ambition of sakura that draw invesment fund hundreds of million dollar of natural Mid-East state of excess of likuiditas effect of world oil increase of price. His plan, the JBIC sukuk will be supported by asset underlying in the form of various commercialized product Stock Metal of London or of London Metal Exchange (LME). That thing is submitted by Departmental Director-General of Defrayal of Energi and Natural Resources of JBIC, Tadashi Maeda as news situs dilansir of bloomberg.

Two-And-A-Half rupiah and ACE dollar According to Maeda, as early stage, the JBIC sukuk planned to publish in Malaysia. Besides, the sukuk of berdenominasi in currency mill for the price of 200 till 300 million ACE dollar. '' We wish to see more mint of money oils emiting a stream of to step into Asian market and Malaysia is best located to publish sukuk,'' he said. Maeda mention, to support publication of sukuk, Japan will found new company. The company will undertake to manage fund of sukuk which netted. In his realization, Japan will rent a[n financial institution to study founding process. '' Pricing of sukuk will be determined performa of Japan product contract in LME,'' he said. Every year commerce of plastic and metal LME estimated to reach more than 4,5 ACE dollar triliun. The Commerce also cover copper, aluminium, and nickel. Maeda mention, JBIC also berencana publish sukuk in other denominasi. In consequence, publication of sukuk hereinafter, used denominasi will in the form of ACE dollar. '' Besides, publication also will be done in Mid-East,'' he said. Pursuant to data of kompilasi Bloomberg, up to now assess publication of tired sukuk 16,3 ACE dollar milliard in world. The amount is compositions [about/around] 89 percentage of totalizing publication of sukuk last year, namely 18,3 ACE dollar milliard. In this time Malaysia is state with value publication of biggest sukuk in world. State populate around 27 million, about 60 % are Moslem. Up to now, Malaysia popularitas as state of[is developer of Moslem law finance progressively mount South-East Asia region.

Even, State Bank of Malaysia ( Middle BNM) intensively invite various company world to publish sukuk in neighbour country. Monday, ( 30 / 7), then Deputi Governor of BNM, Dato Mohammad Razif Abdul Kadi come pay a visiting to Indonesia to invite local company publish sukuk state. His reason, publication of sukuk state enough cheap and quickly. Besides, interesting effort various the state to publish sukuk in Malaysia is effort of BNM support realization make Malaysia as monetary center world Moslem law. News Situs of Australian.Net, Tuesday, ( 31 / 7) mentioning company of biggest sekuritas both in Japan, Daiwa, expressing the plan of to register invesment product of exchange-traded fund Asian FTSE-SGX of Shariah100 Index. The Product in line with Moslem law principle and based on a number of shares company of Japan. Besides, the product expected can net Moslem law invesment fund about 100 till 118 million dollar of AS.NILAI publication of tired sukuk 16,3 ACE dollar milliard in world. The amount is compositions around 89 percentage of totalizing publication of sukuk last year, namely 18,3 ACE dollar milliard. In this time Malaysia is state with value publication of biggest sukuk in world. State populate around 27 million, around 60 % are Moslem. Up to now, Malaysia popularitas as state of[is developer of Moslem law finance progressively mount in South-East Asia region.

Islamic Sukuk Indonesia Can Defeat Malaysia

Indonesia estimated can defeat Malaysia in the case of publication of global sukuk of state. Mentioned laid open by Senior Vice of President HSBC Trust, Mahmoud Abushamma. According to Mahmoud, even Malaysia predominate value publication of world sukuk, but that state only owning one global sukuk of state.

Single global sukuk of state of Malaysia that is published at July 2002 with value 600 million ACE dollar. Whereas, global sukuk of tired Indonesia projection state one ACE dollar milliard. '' This Year, if Indonesia become to publish sukuk one ACE dollar milliard, Malaysia will fail,'' say Mahmoud.

Besides, Mahmoud also tell, Indonesia have big Potency become monetary hub of South-East Asia Moslem law at 2012. According to him, Indonesia have various supporter potency which do not have other state in South-East Asia namely mount highest growth in South-East Asia. Besides, word of Mahmoud, Indonesia also have many valuable infrastructure projects hundreds of ACE dollar milliard.

In a few years forwards, according to him, Indonesia require fund equal to 150 ACE dollar milliard to defray the project of infrastructure. If requirement of the fund fulfilled to through defrayal of Moslem law, hence Indonesia can become one of the important state in keungan of world Moslem law. That thing also able to push growth of monetary industry and banking of local Moslem law.

Mahmoud mention, accomplishment of requirement of infrastructure fund through defrayal of possible Moslem law of terealisasi. The mentioned have been supported the ratifying of Law Marketable Securities Moslem law State ( SBSN) becoming the basis publication of valuable state sukuk of billion rupiahs.

Potency Indonesia defeat Malaysian sukuk also isn't it Director of Batasa Tazkia, Heriyakto S Hartomo. According to him, opportunity of Indonesia become monetary hub of Moslem law in South-East Asia at 2012 big enough is true. .'' I predict projection that Indonesia become monetary hub of Moslem law at 2012 well founded,'' he said.

He tells, virtual Mid-East investor have wish to enter to have invesment in Indonesia. More than anything else with condition in this time where middle them experience of fund overlikuditas effect of the going up of world oil price. But, for no interesting Moslem law invesment instrument him like sukuk, they decide to delay invesment. '' Finally they park the fund of is in Malaysia to step into Indonesia '' say Heriyakto.

How to set sukuk free

Demand for islamic sukuk has been strong in recent years. The boom in oil prices has delivered a cash windfall for Middle Eastern investors at a time when they are becoming more meticulous in applying religious principles to their investments. Since its birth in 2002, the sukuk market has grown remarkably. Standard & Poor's recently estimated that the global market is worth over $80 billion.

The sukuk market is expected to continue to grow, as more businesses seek to tap the liquid petrodollars and the demand for shariah -compliant products. From an investor's perspective, sukuk are emerging as a notable asset class. In addition, non-Muslims who already own conventional bonds may see the acquisition of sukuk as introducing a new asset class into their investment strategy, one that brings diversity to their portfolio. In the past, most sukuk issues have been oversubscribed, showing the high demand from investors. But even though the market is developing rapidly, it faces several impediments. Most of these are interlinked, and timely initiatives would overcome them.

Illiquid secondary markets

Even though sukuk are listed on stock exchanges in the Middle East, south-east Asia and Europe, the secondary market for sukuk remains illiquid because no diverse investor pool or developed regulatory framework exists. This makes the market less attractive to new investors. But market observers are optimistic, and predict that the situation could soon change. In London, a number of companies have recently opened Islamic banking and finance brokerage desks. In the Gulf Cooperation Council (GCC), Liquidity Management Centre, Sukuk Exchange Centre (Tadawul) and SHUAA Capital have taken initiatives to provide secondary liquidity. If these entities succeed in enhancing the liquidity of sukuk, others may follow suit. Such developments would aid the growth of the secondary market.

Critical mass

A further hindrance to the expansion of the sukuk market is the lack of sufficient primary issues. Although market growth has been large, the market is still in its early stages. Until recently, sukuk issuances did not constitute a critical mass, and a strong secondary market for sukuk did not emerge. Specialists estimate that this critical mass is about $400 billion worth of issuance, amounting to some 270 individual deals globally. As a result, sukuk have become buy-and-hold instruments: investors hold on to them until maturity.

Ratings

Another potential impediment to the growth of the sukuk market is that a large number are not rated by the major ratings agencies. When compared with a conventional debt structure, the sukuk structure is complex, and the rating process is expensive and time-consuming. Although sukuk have tangible assets at their core, they do not govern credit performance. The credit risk is tied solely to the general creditworthiness of the sukuk issuer. Ratings agencies treat sukuk in the same manner as they do conventional bonds, where the only material risk is the credit risk of the borrower. Hence, the sukuk receive the same ratings as conventional unsecured bonds issued by the same entity.

Lack of standardisation

The absence of a uniform and universally accepted code of shariah principles contributes to the low trading level in the sukuk market. It makes it difficult for investors to know which Islamic principles are applied to the sukuk they invest in and it increases the costs of sukuk issuance. The lack of standardisation has also led to some sukuk not being accepted in every jurisdiction because shariah boards in different jurisdictions may have different interpretations of what is shariah -compliant. As a result, investors may be reluctant to buy sukuk issued out of a foreign jurisdiction. This reluctance has contributed to the lack of international convergence of the sukuk market. The formation of the International Islamic Financial Services Board (IFSB) and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), and the recent initiatives of the International Capital Market Association (ICMA) and the International Islamic Financial Market (IIFM) to develop and establish standardised practices for the sukuk industry, are steps in the right direction.

Regulation

The legal, regulatory and tax environments in different jurisdictions pose another challenge to the growth of the sukuk market. Uncertainty and ambiguity remain about shariah principles, the governing law of the jurisdictions where the sukuk are issued, and the laws chosen by the parties to govern the transaction documents (usually English law or New York law). Investors may have tax concerns, depending on whether the sukuk transaction is categorised as a loan, an equity investment or an asset sale. Legislators may ask questions about the characterisation of the income. And the potential withholding taxes further complicate the situation. The transfer of the underlying assets in a sukuk can trigger double taxation in many jurisdictions; and sukuk may not be placed in the same category as a conventional bond. Rental pre-payments relating to a sukuk structure are not tax deductible in many jurisdictions, in the way that conventional interest payments are.

The US

Issuance and demand for sukuk is burgeoning worldwide, but the US, the largest economy in the world, remains an exception. There has been only one sukuk issuance in the US so far and none since mid-2006. In the US, the Islamic finance market in general is still in its infancy and the sukuk market is virtually non-existent. Potential investors are plentiful. But a lack of awareness of shariah -compliant products and their availability, coupled with an absence of trained Islamic scholars and lawyers, preventing the development of the Islamic finance market. For sukuk to become a global phenomenon, it must permeate the US. Perhaps now is the perfect time - it could offer a solution to the recent US credit crunch.

By Neeta Thakur, associate in the New York office of Clifford Chance LLP

Time for the sukuk to seize its chance

With traditional debt markets still in disarray, it's theoretically a good time for sukuks to foster issuance outside the Middle East and Asia.

Issuance of sukuk or Islamic bonds is growing impressively. In 2007, the market was twice its 2006 size. At about $6 billion each, the two largest sukuks of 2007 were almost twice the size of the biggest deal of 2006, which at the time was the largest Islamic bond ever. The sukuk market has increased more than tenfold since the beginning of the decade.

However, sukuk issuance has overwhelmingly been restricted to two hubs of the Islamic finance market: Malaysia and the six countries of the Gulf Cooperation Council. None of the 50 biggest sukuks of 2007 came from outside these two zones.

Participants in the Islamic finance market are excited about the prospect of the UK Treasury issuing a sukuk in 2008. They hope it will provide a flagship for others to follow. With such markets as central Asia, Pakistan and India also turning to Islamic finance more and more, they say the industry is becoming truly global.

The UK will not be the first developed-market issuer to raise money through a sukuk. In 2004, the German state of Saxony-Anhalt issued a sukuk worth [Euro]100 million ($123 million). Yet those who were expecting the deal to kick off a string of developed-market Islamic activity were disappointed. Since 2004, sukuk issuance from north America, Japan, and western Europe has essentially been restricted to a $165 million deal by US gas company East Cameron in 2006 (although the Malaysian subsidiaries of various G7 corporations have also issued).

Raising money using Shariah-compliant instruments is difficult for some western issuers because many investors are often relatively unfamiliar with the prospective borrower, and used to higher, emerging-market yields. Also, sukuks are fundamentally different to standard bonds, requiring unfamiliar and sometimes more complicated and time-consuming documentation.

Saxony-Anhalt was perhaps a little ahead of its time.

But as the credit crisis increases conventional market pricing, more western issuers might be convinced of the advantages of giving Islamic investors a chance. US oil and gas company Harvest is already considering issuing a sukuk. The Japan Bank for International Cooperation has signed a memorandum of understanding with the Malaysian central bank on Islamic finance.

Yet even if the credit crisis does result in a higher proportion of Islamic issuance, there is still the chance that G7 sukuks could dry up if and when the west's lending enthusiasm returns. Sukuks might then have to wait for another, more severe credit drought to become a more established competitor.

Increasingly prominent disagreement over standards of Shariah compliance is generating scepticism even in the core countries of Islamic finance.

This is happening at a bad time. If these disagreements compromise the industry's chances of exploiting the credit crisis, Islamic finance will remain confined to the Gulf and south Asia.

Government Of Indonesia Publish Islamic Sukuk On 2008

Government target can publish Moslem law obligation (sukuk) start 2008 after the ratifying of Lawconcerning Marketable Securities Moslem Law State ( SBSN). "

Governmental is true have targeted next year have started to publish sukuk," Director-General word ( Dirjen) Management Of Debt Treasury Department, Rahmat Waluyanto, in Jakarta, Tuesday.

He confesss, plan publication of sukuk at 2008 have never been studied peculiarly with DPR, but government have submitted BILL concerning SBSN in the early of 2007.

Governmental itch and DPR immediately publish sukuk, according to Blessing, will push DPR as soon as him finish solution of BILL of SBSN. " There is desire of DPR to isn't it this BILL as soon as possible, I is next year optimism we have published sukuk," he said.

Though other nations have published sukuk, according to him, Indonesia needn't worry that sukuk to be published [there] no his investor.

" Investor interest or not isn't it depended how our sukuk, how imbal result of him," he/she said. If Indonesia sukuk give result imbal which better than which published by other state, according to him, hence investor will change over to Indonesia sukuk. " If imbal result of our sukuk more either from which published by Malaysia, Pakistan, they will discharge that and buy Indonesia sukuk," he said.

He hopes solution of BILL of SBSN [in] complete DPR immediately, so that can follow with publication of that invesment instrument. " Yesterday isn't it DPR have done' hearing' with a few institute, like Indonesia Bank, perpetrator of market, Council Moslem Law National Ceremony Moslem scholar Indonesia, and other," he said add.

Largest sukuk ever

In December 2006, Dubai's Nakheel Development Ltd issued the largest sukuk to date. The $3.52 billion sukuk was listed on the Dubai International Financial Exchange and is the largest sukuk ever issued. The money raised will be applied towards a capital injection into Nakheel PJSC, the company responsible for landmark developments such as The Palm, Jumeirah, and The World.

Nakheel is a subsidiary of Dubai World, a holding company that manages and supervises the portfolio of businesses and projects for the Government of Dubai. Other companies that Dubai World holds are Istithmar PJSC, an alternative investment house, and Limitless LLC, a real estate development entity.

The sukuk was structured as a sukuk al-ijara. An ijara is a lease agreement under the Shariah and is a hybrid between an operational lease and a financing/capital lease.

The issuer used the proceeds of the sukuk issue to purchase a long-term leasehold interest in part of the land at Dubai Waterfront from an entity within the Nakheel group. The issuer then leased the land under the ijara to another Nakheel entity, with the rentals being used to make coupon payments to the sukuk holders. Dubai World has guaranteed the payment obligations due to the issuer.

Under Shariah, the obligations to insure and carry out maintenance of the land remain with the lessor and cannot be passed to the lessee under the ijara. However, the issuer appoints the lessee in a different capacity as its contractor to be responsible for such matters under a separate arrangement, passing the risk back to the Nakheel entity.

Upon redemption of the sukuk, the issuer has the right to require the lessee to purchase its long-term leasehold interest in the Dubai Waterfront land. The purchase amount payable is calculated in a manner that will be enough to allow the issuer to pay all amounts due to the sukuk holders upon redemption.

Robin Abraham and Shani Long

Best sukuk deal: Maybank tier 2 capital

Islamic Finance Awards

Maybank president and CEO Datuk Amirsham Aziz: first to raise subordinated bank capital in a islamic sukuk

Size isn't everything. This is certainly the case for the winning islamic sukuk deal, at only $300 million. Malaysia's Maybank became the first bank to raise subordinated bank capital in the form of a islamic sukuk. AseamBankers, HSBC Amanah and UBS led the deal for the Malaysian borrower, which was eventually priced as the tightest deal ever from an issuer in the southeast Asian nation, and the second-tightest subordinated debt deal from Asia, ex-Japan.

Maybank decided to undertake this form of transaction in order to diversify its investor base and allow Islamic investors to participate. The offering received an overwhelming response from international investors -- both Islamic and conventional -- that generated a solid, eight times oversubscribed order book of $2.4 billion. The deal was placed with 72 investors, with an average ticket size of $4.4 million despite 55 investors placing orders of more than $50 million. High demand drove the deal to price two basis points tighter than the guidance price of 35bp.

Despite this, some bankers quibbled that some points were still left on the table when the deal shot through the 30bp barrier only days after it was priced. But Public Bank's 10-year deal, which is an obvious comparable, was priced at Libor plus 37bp. This comparison reinforced the claim that Maybank's islamic sukuk was competitively priced.

About 64% of the paper went to investors in Asia, 13% to the Middle East and 23% to Europe. Commercial banks accounted for 60% of the deal, asset managers took 28%, and 9% went to institutional investors. Private banks bought the remaining 3%.

Metrodata will publish Islamic Sukuk Ijarah.

PT Metrodata Electronics Tbk will publish Sukuk Ijarah with maximum value of Milliard Rp100 with duration during five year for akuisisi 100% share of Solitius Asian of Pte. Ltd and working capital.

Solitus Asia is company which active in SAP Consultancy and other software program consultancy. this Islamic Sukuk Ijarah Metrodata get peringkat of A3Id, outlook stable or equivalent of minus A single of PT Moody’S Indonesia.

Price offer of sukuk equal to 100%. this Obligation Moslem law is targeted to get permit of Bapepam-Lk at mid of this June. Record-Keeping in Effect Exchange Indonesia planned at July 2008. PT Pledge of Artha Advisindo Sekuritas act as guarantor of his emission.

“ We choose Islamic Sukuk Ijarah because the market of still very notable. Besides, us business system which generally leasing with big company, ad for using Sukuk Ijarah,” clear of Corporate Secretary PT Metrodata Electronics Tbk Susanto Djaja, public presentation moment, this noon.

From monetary performance side, copartnership till 31 March 2008 booking growth of sale 40,21% from Rp466 milliard quarterly I / 2007 mounting to become Rp653 milliard, quarterly I / 2008.

Encore Management S.A. Assigns Michael Gassner Consultancy Ltd as Marketing, PR and Sales Strategy Advisor for the 1st GCC Open-ended Sukuk Fund

Michael Gassner Consultancy Ltd. has been retained as the Marketing, Public Relation and Sales Strategy Advisor for the first GCC open-ended Sukuk fund, Sanad Sukuk Fund, by Encore Management S.A., the fund’s sponsor.

Michael Saleh Gassner, Managing Director of Michael Gassner Consultancy Ltd., comments on the assignment, “For too long Muslims could not achieve a proper diversified investment strategy, income was associated with illiquidity, and proper goal-based asset allocation could not be achieved. This has now changed”, Gassner concludes, “We will do our best to explain and communicate this important development to the Islamic finance industry.”

The Sanad Sukuk Fund will be launched before year end and targets both individual and institutional investors. The fund seeks to partner with retail banks—in particular those dedicated to serving Muslim customers—as well as other investing institutions.

Encore Management S.A., Geneva, is setting up the fund management company as wholly owned subsidiary in the Cayman Islands. John A. Sandwick, CEO of Encore Management S.A., says about the assignment: “We wanted to have a substitute for bond investments for our own Saudi clients, as none was available. The decision was taken to create the vehicle we needed ourselves. With Michael Gassner we found the right support to communicate our product to the Islamic finance industry.”

An important effect of the fund’s launch will be the impact on Sukuk market activity. In all of 2005 there were only about $60 million in GCC-style Sukuk secondary market trades, a tiny fraction of the estimated $15 billion of Sukuk that were outstanding at the end of last year. With the introduction of the Sanad Sukuk Fund—targeted to reach at least in the $100 million or more in size—secondary market trading should substantially increase. Economists the world over point out that increased market trading and liquidity of all securities is a core component of economic development, fostering increased issuance of securities and thereby contributing to economic growth.

Note to Editors:
Sukuk , the plural of the Arabic word Sakk, means “certificate” or sometimes “credit note.” It is also the root for the English word “cheque.” Sukuk replace interest income with rent or profits; they are therefore the alternative for Muslims seeking a stable income complying with their faith. Sukuk finance real economic activities and, depending on the underlying structure, they are tradable at market value from the Islamic perspective. Secondary market trading is still weak in the GCC region, as Sukuk are relatively new. Significant new Sukuk issuance has only recently increased, while near-term expected new issuance is expected to increase dramatically. Japan, China and Indonesia are among many market entrants expected to enter the Sukuk market in 2007, while at least 100 or more companies based in the Arab world are believed to be readying new Sukuk issues.

* Sanad is the Islamic Income Fund for the GCC investor seeking stable returns with liquidity
* Sanad closes a major gap for all Muslim investors by allowing them to finally own a diversified, managed pool of sharia-approved sukuk, equivalent to a bond fund in conventional investing
* Investments are undertaken in sharia compliant Sukuk and Islamic debt syndications predominantly in the GCC countries—which adds liquidity to the Sukuk sector and promotes economic growth in all Muslim countries, but particularly in the GCC region

New Book 'Financial Risk Management for Islamic Banking and Finance' Successfully Launched by IRIS Integrated Risk Management ag

IRIS integrated risk management ag (www.irisunified.com) consulting collaborators Drs. Ioannis Akkizidis and Sunil Kumar Khandelwal co-author "Financial Risk Management for Islamic Banking and Finance".

The book, published by the British academic specialist Palgrave Macmillan, covers all risk management issues for all Islamic financial products and services, including Mushãrakah, Mudãrabah, Murãbaha, Salam, Ijãrah and Istisnã, considering all of their unique characteristics according to the Shariah principles. In addition, the authors discuss the Islamic Financial Services Board's principles of risk management and Basel II.

Because of its comprehensive approach "Financial Risk Management for Islamic Banking and Finance" not only constitutes an excellent introduction to the complexity of Islamic finance products but also proves to be essential for the expert looking for an in-depth analysis on how to identify and manage risks in Islamic Finance.

"Financial Risk Management for Islamic Banking and Finance" was out of stock within the first week of publication.

The book can be purchased online at Palgrave Macmillan (http://www.palgrave.com/products/title.aspx?PID=280638).

About the authors

Dr. Ioannis Akkizidis is a Risk Management Consultant and Analyst at financial analysis solutions specialist in IRIS integrated risk management ag. He is also the author of the bestseller book "Integrating Market, Credit and Operational Risk: A Complete Guide for Bankers & Risk Professionals" (Riskbooks, 2006) and of the "Guide to Optimal Operational Risk and Basel II" (Auerbach Publications, 2005).

Dr. Sunil Kumar Khandelwal, Head of Risk Management Middle East, IRIS integrated risk management ag is specialized in Basel II, Operational Risk and Islamic Finance. He is a regular contributor of relevant expert publications in the fields of risk management and Islamic banking.

About IRIS

IRIS integrated risk management ag (http://www.irisunified.com), formed in 1992 in Zurich, has its headquarters in Switzerland. It continuously develops, maintains and supports its riskpro? financial analysis infrastructure out of Switzerland since 1997. Delivery, implementation and consulting are executed worldwide directly by IRIS AG and indirectly in cooperation with a number of local partners.

Mark Mortimore Appointed as Executive Director to the World's First GCC-oriented Sukuk Fund

Mark Mortimore is appointed as Executive Director to the world’s first GCC-oriented Islamic Sukuk fund, Sanad Sukuk Fund, announced Encore Fund Management Co. Ltd, a wholly owned subsidiary of Encore Management S.A., Geneva.

He will be responsible for managing the Islamic bond fund in accordance with its investment and Sharia compliance criteria. Mr. Mortimore has a professional track record that encompasses senior management positions with Barclays Bank, Manufacturers Hanover Bank, GE Capital, Riyad Bank, United Bank of Kuwait and Arab Banking Corporation. He is an expert in structuring asset-backed finance transactions and has worked for 25 years in the banking markets of North America, Europe and the GCC region. His Middle East banking experience began in 1993 when he was based in Riyadh, Saudi Arabia, where he worked as a senior corporate banking officer. Mr. Mortimore now has specialised in Islamic Finance for ten years and has extensive experience in Islamic fund management and structuring Ijarah, Sukuk and Murabaha transactions.

The Managing Director of Encore Management S.A. , John A. Sandwick, commented on the assignment: “We are extremely pleased to appoint Mark Mortimore for this key position. He has a wealth of experience and substantial network across the industry, and with him we are going on a fast path to establish the much needed world`s first GCC-open ended Islamic Sukuk fund.”

Mark Mortimore has successfully executed a number of ground-breaking Islamic asset financings including the world’s first Sharia-compliant Ijarah agreement on a large fleet of inter-modal shipping containers; the first combined Islamic Sukuk and conventional financing structure for a single shipping asset; and the first major Murabaha installment sale contract on heavy equipment for use by a significant construction company in north Africa.

John A. Sandwick, concludes, “Mark’s extensive experience in the Islamic banking industry adds tremendous value to our Sukuk fund. This clearly demonstrates that the fund has the ability to close a major gap in the market, with its investments in Sukuk and Islamic commercial syndications being equivalent to a bond fund in conventional investing.”

An important effect of the fund’s launch will be the impact on Islamic Sukuk market activity. In all of 2005 there were only about $60 million in GCC-style Sukuk secondary market transactions, a tiny fraction of the estimated $15 billion of Sukuk that were outstanding at the end of last year. With the introduction of the Sanad Sukuk Fund—targeted to reach at least $100 million or more in size—secondary market trading should substantially increase. Economists the world over point out that increased market trading and liquidity of all securities is a core component of economic development, fostering increased issuance of securities and thereby contributing to economic growth.

Note to Editors:
Sukuk, the plural of the Arabic word Sakk, means “certificate” or sometimes “credit note.” It is also the root for the English word “cheque.” Sukuk replace interest income with rent or profits; they are therefore the alternative for Muslims seeking a stable income complying with their faith. Sukuk finance real economic activities and, depending on the underlying structure, they are tradable at market value from the Islamic perspective. Secondary market trading is still weak in the GCC region, as Sukuk are relatively new. Significant new Sukuk issuance has only recently increased, while near-term expected new issuance is expected to increase dramatically. Japan, China and Indonesia are among many market entrants expected to enter the Sukuk market in 2007, while at least 100 or more companies based in the Arab world are believed to be readying new Sukuk issues.

About Sanad Investment Co. Ltd.
Sanad Investment Co. Ltd. -- or the Sanad Sukuk Fund -- is the first GCC-oriented Sukuk fund in the world. It will provide both stable income and liquidity for Muslim investors. It closes the significant gap for Muslim investors in their asset allocation by finally providing a bond-like investment vehicle that is fully sharia compliant. All investments made by the Sanad Sukuk Fund will be in not less than 75% Islamic Sukuk and maximum of 25 % regional sharia-compliant credit syndications, predominantly in the GCC countries. Expanding the Sukuk market by creating a Sukuk fund directly leads to increased economic development in the GCC region. The fund is being domiciled in the Cayman Islands, as is its manager Encore Fund Management Co. Ltd., a wholly owned subsidiary of Encore Management S.A. in Geneva, Switzerland. The Sanad Sukuk Fund targets institutional and individual investors of all kinds. The fund’s website -- www.sanadfund.com -- will be launched alongside the fund itself

About Encore Management S.A.
Encore Management S.A. was founded in 1998 to serve private clients in the management of their family long-term savings, whether through portfolio investments, private equity, or real estate. The firm has established deep institutional relationships in Switzerland, in particular working in partnership with UBS S.A., the world’s largest asset management bank. Encore’s principles are bankers of long standing in the Swiss private banking and asset management businesses. The company remains very active in the Islamic banking space, and has frequently promoted increased transparency and sharia-compliant securities development through conferences and both print and electronic media. Encore’s wholly owned subsidiary -- Encore Fund Management Co. Ltd. -- was created to manage the new Sanad Sukuk Fund, as well as other future Islamic strategy portfolios.

Issued on behalf of Sanad Investment Co. Ltd.

SHAPE Financial Corp. Assigned as Sharia Advisor for the World's First GCC-oriented Sukuk Fund

Leading international Islamic finance advisory company SHAPE™ Financial Corp. has been retained as the Sharia Advisor to the Sanad Islamic Sukuk Fund. Additionally, SHAPE’s President & CEO Abdulkader Thomas will serve on the fund’s Investment Committee.

Mr. Thomas comments on the assignment from Kuwait: “We are delighted to advise the world’s first open-ended GCC-oriented Sukuk fund. Our Sharia Board -- consisting of Shaykh Nizam Yaquby and Shaykh Yussuf Talal DeLorenzo -- will audit the fund’s transactions and sukuk selections. The fund aims to offer income-oriented returns combined with stability of principle and liquidity, all while complying with Sharia interpretations prevalent in the GCC.” The fund’s formal Sharia board will be assisted by SHAPE™’s Sharia controller Mr. Muhamed Becic, a graduate in fiqh from the University of Madina.

The Sanad Sukuk Fund will be launched before year end and targets both individual and institutional investors. The fund seeks to partner with retail banks -- in particular those dedicated to serving Muslim customers -- as well as other investing institutions.

Encore Management S.A., Geneva, is setting up the fund management company as a wholly owned subsidiary in the Cayman Islands. John A. Sandwick, Encore’s managing director, says: “We have long sought a substitute for bond investments for our own Saudi and other Arab clients, but until now nothing was available. We finally made decision to create our own fund to serve Muslim investors, as the time was finally right for such an investment vehicle. Encore engaged SHAPE™ as the fund’s Sharia advisor to insure we have one of the world’s best group of scholars and bankers supporting the fund’s compliance with the requirements of our GCC-based clients.”

An important effect of the fund’s launch will be the impact on Sukuk market activity. In all of 2005 there were only about $60 million in GCC-style Sukuk secondary market transactions, a tiny fraction of the estimated $15 billion of Sukuk that were outstanding at the end of last year. With the introduction of the Sanad Sukuk Fund—targeted to reach at least $100 million or more in size -- secondary market trading should substantially increase. Economists the world over point out that increased market trading and liquidity of all securities is a core component of economic development, fostering increased issuance of securities and thereby contributing to economic growth.

Note to Editors:
Islamic Sukuk , the plural of the Arabic word Sakk, means “certificate” or sometimes “credit note.” It is also the root for the English word “cheque.” Sukuk replace interest income with rent or profits; they are therefore the alternative for Muslims seeking a stable income complying with their faith. Sukuk finance real economic activities and, depending on the underlying structure, they are tradable at market value from the Islamic perspective. Secondary market trading is still weak in the GCC region, as Sukuk are relatively new. Significant new Sukuk issuance has only recently increased, while near-term expected new issuance is expected to increase dramatically. Japan, China and Indonesia are among many market entrants expected to enter the Sukuk market in 2007, while at least 100 or more companies based in the Arab world are believed to be readying new Sukuk issues.

About Sanad Investment Co. Ltd.
Sanad Investment Co. Ltd. -- or the Sanad Sukuk Fund -- is the first GCC-oriented Sukuk fund in the world. It will provide both stable income and liquidity for Muslim investors. It closes the significant gap for Muslim investors in their asset allocation by finally providing a bond-like investment vehicle that is fully sharia compliant. All investments made by the Sanad Sukuk Fund will be in not less than 75% Sukuk and to a maximum of 25 % sharia-compliant credit syndications, predominantly in the GCC countries. Expanding the Sukuk market by creating a Islamic Sukuk fund directly leads to increased economic development in the GCC region. The fund is being domiciled in the Cayman Islands, as is its manager Encore Fund Management Co. Ltd., a wholly owned subsidiary of Encore Management S.A. in Geneva, Switzerland. The Sanad Sukuk Fund targets institutional and individual investors of all kinds. The fund’s website -- www.sanadfund.com -- will be launched alongside the fund itself

About Encore Management S.A.
Encore Management S.A. was founded in 1998 to serve private clients in the management of their family long-term savings, whether through portfolio investments, private equity, or real estate. The firm has established deep institutional relationships in Switzerland, in particular working in partnership with UBS S.A., the world’s largest asset management bank. Encore’s principles are bankers of long standing in the Swiss private banking and asset management businesses. The company remains very active in the Islamic banking space, and has frequently promoted increased transparency and sharia-compliant securities development through conferences and both print and electronic media. Encore’s wholly owned subsidiary -- Encore Fund Management Co. Ltd. -- was created to manage the new Sanad Sukuk Fund, as well as other future Islamic strategy portfolios.

About SHAPE™ Financial corp.
With offices in Virginia (United States) and Kuwait, SHAPE Financial Corp. (“SHAPE™) is a leading knowledge resource for Islamic banking & finance. A member of Alshaya Group International, SHAPE™ provides structuring and transaction advice to the Islamic financial markets on a global basis. A knowledge-based firm, SHAPE™ has developed a rich universe of training and concept materials geared to the Islamic financial market. SHAPE™’s focus is problem solving clients who benefit from cost-effective external Sharia-driven solution providers.

Sharia´a Advisory: SHAPE™ is pleased to enjoy excellent relationships with Islamic scholars around the globe and has the capacity to draw on the resources of www.ajif.org. Nonetheless, SHAPE™ has been honored with close, long-term relationships with two of the leading scholars of Islam.

The Best sukuk house: CIMB Islamic

CIMB Islamic had an impressive year in 2007. Not only has the Malaysian bank come top of the ISI emerging markets global Islamic sukuk manager league tables, its name also turns up on nearly all of the most memorable 2007 sukuks.

Among the influential transactions that CIMB Islamic worked on was Cherating Capital's $850 million sukuk, Nucleus Avenue Berhad's three-part deal, and Cagamas's M$2.11 billion ($645 million) Islamic residential mortgage backed securities (IRMBS) transaction.

Cherating Capital completed its exchangeable sukuk in record time, with an order book that was 13 times oversubscribed. The demand enabled CIMB Islamic to price the deal at the Libor swap rate minus 90 basis points, the lowest price ever for a US dollar sukuk.

More than 50% of the deal was placed with Middle Eastern investors, a record Middle Eastern participation rate for an equity-linked offering. In addition to this, the Islamic sukuk is the largest equity-linked issue out of Malaysia, surpassing Khazanah's deal, which won Euromoney 's sukuk deal of the year award last year.

Nucleus Avenue claimed another title -- the first of its kind hybrid sukuk. The M$1.7 billion non-convertible junior sukuk also had a 50-year tenor -- the longest in the world.

In the past 12 months, CIMB Islamic has made itself a clear leader in the Islamic sukuk world as it drives to develop and deepen the Islamic capital markets. With 21 sukuks due to complete between December 2007 and March 2008, the bank is not taking its foot off the accelerator.

Sukuk Characteristic

This is the sukuk's characteristic
• Beneficial title
• Coupon income, margin, profit sharing, depend on the agreement (aqad)
• Free from riba (interest), gharar (uncertainty), and maysir (gambling).
• Issued through special purpose vehicle (SPV)
• Underlying asset needed.
• Proceeds adjusted to Shariah Principe.

Sukuk’s Background

Financial concept base on Shariah Islam (Islamic Finance) lately has growing up rapidly, accepted universally and adopted not only by Moslem countries in Middle East but also by another countries in Asia, Europe and United States.
Several principle in finance transaction base on shareeah islam is depend on the fair agreement, profit sharing and restriction on riba (interest), gharar (uncertainty), and maysir (gambling).
One of the shape of shareeah financial instrument has been issued is sukuk. In several countries, sukuk has been government financial instrument. Recently, some countries becomes sukuk regular issuer, such as Malaysia, Bahrain, Brunei Darussalam, Uni Emirate Arab, Qatar, Pakistan, and State of Saxony Anhalt – Germany.
Emition total of international sukuk growing up fast from USD 1 billion dollar in 2002 become USD 17 billion on April, 2007. There is 14 kind of sukuk stated by The Accounting and Auditing Organisation of Islamic Financial Institutions (AAOIFI). Sukuk investor not only Moslem investor but also the biggest is conventional investor.

Risk Management in Islamic Banking: An Integrated Approach

The Global Association of Risk Professionals (GARP) UAE chapter, in association with IRIS integrated risk management, http://www.irisunified.com, organize the seminar "Risk Management in Islamic Banking: an integrated approach". The event will be held on February 21 at the Taj Palace Hotel, Dubai.

Mr. Sohail Zubairi, AVP and Head of the Shariah Coordination Department at the Dubai Islamic Bank, will provide an insight into "The fascinating aspect of self-mitigation of risks in Sharia structures for finance and investment".

The event will also feature authors of the book, "Financial Risk Management for Islamic Banking and Finance", Dr. Sunil Kumar and Dr. Ioannis Akkizidis, who will share their views on integrated risk management in Islamic Banking. Mr. Hung Wong, Senior Manager Insurance and Investments at HSBC Bank Middle East Ltd., will represent the conventional banker's perspective on risk management in Islamic Banking and Mr. Horst Simon, Head of Operational Risk at the Group Risk Management, UAE and Co-Regional Director at GARP, will approach Operational Risk issues specific to Islamic Banking.

The program will begin at 4 PM. Presentations will conclude at 7 PM followed by a dinner reception.

The event may be attended by GARP members. For event details and registrations please contact:

Sunil Kumar - info @ irisunified.com

Horst Simon - HorstS @ emiratesbank.com

Hung Wong, FRM - hungwong @ hsbc.com

About IRIS

IRIS integrated risk management ag (www.irisunified.com), formed in 1992 in Zurich, has its headquarters in Switzerland. It continuously develops, maintains and supports its riskpro? financial analysis infrastructure out of Switzerland since 1997. Delivery, implementation and consulting are executed worldwide directly by IRIS AG and indirectly in cooperation with a number of local partners.

About riskpro?

riskpro? enables financial organizations to measure and monitor risk and profitability enterprise-wide with a single cost effective integrated analysis infrastructure. riskpro? covers: Market Risk Analysis, Credit Risk Analysis, Performance and Funds Transfer Pricing, Dynamic Simulation, Strategic Enterprise Management (SEM), Limit Management, Settlement Risk, Rating / Scoring, Basel II, Regulatory Capital, Economic Capital, Capital Allocation, IAS 32 & 39 / IFRS 7, Solvency II, Asset and Liability Management, Liquidity risk Management and Analysis, Operational Risk.

These analyses cover all financial products, from saving accounts to exotic options, for any type of accepted valuation method. The underlying universal contract-centric data model and calculation engine of riskpro? ensures precision and consistency in all results. riskpro? is currently being used or implemented in over 230 small to large financial organizations in 20 countries.

What Is Islamic Banking?

What Is Islamic Banking????
Do you know what it is?

Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law (Sharia) principles and guided by Islamic economics. In particular, Islamic law prohibits usury, the collection and payment of interest, also commonly called riba in Islamic discourse. In addition, Islamic law prohibits investing in businesses that are considered unlawful, or haraam (such as businesses that sell alcohol or pork, or businesses that produce media such as gossip columns or pornography, which are contrary to Islamic values). In the late 20th century, a number of Islamic banks were created, to cater to this particular banking market.(wikipedia)

Ok if you have another definition can you add your comment.
I'll waited your comment.

What is SUKUK?

What is sukuk?????
have ever hear about Islamic Investment???
If you never hear this you can read the definition below...

Sukuk (Arabic: صكوك, plural of صك sakk, "legal instrument, deed, check") is the Arabic name for a financial certificate but can be seen as an Islamic equivalent of bond. However, fixed income, interest bearing bonds are not permissible in Islam, hence Sukuk are securities that comply with the Islamic law and its investment principles, which prohibits the charging, or paying of interest. Financial assets that comply with the Islamic law can be classified in accordance with their tradability and non-tradability in the secondary markets (wikipedia)

Ok now you can understand what is sukuk, from now I will share with you my information about islamic investment and banking.