IslamicFinance.de

The principles of Shariah are a key factor in family enterprises in the Gulf region. Since enterprise and trade go hand in hand to contribute to the development of a progressive, prosperous ummah as well as to create wealth and provide exchange opportunities, Shariah has its way to support it. Thus, employment and economic growth are stimulated. This is why Shariah does not accept the concept of hoarding and, instead, places an obligation upon Muslims to spend in the way of society through acts of charity, entrepreneurship and investment.

More on: http://www.mondaq.com/x/197730/Economic+Analysis/Growth+Of+Family+Enterp...

According to a study by Al Izz Islamic Bank, the assets of Islamic banks in Oman are expected to pass the mark of RO 2 billion by 2015. The assets of Islamic banks in the country represent 10% of the total banking assets. The study further points out several factors which stimulate Islamic monetary services the most. Among them are demographic indicators, since 72% of the Sultanate's population is aged between 15 and 80 and is mostly Muslim. The concept of Islamic financing is strongly supported by the population.

More on: http://www.zawya.com/story/Oman_Islamic_bank_assets_at_OMR2bn-ZAWYA20120...

In a seminar, organized by the Dubai Chamber of Commerce and Industry’s Centre for Responsible Business, the progress of the different groups from the Sustainability Network Task Groups and their promised deliverables and achievements were discussed with the business community. Since the launch in April this year, the aim of the groups was to provide initiatives and resources for the business community on Workplace Wellness, Community Investment, Employee Volunteering, Waste Management & Resource Efficiency, and Integrating CSR. Considerable progress of the groups was pointed out with the note that the task groups are doing a good job in providing businesses insight into strategical implementation of specific CSR and Sustainability practices in business.

More on: http://www.albawaba.com/business/pr/dubai-chamber-achievements-442971

Even though Indonesia has the world's largest Muslim population, it is hardly present on the Islamic finance scene in contrast to its neighbour Malaysia. This is a problem that needs to be worked on becuase Islamic finance can be a perfect means of solving two significant financial challenges. The first one is funding infrastructure and the second - reducing its dependency on foreign borrowing. Indonesia should take advantage of Malaysia's experience in Islamic financing and develop its own Islamic capital markets. It would be even possible to exploit the deep liquidity pool created by Malaysia.

More on: http://www.reuters.com/article/2012/09/19/indonesia-islamic-finance-idUS...

According to Reserve Bank of India, Indian banks are not legally allowed to involve in Islamic banking operations. Even though India is the country with the third largest Muslim population, Islamic finance has been denied several times already. Due to lack of interest-free banking products people, economically disadvantaged strata of society, cannot access banking products and services because of faith issues. In addition, India is cut off substantial sources of savings from near countries.

More on: http://www.cpifinancial.net/blog/post/15763/interest-free-in-india

KFH-Bahrain plans to launch a new financing product for small and medium enterprises (SMEs) in partnership with Tamkeen. The new product will offer unique Islamic financing solutions and a subsidy of 50%. Thus, the growth of the corresponding companies shall be supported.

More on: http://www.zawya.com/story/KFHBahrain_launches_SMEs_Finance_programme_wi...

The expextations for the next three years are for global Islamic finance assets to grow between 10% and 15% a year. They will be supported by strong demand and supply factors as well as effective regulation and quality of services. Since the number of banks that offer Islamic finance and profit and loss sharing products is continually increasing, competition will contribute to the assets' growth.

More on: http://biz.thestar.com.my/news/story.asp?file=/2012/9/19/business/120456...

Islamic Development Bank intends to finance projects worth 1 billion USD in Kasakhstan, thus implementing the country strategy. At the beginning of October a new country strategy of the bank in Kazakhstan will be signed. According to plan, in the following 2 years IDB will provide financial means for a number of projects.

More on: http://caspionet.kz/eng/business/In_20122014_IDB_will_finance_Kazakhstan...

Al Jazira and Al Hilal Bank signed a sponsorship contract which starts with this seasons and continues for three years. Since Barclays Bank and Al Jazira put an end to their association, it was the perfect moment for Al Hilal Bank to come on board. Due to recent sponsorship, the logo of Al Hilal Bank will be seen on the UAE Olympic football team's apparel, the players dugout and other signage at the club’s facilities.

Capital Market Authority (CMA) of Saudi Arabia issued a strongly worded warning towards companies that operate without a license, thus surprising many people in the Gulf region. In the warning notice CMA states that non-licensed operations will be sanctioned since they are considered violating the relevant provisions of the capital market law and its implementing regulations. The problem that rises from this warning is obtaining a licence to operate in Saudi Arabia. For this purpose, an office and a minimum number of staff are required.

The future financial regulation of Libya will face some new challenges and advantages. The question remains however, whether the absence of political stability and security will have a positive effect on the adoption of Islamic finance. The new Congress elected in July this year will appoint an interim government and a constituent authority to prepare the draft of the country's new constitution. On one hand, the Congress is influenced by liberals considerably more than by islamists. On the other hand, the liberals have vowed to accept and include Islamic principles in the new constitution.

Ireland has set itself the goal to become a global Islamic finance hub since its funds industry has passed beyond the €1 trillion (Dh4.73tn) mark. Thus, the country can take a larger slice of the continuously growing Islamic finance sector. After strengthening Ireland's position in the Sharia-compliant sector by attracting its first fund promoted from Malaysia, the country makes plans for further expansion and growth in this area.

Islamic finance has considerably grown in North Africa, with many Middle East financial institutions investing in the region. There has also been significant development in the south of the continent. Though there is a low Muslim population in South Africa, the government has been one of the front-runners to make it a centre for Islamic finance in Africa. South Africa is the most advanced African nation in terms of robust legislative structures, strict governance structures, and regulations. This gives it an advantage in implementing Shariah-compliant financial systems.

Bank of Amercia/Merrill Lynch released a report about GCC 2020 looking at the core trends of modernising infrastructure, growth and decoupling from oil and that the region should look towards higher value added sectors. "First, and most immediately, we believe heavy investment in petrochemicals will now begin to see improving returns due to their global competitive advantage. Second, we believe a shift will require an ongoing need to invest in regional infrastructure. Third, we see a social and economic need for a growing middle class, supporting the growth of consumer sectors. Our message: own Saudi petchems, own GCC builders and building materials, own Saudi and UAE consumer plays, own Saudi banks."

Call for Manuscripts and Papers

Volume-I

Impact Philanthropy and Investing

Connecting Innovation with Ground Realities*

A volume in the Academy of Philanthropy

International Perspectives on Philanthropy Series

The first Journal from the Academy of Philanthropy will use the recently held Global Donors Forum 2012 as a platform for a focus on Impact Philanthropy and investing with a particular focus on impact and accountability in Muslim Philanthropy. This is an invitation to contribute manuscripts or papers for this first Journal. Full details on the areas of interest and how to submit material may be found below.

*Based on the nature of submissions the subtitle may be adjusted accordingly.
Call for Manuscripts and Papers
Volume I : Impact Philanthropy and Investing
A volume in the Academy of Philanthropy International Perspectives on Philanthropy Series
Editor: Dr. Yunus Sola, Director, Academy of Philanthropy, London and Chicago. ysola@thewcmp.org

Social Finance, Ltd. created a bond with social impact. Background on this project is provided free for download and could be a good base for innovation in the Islamic finance industry:

"In September 2010, our sister organization, Social Finance, Ltd., launched the world’s first Social Impact Bond in the United Kingdom. Targeted at reducing prison recidivism, the Peterborough pilot generated world-wide interest in the potential of this innovative financial instrument. We established Social Finance, Inc. in January 2011, to bring the Social Impact Bond to the United States. Since our founding, we have been collaborating with government, investors, nonprofit organizations, and thought leaders on how Social Impact Bonds might realign incentives for delivering social outcomes and augment public funding and philanthropy to support our collective efforts to improve the lives of individuals and communities in need.

Dear Reader,

IslamicFinance.de is privately funded for many years. Now, for the first time, you have the possibility to make a contribution, from one Dollar upwards!

The technical details, and the money transfer via paypal is organised by Kapipal a new online fundraising tool:

http://www.kapipal.com/islamicfinance

On the blog I gave some more thoughts about Islamic finance media for those interested: http://www.islamicfinance.de/?q=node/3454

Please also note: The fundraising action has a deadline, so act today, not tomorrow and tell your friends about it!

All donors who will leave a message will be listed in the article, which follows after closure of the fundraising period.

I am happy to meet you in person either on 19th March in Milano (http://www.islamicfinance.de/?q=node/3396) or on 10th May in Frankfurt (http://www.islamicfinance.de/?q=BAFINII) at the respective Islamic finance conference.

Wa at Taufiq min Allah, all the best,

Michael Saleh Gassner

Dear Readers,

Islamic finance media are a tricky service. This is true for various reasons: The Internet eats up the revenues, because everything ought to be free. Islamic banks are still a niche phenomena, and international banks like UBS or Deutsche are almost as large as the entire global Islamic finance industry. Consequently the marketing budgets are much lower, too.

Last not least, who should advertise? The banks among themselves or to the clients? Advertising from bank to bank, does usually not make much sense, but real client oriented formats are hard to find, too. May be this is a niche. Others, who could finance Islamic finance media are basically the service providers to the banks, but due to the limited number of Islamic financial insitutions, direct marketing, e.g. face to face meetings will be preferred.

This in short is the background why Islamic finance media are not so well established in terms of journalism and research, but mostly reflecting the press release as criticised by the makers of the Islamic Globe. See: http://www.theislamicglobe.com/index.php?option=com_content&view=article...

K&L Gates Seminar
Islamic Finance: Recent Issues and Career Opportunities
February 20, 2012
The Arab Spring of 2011, the Goldman Sachs $2bn Islamic bond, the Islamic Interbank Benchmark Rate - just three recent topics that have reignited interest in Islamic Finance.

This programme addressed recent issues in Islamic Finance and potential career opportunities in the industry.

Specific topics covered included:

What happens when Islamic Finance transactions go wrong? The use of arbitration to resolve disputes.
The impact of the Arab Spring of 2011 on the growth of Islamic Finance.
The convergence of Islamic, Christian, Jewish and Socially Responsible Investment principles.
The role of private equity and leasing in Islamic investing.
The Islamic Interbank Benchmark Rate.
Career opportunities in Islamic Finance.
The global impact of Islamic Finance in Europe, the Middle East and the US.
Speakers included:

Dr Humayon Dar - Chairman, President & CEO - Edbiz Consulting
Jonathan Lawrence - Islamic Finance Partner - K&L Gates, London
Mohammed Amin - Islamic Finance Consultant - Conservative Muslim Forum
Kathleen Bradley - Counsel - K&L Gates, Doha

In its 2012 Islamic Wealth Management Report illustrated by masterpieces of Islamic calligraphy, by the Chinese Muslim master Hajji Noordeen, deals with the theme “The path to corporate transformation – converting a company to Islam”.

Bank Sarasin reviews the complexities of converting a business to Islam, a topic which is rarely discussed or written about. Conversion is complicated by the need to address every aspect of a business, the lack of broadly accepted standards and regulations, and differences in the Muslim world itself. The Report, released today, is the Bank’s third on Islamic Wealth Management.

Converting a business to Islam can increase the value of a company by 18-25% due to the scarcity of genuine Islamic investments. But the conversion process is arduous, extending from the design to distribution and beyond, to how the company spends its profits. As Sarasin notes, the market potential is massive, with the global Muslim population expected to increase by 26% to 2030, to 2.2 billion, rivalling China and India in terms of market size.