Islamic finance, Facebook and inflation
Islamic finance set to expand
Islamic finance is growing via Asia as mainland China’s largest bank, the Industrial and Commercial Bank of China (ICBC) plans to expand its regional assets by 10%. It is predicted the move will provide a growing supply of sukuk (the Islamic equivalent of bonds) to fit the current demand, which is also predicted to grow from $160 billion to $280 billion by 2016. ICBC also has plans to open offices in Riyadh and Kuwait. It’s Middle Eastern headquarters are currently located in Dubai International Financial Center (DIFC). Read more here.
Plummeting share values and investment loss is the order of the day for those who have placed their cash in Facebook. The social networking giant began trading on the stock market 12 months ago, a float which was highly anticipated. Unlike Google, which has exhibited huge profit margins over the past few days, Facebook shares fell in value by a massive 31%, from $38 to $26.25. Reasons given include the fact that 30% of facebook users do so on mobile apps, which don’t show adverts. Find out more.
Prices on the up
Thought you were imagining it? Sadly not. Prices are rising steadily in the UAE, and not just on rental housing costs – although these are forecast to rise by as much as 35% this year. Recent reports also show an increase in water, electricity, gas and fuel prices, by 0.51%. Education is up by a painful 4.9% on last year, while food and non alcoholic beverages have risen by 2.54%. Meanwhile, alcoholic beverages and tobacco are up by 16.78%. Our advice is to keep an eye on the markets and adjust your investments and saving strategies accordingly. Find out more.