The Malaysian plans to encourage commodity murabaha through a trading house are progressing with a few details coming out about the Commodity Murabaha House (CMH). The CMH will offer trading in palm oil and be distinct from the palm oil futures market becasue it will only be spot trading. The CMH is beneficial by organizing the commodity murabaha participants thus likely reducing costs, but could attract similar controversy as the 'organized' tawarruq did specifically because all of the transactions were 'organized' by the bank offering financing and therefore was viewed to be blurring the lines betweeen a trade-based financing and interest-based financing.
- Arab News sits down with Thomson Reuters global head of Islamic finance Rushdi Siddiqui.
- Bank of London & the Middle East set up a Shariah Dollar Income Fund, an Islamic money market fund with seed capital of $50 million.
- A writer in the Huffington Post suggests that Islamic banks should adopt more mobile banking products.
- Petronas is planning to issue bodns including a five-year sukuk.
- Capital ME has an interview with Nizam Hamid, the Managing Director for iShares Europe about ETFs including three Shari'ah-compliant ETFs available in the U.K.
- Islamic finance will play a large part in the reviaval of Asian economies following the global financial crisis according to Kuwait Finance House.
- Plans are underway for Kuwait's fourth Islamic bank, which will be 24% owned by the sovereign wealth fund Kuwait Investment Authority.
- Indonesia's government will issue IDR 1 trillion ($100 million) in sukuk using an auction rather than a bookbuilding. The government could begin auctioning sukuk monthly if demand is robust.
- Saturna Capital announced its Director of Islamic Investing Monem Salam will become the President and CEO of Saturna Brokerage Services.
- Citibank Bhd, the Malaysian arm of Citigroup is expanding its Malaysian operations including adding an Islamic subsidiary.