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After successfully testing its systems, Barwa Bank is waiting for the formal launch, board member Khalid bin Ibrahim al-Sulaiti has said. “We have implemented and tested all systems and they are running perfect,” al-Sulaiti told Gulf Times on April 26, 2009. Al-Sulaiti said he expected the bank’s formal start up in 2009. “The decision has to be taken by our board of directors. They will identify the right time to launch the bank. I cannot give a specific date now,” al-Sulaiti said. Barwa Bank’s authorised capital is QR1bn with a paid up capital of QR500mn. Barwa Bank would be a full-fledged bank, he said. Currently, it is wholly owned by Barwa Real Estate Company. The government approval for the bank has already been obtained. Al-Sulaiti said while real estate financing would be among the bank portfolios, it is not the only area of business being looked at. “Our focus will be on nation building activities and we will support all activities that aim to achieve these. The bank plans to finance real estate projects, receive deposits and issue credit cards. We are looking at both corporate and retail banking,” al-Sulaiti said. Asked whether there were plans to list the bank on the DSM he said, “It has to be decided by our board of directors.” Besides leasing out a building on Grand Hamad Street, Barwa Bank has also recruited some employees and automated its systems. The establishment of bank is expected to boost its parent company- Barwa, which is fast growing as one of the largest real estate companies in the region. Barwa has projects throughout Qatar. They include Barwa Al Baraha, which will house about 50,000 workers; the luxury residential and commercial compound Barwa Al Sadd; Urjuan development; Barwa Housing Programme and Barwa Village projects; Hasad Barwa project to protect Qatar’s natural environment; Barwa Doha; Barwa City, Barwa Commercial Avenue and Barwa Financial District. Barwa also has many international projects in Europe, Africa and Asia. The developer has established specialised subsidiary companies, including Barwa Technologies, Barwa Hotels and Resorts, Barwa Media, Qatar Project Management, Amlak Qatar, Barwa Building Materials, and Barwa Knowledge in addition to Barwa Bank. | ||||
Barwa eyeing launch of its bank
Islamic banks plan to set up base in Tamil Nadu soon
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Interest-free Islamic banks could be a solution to the current global crisis, according to the Chennai-based Islamic Banking Federation members, a consortium of four associations in Tamil Nadu. The Federation is bringing about the first formal Islamic Bank in Tamil Nadu very soon, after elections. The Federation is currently in the process of getting the final nod from the Reserve Bank of India (RBI) to set up four organizations, Baithun Nasr Trust, Mana Muna Academy and the Azhagiya Kadan Trust in Chepauk and Pudupet. Sadique Batcha, organiser, Islamic Banking Federation said that it could be an alternative to the current economic problems. He added that the concept of having a formal Islamic banking system has not yet come to India. In the economic storm, the Islamic banks have globally come out really strong. The Gulf countries have been spared from the woes of crisis mainly because of Islamic banks. Iqbal, one of the members of the Federation said that while other traditional banks are reeling under losses, the Islamic banks are recording high growth in their operations. Unlike the European and American banks, the essence in Islamic banking lies in not dealing with debt trading and market speculation along with the inherent principle in Islam that interest should not be collected for any kind of debt. The very concept of Islamic banking lies in combining moral value with commerce, said Sadiq Batcha. A member of the Federation explains Islamic banking as one, which follows the principle of Islamic law, prohibits the payment of fees for the renting of money for specific terms and where all forms of interest whether simple, or compound is prohibited. Speaking to Express, Batcha said that Islamic banking is a viable option for India and Tamil Nadu will take the first formal step for the venture. He explained that as against the conventional banking system of accepting deposits and using it for lending, Islamic banking does not include paying of interest either to the depositor or collecting it from the borrower, the depositors instead will share the profits out of the lending that the bank makes. | ||||
New Takaful Licenses Will Help Industry Growth
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| The Life Insurance Association of Malaysia (LIAM) said the issuance of two new takaful licenses will further increase takaful penetration rate in Malaysia which is currently at a very low level. The Malaysian Prime Minister Datuk Seri Najib Tun Razak announced on April 27, 2009 various measures to liberalize the financial sector, among them the offer of takaful licenses to players who can bring significant value proposition to Malaysia to spur the development of the industry. In a statement on April 28, 2009, LIAM said the issuance of new licenses will also attract strong and reputable takaful players to the country, and this will augur well for the positioning of Malaysia as an Islamic financial centre. The association said the increase in the foreign equity limit to 70 percent from the existing 49 percent was a move strongly welcome by the industry, as it will make Malaysia an attractive place for established international players to set up their operations. The Malaysian Institute of Accountant (MIA) in a separate statement said this move will result in Malaysia being more competitive apart from boosting the country's economy and allowing better regional economic consolidation. MIA said the move will not only boost the financial sector but at the same time facilitate to full the transfer of knowledge and expertise between locals and foreigners. Link: http://www.cibafi.org/NewsCenter/English/Details.aspx?Id=3177&Cat=0 | ||||
Why Islamic banks escaped crisis
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| The current global economic downturn would never have happened if the banking sector had pegged its business on the Islamic banking, an industry player said on April 28, 2009. Gulf African Bank CEO Najmul Hassan says none of the 375 banks that practice Islamic banking globally has been affected by the crisis so far. “The reason for this is that Islamic banking does not go into the products that got these banks into this downfall. Look at Societe Generale, it lost billions in speculative transactions; Somitu Corporation lost because it was speculating on prices of copper,” Mr Hassan explained. “These are the very things that Sharia banking disallows.” Mr Hassan noted that Islamic banking is based on neither speculation nor interest but real growth. “All the trading that happens in this world is not interest-based; there is real trading taking place. Some assets are purchased, you add value, and you sell them out. That is what Islamic banks do,” he said. Mr Hassan explained that Islamic banks buy assets, add value and sell them on deferred payment and make their profit from taking part on real economic activity in a society as opposed to conventional banks which makes money on fractional lending which he described as ‘paper business’. Speaking during the first ever Islamic banking conference in the country, Mr Hassan noted that the biggest challenge for Islamic banking in the country was demystifying the concept. “Most people stereotype us and make our banking concept look like we discriminate people on grounds of religion. This not the case because we are open to everyone,” he said. Mr Hassan said the conference is intended to impart comprehensive and practical knowledge on Islamic finance product structures and their practical applications, highlight the challenges facing Islamic banking; their regulatory framework and legal issues; options to investing in equity markets; a comparative analysis of Islamic and conventional banking products and Islamic insurance models, amongst other issues. Meanwhile Mr Hassan said he hoped Central Bank would soon set up a department to cater for the growing Islamic banking sector in the country. “I think Kenya has a huge potential of becoming the centre of Islamic banking in the African region in the next five years. London and Paris are vying for this position in their respective regions,” he said. Link: http://www.cibafi.org/NewsCenter/English/Details.aspx?Id=3184&Cat=0 | ||||
A Fatwa concerning the Cordoba Gold Card
I have been recently approached by the Cordoba Financial Group in a request to comment on the legality of the Cordoba Gold CashPlus prepaid MasterCard...
All praise and recognition is due to Allah, the Lord of the worlds; and His peace and blessings be upon our Prophet, Muhammad, his family, and all his Companions.
I have been recently approached by the Cordoba Financial Group in a request to comment on the (Islamic) legality of the Cordoba Gold CashPlus prepaid MasterCard. Proceeding a detailed investigation of the product as well as thorough discussions with Cordoba’s senior executives, I have concluded that the abovementioned scheme complies with the requirements of Shari‘ah and is therefore permissible for the use of purchasing goods and withdrawing cash. However, it must be noted that the card should not to be used for buying gold, silver, stocks, foreign currencies or withdrawing money in other currencies as such transactions are known as sarf, and in accordance with Islamic law the exchange of two counter-commodities must be physical and prompt according to a hadith (prophetic statement) narrated by Abu Sa’eed al-Khudri, that the Messenger of Allah (may peace and blessings be upon him) said, "Do not trade gold for gold unless it be like for like (in quantity), let not the quantity of one exceed the other. Do not trade silver for silver unless it be like for like (in quantity), let not the quantity of one exceed the other. Do not trade that which is absent for that which is present".
The user first purchases the card from the Cordoba Financial Group for a small price which contributes to the administration costs of processing the user’s application, the opening of a bank account with The American Express Bank, the costs of producing the card, and other administrative functions.
Once the card is purchased, the cardholder must top-up the card at a top-up point. The value of the top-up is deposited into the cardholder’s bank account at the AFL Bank within 24 hours. AFL bank is a specific vehicle set up for this purpose and is regulated by the Bank of England. This bank account is an escrow account and AFL Bank therefore treats it as a trust - it is shown on the bank’s balance sheet as an amount due to a specific individual whereas other forms of current accounts are treated as loans made to the bank. As a trust, AFL Bank is contractually obliged to segregate the underlying funds, and so, may not use them to finance other projects or give loans to other clients.
When the card is used to make a purchase, the amount of the purchase along with a transaction fee will immediately be deducted from the escrow account (a similar process operates when cash is withdrawn). As a trust, the cardholder cannot use the card for purchases or withdrawals that exceed the balance held within his/her account and any request to make a transaction the value of which is beyond that balance will be declined at the point of purchase. Thus, no credit-based transaction can take place through the use of this card.
As a result of the above process, the balance of the trust account increases when topped-up and decreases when a purchase or money withdrawal occurs, the entire process taking the normal time frame required for processing transactions through the banking system.
The initial fees paid to obtain the card as well as the transaction fees do not render the product impermissible as the Shari‘ah allows a trustee to be paid to administer a trust and I hold both MasterCard and Cordoba Financial Group to be acting as trustees in this context. The trust concept is widely accepted by Muslim scholars who have allowed for a trustee to be compensated for his effort.
An important issue to take note of is the requirement of funds in each account to be segregated as a trust for the sole access, and benefit, of the account holder. Unfortunately, the use of electronic money and pooled funds is all pervasive in the current financial system. Therefore, cardholders’ funds cannot be physically isolated in the way that we would prefer. Given this context, the minimum we require is that the escrow balances not be included in the total assets of the bank which means that the bank can neither claim the right to use such funds nor can carry out activities based on such a claim.
As it is based upon the trust concept, the Cordoba Gold CashPlus prepaid MasterCard complies with the requirements of Shari‘ah. However, any alteration to the above described contractual processes as well as any contractual agreements or arrangements that contradict the essence of trust may violate the (Islamic) legal permissibility of the card. Such violations include altering the account from a trust to a loan basis and/or use of the trust money for financing other products or activities. It is of paramount importance to note that this fatwa (legal ruling) is not based on my personal preference or leaning towards a particular opinion among the various legal opinions, but is founded on precepts generally accepted by scholars from all school of thoughts which are based on the Qur’an and Sunnah (prophetic tradition).
In conclusion, I pray that Allah grant the individuals in charge of this project success, as well as to aid them to further His cause. Authentic Islamic finance has a key role to play in maintaining justice for the whole of humanity in this disturbed world.
I would like to take this opportunity to remind all Muslims that using credit cards for purchasing items is completely impermissible as they are usury-based loans offered to the client. Few can claim to be adequately certain of re-paying the loan before the given deadline so as not to incur any (interest-based) increase on the loan. A normal credit card contract contains a form of riba which the credit-card provider stipulates to charge from the very outset rendering the contract impermissible. The Messenger of Allah (may peace and blessings be upon him) said: “Muslims are bound by their conditions, except for conditions which forbid something that is permitted or permit something that is forbidden.” Undoubtedly, a large proportion of people who are now heavily indebted to credit card companies were initially confident that they could pay off their debts on time thereby avoiding compounded interest charges.
The same ruling has been given by the International Islamic Fiqh Council, belonging to the Organization of the Islamic Conference (OIC) in its statement: number 108 (2/12).
With Allah lies all success and may He convey prayers and salutations upon our Prophet (may peace and blessings be upon him), his family, and his companions.
www.mrdf.co.uk
11th Rabi’ Al Thaani 1430/ 4th April 2009.
source: www.islam21c.com
IFSB invites comments for three Exposure Drafts
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The Technical Committee of the Islamic Financial Services Board (IFSB) has recently issued three exposure drafts for public comment. They are:
ED-8: Guiding Principles on Governance for Islamic Insurance (Takaful) Operations
Part I recommends the adoption of good governance practices as prescribed by other international standards for insurance companies, while also addressing the specific needs of Takaful undertakings, while part II explains the appropriate governance structure and processes, including the relevant transparency and disclosure practices that adequately address the needs and interests of all stakeholders, with particular reference to Takaful participants. Part III relates to the general approach to sustaining a Takaful undertaking's solvency and promoting sound investment management of its assets.
ED-9: Conduct of Business for Institutions offering Islamic Financial Services (IIFS)
The IFSB said that ED-9 aims to promote a climate of confidence and a supportive environment in the business of the Islamic financial services industry by upholding and strengthening the relevant moral, social and religious values in business practices.
“These principles,” it says, “are desired from institutions that offer Islamic financial services (IIFS) not only because of Shari`ah obligations and requirements, but also because they serve to manage operational risks of the IIFS, particularly reputational risk.”
Apart from complementing the IFSB standards and guidelines, the document addresses the specificities of the IFSI. It thereby aims to ‘add value’ to other existing internationally recognised frameworks that set out sound principles and best practices pertaining to the conduct of business of participants and institutions in the conventional banking, insurance and capital market industry segments.
ED-10: Guiding Principles on Shari`ah Governance System
ED-10 aims to highlight to the supervisory authorities in particular, and the industry's other stakeholders in general, the components of a sound Shari`ah governance system, especially with regard to the competence, independence, confidentiality and consistency of Shari`ah boards. The ED has five parts:
· Part I explains the general approach to a Shari`ah governance system, whereby various globally accepted ex-ante and ex-post governance processes are adapted in order to strengthen the Shari`ah governance system. These processes include, among others, terms of reference for Shari`ah boards, appropriate alignment of incentives, proper record-keeping, and adoption of a professional code of ethics;
· Part II addresses the issue of competence by proposing various measures and criteria to ensure a reasonable level of expertise and skill-sets for members of Shari`ah boards. The proposed measures and criteria are intended to act as the basis for evaluating the performance of Shari`ah boards and determining their professional development;
· Part III focuses on safeguarding the independence of Shari`ah boards, particularly from the management of IIFS, by highlighting various issues arising from potential conflicts of interest and recommending approaches for managing them;
· Part IV highlights the importance of observing and preserving confidentiality by the organs of Shari`ah governance;
· Part V emphasises a set of best practices that aim to maintain the appropriate level of professionalism among the members of the Shari`ah board.
The IFSB Secretariat said it would like to invite all IFSB members to share their input and comments on the drafts for the respective working group review and further action. All three exposure drafts are downloadable from the IFSB website (www.ifsb.org), and those who are interested may email their comments to ifsb_sec@ifsb.org. The Public Consultation period for the drafts end on 15 May 2009 and they are scheduled for adoption by the end of the year.
The IFSB is holding a Public Hearing on the Exposure Drafts on 5 May 2009 in Singapore, prior to the 6th IFSB Summit. All members of the IFSB are invited to attend the session. Details of the Public Hearing and the Summit can be seen at www.ifsbsingapore2009.com
UK promotes City as center for global Islamic finance
The measures are aimed at anyone (institution) wishing to obtain finance by issuing Alternative Finance Investment Bonds (AFIBs) (the UK euphemism for Sukuk) using land assets as securities under the arrangements for issuing the bonds in the United Kingdom.
They include: (a) provision of relief from stamp duty land tax (SDLT) in respect of transactions undertaken as part of the issue of alternative finance property investment bonds; provision of relief from tax on capital gains in respect of transfers of land to and from Sukuk issuance vehicles; and (c) ensuring that the person obtaining the financing will continue to be entitled to claim capital allowances while the land is held by the Sukuk issuance vehicle.
It is a stated ambition of the Labour government to further promote the City of London as a center for global Islamic finance, trade and investment and to create a level playing field between conventional and equivalent Islamic financial products.
According to the budget statement, "Legislation will be introduced in Finance Bill 2009 to provide relief from the provisions of SDLT and the Taxation of Chargeable Gains Act 1992 for persons wishing to raise finance by using land assets in the United Kingdom. Further legislation will also set out the capital allowances consequences of the SDLT and capital gains measures." The measures, according to the UK Treasury, will take effect on or after the date that Finance Bill 2009 receives royal assent.
The chancellor first outlined the intention of the UK government to introduce legislation to provide relief from stamp duty land tax for alternative finance investment bonds in the Pre-Budget Report (PBR) in November 2008. This despite a disappointing concurrent announcement that the UK Treasury would not be issuing a debut sovereign Sukuk in the wholesale sterling market at the present time.
According to Treasury Minister Ian Pearson, "the government is committed to promoting the City of London as a center for global Islamic finance and to working toward a level playing field between conventional and alternative financing instrument. New legislation will be introduced in the Finance Bill 2009 to provide relief from stamp duty land tax for alternative finance investment bonds. And in conjunction with the FSA, the government will examine the regulatory treatment of Sukuk (alternative finance investment bonds) in the UK and will consult on this issue in the near future."
The announcement has been welcomed by the Islamic finance market in the City and beyond. Angela Savin, senior tax associate at City law firm, Norton Rose LLP, stressed that "for the last few years, HM Revenue & Customs (HMRC) have been very receptive to representations made for the tax treatment of Islamic finance to be no more onerous than conventional finance. These changes should ensure that there are now no UK tax obstacles to issuing Sukuk backed by UK land."
Norton Rose, which is one of the top international law firms servicing the global Islamic finance industry, is confident that the UK "tax changes will give a considerable boost to the UK Islamic finance initiative and ensure that in these difficult times alternative sources of finance will be available in the UK."
Foreign bankers such as Nazmi Camalxaman, general manager of CIMB Group's London branch, welcomed the move and stressed the importance of the UK issuing a Sukuk. "The market is waiting for the debut UK sovereign Sukuk issuance, because it will set the benchmark especially of other potential originators in the developed countries and in the EU, and start a nascent Euro-Sukuk market." CIMB would also like the UK government to be more proactive and follow in the footsteps of the World Bank, the International Finance Corporation and the Islamic Development Bank (IDB) to issue a Malaysian ringgit-denominated Sukuk "because there is high demand for such AAA-rated issuances in Malaysia."
Richard Thomas, CEO of Global Securities House (UK) and chairman of Gatehouse Bank, is confident that the UK sovereign Sukuk is "work in progress." He stressed the fact that Whitehall is pushing ahead with the Sukuk measures in the Finance Bill 2009 indicates that the Brown government is committed to a Sukuk issuance, albeit this would depend on the pricing and timing.
"The Treasury only finished its consultation in January 2009. The Finance Bill will be published sometime in May 2009. By the time the bill gets royal assent and the structure of the Sukuk is finalized it would be almost the end of 2009. So even if the UK government wanted to issue a Sukuk, realistically it would not have happened before the end of 2009 or early 2010. In any case, with the current UK government pricing for a debut sovereign Sukuk, no investors would buy it. The Islamic finance sector is return-driven. Therefore it would not be efficient or offer value for money to issue a Sukuk currently," he explained.
But Thomas wants to see a UK sovereign Sukuk issuance also for another reason. "We need a risk-free bond for our balance sheet purposes. Until we get a benchmark yield such as the UK government issuance, you will not see the establishment of a Sukuk fund of funds," he explains.
By Mushtak Parker
AIMS launches online Islamic banking courses
The average time for the completion of the CIB is three to four months and is chartered by the UK Government.
The Academy for International Modern Studies (AIMS) said it has launched an internationally accredited Certificate in Islamic banking known as Certified Islamic Banker (or CIB). It is, they say, designed to produce highly skilled professionals and 'Valued Islamic Bankers' for the fastest growing financial sector. The certification is being offered globally through AIMS regional partners worldwide, including Middle Eastern and African countries.
On the successful completion of the training, AIMS said that participants will be capable of designing, implementing, consulting, operating and administering Riba-free Islamic financial products and services, within their organisations.
This Islamic Banking Certificate is being offered through distance learning, “and facilitated by worlds' most renowned Islamic banking scholars,” it said in a press release.
“Students are given number of assignments; which increase their understanding on the subject, clarify their concepts and help them to achieve better marks in their final examination. Using AIMS' online educational support, students will have a chance to discuss the topics and question from Islamic banking scholars. The average time for the completion of the CIB is three to four months. However, it may not be the same for every student, and depends on their work experience, educational background and personal interest in the subject,” AIMS said.
Academy for International Modern Studies (AIMS) is apparently chartered by the UK Government. AIMS claims to have made significant contributions to the Islamic finance industry. They say that the objective of AIMS is to facilitate individuals to become experts in Islamic finance and to help companies establish better Islamic financial systems. AIMS says its mission is to promote industry professionalism and best practice in Islamic banking and finance through research, consultancy, corporate trainings, seminars, workshops and publications.
Algebra Capital CEO very Positive about the Future of Islamic Finance Industry
As closing remarks at the conference forum Mr. Makkawi said: "At Algebra we remain optimistic about the long term prospects of Islamic finance in general and Sukuk
issuance specifically. The MENA Sukuk currently represents around a third of the total global Sukuk market which will continue to see strong issuance growth as most countries in the region continue to run fiscal deficits which will need to be financed. We continue to work hard to provide Sharia complaint products to our existing as well as new investors across our key focus MENA market."
Islamic Finance honors Sheikh Mohammed
'The forum, with participants from countries throughout the world, tracks the latest developments in a growing and fascinating financial sector. His Highness Sheikh Mohammed's vision and support of the forum since its beginning continues to mark Dubai and the UAE as leaders in the global Islamic finance industry."
QIB launches Europe-based Global Sukuk Plus Fund
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QIB’s London-based affiliate, European Finance House (EFH), has initiated a European-based platform designed to originate Shari’ah-compliant investment products. The first of its products is the Global Sukuk Plus Fund.
The EFH-managed Global Sukuk Plus Fund is a weekly dealing mutual fund which invests in global Sukuk markets. The QIB and EFH joint-effort Fund’s assets will be invested in Sukuk issued by sovereign, quasi-sovereign and corporate issuers and sourced globally. Value can be added through investment in Shari’ah-compliant debt of credit investments such as syndicated Murabaha, trade finance and structured investments, where appropriate.
This Luxembourg Investment Platform-based and guided fund is open to institutional, private and corporate clients seeking investment opportunities managed by a Shari’ah-compliant bank. The Fund’s benchmark is US$ three month Libor +200 basis point.
Jean-Marc Riegel, QIB’s General Manager, Investment Banking and Development, said, “The Fund’s geographic and sector diversification take advantage of multiple sources, while the Fund’s active management maximizes yield and return. The investment range of this Sukuk Fund spans across six major Islamic financial markets and is easily accessed via each of QIB’s affiliates in addition to EFH, including Arab Finance House (AFH) in Lebanon and Asian Finance Bank (AFB) in Malaysia.”
Major growth in Islamic finance forecast
As market conditions begin to show signs of improvement, investors are increasingly looking for Sharia compliant investment opportunities, says Capivest, a Bahrain-based Islamic investment bank.
Recently, banks have started seeing signs of a return of business confidence, both regionally and internationally, with investors now looking for more transparent and ethically structured products. For many investors this means that they will be opting for Islamic Investment products, said Hasan Habib Hasan, executive director of treasury and financial institutions at Capivest.
There has been exponential growth in Islamic Finance over the last few years with assets under management reaching $660 billion in 2007 up from just over $200 billion in 2003, and they are now expected to reach $1,200 billion in 2012 (Oliver Wyman 2009 – Next Chapter in Islamic Finance). This growth is also linked to banks diversifying their activities away from a straightforward lending facility and moving to develop a full range of treasury products, said Hasan.
“Investment products that adhere to Islamic principles offer today’s investor some clear benefits. The ban on interest, investments in highly leveraged assets, speculation, trading debt and complex structured products takes out many of the risks that led to the collapse or meltdown of some prime banks. Business risk is associated with reward and it is not possible to build a portfolio of toxic assets. Most investments do not provide protected returns, but investors are looking for investment institutions to share the risk and back their own products,” he said.
“The Islamic Financial Industry would be making a great mistake if it believes that it now needs to sit back, consolidate its position and wait to see what happens with global markets. This is the time we should all be looking to develop new and innovative ways of servicing the emerging investor confidence with Sharia compliant products and investments. This is a time to seek out distressed investment opportunities.”
An issue limiting the growth of Islamic investment products in the past has been a perceived lack of visibility of the products and potential returns. The recent development of new and well respected indices has dealt with this concern and led to much greater transparency. This has also led to a growing appetite worldwide for Islamic products, said Hasan.
“In 2009, international and regional investors, looking for appropriate returns with capital protection and with a long term view of the market will require Sharia compliant investment opportunities which meet their investment needs. Bahrain is growing in stature as a center for Islamic finance and must now lead the way in developing a new generation of products and services. We have a stable and well regulated market which is extremely important as we rebuild business confidence and trust,” he continued.
“If we are now seeing the first signs of recovery, Bahrain and the Islamic financial industry must make sure that it is ready to capitalise on this,” added Hasan.
Noor Islamic Bank opens office in Tunisia
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The regional office is located on Hadrumete Street, 2 Mutuelleville in the capital Tunis. It will focus mainly on investment and corporate banking, and will also channel investment opportunities from the GCC into North Africa, including Egypt, Libya, Algeria, Morocco, Tunisia and Mauritania.
Hussain Al Qemzi, group chief executive of Noor Islamic Bank and Noor Investment Group, said, “The UAE is investing billions of dollars in Tunisia and North Africa as part of its commitment to drive economic growth in the Arab world. We would like to build on this legacy and sustain the synergy with the Tunisian government and institutions, and the North African region.”
The Tunisian economy has been growing at a steady rate and the government of Tunisia predicts an average growth rate of 6.3 per cent over the next decade. As the largest Arab investor in Tunisia and the North Africa region, the UAE’s investments in the country have exceeded $22 billion.
Link: http://www.cpifinancial.net/v2/news.aspx?v=1&aid=570&sec=Islamic%20Finance
Al Baraka Banking Group to launch Islamic bank in France
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Al Baraka Banking Group's CEO, Adnan Ahmed Yousif has revealed plans to launch an Islamic bank in France, adding that the group has submitted its financial requirements and accounting standards to the French authorities.
In an interview with CNBC Arabiya in Dubai, Yousif explained that the French financial authorities have demonstrated major interest in having Islamic banking products enter its market, in light of the five million Muslims currently residing in France.
Speaking on the Group's performance, Yousif noted that in the first quarter of 2009, the bank recorded positive growth of four per cent in its budget, in addition to an increase in the number of branches, businesses, as well as credit and securities issuances.
Yousif also added that the number of the Group's offices will increase in 2009 from 280 at present, reaching 330 by the end of the year, and staff numbers will increase by 800 employees.
On the economic downturn's effects on the Group's operations, Yousif said that there were initial concerns about investing in certain markets and that these concerns have now been “eradicated”, especially in markets like Turkey, Algeria, Egypt and Jordan, which performed very well.
Al Baraka Banking Group has also begun introducing new products in the Turkish market including finance leasing, forward sale and manufacturing contracts (Salam and Istisna) and rent-to-own schemes, adding that demand for Islamic financial products has increased, especially in emerging markets and in some European markets.
Link: http://www.cpifinancial.net/v2/News.aspx?v=1&aid=2196&sec=Islamic%20Finance
Shariah a good leadership guide, says expert
DOHA: The current global crisis is not financial but leadership-related, and a Shariah-inspired approach to leadership is needed for companies, according to an expert.
Dr Tommy Weir, Executive Director of EM Leadership Center and a specialist on leadership development for emerging markets, presented the Islamic approach to leadership on the concluding day of this year’s Leaders in Islamic Finance Summit at the W Doha Hotel on Tuesday.
Underscoring the need to break away from Western conventions, Weir said there was skepticism about Islamic finance because many of today’s financial leaders had been taking the Western approach for long due to the fact that they had acquired a Western education.
“We have to change our binoculars, we should look at Islamic finance for solutions,” he said.
He urged the participants in the summit to help shape a different view of Islam’s role and contribution to the corporate world and the society as a whole, saying the influence of Islam extends beyond the financial sector to leadership.
Weir dwelt on the elements of the unique leadership approach model based on Islamic principles, such as responsibility, humility, trustworthiness, reward for hard work and decisiveness, among others. He said these basic values are seldom seen in corporations these days.
“A leader should recognise he has responsibility to Allah, the society, his business and himself,” he said.
In addition, he emphasised that a Shariah-based leadership approach is consultative, explaining that leaders as revealed in the Quran operated through consultation.
“If you ask someone’s opinion, you gain his mind,” he aptly said, further underlining that leaders must continually be in pursuit of knowledge.
Source: The PENINSULA / BY RAYNALD RIVERA
The IFSB membership reflects the growing interest among the Islamic financial services industry's stakeholders in the work of the IFSB
- The IFSB admits 10 new organisations to its membership (two full members, eight observer members) and upgrades an associate member to full.
- The IFSB members now total 185 organisations comprising 43 regulatory and supervisory authorities, six international inter-governmental organisations and 136 market players and professional firms operating in 35 jurisdictions.
Kuala Lumpur, April 21, 2009 - The Islamic Financial Services Board (IFSB) membership continues to expand, with the admission of 10 new organisations. In its' 14th meeting held recently in Riyadh, Saudi Arabia, the Council of the IFSB has resolved to admit 2 new regulatory and supervisory authorities as full members, and 8 new financial institutions as observer members. This brings the IFSB membership to 185 members operating in 35 jurisdictions.
The 19-member Council was chaired by H.E. Dr. Muhammad Sulaiman Al-Jasser, Governor of the Saudi Arabian Monetary Agency. It was attended by the President of the Islamic Development Bank, nine central bank governors and six governors' representatives.
Dubai Financial Services Authority was upgraded from an Associate to a Full Member, while the newly admitted members are:
Full Members:
1. Central Bank of Nigeria
2. Qatar Financial Markets Authority
Observer Members:
1. Deloitte Corporate Advisory Services, Malaysia
2. Etiqa Takaful Berhad, Malaysia
3. Maybank Islamic Berhad, Malaysia
4. Barwa Bank, Qatar
5. Woori Investment and Securities, South Korea
6. Islamic Insurance Company, Sudan
7. Al Hilal Takaful Company, United Arab Emirates
8. Moody's Middle East Limited, United Arab Emirates
Given the growing interest of the industry's stakeholders in the work of the IFSB, Secretary-General, Professor Rifaat Ahmed Abdel Karim expects a more diverse composition of the IFSB membership in the years to come. Rifaat said, "The number of regulatory and supervisory authorities in the IFSB membership tends to reflect a growing interest among them in the work of the IFSB which aims to enhance the soundness and stability of the Islamic financial services industry. Meanwhile, the admission of international rating and accounting firms in the IFSB suggests an awareness of these firms' potential role in supporting the development of the Islamic financial services industry as well as their appreciation of the benefits of being members of the IFSB." He added that with the new admissions, the 185 members of the IFSB comprise 43 regulatory and supervisory authorities, six international inter-governmental organisations and 136 market players and professional firms from among the banking, Takâful and Islamic capital market sectors of the financial industry operating in 35 jurisdictions.
The diverse membership in the IFSB form a useful pool of resources from which the IFSB draws expertise in developing its standards and guiding principles.
The full list of the 185 IFSB members can be seen on www.ifsb.org. Their roles and responsibilities (by category) are detailed in the IFSB Articles of Agreement which is downloadable from the website.
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