Wednesday, June 06, 2007

A new convertible sukuk?

Dana Gas, the first private natural gas company in the Middle East, will issue $1 billion of sukuk. The article from Khaleej Times also mentions that Dana Gas "said a sukuk is a fixed term debt obligation that could be converted into shares of the issuer at the election of the sukuk investor and, under certain conditions, at the election of the issuer of the sukuk." This suggests that the sukuk may be convertible, an uncommon feature in sukuk The first convertible sukuk was the $3.5 billion Dubai Ports World sukuk used for the takeover of P&O in the beginning of 2006.

Analysts are still pessimistic about Amlak Finance's application for a banking license in the UAE.

The National Bank of Dubai will begin offering a "Shari'ah-compliant savings plan with takaful benefits" with Dubai Islamic Insurance and Reinsurance Company and FWU AG. The minimum monthly contribution is AED 500 (US$ 136).

Islamic banking has potential to develop in the West, says K S Sreekumar of Trade Arabia

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