The Economist on GCC sukuk, first Canadian Shari'ah-compliant ETF planned

Canadian Islamic finance compaany UM Financial is partnering with Jovian Capital Corporation to explore the launch of a Shari'ah-compliant ETF. North America currently has a lack of investment products for Muslim investors. Although there are a few mutual funds, the landscape is currently dominated by Amana Funds which offers only two Islamic mutual funds. The greater development of Shari'ah-compliant ETFs would serve to expand the investment options available to Shari'ah-sensitive investors.

The Economist discusses the prospects for the Gulf bond and sukuk markets following the credit crisis and the first GCC-based sukuk default (The Investment Dar).

In a report for LSE's Kuwait Proramme on Development, Governance and Globalization in the Gulf States, Rodney Wilson points out the "the search for alternative means that Islamic banks are likely to receive more attention" in the wake of the credit crisis that originated in conventional financial institutions in the US.

Other News

• The Islamic Development Bank may raise its planned sukuk issuance from $5 billion over 5 years to $6 billion over the same period.
  
• NCB Capital commented on the prospects for GCC sukuk issuance, while Malaysian-based Aminvestment provided a rosy outlook for the Malaysian sukuk market.
  
• Islamic banks are levying 'maintenance fees on small accounts and are treating them as current accounts and not providing them with the profit-sharing features common for accounts at many Islamic banks.
  
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• Standard & Poor's has launched an Shari'ah-compliant version of the S&P/TSX 60 Index.
  
• The Investment Dar continues the process of restructuring, forming a steering committee to communicate with investors.
  
• Salama, a takaful and re-takaful company has partnered with Credit Agricole Asset Management to launch a series of Islamic funds.
  
• An article describes the methods by which trusts can be created to be Shari'ah-compliant.
  
• Malaysia's Securities Commission revised its list of Shari'ah-compliant securities to add 13 and remove 1. Unlike most other countries, Malaysia centralizes many Shari'ah-compliance functions.
  
• Terry Lacey describes the ASEAN annual meeting of Shari'ah scholars held in Indonesia and warns the industry of 'flying to close to the sun'.
  
• Hawkamah issued a declaration calling for the development of isolvency and creditor rights systems for the Middle East and North Africa "Noting the importance of Islamic finance institutions in the region and beyond".