KEY ISLAMIC FINANCE ISSUES ARE REVIEWED

| Saturday, February 6, 2010

 Islamic liquidity management and financing were discussed at a key forum held in Bahrain.
The Bahrain Financial Exchange (BFX) and Bursa Malaysia organised a forum which also discussed contemporary issues relating to commodity Murabaha transactions and Tawarruq practices.
The forum was part of a two-day event marking the inauguration of a commercial relationship between the two exchanges.
The underpinning for this relationship is to provide financial products to Islamic market participants and strengthen bilateral ties between both organisations.
The event, held at the BFX offices, attracted over 50 key players from the Islamic financial markets and was attended by three eminent Sharia scholars within the industry.
Dr Mohammed Ali Elgari, Shaikh Nizam Yaqubi and Bursa Malaysia Sharia adviser Dr Aznan Hasan participated with the objective of providing insights and expert opinion on the concept of Tawarruq and its application and practices to facilitate Islamic liquidity management and financing.
"The use of Tawarruq and its role in money markets and risk management is important in further developing the industry and through discourses such as this, we hope to provide industry participants with greater understanding of the concept from a Sharia perspective as well as its commercial importance," said Bursa Malaysia global head of Islamic markets Raja Teh Maimunah Raja Abdul Aziz, who was also the moderator for the panel discussion,
The event also introduced a newly developed regulated Islamic commodity trading platform to industry participants specifically designed to facilitate Islamic financing and liquidity management aimed at tightening the application and enhancing integrity of Tawarruq practices.
Tawarruq is a sale of an asset to a purchaser on deferred payment with an onward sale by the purchaser to a third party on cash.
"It gives me great pleasure to host such a high-profile panel and audience from the Islamic finance community," BFX director Arshad Khan said.
"I am confident I can say from all involved, that this was an extremely informative and thought-provoking discussion with the practitioner community."

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