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Taking advantage of the situation emerging out of the economic crisis in Eurozone and countries like United States, India should adopt the Islamic Finance System to pump-in investments from the Middle East. This interest-free and more inclusive system will in turn accelerate the financial inclusion of the Indian Muslims.
Dr Shariq Nisar, Director of Research and Operations of India’s premier shariah advisory firm TASIS and one of the senior most professionals of Islamic Finance in India, was in Malegaon to address a seminar on "Prospects of Islamic Finance in India".
Pointing at the demands in the country of reliable and committed investors in stock market, and banking and insurance sectors, he added that while China and the Middle East are the two areas in the world where surplus funds more than their requirements are generated, the Arab world doesn't have such problems.
Gatehouse Bank delivered successfully a real estate realized investment in the sale of VA Oceanside Clinic for $54.5 million. The medical facility is placed near San Deigo, California, USA.
The statement was given by Fahed Boodai, Chairman of Gatehouse Bank. The chairman added that the property is a specialized medical clinic leased to and operated by the US Department of Veteran Affairs for a period of 20 years, and has been generating an annual return of 7% that is distributed to shareholders on a monthly basis.
The last weeks we have read about criticism in regard to the Sharia compliance of the Sukuk program of the investment bank Goldman Sachs:
< Mohammed Khnifer reveals, after examining the offer circular thoroughly, three possible flaws in the overall structure.
1- Strong indication from the proposed structure and the prospectus as well that the sukuk is not, as they claim, Murabaha, but a Reverse Tawarruq.
2- Strong indication that Goldman will be using, eventually, the proceeds to fund its conventional activities.
3- The so called Murabaha sukuk is listed on the Irish Stock Exchange (ISE). There are some concernes on how the ISE will make sure that the securities will be traded at par value.>>
Some remarks to this discussion:
The 1st Ernst & Young World Islamic Banking Competitiveness Report 2011 presented at the 18th Annual World Islamic Banking Conference stated that Islamic banking assets with commercial banks globally will reach US$1.1 trillion in 2012, a significant jump of 33% from their 2010 level of US$826 billion. In the MENA region, Islamic banking assets increased to US$416 billion in 2010, representing a five year CAGR of 20% compared to less than 9% for conventional banks. As new geographies open up to Islamic banking, the MENA Islamic banking industry is expected to more than double to US$990 billion by 2015.
Abstract academic paper:
Using a large international sample of 35 developed and emerging markets, we analyze
whether Islamic indices exhibit a different performance to conventional benchmarks. While there is no compelling evidence of performance differences in robust Sharpe ratio tests and after controlling for market risk, we find a significantly positive four-factor alpha for the aggregate developed markets region. This outperformance stems, however, mainly from the U.S. and is largely attributable to the exclusion of financial stocks in Sharia-screened portfolios. As the extensive downturn of financials is related to the recent financial crisis, we do not argue that this outperformance will continue over time. The style analysis reveals that
Islamic indices invest mainly in growth stocks and positive momentum stocks. This, for a passive portfolio intriguing result can, however, be explained by the strong sector allocation towards energy firms and their strong momentum characteristic during the sample period.
Although UM Financial Inc went into receivership back in October, the consequences of the bankruptcy are beginning to be noticed only now.
Besides the fact that the case risk is giving a bad name to sharia-compliant finance in North America, it also poses a series of legal hurdles that could have as a result to mortgage holders the losing of their homes.
Since the use of interest is forbidden in Islam, sharia-compliant mortgages are organized so that lender and homebuyer share the costs of purchasing a home. Instead of paying interest, homeowners preffer to rent the property from the lender while gradually purchasing the outstanding share of their house.
The prime theme of this event will be the impact of the recent rapid changes on the
Islamic finance sector in all pertinent aspects. The Conference will consider the
spectacular political and socio-economic developments that we have been witnessing and
their probable effects on the performance and future position of Islamic financial
institutions (IFI’s), the regulatory set-ups, and popularity of Islamic products being
offered to the public, governments and business firms.
The Conference is being organised by Emerald Group Publishing, the world’s leading
scholarly publisher of journals and books on business and management. Over 220
academic journals are currently published by Emerald, covering some 24 managerial
disciplines, in addition to a strong and growing presence in other related fields such as
LIS, social sciences, and engineering.
This Conference follows on the success of the Global Islamic Marketing Conference held
in Dubai over the period 20-22 March 2011, organised by Emerald in association with the
United Arab Emirates University.
The chief objective of the forthcoming Conference is to assess the future of this sector,
UNESCO works in education, the sciences, culture and communication and information. Recently it lost a substantial portion of funding as the newspapers reported (see for details: http://www.bbc.co.uk/news/world-middle-east-15527534 ). It is worth considering how to support the UNESCO and their goals:
"UNESCO works to create the conditions for dialogue among civilizations, cultures and peoples, based upon respect for commonly shared values. It is through this dialogue that the world can achieve global visions of sustainable development encompassing observance of human rights, mutual respect and the alleviation of poverty, all of which are at the heart of UNESCO’S mission and activities.
The broad goals and concrete objectives of the international community – as set out in the internationally agreed development goals, including the Millennium Development Goals (MDGs) – underpin all UNESCO’s strategies and activities. Thus UNESCO’s unique competencies in education, the sciences, culture and communication and information contribute towards the realization of those goals.
Global leaders point way to economic recovery at UN summit
Gordon Brown, Mary Robinson and global CEOs call for sustainable financial sector reform
Washington D.C., 20 October 2011 – With economic recovery topping the United States and global political agenda, a group of CEOs, major investors and bankers together with former United Kingdom Prime Minister Gordon Brown and President of Ireland Mary Robinson called for a far-reaching reform of the global financial system at a summit which ended in Washington D.C. today.
Amid a growing wave of protests highlighting economic concerns in countries from the US to the UK, Japan and Greece, more than 500 senior finance executives and policy-makers from around the world met at the United Nations Environment Programme Finance Initiative Global Roundtable (UNEP FI) summit to find sustainable solutions to tackle the drivers of market volatility and address the deepening rift between the rich and the poor.
IdealRatings® Islamic Investor™ is the only iPhone application that tells you if a stock is Shariah compliant or not, gives you a detailed report explaining why, and alerts you if it changes status, it is designed for personal use by individual investors.
IdealRatings® is the most trusted provider of accurate, and timely, Islamic Finance information. Most Islamic index providers, and financial institutions in 18 countries rely on IdealRatings to create and manage their Islamic,Shariah compliant, products. Our data is available directly, or on Thomson Reuters and Bloomberg terminals.
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Klaus Schwab, executive chairman and founder of the World Economic Forum (WEF), has the strong oppinion that it is time for the Middle East to grasp a more holistic, inclusive and qualitative approach to economic development. He stated that the events in this region over the past 10 months have no precedent and have developed a new regional order that is still evolving.
He also reminded that the next World Economic Forum on Europe, the Middle East, North Africa and Central Asia will take place in Istanbul, Turkey, in June 2012.
Randall & Quilter has accepted to buy Principle Insurance for £4.275m cash. Principle Insurance was launched and was given Financial Services Authority approval in 2008 with the purpose of meeting the motor and home insurance needs of the country's Muslim population as the only Shariah-compliant insurance provider in Britain at the time.
It has been in run-off since October 2009. Randall & Quilter has a portfolio of nine insurance companies in run-off, from the UK, US and Europe, with net assets £72.2m beginning with 30 June 2011.
The hosts of the 2nd Annual Islamic Finance Forum were US-Qatar Business Council and the Bilateral US-Arab Chamber of Commerce. They presented much-needed insights into the growing use of Islamic financing and Shariah-compliant business contacts in the United States.
The forum was held at the George Washington University Law School in Washington DC.
Discussions like the growing trend among state legislatures that try to ban the recognition or practice of Islamic financing and Shariah law, actions that threaten to hinder the growth of Islamic financing opportunities in the US and block US access to billions in Shariah-compliant investments from Middle Eastern countries were heard.
The 2nd Quarter 2011 issue of the Malaysian ICM quarterly bulletin published by the Securities Commission Malaysia (SC) is now available online at:
as salamu alaikum wa Ramadan Karim,
May I kindly ask you to consider signing a petition against hunger, which has already more than 3 million signatories:
The rational behind it is explained on the website with materials, actions and videos; it is a joint initiative of various organisations and inshallah it will help to support the cause.
Let our fasting also lead to feel with those who do not have to eat at Iftar, let us sign all this petition right away and share it with friends.
Wa at taufiq min Allah,
Michael Saleh Gassner
More than 500 capital management companies and investment funds that are signatories to the United Nations Principles for Responsible Investment (PRI) will be required to disclose information about their investment decisions, under a revision of the PRI rules.
The PRI is backed by the UN Environment Programme and the Global Compact, and has signatories from 45 countries with more than $25tn of assets under management.
Submission deadline 15 September 2011
Palgrave Macmillan is pleased to announce a call for papers for the Journal of Derivatives & Hedge Funds
For Islamic banking to grow further and develop there are many challenges relating to financing instruments, market structure and market regulation. The aim of the special issue is to provide a central platform and communication channel for researchers, academics, business leaders and industry practitioners relating to Islamic Banking. The key contextual challenges in the Islamic finance industry today include the innovations and developments at the leading edge of the field, and the long-term impact, scope and authenticity of these ideas in the context of an Islamic community and way of life. View full details at:
Topics of interest include, but are not limited to:
- The Shari'ah requirements in Islamic banking and risk identification.
- Current practices of asset management and portfolio management in Islamic banking
- Need of financial innovation in Islamic banking.
- The impact of the Basel Accords on Islamic banking
- Islamic banking and corporate governance
Hillary Clinton brought together hundreds of first, second-generation Americans or Americans-to-be at the Secretary’s Global Diaspora Forum in Washington DC, the reason being to put diversity into work.
It is well known that America ranks first among countries with the largest number of international migrants. That is seen as a potential in America’s national strategy of employing smart-power.
$46 billion is the amount of remittances sent by US Diaspora in 2010, according to the State Department, almost twice the $28.7 billion US Official Development Assistant in 2009. As Hillary Clinton once said: "Using people-to-people exchange is the core of smart power”.
Chronicle of Philanthropy listed Islamic Relief USA (IRUSA) as one of the top 25 largest online fundraising organizations in the United States in 2010. It seems that these nonprofit organisations raised more than $1.1 billion online in 2010.
IRUSA raised more than $147 million for charity in its 2009 fiscal year, doubling its earnings from the year before.
Dubai, United Arab Emirates, March 23, 2011 – The Muslim Philanthropy Award winners were announced at the 4th annual banquet of the World Congress of Muslim Philanthropists in Dubai, UAE.
Every year, the Muslim Philanthropy Award honors an individual, a grantmaking institution and a corporation for their distinguished contribution to the field of philanthropy.
The Muslim Philanthropy Awards for 2011 were awarded to H.R.H. Prince Talal bin Abdul Aziz Al Saud (Personality) for demonstrating outstanding civic and charitable responsibility; Islamic Development Bank, Saudi Arabia (Grantmaker) for showing long-standing commitment to economic empowerment, human dignity, and institutional building; and Abraaj Capital, UAE (Corporation) for demonstrating longstanding leadership in advancing strategic philanthropy, creativity in responding to societal problems, and having significant positive impact on corporate giving in MENA region.