Europe can learn from Islamic finance, says Luxembourg's Finance Minister

Europe can learn and gain from Islamic finance, given that financial institutions under it, have remained stable against the backdrop of the eurozone debt crisis.

This observation was made by Luxembourg's Minister of Finance, Luc Frieden, in a keynote address at the IFN 2011 Issuers & Investors Asia Forum here today. Frieden said despite the credit crunch that has impacted Europe's banks, Islamic financial institutions had weathered the global crisis and emerged to be the most well managed.

"Therefore, we can learn a lot from Islamic finance and from Asia, as we have much in common.

"The key elements in Islamic finance that we need in the world today, particularly in Europe, are stability, financial partnership, provision of excessive risk and speculation as well as ethical principles," he added.

He said in Islamic finance, the financial relationship between the lender and borrower, had assured the "partnership mentality", which was found to lead to certain stability.

Explaining the need to avoid excessive risk taking place, Frieden said this is among the key goals of Europe and is an important feature found in Islamic finance.

"The provision against speculation and gambling which is prohibited in Islamic finance, is what we can concentrate on," he added.

He also said the element of ethical principles should not be limited to the Islamic finance industry alone. Frieden gave an assurance that Europe would find a solution to the debt-crisis that had led to volatility in the global economy.

"There's no one easy solution and one meeting can't solve the crisis. We have embarked on a step-by-step process to solve the problems.

"We will find a solution to the Greek issue. The Euro will be a currency you can count on in the future and see growth," he said.

He said Asia and Europe must join forces for the development and prosperity of the global economy.

"Therefore, Asian investors should look at Europe for trade and investment purposes, going forward," he added. - BERNAMA

http://biz.thestar.com.my

Saudi academicians, businessmen to participate in forum

Saudi businessmen expressed solidarity with the local academe for the propagation of Islamic finance in Europe, making Spain as its hub.

According to Dr. Abdullah Q. Turkistani, director of Islamic Economic Research Center, King Abdulaziz University, no less than the chairman of the Jeddah Chamber of Commerce and Industry (JCCI) showed strong support for the promotion of Islamic finance in Europe and Latin America through the Center of Islamic Economics and Finance (CIEF) which was established in Madrid last year under the collaborative efforts of the King Abdulaziz University and the Instituto de Empresa (IE) University in Madrid.

He said the visit of Dr. Rafael Puyol Antolin, president, IE University and Joe Luis Perez Estevez, director, CIEF last Saturday to King Abdulaziz University and the meeting with officials of JCCI the following day was fruitful, with the chamber officials manifesting their desire to participate in the upcoming conference in Madrid slated on June 16-17.

The two-day meeting titled “Beyond the Crisis: Islamic Finance in the New Financial Order” is “unique”, said Estevez, as “there won’t be main speakers. Instead, the participants will be divided into working groups to tackle issues” confronting Islamic finance and come up with summary, course of action and conclusion at the end of the second day.

Some 30 international Islamic finance experts will join in the forum that will begin at the Madrid Stock Exchange.

The conference will focus on banking and insurance, Islamic finance products, new technologies and public and government sectors.

Estevez stressed that there is a dramatic interest in the Islamic finance system since it “does not need radical change” as compared to conventional financial practices. 

It is more resilient that the latter, he added, with “built-in stability features,” though “it needs level playing field” vis-à-vis the conventional.

He pointed out that CIEF Madrid is strategically located, as it serves as a bridge to Latin American countries as well as to Europe, notwithstanding Spain’s Arab heritage.

He further said in the long run, CIEF will not only serve as the center for spreading awareness on Islamic economics, but would also serve as a conduit for exchange students. 

The CIEF “makes a lot of sense in Europe” as it will let people know about the “ethical” financial system. He said at present, Europe’s knowledge about Islamic finance “is very limited,” hence “a lot of lessons could be applied.” 

“The seminar in June is good both for the companies, academia and the government sectors to meet each other and understand” the system, he noted.

Dr. Ahmed Belouafi, assistant professor and researcher, Islamic Economics Research Center, added that though Islamic finance constitutes only one percent of the global finance, with approximately $1 trillion in global assets, yet the demand is dramatic because of its distinctive features, such of asset-backed finance where the credit facility is linked to particular activity or project and is transparent, among others.

The CIEF endeavors to strengthen the foundations and capacity of Islamic finance to contribute toward global growth.

In a meeting at Economic Research Center, King Abdulaziz University last Saturday, Turkistani said that the Center will, in the near future, be elevated to become the International Institute for Islamic Economic and Finance that would offer masters degree and online courses and at the same time provide professional certificates in Islamic finance.

He added that the center increases awareness on Islamic finance by going to malls and presents the topic there, saying that it plans to encourage “gifted students” to have doctorate degrees. – By Querubin 

http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentID=2010042770583

Experts to Brainstorm on Islamic Finance

Investors, analysts, bankers and other financial operators will be exposed to the benefits of Islamic banking in a workshop staged by the Chartered Institute of Bankers of Nigeria and Lotus Capital Limited.

The workshop on Islamic finance and investment products put together by CIBN and Lotus Capital, according to a statement, is scheduled for 22 - 26, March, 2010, at Colonades, Ikoyi, Lagos, at 9.00 am.

It said, participants will have the rear opportunity of not only discussing and appreciating such critical issues and Sub-topics in Islamic Banking as "The Road Ahead: Realizing the Potential of Islamic Finance and Investment"; "Islamic Finance Contracts"; Successful Shari'ah Complaint Product Structuring"; "Islamic Finance: An Alternative Approach to Project Finance and Infrastructure Development" and "Creating Interest Free Bonds" but also hear directly from seasoned Islamic banking experts from Nigeria and abroad.

Top on the list of the high profile discussants include: Professor Dr. Monzer Kahf, of Qatar faculty of Islamic Studies, a Professional Lecturer, Trainer, Consultant and advisor of international repute in Islamic banking and Investment and Mrs. Hajara Adeola, Managing Director, Lotus Capital Limited, a convertible Bond Research Analyst of BNP Paribas, London and an accomplished Consultant at Andersen (now Accenture).

It is expected that at the end of the workshop, participants would be able to reasonably "understand the new global wave of Islamic finance and investment banking", "learn the Islamic finance instruments and structured products and their relationships with Conventional financing instruments" "understand Islamic Finance contracts", "Provide with an in-depth understanding of the growing Islamic investment funds, their structure and growth" and "Know how to structure Islamic insurance/Takaful products".

Link: http://allafrica.com/stories/201003180503.html

4th Islamic Banks and Financial Foundations Conference Recommendations

The 4th Islamic Banks and Financial Foundations Conference on June 2nd, 2009 recommended to enroll Islamic banking course in university curricula and establishing a joint course between the Economy and Sharia faculties in order to make graduates qualified in banking and Sharia.

The 4th Islamic Banks and Financial Foundations Conference on June 2nd, 2009 recommended to enroll Islamic banking course in university curricula and establishing a joint course between the Economy and Sharia faculties in order to make graduates qualified in banking and Sharia. The Conference, in a final session, called for finding a legal environment compatible with the nature of Islamic banking and adopting a banking arbitration system to solve disputes related to Islamic banking and developing new formulas of Islamic finance to increase revenues. For his part, Grand Mufti of the Republic, Ahmad Badreddein Hassoun talked about the importance of knowing Islamic banking work characteristics through studying and scientific specialization and intensifying training courses, pointing out that Syria made good steps in the field of Islamic banking. Governor of Central Bank of Syria, Dr. Adeeb Mayaleh pointed out that work is in progress to realize an Islamic banking sector based on the laws of Islamic Sharia to cope up with the requirements of life in Syria. Mayaleh said that Islamic banks in Syria have witnessed a distinguished growth during its short work time which is about 1 and a half year, however, they have 70 000 clients and their revenue volume amounts to 42 SYP billions and 11% of the total revenue volume, indicating that Islamic banks are developmental banks and that the percentage of its investment finance amounts to 60% of its finance. 800 Sharia scholars and Islamic banking specialists from Arab and foreign countries participated in the 2-day Conference. Link: http://www.cibafi.org/NewsCenter/English/Details.aspx?Id=3638&Cat=0

The European Forum of Islamic Finance to be held in Italy

The European Forum of Islamic Finance will be held in Milan , Italy between May 12&13, 2009 to discuss the study of the all the conditions for the success of Islamic Finance Industry in Europe from legal, tax, practical point of view.

The European Forum of Islamic Finance will be held in Milan , Italy between May 12&13, 2009 to discuss the study of the all the conditions for the success of Islamic Finance Industry in Europe from legal, tax, practical point of view. Many essential topics regarding the Islamic Finance Industry will be discussed in the forum  like the Conformity of the Islamic Financial System with European Standards and Regulations such as the position of Islamic Finance in the international economic system, the compliance and legal requirements if Islamic finance and Tax requirements of Islamic Finance. Another topic is the Regulation Authorities of the Islamic Financial Market including the Role of the Central Bank, the Accounting and Auditing Standards of the Islamic financial Institutions and the Rating Agencies. Moreover, there will be a comparative study between the Islamic banking services and conventional services, this comparison will involve Rating Banking, Investment Banking and Private Banking. And there will be a discussion to the Opportunities of Shariah-Compliant products in Europe regarding the issuance of Sukuk, Asset Management and Real estate. The schedule of the Forum will be filled with speeches by some of the most important figures in the world of Islamic Finance Industry including correspondents from important Islamic Financial Institutions.   Link; http://www.cibafi.org/NewsCenter/English/Details.aspx?Id=3230&Cat=0