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Lebanon's Islamic banking: More deeds than words??

he banque du Liban hopes to amend a 2004 law that allowed the establishment of Shariah- compliant banks, First Vice-Governor Raed Charafeddine said in an interview Nov. 5 in Beirut. The Bank of Lebanon is also considering introducing a product in the first quarter that helps Islamic lenders manage their liquidity, he said.

Gulf sukuk finance recovery depends on real estate
( (Bloomberg) — Investor concern that Persian Gulf property prices will extend declines is denting confidence in a rebound of the region’s Islamic bond market. Dubai will need another 20 months to absorb an oversupply of homes and offices, Mohamed Alabbar, the chairman of Emaar Properties PJSC, the United Arab Emirates’ biggest developer, said Nov. 5. Aldar Properties PJSC, Abu Dhabi’s largest real- estate company, posted its biggest loss on record in the third quarter and said two days ago it’s working with the emirate’s government to help cover cash requirements. Real-estate prices have tumbled more than 50 percent since their 2008 peak in Dubai and 30 percent in neighboring Abu Dhabi as banks tightened mortgage lending and speculators fled the market. Property is used as collateral for Shariah-compliant bonds, which are backed by assets and pay a share of profit instead of interest. More…

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