Cash-rich Islamic lenders are looking to partner with Western businesses that comply with Islamic law, according to a report by The New York Times. The report said there aren't enough acceptable places for Islamic banks to pour their money in, leading American investment bankers to put deals together. Real estate is a popular investment under Shariah since an agreement can be made without requiring interest payments. However, as the banks expand, they are looking to make more diversified investments. One of investments being studied by Islamic banks is that of Continental Rail, a business that focuses on running freight trains up and down the East Coast. If the cars are found to be halal, then it will be one of the first in the US to be completed following Islamic law.
EIIB-Rasmala, a venture between London-based European Islamic Investment Bank and Dubai's Rasmala Group, has launched a sharia-compliant trade finance fund as a low-risk investment product. The Cayman-domiciled fund is linked to emerging market trade transactions and the firm hopes to attract $100 million into the fund over the coming year. The fund targets a return of 4 percent with low volatility as the firm continues to expand its sharia-compliant product range. Since last year, EIIB-Rasmala has launched three Islamic funds including a leasing fund and a sukuk fund seeded with $25 million of the company's own capital.
Global Donors Forum 2014
“CELEBRATING PHILANTHROPY IN EMERGING ECONOMIES”
Gaylord National Resort and Convention Center
April 13-16, 2014
CALL FOR PRESENTATIONS
Deadline: December 10, 2013
Dramatic shifts in the political and economic landscape of many low and middle income countries in recent years have resulted in the emergence of a new class of wealthy individuals. This has led to a rapid growth in private and family foundations in many emerging economies. But the benefits of economic liberalization have not always resulted in an equal distribution of wealth, and income disparities have only been exacerbated by the global economic crisis. This surge in social and economic inequality pleads the need and purpose of philanthropy, both individual and institutional, to be re-examined.
No longer is society looking outside their communities and national borders for change. Whereas once, Aid was the only option, now regional philanthropy is increasingly positioning itself as the “game changer”. This sliding dichotomy from Aid to philanthropy has already begun and nowhere is it more pronounced than in the “Emerging Economies”
Due to the enormous requests received during the past few weeks IdealRatings research team conducted Shariah screening on the recent Twitter, Inc. IPO and the stock is to be considered Shariah compliant and eligible for investment as per AAOIFI guidelines.
contact firstname.lastname@example.org for further details
IslamicFinance.de is still edited by myself, Michael Saleh Gassner. In the same time the website became part of the family's publishing house, Al Kitab.
Myself I moved to Geneva for professional reasons, working as Islamic private banker. IslamicFinance.de remains to be a private passion.
Venture Capital has often been regarded as the ideal tool for Islamic finance, particpating in profits and losses of innnovative companies.
Now a major assessment has been done by Cambridge Associates in terms of performance, comparing it to the wider stock market. Result: No outperformance. Considering the lack of liqudity it seems to be much less attractive to professional investors than thought.
The lack of success also is induced by lack of transparency and fee models taking away the eventual outperformance. This is for the US market of course. Experiences in less advanced markets could be better or even much worse.
It still has other benefits, as diversifying risk, promoting overall growth and eventuall fostering social benefits.
In order to protect the investor, proper disclosures must be integrated to grow this industry in a healty manner. Further the focus on impact investing will ensure that value is created and risk better managed. What impact investing means could be read here:
Azzad Asset Management has announced the launch of a series of estate planning seminars across the United States aimed at helping congregants at mosques and Islamic centers create inheritance plans that comply with both U.S. and Islamic law. It is the 1st Islamically compliant waqf model consistent with U.S. law. The Azzad estate planning seminars began in early September in the Southeastern United States. As part of those sessions, certified financial planners explain the fundamentals of Islamic inheritance law, the importance of wills, and the implications of bequests—in addition to the role each plays in conjunction with a family endowment.
16th October 13 - 8:00am to 17th October 2013 - 12:00pm
Hosted by the Fung Inst. & Silatech, this conference is the first chance for top thought leaders from the Middle East, Silicon Valley, the Venture Capital community & the academic community to spur innovation, create jobs & encourage entrepreneurship throughout the middle east.
The conference is being generously supported by a donation from Silatech, a Qatar based foundation focused on expanding economic opportunity and jobs in the Middle East. This leading institution is partnering with UC Berkeley to bring in some of the world's top experts in Middle Eastern Entrepreneurship, Innovation, Islamic Finance, Crowdfunding and Accelerators, to discuss the opportunities in the region to develop a thriving culture of entrepreneurship and innovation. This conference will bring together top experts from the region, scholars and venture capitalists and innovators from Silicon Valley to explore how we can work together to create economic opportunity through entrepreneurship in the Middle East.
For more information, please contact Richard Swart: email@example.com
Nova Resources Limited has agreed to sell its entire stake in European Islamic Investment Bank to Pearce Global Investments Limited, for a total consideration of GBP663,892. The Bermuda-based company said that the consideration is to be paid by the transfer of warrants over 9.0 million shares in Tricor PLC, the AIM-list investment company focussed on the natural resources sector. Nova said that the shares can be exercised at its discretion by the end of 2017, at an exercise prices of 0.5p, although it intends to retain the warrants for the foreseeable future. Nova said the warrants are valued at 7.38p apiece, representing a premium on Tricor's current share price of 6.50p at the time of the agreement.
In a setback for the United States’ attempts to isolate Iran, the General Court in Brussels threw out sanctions Friday on seven Iranian companies, including four banks, rejecting arguments that they were acting as front companies to bypass the punitive measures. The United States Treasury took the opposite tack on Friday, imposing restrictions on a network of six individuals and four businesses for links to oil sales. These actions represent a renewed crackdown to curb the use of front companies, financial institutions and businesspeople to conceal the direct involvement of the Iranian government and entities like the National Iranian Oil Company and the Naftiran Intertrade Company. European officials are expected to hold initial discussions on whether to appeal on Tuesday.
The New York Department of Financial Services (DFS) has asked half a dozen European banks to submit their official records pertaining to their financial dealings with Turkey's Uzan family. The six banks covered by the order are France based BNP Paribas, Societe Generale and Credit Agricole; Commerzbank and Deutsche Bank of Germany and Standard Chartered. The state banking regulator is investigating the case over the illegal business dealings with Uzans. Standard Chartered assured its full co-operation with the regulators, while representatives of the other European banks either declined to comment or did not respond to requests for comment.
Islamic banking is a growing option in America as various Islamic banks pop up across the country to service those who wish to preserve Shari’aa law or those who just want to use an Islamic bank. The key to these Banks is the shared risk. If the financial models show that the borrower is making a bad investment, the bank will tell them that it’s a bad economic decision and it will not invest with them. The underlying message is that the borrower is in a partnership with the bank, so there are no hidden fees. This may be a much better and less risky model to consider that can get you on the property market with just a 5 percent deposit. Islamic bank also offer Islamic bank accounts. Money from demand and checking accounts cannot be used in lending, it’s considered a trust.
Ethical investment which has similarities with Islamic based investments has reached US$32 trillion (RM105.6 trillion) in size in the US and the European Unión, according to Nicholas Kaiser, a global investment manager specialising in the issues of ethical and Islamic investment. Though the number of very wealthy Islamic investors in the US were scarce compared to investors in conventional funds, he said his Amana funds are doing very well in the US. The funds attracted American citizens from all backgrounds and Muslim investors are only a small number of the investors in the Amana fund, he added. Nevertheless, it appears that while Amana’s success is the result of the discipline of its Islamic investment nature, investing in Islamic stocks does not necessarily bring profit to the investors.
A judge has ruled that HDG Mansur Investment Services must return $5.8 million in fees it paid itself from two equity funds it managed under Islamic law. The Indianapolis real estate fund asset manager didn’t have the right to recalculate its fees to claim a higher take for itself, according to federal Judge Colleen McMahon of New York. The lawsuit contends that, starting in early 2012, HDG Mansur began paying itself fees in advance for future real estate transactions. When those deals never happened, the Indianapolis company came up with the underbilling rationale in an effort to cover up the unearned payments that they had been making to themselves. HDG Mansur was dropped as the funds’ manager earlier this year. The judge also ordered HDG Mansur to pay 9 percent interest on the fees that are to be returned.
The US-based World Council of Credit Unions has launched a manual discussing how to establish and operate sharia-compliant credit unions in developing countries, which could help to broaden the Islamic finance industry's retail customer base. The council hopes the manual will help to develop Islamic credit unions across a wide range of markets. The guide is considered complete but the council also recognises that this is an ongoing project as Islamic finance spreads to other credit union systems. The council used its nine-year experience establishing cooperatives in Afghanistan to create a manual that follows Islamic principles. According to the council, there are now 30 sharia-compliant credit unions in Afghanistan, comprising the world's youngest credit union movement and the only one to claim full compliance with Islamic law.
The shift in global banking is not a trend, and the challenge for all of us is to bridge the gap in financial practice and seize the opportunities that lie ahead, bringing ethics back into finance.
Thomson Reuters and Abu Dhabi Islamic Bank (ADIB) are partnering to launch the world’s first Ethical Finance Innovation Challenge and Awards (EFICA). In the dawn of a new economic world, these awards are designed to inspire and recognise a fresh way of thinking by promoting some of the most dynamic, innovative ideas and solutions around integrity and growth.
The Eleventh Harvard University Forum on Islamic Finance titled "Takaful and alternative cooperative finance: Challenges and Opportunities" will take place at the Harvard University, USA on April 26-27, 2014. The forum seeks to reassess and critically engage with issues of risk sharing, mutuality, solidarity, and socio-economic welfare in the context of a discussion about takaful and other types of cooperative financial solutions. Papers are requested in the following areas: MUTUALITY: CHALLENGES AND ISSUES; RISK-SHARING; MARKET PENETRATION: STRATEGIES AND ACTIONS; SOCIO-ECONOMIC BENEFITS. Find detailed information and deadlines in the attached pdf-file.
Over the past three years, the Hult Prize has taken on some of the planet's toughest challenges. These have included Education, Energy, Housing, and Water. For the 2013 Prize, President Clinton has personally selected the challenge: the Global Food Crisis.
A detailed case study, narrated by President Bill Clinton, will be released to all selected participants in early January to set the framework for this year's challenge. Competitors will then be asked to develop social enterprises that answer the President's Challenge.
The global food crisis can be approached through multiple lenses, such as: distribution, manufacturing, production, technology and many others. Each, represents an opportunity for innovation. Nearly 1 Billion people in the World are Hungry, that is over 1 out of every 4 children. Ironically, our global economy produces enough food each year to feed everyone, however more than one-third of the food generated for human consumption continues to be lost or wasted.
Dubai Exports , the export promotion agency of the Department of Economic Development (DED), recently showcased the emirate's expertise and resources in Islamic economic services to the business community in Toronto and Vancouver across a series of seminars. The seminars, jointly organised by Dubai Exports and Borden Ladner Gervais LLP focussed on encouraging linkages between Islamic financial and advisory firms in Dubai and their counterparts in Canada. Participants in the seminar also discussed the changes required in Canada's taxation and regulatory system regarding Islamic financial products. Opportunities are especially seen in the connection of the sophisticated financial and business communities in Dubai with leading edge Canadian technology companies and entrepreneurs in such areas as clean tech, life sciences, advanced materials and information technology, which are all shari'a compliant.
A U.S. judge Tuesday approved Arcapita Bank B.S.C.'s plan to gradually liquidate itself in a process that conforms with Islamic Shariah law, which generally prohibits borrowing money with interest. The Bahrain-based investment firm entered bankruptcy protection last year with a goal of restructuring itself but ended up with a plan to orderly liquidate its private-equity investments. The modified proposal solved several concerns from creditors, including creating a new entity that will retain the firm’s management, and setting a minimum valuation for the company’s remaining assets. Arcapita manages infrastructure, real-estate, private-equity and venture-capital investments that are compliant with Shariah.