Innovation key to success of Islamic finance industry

Innovation is the key to the future success of the Islamic finance industry and to meet the challenges of contributing to economic growth and to facilitate internationalization of the industry. According to Nor Mohamed Yakcop, minister in the prime minister's department in Malaysia, "the Islamic financial system has to continually innovate and adapt in order to be competitive. At the same time, innovation is also the driving force behind developing greater diversity of products and services. Therefore there is a need to focus on product innovation and development efforts that will provide a comprehensive array of Shariah-based products for the industry."

Yakcop was speaking at the KLIFF Islamic Finance Awards dinner which was held recently in Kuala Lumpur. While he may have been speaking in a Malaysian context, his words apply to the Islamic banking industry in general.

Yakcop is no ordinary observer of the Islamic finance industry. He together with others is the architect of the Malaysian Islamic financial system when he was adviser to Jafaar Hussein, the then governor of Bank Negara Malaysia, the central bank, and effectively helped the governor to implement his dream of developing a dual banking system in the country - an Islamic banking system operating side-by-side a conventional one, cooperating but not interacting.

He was also the pioneer of Malaysia's bilateral payments arrangement of settling accounts between central banks rather than using expensive correspondent banking services in London, New York and Frankfurt; a prime mover behind the concept of an Islamic dinar to settle trading accounts between Muslim countries.

However, Yakcop warned that while in Islamic finance, innovation has been significantly pervasive, the industry needs to further accelerate the innovation momentum to ensure that it achieves its objectives and aspirations. The challenge to innovate and adapt at the same time must be based on the core principles and values as well as the ethics of Islam.

"For innovation to become an important driver of growth, a critical area that needs attention is addressing the shortage of skilled and experienced professionals in the industry. WE need to build a pipeline of talents who have the ability and creativity to develop new ideas and the capacity to run ideas into achievable results," added Yakcop.

The greater awareness of the inbuilt strength of Islamic finance has contributed toward the increased international participation in Islamic financial markets. Indeed Malaysia has benefited from the internationalization of Islamic finance.

The minister highlighted Malaysia's leadership in the Islamic financial industry. For instance, in the issuance of sukuk, out of the Top 10 biggest sukuk issued globally in 2010, five originated from Malaysia. For this year to date, global sukuk issuances totaled $54.5 billion and Malaysia accounted for about 67 percent of the issuances.

The country had also attracted continued presence and interest of foreign issuers and investors, which has seen several successful issuances of foreign currency and ringgit denominated sukuk by issuers including the Islamic Development Bank ($500 million), Gulf Investment Corporation (RM600 million), Nomura and National Bank of Abu Dhabi (RM500 million).

Yakcop also stressed that to facilitate greater internationalization of the Islamic capital market, the capacity to structure multi-currency and cross border transactions and to build greater scale needs to be further strengthened. This would allow intermediaries to make greater inroads into the international market. "The transition into the mainstream of the global financial system will provide opportunities for market intermediaries to seek new frontiers and expand new markets, as well as contribute toward further widening the diversity of products and services."

In Malaysia specifically, the country's march toward developed nation status by 2020 has required a shift toward new and competitive growth sectors characterized by higher value added and knowledge intensive activities. As identified by Prime Minister Mohd Najib Abdul Razak's Economic Transformation Program, these policy shifts also provide good opportunities for Islamic finance to also develop products which meet the needs of these growth areas.

Indeed in last week's budget 2012, Najib, who is also Malaysia's finance minister, outlined several opportunities for the Islamic finance industry including further incentives for certain types of sukuk origination, support for SMEs, for venture capital and the housing industry.

http://arabnews.com

Islamic finance deals push

The International Summit on Islamic Corporate Finance (ICFS 2011), which opened yesterday in Abu Dhabi, saw leading Islamic bankers and corporate borrowers engage in innovative discussions that focused on boosting deal flow in the Islamic corporate finance space.

The summit addressed how to capitalise on the increasing demand for Islamic finance from the business sector as a diversified component of their corporate funding mix.

Held under the strategic partnership of Noor Islamic Bank, the two-day event was inaugurated by a keynote address from MAF Holdings senior vice-president and head of treasury Daniele Vecchi.

He outlined the corporate borrowers' expectations of Islamic corporate finance and provided insights into how Islamic finance can play an increasing role in the corporate funding mix.

"There is no doubt that Islamic finance is maturing into a global phenomenon as highlighted by the increasing appetite for Islamic instruments and deal structures across international capital markets, corporate loans and asset finance," said conference organiser David McLean.

"Analysis reveals that there has been dramatic growth in the international Islamic corporate finance market and many experts believe that this growth will continue to flourish as major economies in the Middle East and Asia, which are the most significant markets for Islamic finance, continue to expand trade and investment ties."

http://www.gulf-daily-news.com

Malaysia: Taking Islamic finance further

Malaysia’s Islamic finance sector is further consolidating its position as a market leader, moving to broaden its product range and expand its reach, though it may need to keep an eye on rivals aspiring to emulate its success.

At a recent seminar on Islamic finance held in Istanbul, Mehmet Asutay, the director of the Durham Centre for Islamic Economics and Finance at UK-based Durham University, said Malaysia was positioning itself to capture 25% of the market share in the Islamic banking and finance sectors by 2012.

“Islamic banking and finance has experienced substantial and unprecedented growth in recent years, growing at a rate of 10-15% annually,” Asutay said on September 19, adding that Malaysia was looking to take a major share of the international market.

Malaysia’s place at the centre of the international Islamic finance sector was given further recognition in early September when one of Japan’s leading banks announced it was planning to make Malaysia its global base for Islamic finance as soon as it receives approval from industry regulator Bank Negara Malaysia (BNM).

On September 5, Mizuho Corporate Bank (MHCB), Japan’s third-largest lender, began commercial operations in Malaysia, having been granted a licence by the BNM last June, but bank officials made it clear that launching conventional banking was only a stepping stone to the ultimate objective of breaking into the Islamic financial sector.

Keizo Ohashi, chairman of Mizuho Malaysia, said gaining BNM approval to open an Islamic financial arm would serve as a bridge to the wider sharia-compliant banking market in the region.

“We regard Malaysia as a critical part of our Asia-focused strategy because it is a strategic hub and gateway to business development in ASEAN with its strong infrastructure in Islamic finance,” Ohashi told local media.

According to Zakariya Othman, head of Islamic ratings at local ratings firm RAM, making the move into the Malaysia’s Islamic finance sector is a smart move for overseas lenders.

“By having sharia-compliant financing operations in Malaysia, foreign banks like Mizuho will find it easier to tap into the Islamic market,” Othman said in an interview with the Bloomberg news agency on September 7. “Malaysia, with 17m Muslims, also has a ready market and attractive incentives.”

As well as attracting investment and building on its reputation as a centre for Islamic finance, Malaysia is also branching out into neighbouring markets. In mid-September, Malaysia’s sovereign wealth fund Khazanah Nasional announced it was planning to issue a $78.3m sukuk or Islamic bond. Volatile market conditions subsequently prompted Khazanah to postpone the issue, but the prospect attracted significant attention while it was on the table.

http://thailand-business-news.com

Can Islamic finance maintain its pace of growth?

The $1 trillion global Islamic finance market still has a bright future, barring any sharp turns in the world’s economic crisis, with the Arab Spring pushing investors into Asia.\

Barring a sharp global downturn, Islamic financial asset growth will likely maintain its current growth clip over the next 5-10 years as new markets emerge, an industry body said on Wednesday.

The $1 trillion sector has bright growth prospects in Asia, the Middle East and Africa driven by increasing populations, natural resources and policies that encourage expansion, the Islamic Financial Services Board (IFSB) said.

Islamic finance has been growing at 15-20 percent a year, according to industry estimates, although most activity has been from the traditional markets of the Middle East and Malaysia, following after a brief burst of global interest three years ago.

“15 percent is a very fast rate of growth but it is off a relatively small base and it’s sustainable for a longer period than you might initially think,” IFSB secretary-general Jaseem Ahmed said in an interview.

The Kuala Lumpur-based IFSB, one of two Islamic finance standards-setting bodies, issues guidelines on the banking, capital markets and insurance sectors.

The Sharia-compliant banking sector’s growth has largely been driven by a boom in petrodollar earnings and by increased demand for ethical investments.

SUKUK AND THE ARAB SPRING

But over the past year, unrest in the Middle East and several high-profile sukuk defaults have weighed on the Islamic finance industry. Also, many bankers expect the weak global economic outlook to be a further drag on the sector.

Unlike the 2008 global credit crisis — which sparked wide interest in Islamic finance as countries sought access to alternative sources of funding — the current downturn is expected to hit the industry as slowing economic growth hurts bank lending.

Ahmed said growth in new markets would be driven by consumer demand and interest by small and mid-sized firms to tap the pool of Sharia funding.

Bankers have said that Turkey and Kazakhstan are potential new markets for Islamic finance, helping to offset maturing growth in South-east Asia and the Middle East.

“The crisis in Europe and the slowdown of the U.S. are something of concern but overall I’m cautiously optimistic about that and very optimistic about emerging markets and about Islamic finance over the long-haul,” Ahmed said. (By Liau Y-Sing Editing by Richard Borsuk)

http://www.kippreport.com

Islamic banking growing

Islamic system of banking is rapidly growing in Pakistan with annualised growth rate of one percent. That is the highest growth rate of this industry in the world. “The market share of Islamic banking in Pakistan has gone up to 7 percent and, with the current annualised growth rate, it is expected to achieve 15 percent market share in the next five year”, Pervez Said, President and CEO of Burj Bank, said at a seminar on ‘Riba-Free Economy and Interest-Free Banking”, at Karachi Press Club. 

He said that the annualised growth rate of Islamic banking is half percent in Malaysia. “In Malaysia, the Islamic banking started some 25 years ago, where its market share has increased to 12 percent”, he added. He said that Islamic banking started in Bahrain some 30 years ago, and its market share is now 8 percent. “As compared with these countries, the growth of Islamic banking in Pakistan is much higher”, he said, adding that there is huge potential and it is expected the Islamic banking would grow rapidly in the years to come. He said that there are full-fledged Islamic banks and Islamic banking windows of conventional banks, offering Islamic banking in almost all major cities across the country. He pointed out that Islamic banking has been started in many countries across the globe. Shamsuddin Khalid Ansari, Advocate, appreciated the knowledge shared and the efforts of Burj Bank in spreading Islamic finance throughout Pakistan. The Burj Bank plans to continue its aggressive awareness drive on Islamic banking system in the years to come. Group Head of Consumer Banking, Burj Bank Taimur Afzal, Group Head Treasury & FI Burj Bank Ayaz Wassay, Head of Operations Burj Bank Saadullah Khan, senior lawyers and personalities from Islamic banking industry attended the seminar.

http://pakobserver.net

Whither Islamic finance and Islamic financing future?

By Dr. Masudul Alam Choudhury

Following the Great Recession, the financial volatility and slump globally, the financial community everywhere came to hear the announcement that Islamic financial instruments are the answer to a return to stability and profitability. Islamic banks are thus slated as the financial model for sustaining growth, profitability, stability and well being. In all of these social, economic and financial goals the flag of the shari'ah is hosted.

What are the realities regarding the meaning and performance of Islamic finance in general and Islamic financing in particular? This question despite its importance in evaluating the performance of Islamic financial outlets and thereby to recommend paths and possibilities of change cannot be answered objectively. There are no adequate information and data available except the clamor by the enthusiastic corporate agents. There is paucity of information both on the financial side and on the side of social responsibility by Islamic banks.

Consequently, neither the objective and purpose of the Shari'ah (Maqasid al-Shari'ah) nor the material performance from Islamic financing can be objectively gained. There is no comprehensive databank; some are planned for development. The International Association of Islamic Banks has not been traditionally active and has not been successful in establishing such databanks. Where some data exist, they are on a narrow base of financing by projects, sectors, target groups and for insufficient lengths of time. Financing data that exist for short time-periods are aggregated to totals.

Illustrative facts

Financing has become lumpy on Sukuk, Islamic bonds. Primary financing modes of mudarabah (profit- sharing), musharakah (equityparticipation) have been increasingly abandoned. This is the Malaysian case. Murabaha, a controversial instrument of Islamic financing as a debt-instrument with a subjectively determined risk and profitability premiums by mark-up, has been oversubscribed. In the end, Sukuk becomes an independent debt-financing instrument mostly revolving around debt instruments.

Sukuk has no ethical objective despite what is said regarding its interest- free financing. But the fact of the matter is that simply a riba-free mode of financing is a necessary but not a sufficient condition for Islamic and ethical financing.

There are plans presently by Saudi Arabia, Qatar and Malaysia to finance Sukuk projects to the tune of 1trillion dollars. On this matter HSBC Holdings Plc and BNP Paribas SA remark that -this amount of funds will overwhelm Islamic banks. The bulk of the fund will go into Islamic bond sales to build oil refineries, steel mills and petrochemical plants. Saudi Arabia is expected to spend $3.9 billion in these directions. Qatar will enter Islamic bonds to finance its $100 billion requirements for building the facilities of the soccer World Cup in 2022. Malaysia will spend $444 billion to finance economic developments that started 2010. This will mean that a good deal of Islamic bonds will be floated to raise this amount.

On such oversubscription of funds for financing mega projects HSBC comments: -The capacity of the Islamic commercial banking sector may not be sufficient to satisfy demand for capital, said Rafael Dalmau, the Singapore-based head of the Islamic portfolio unit at BNP Paribas, in an interview Jan. 18, 2011.

Explanation by ilustrative example

Let us describe the financial transactions that can arise from the abovementioned massive spending on mega projects. Sukuk will form the only opening by way of their nature being Islamic bonds to raise funds by the issuer (Islamic banks).

All sukuk issues revolve around debt instrument, typical ones, of which are murabaha, istisna and ijara. The first question is that when the end user buys the needed equipment or loan from the sukuk issuer on the basis of the investors funds, the payment inevitably has a profit and risk component to it besides an installment pay-down of the principle. Unless the market valuation of the profit portion of mark-up and the risk portion of the mark-up are not determined, these portions remain as surcharges on the end user. The indeterminate rates in such a case are tantamount to riba. In this way all debt-financing is simply riba.

While a debt-based financing instrument is repugnant to Islam, yet a murabaha-type debt-related problem is solvable for the mutual benefit of the sukuk issuer and the end user, and also for the overall categories of participants -- if the financing instrument becomes a participatory one by way of calculating, deferring, or capitalizing the overcharge into negotiated future liquidation of liabilities and returns.

The emergent method of participatory liquidation of liabilities and the availability of options in the alternative use of overcharges by markups would be mutually good for all: Market-institution determined markup is fair and soft for the end user. It is fair and properly calculable for profit-sharing and risk-sharing between all participants. The distributive savings in mark-up can extend possibilities in product development by the use of financial options that can now become available for using a proportionately lower level, market determined, and institutionally driven use of the mark-up.

By this new method of murabaha financing or deferred financing (tawarruq), istisna, ijara, the ad hoc mark-up as debt instrument would fade away. It is now replaced by recontracted liquidation ratios of risk and profit obligations on a determinate basis at various moments of the joint institution-market engaging discursive process. As a result, there comes about more redistributive productive capital in the participatory financing system.

The debt-based sukuk financing as Islamic bonds is thus changed into a participatory one. The nature of participatory change is shown by means of the below diagram.

Figure 1 points out a system-wide participatory linkages between all categories of suppliers and users arising by means of two-way directional arrows. For instance, while a supplier is financially protected by insurance and reinsurance (takaful), an end user can also take benefit of such a function in its financial obligation with the sukuk issuer. Likewise, an investor could also be one of the suppliers and end users on specific items of end use. The sukuk system now shows market-institution based discursive mechanisms overall.

The maqasid al-Shari'ah is better served in such an extendable social picture of sukuk financing. Now the extension of the market-institution relationships overarches the marginalized groups in society at large. Sukuk financing ceases to be bondfinancing and becomes share-capital as soon as the debt element is taken out of it and the participatory nature of asset development is turned into a social one. Now the marginalized and other kinds of participants can interact for a common goodwill, financially and socially.

So whither is Islamic financing today?

Almost all of Islamic financing financing is locked in debt-based instruments. Emergent instruments are sukuks revolving around secondary outlets such as murabaha, tawarruq, ijara and the like; and a decreasing amount revolving around mudarabah and musharakah, the Malaysian case.

As long as Islamic financing instruments are so formed and capital so raised, these would defy the moral purpose and objective of the Shari'ah.

There is no distributive moral effect while maintaining business profitability in a corporate social responsibility model as would be arising from participation across a wide range of the social spectrum. The poor does not benefit from a closed financing concentrate; the Muslim world (ummah) does not benefit by catalysis of change in forming an ethically sensitive and sound capital market and inter-communal trade. No challenging intellection emerges from the idea of Islamic financing that otherwise could benefit academia everywhere.

The end of prevalent Islamic financing is a fiasco of capitalism. Its model overwhelms the much needed ethical market transformation along with guidance as regulation accumulating into an ummah-wide regulatory institution. Alas, the contrary is the end in sight with the cause and effect of debt-based financing, defying trade-centered moral transformation by the scheme and meaning of masqasid al-Shari'ah.

About the Author

Professor Dr. Masudul Alam Choudhury- Department of Economics and Finance, Sultan Qaboos University, Muscat, Sultanate of Oman masudc@squ.edu.om

Business Islamica 2011

Islamic Bond Alert - Oct, 2011

The following borrowers are expected to sell Islamic bonds, which use asset returns to pay investors to comply with the religion’s ban on interest.

Global sales of sukuk climbed to $18 billion in 2011, from $12.5 billion a year earlier, according to data compiled by Bloomberg.

BARWA BANK: The unit of Qatar’s biggest property developer by assets Barwa Real Estate Co., plans to sell Islamic bonds in 2013 after it gets a credit rating, Chief Executive Officer Steve Troop said.

MAJID AL FUTTAIM HOLDING LLC: The Dubai-based operator of Carrefour SA stores in the Middle East, is considering setting up a Shariah-compliant bond program, group treasurer Daniele Vecchi said. The company hasn’t decided on the size or the timing of the sale, he said.


SAUDI ARAMCO TOTAL REFINING & PETROCHEMICAL CO: The company, also known as Satorp, may sell a second Islamic bond after the sale of the company’s first sukuk was oversubscribed, Jamal Al- Rammah, chief of corporate finance for Saudi Arabian Oil Co., the Saudi partner, said at a news conference in Dammam. Satcorp is a joint venture between Saudi Arabian Oil Co. and France’s Total SA.PEMBINAAN BLT SDN: The construction company owned by Malaysia’s Ministry of Finance plans to sell 1.17 billion ringgit ($375 million) of Islamic bonds to raise funds to build police facilities and repay debt, according to a person with knowledge of the matter. The sukuk are part of a 10 billion- ringgit medium-term note program, said the person, who asked not to be named because the information was private.

KUVEYT TURK PARTICIPATION BANK: The lender, which is majority-owned by Kuwait Finance House, may sell a dollar- denominated sukuk after investor meetings in Asia, the Middle East and Europe from Oct. 10 until Oct. 18, a banker with knowledge of the deal said. HSBC Holdings Plc, Liquidity Management House and Standard Chartered Bank will arrange the meetings for Kuveyt Turk, said the banker.

ISLAMIC BANK OF THAILAND: The state-owned lender plans to raise 5 billion baht ($163 million) in the country’s first domestic sale of sukuk this year, Dheerasak Suwannayos, president of the Bangkok-based bank, said in an interview. The bank is awaiting clarification from government regulators on tax breaks for Shariah-compliant bonds before proceeding with the baht-denominated sukuk. It will sell $150 million of Islamic bonds overseas once the local-currency Islamic bond is completed, Dheerasak said.

INDONESIA: The government will proceed with a plan to issue global Islamic bonds this year, said Finance Minister Agus Martowardojo. Indonesia is waiting for the right timing to sell the debt, Bhimantara Widyajala, a director at the debt management office, said on Sept. 28.

ABU DHABI NATIONAL ENERGY CO.: The state-owned utility, also known as Taqa, plans to sell as much as 3.5 billion ringgit of Islamic bonds in Malaysia, according to a statement to the Abu Dhabi bourse.

TAMWEEL PJSC: The mortgage company majority-owned by Dubai Islamic Bank PJSC, plans to raise $300 million to $500 million from the sale of Islamic bonds in the fourth quarter, its first debt sale since 2008, acting Chief Executive Officer Varun Sood said in Dubai. The offering will be denominated in dollars or ringgit, he said. 

QATAR INTERNATIONAL ISLAMIC BANK: The Persian Gulf country’s biggest Shariah-compliant lender plans to sell a five- year, benchmark-size dollar sukuk “when market conditions permit,” Chief Financial Officer Edward Wong said in a telephone interview from Doha.

BAHRAIN: The country plans to sell $1 billion of Shariah- compliant debt in October to finance the budget deficit, central bank Governor Rasheed al-Maraj said in an interview.

ALBARAKA BANKING GROUP BSC: Bahrain’s biggest publicly traded Islamic lender and its unit in Turkey may raise a total of $500 million from sukuk this year, Chief Executive Officer Adnan Ahmed Yousif said in an interview in Washington. Albaraka Turk Katilim Bankasi AS is in the process of hiring banks to manage a sale of about $200 million by November, while the parent bank may sell about $300 million by the end of the year, Yousif said. 

TENAGA NASIONAL BHD.: Malaysia’s biggest power producer plans to raise 5 billion ringgit from a 20-year local-currency sukuk in October, Bernama reported, citing Chief Executive Officer Che Khalib Mohamad Noh. Marketing will begin in the third week of October, the national news service reported.

PALESTINE MONETARY AUTHORITY: The central bank plans to issue $50 million of Islamic debt this year, Jihad Al Wazir, governor of the Palestine Monetary Authority, said in an interview.

AL HILAL BANK: The state-owned lender in the United Arab Emirates plans to raise $500 million from the sale of Islamic bonds in the fourth quarter, Mohamed Berro, the chief executive officer, said in an interview. The offering is part of a $2.5 billion sukuk program set up by the Abu Dhabi government- controlled Islamic bank, he said.

EMERY OLEOCHEMICALS GROUP: The producer of plastic additives is proceeding with plans to sell 480 million ringgit of Islamic bonds in the fourth quarter, CEO Kongkrapan Intarajang said. Emery is a joint venture between PTT Chemical International Private Ltd., a unit of PTT Chemical Pcl, and Sime Darby Plantation Sdn., owned by Malaysia’s Sime Darby Bhd.

PT BANK MUAMALAT INDONESIA: Indonesia’s second-largest Islamic bank will sell $50 million of dollar-denominated sukuk with a maturity of not more than five years in 2011, Hendiarto, chief financial officer at the bank, told reporters on July 21. The lender is also planning to sell 800 billion rupiah ($89 million) of local-currency Islamic bonds in 2012, Hendiarto said.

INTERNATIONAL ISLAMIC LIQUIDITY MANAGEMENT CORP.: The global institution set up by central banks from countries including Malaysia and Bahrain plans to sell $200 million to $300 million of short-term Islamic bills before the end of 2011, Chief Executive Officer Mahmoud AbuShamma said in an interview. The first issuance will likely have a maturity of three months and will be denominated in dollars, he said. IILM will also sell Shariah-compliant bonds maturing in more than five years, AbuShamma said, declining to give a timeframe.

ACWA POWER INTERNATIONAL: The Saudi Arabia-based developer of electricity and water projects may sell $300 million of Islamic debt next year, CEO Paddy Padmanathan said in Dubai. The company is seeking funds for utility investments.

AL BARAKA BANK EGYPT ESC: The Cairo-based Islamic unit of Albaraka Banking Group BSC expects to raise 1 billion Egyptian pounds ($168 million) from the sale of 10-year Islamic bonds, Manama-based CEO Adnan Ahmed Yousif said in an interview.

JORDAN: Jordan’s government plans to sell as much as $750 million of Shariah-compliant debt to finance its budget deficit and fund infrastructure projects, said Finance Minister Mohammad Abu Hammour.

NIGERIA: Nigeria wants to sell its first Shariah-compliant bonds within 18 months as sub-Saharan Africa’s second-largest economy aims to become a “hub of Islamic finance” in the region, central bank Governor Lamido Sanusi said.

SENEGAL: The West African nation’s $200 million sukuk to be sold later this year will be used for budgetary support, said Finance Minister Abdoulaye Diop. “We simply want to experiment, to diversify our sources of income,” Diop said.

RUSSIA: Executives from OAO Gazprombank, the lending arm of gas export monopoly OAO Gazprom, are seeking support for issuance of Islamic bonds by as many as five companies, Alexander Kazakov, director of structured and syndicated finance at the bank, said in an interview in Jakarta. Tatarstan, a Muslim-majority Russian republic, will announce a dollar- denominated sale soon, according to Kuala Lumpur-based adviser AmanahRaya Investment Bank Ltd.

PT BANK SYARIAH BRI: The Islamic banking arm of Indonesia’s second-largest lender by assets may sell sukuk in the next one to two years to support expansion, President Director Ventje Rahardjo told reporters in Jakarta.

EGYPT: The North African country’s financial markets regulator agreed in principle on a law allowing for the sale and trade of Islamic bonds, the Egyptian Financial Supervisory Authority said in a statement on its website. The draft law will be discussed with “experts” before it is sent to the cabinet for approval, it said.

KAZAKHSTAN: The government may sell at least $500 million of Islamic bonds once parliament approves a law on Islamic finance, Finance Minister Bolat Zhamishev said in an interview in the capital Astana.

POH KONG HOLDINGS BHD.: The Malaysian jewelry maker plans to sell 150 million ringgit of Islamic debt, which will be backed by Danajamin Nasional Bhd., a state bond guarantee agency, the company said in a Kuala Lumpur exchange filing.

SAUDI ELECTRICITY CO.: The state-owned utility may sell as much as $1.5 billion in Islamic bonds by the end of this year or early 2012, CEO Ali Al-Barrak told reporters at a conference in Dubai.

TOURISM DEVELOPMENT & INVESTMENT CO.: The Abu Dhabi government-backed developer of hotels and museums may sell bonds with maturities of seven to 10 years in 2011 to finance projects, Director of Finance Wallace Long said. The debt may be conventional or Islamic, he said.

ABU DHABI ISLAMIC BANK PJSC: The United Arab Emirates’ second-biggest Shariah-compliant lender may sell Islamic bonds by the end of this year to help repay an $800 million sukuk that matures in December, CEO Tirad Mahmoud said at a news conference.

MASRAF AL RAYAN: Qatar’s second-largest Islamic bank plans to sell as much as $1 billion of sukuk in the fourth quarter after its board received shareholder approval, Chairman Hussain Ali Al-Abdalla said.

KUVEYT TURK KATILIM BANKASI AS: The Turkish unit of Kuwait Finance House KSC plans to sell five-year sukuk, Ufuk Uyan, the bank’s CEO said, without elaborating on when the offering will take place. Uyan said in August 2010 the Istanbul-based lender would sell more than $100 million of sukuk in 2012.

UNITED ARAB EMIRATES: Abu Dhabi may sell $1.5 billion in bonds in 2011 to create a long-dated benchmark, while Dubai, its smaller neighbor, also may issue $1.5 billion to fund its budget, Standard Chartered Plc said in a March 7 report. Qatar and Bahrain may sell $1 billion of securities each, the bank said.

SOUTH AFRICA: The biggest African economy will amend legislation to allow the government to sell Islamic bonds to finance spending, Lungisa Fuzile, head of asset and liability management at the Treasury, said in an interview in Cape Town.

FRANCE: The country’s first Islamic bond may be sold in 2011 after the government introduces guidelines for sukuk offerings, said Thierry Dissaux, chief executive officer of the French Deposit Guarantee Fund. The debt may be in dollars and euros, he said.

--Editors: Simon Harvey

www.businessweek.com

Ethics into insurance

Ratings agency Standard & Poor's yesterday issued a report on the state of the global Takaful industry.

In the report, 'An analysis of Shari'ah compliant cooperative and Takaful insurers in the Middle East focused primarily on financial strength,' the agency commends the growth of the global Takaful sector and the fact that in key markets it is competing strongly with the conventional insurance industry, and in many ways winning the battle for hearts, minds and premiums from Muslims and non-Muslims alike.

However, S&P does frame this praise with the caveat that in some key markets - notably Saudi Arabia and Malaysia - which have national policies to promote Islamic finance that the Takaful industry has been taking on the conventional insurance sector with a lot of backing.

The report also says that this trend is likely to emerge in other countries, especially in the Gulf, where Qatar recently forced conventional banks with Islamic windows to shut their Shari'ah compliant business, and: '...in the UAE and Kuwait, [where] all the insurance licenses issued in recent years have been Takaful ones. It is not known whether there were any requests for new, conventional insurance licenses but the result has been to leave only a limited number of traditional companies to continue to operate in those countries...'

The growth of Takaful in the MENA region, S&P claims, has been a direct result of the role of bancassurance, where retail banks (both conventional and Islamic ones) have been bolting on insurance covers to their bank accounts and some finance products.

In the MENA region - especially the GCC - many banks don't know the religious or ethical persuasion of their customers, so S&P argues, and whereas offering Takaful insurance cover to a non-Muslim is not a bad thing, and sometimes Takaful offers a better deal to policyholders than conventional insurance; offering conventional insurance to a Muslim is a blunder, as this amounts to enticing him to become involved in a number of Haram activities. So, the banks in the GCC region have been erring on the side of caution, and selecting Takaful providers rather than conventional insurers for their bancassurance products.

The report calls into question the sustainability and stability of the Takaful industry's business model, which '...can sometimes be seen as encouraging excessive premium expansion alongside exposure to religiously acceptable, but potentially volatile or illiquid investment assets - notably shares and real estate...' Two of the specific risks in the Takaful industry as interpreted by S&P in the report were the industry's fee structure and firms' exposure to volatile and illiquid assets, where decision making was made on a religious basis, as opposed to a financial and risk management basis.

David Anthony, credit analyst for S&P, told The Islamic Globe: "Beyond the need to make adjustments to the accounts, we have general concerns regarding the Takaful model. For instance, the Wakala fee is levied as a fixed percentage of gross premiums written, and this raises the possibility of moral hazard. A Takaful operator could be encouraged to maximize the income of shareholders by increasing the amount of premium - and therefore risk - being written."

The accounting difficulty, S&P explains, arises from the contracts that Takaful firms use to transfer income and levy charges. In the first instance, the Takaful firm can only transfer income to shareholders through a Wakala contract, whereas it can only charge fees for asset management through a Mudarabah contract. In some domiciles, there are strict regulations dealing with the profit-sharing of the Takaful operator, such as in Saudi Arabia, where there is a statutory 90:10 profit share relationship between shareholders and policy holders. In other domains there is no statutory mandate, such as in Iran where Takaful operates on a loose mutuality agreement.

The lack of global standards has caused problems, as some scholars view traditional conventional insurance as Shari'ah compliant because of the inherent 'risk-sharing' nature of its business, whereas other scholars rule that a Takaful firm is only Shari'ah compliant if it allocates 100% of its profits to policyholders. In different domains this interpretation varies from firm to firm and S&P calls on AAOIFI and the IFSB to collaborate to make one global accountancy standard and policy on profit sharing.

The report argues that where there is uncertainty the temptation is there to inflate Wakala fees, which in the spirit of Takaful are there to cover the firm's operational costs, to generate profits for shareholders, in effect getting the policyholders to pay the shareholders. Firms also hold back surpluses as a hedge against insolvency, but sometimes these surplus funds become very large and technically should be redistributed to policyholders.

The opaque nature of a Takaful firm's book-keeping, juggling between Wakala, Mudarabah and surplus funds, means that the management can often arbitrarily transfer funds to shareholders. This S&P believes is not just 'inappropriate conduct' but could have a detrimental effect to the firm's underwriting. In addition, the 'profit taking' is often written off as an operating expense, which it is not and gives Takaful firms, at an analytical and ratings level, an unfair advantage over conventional insurers.

The compounding of these issues led Anthony to the conclusion that the Takaful industry needs to apply sound corporate governance. He said: "While the need to be Shari'ah compliant may encourage overexposure to religiously acceptable, but potentially volatile or illiquid assets, most of these issues can be addressed or even eliminated by applying sound corporate governance, backed up by effective enterprise risk management, predictable regulation, transparent accounting, and an efficient internal audit function."

Ultimately, therefore, it will be more the principles of managers and management and less the structure of operations that brings ethics into insurance.

© The Islamic Globe 2011

http://www.zawya.com

Shari’a compliant solutions in banking

In an exclusive interview with Profit, Junaid Ahmed, President & CEO Dubai Islamic Bank Pakistan Limited discussed the prospects of finding shari’a compliant solutions in the banking industry.


DIBPL’s five years in Pakistan

While giving a brief introduction he said Dubai Islamic Bank Pakistan Limited (DIBPL) commenced its operations in Pakistan in 2006. The Bank currently enjoys a short-term credit rating of A-1 and long-term credit rating of Single A. ‘We are proud to be one of the fastest-growing banking networks of Pakistan currently standing at 70 branches in 27 cities. We have plans for further expansion of our network to 75 by the end of year 2011,’ he said. 
He further added that their diversified product portfolio includes Current & Savings Accounts, Term Deposits, Foreign Currency Accounts, Auto and Home Finance, Takaful Savings Plan and Priority Banking. In addition, DIBPL has been a pioneer in offering the most comprehensive portfolio of state-of-the-art Alternate Delivery Channels (ADCs) giving 24/7 banking access to customers comprising of Internet Banking, SMS Banking, ATMs and Cash Deposit Machines, he added. 


DIBPL to provide ‘World Class Banking-The Islamic Way’

To a question he said, DIBPL has always sought its strength in its slogan and being the first Islamic Bank of the world and having a global presence in the UAE, Jordan, Turkey, Sudan and Bosnia, the bank is in a position to offer the best mix of banking services to their customers. ‘Having access to the banking practices of innovative modern markets, we have a pool of knowledge to enable our customers to benefit from. Our Shari’a advisors play a crucial role in providing Shari’a-compliant solutions and alternatives for all those products that serve genuine requirements of the financial sector,’ Junaid explained.


Achievements of DIBPL

Talking about the achievements of the DIBPL, he said they can proudly claim to have achieved a lot in a short span of time, as currently, they are one of the fastest-growing banking networks of Pakistan with 70 branches in 27 cities. ‘Along with nation-wide network, we have one of the widest arrays of banking products and services under one roof. The Bank has made an attractive profit of Rs168 Million before tax in the first half of 2011,’ he added.
In the area of Consumer Banking, DIBPL has remained actively cognizant of the industry dynamics and customer needs by offering a number of world class products and services, he said, adding that DIBPL’s Auto Finance registered a volume of Rs2.9 billion within 9 months of its launch. In a market where cut throat competition persists, this reflects a great success for the Bank, he added. 
Similarly, DIBPL’s Home Finance facility reached the fastest billion mark in the entire banking industry within the first three months of launch only, while within the first year of its launch, DIBPL Home Finance registered a volume of Rs2.6 billion, which is the fastest growth rate in the entire industry, he said.
Moreover, he added, DIBPL has also played a pivotal role in various Sukuk transactions, from its structuring capability to distribution and coverage strength, DIBPL has added immense value to the Sukuk issued in Pakistan so far. DIBPL has been engaged in major Sukuk transactions such as Karachi Shipyard and Engineering Works Limited (KSEW), Power Development Authority (WAPDA), Engro Chemicals Pakistan Limited (ECPL), Sui Southern Gas Company Ltd. (SSGC) and Sitara Chemical Industries Ltd. (SCIL), he informed.


Misconceptions about 
Islamic Banking

Asked about some major misconceptions people may have in Pakistan, he said one of the biggest is that Islamic banking and conventional banking is the same given that usually the end commercial results may also be the same. He said that Islamic banks may have a “look and feel” similar to conventional banks, but this is primarily because the Islamic Banks strives to offer Halal products at competitive prices, while there are substantial structural differences between Islamic banking products and their conventional counterparts.
‘The basic requirement of Shari’a is that you need to undertake asset-based transactions under the set Islamic Modes of Finance. In addition, all standard operating procedure of the Islamic Bank need to be 100 per cent Shari’a compliant. It’s the same as Halal and Haram meat. A McDonalds Burger in Karachi and New York may look alike, taste alike and feel alike. The processing however at the backend backed up by a recognized FATWA (Shari’a pronouncement) which is certainly different makes one Halal and the other non-Halal,’ he added.
Junaid said that Islamic Banks measure their profit rates using the KIBOR or Discount Rate as declared by SBP, and this measurement is purely used as a benchmark and does not in any way render the Bank’s transactions un-Islamic. The KIBOR and Dicount Rate benchmarks in the absence of an Islamic Inter Bank rate is only set to enable wide acceptance and recognition by our customers, he added. In addition, the financial statement may indicate a loss in terms of a particular Islamic Bank’s overall profitability as the expenses of the Bank may outpace its income/profit from the Mudaraba, just like an individual whose home expenditure may be more than his income from his salary or business, said Junaid. However, based on the strong Shari’a approved profit allocation model under Mudaraba, the investments of the deposit holders are appropriately diversified in case of losses which may result in lower profits to the deposit holders in such cases, he added. 


Tough competition in Islamic Banking industry

He said competition has been tough in the Islamic Banking Industry in terms of capturing market share from the existing conventional banking industry and from the new growing bankable population particularly in the rural and un-served areas of Pakistan. However, DIBPL has endeavoured to remain at par with the competition by using a focused approach whereby we have made niche market products for a segmented group of customers, for example, our Platinum Banking, one of its kind in the Banking industry has successfully drawn deposits from the elite class of DIBPL, he added. 
Junaid further said that ‘We are proud to continuously invest in infrastructure and technology which has enabled us to produce state-of-the art products that can easily stand strong against even conventional banks. Like we rightfully claim that our portfolio of Alternative Delivery Channels (ADCs), targeted towards the tech-savvy range of customers is amongst the best in the industry.’

DIBPL’s future plans

Talking about the future plans of the bank he said while eyeing the future in a very competitive Islamic Baking industry of Pakistan we wish to provide not just Islamic products but offer our customers a distinctively unique range of Islamic Banking financial solutions. ‘Our plans for next year include taking our branch network to 100 along with developing further new niche-market products, and we intend to use the best mix of innovation, talent and technology to achieve the dual goal of spreading the wings of Islamic Banking far and wide,’ he said. In this effort, we will undertake more marketing campaigns to reflect upon the virtues of Sharia-compliant banking and the launch of Shari’a compliant products and solutions for banking products that serve genuine needs of the economy and finance, he said.


http://www.pakistantoday.com.pk

Islamic banks will play a greater role in finance

With the balance of world economic power shifting ever eastwards, financial services markets are having to evolve and adapt to the new reality. Islamic finance has become the prevailing method of finance in some Eastern states where conventional finance once dominated. You may think that this has nothing to do with us in the South West, but if you are a business looking for funding or an investment, or a property developer or investor needing extra support then you should pay attention!

Sustained high oil prices and shifts in exchange rates and asset prices have all helped with the return of Middle Eastern investment in the UK. Such investment has been encouraged by the UK government's stated aim of breaking down the tax and regulatory barriers for Islamic finance and to establish London as the global capital for Islamic finance outside the Muslim world. A number of Islamic banks are now fully established in the UK and are open for business. Whereas they do sometimes focus on serving the needs of the Muslim population, the Islamic banks are also very keen to be involved with mainstream UK companies and they have the liquidity to back it up.

Rather than go into detail, it would suffice to say Islamic finance is an internationally recognised alternative financing system which has strong ethical values and uses structures whereby the banks get closely involved in the business of their customers.

So what is driving the growth of Islamic finance in the UK and how can you benefit?

The drivers for the continued growth of Islamic finance in the UK are both demand side and supply side. On the demand side there are over two million Muslims in the UK and thousands of Muslim-owned businesses. The UK is also an ever popular destination for investment from the Middle East. This gives Islamic banks (and conventional banks interested in the sector ) a fertile growth market for their Islamic finance products. In addition there are the customers of other faiths who appreciate the ethical and economic benefits of some Islamic finance products.

On the supply side, ample liquidity from the Middle East has enabled Islamic banks in the UK to flourish whilst traditional banks have been pulling back from the market. By way of example, some of the Islamic banks are focused on funding and investing in innovative SMEs who need capital to enable rapid growth. To give another example, one of these banks is able to offer mezzanine property financing which allows you to reduce the significant amount of equity you otherwise have to put down on property investment or development transactions.

All this partly explains why the majority of the funds deployed by some of the Islamic banks in the UK is to regular UK companies and non Muslim investors who are less concerned with matters of faith than they are with simply ensuring that they get the finance they need when they need it.

Foot Anstey is a keen participant in this growing market and we will be happy to explore with you the possible implications or opportunities for you and your business.

http://www.thisisdevon.co.uk

Will Islamic finance get priority in WB’s financial sector program?

It is the most important annual economic and financial platform to discus the woes, successes and challenges of the global economy and financial system.

And yet while some Muslim countries trumpet the potential role of the Islamic system of financial intermediation in contributing to GDP growth and financial stability because of an ethics-based proscription on speculative activities at regional or national platforms and their proactive leadership in global Islamic finance, it is as if they are metarmorphosized into tongue-tied apparatchiks living in denial when it comes to the World Bank Group/International Monetary Fund (IMF) annual meetings.

The 2011 annual meetings held in Washington last week was no exception except Iran, and even worst than in 2010, when at least three governors of the bank or fund alluded to such a role Islamic finance can play especially in connecting finance with the real economy.

There is a strange unreality about politicians from the member countries of the Islamic Development Bank Group (IDB) when at Islamic finance conferences they blast the causes of the global financial crisis — unchequered speculation based on greed, indebtedness, lack of adequate regulation and low savings - and eulogize the Islamic financial system with its emphasis on transactions backed by real assets and therefore its connectivity to the productive economy and its proscription on usury and uncertainty through deception.

But when it comes to international platforms especially in the West, which as the current US and UK economic and euro zone sovereign debt crisis show is in dire need of reform, it is as if a potential Islamic economic or financial solution becomes anathema and there is a double standard at work: "Islamic finance at home, but riba finance at the international level."

Going through the statements of the World Bank and IMF governors, not a single one from any IDB member country dared to mention, even in passing, the positive contribution Islamic finance has played in their own countries or could play in the global economy and financial system.

What hope is their for the industry and the system if the important Muslim countries including Saudi Arabia, Turkey and Indonesia (the only three Muslim members of the G20) and countries such as Malaysia, which claims to have the most advanced Islamic financial system in the world, dare not speak its name at such platforms as the influential plenary session of the World Bank/IMF meetings?

The only conclusion one can draw is that the very countries are either not convinced themselves about the efficacy of the Islamic financial system or they are insecure about it but tolerate it because of political reasons.

Such a calculating policy or approach is fraught with dangers. It is a fact that in many IDB member countries, the population is about 60 percent to 70 percent between the ages of 20 to 30. Preliminary research also shows that in many of the markets especially in the MENA countries, the demand rivers for Islamic financial products and services are from this age group, the youth.

In fact, sources close to the Omani establishment, for example, confirm that one of the reasons why Sultan Qaboos earlier this year allowed the licensing of the country's two Islamic banks, Nizwa Bank and Al Izz International Bank, was precisely not to alienate the youth of the country who were demanding access to such products and services and who in fact preferred to bank with Islamic banks outside the sultanate in neighboring markets such as Dubai. The objective in fact is to stem the outflow of Omani funds to Islamic banks outside.

Omani sources confirm that there are about $10 billion worth of Islamic deposits waiting to be tapped and that in fact, a third Islamic banking license has been approved in the last few days to local promoters.

And yet not even a considered whisper from Darwish Bin Ismail Al-Balushi, governor of the World Bank for Oman, who spoke on behalf of the Arab Governors, at the World Bank/IMF plenary session last week. 

Al-Balushi warned that the recent political events in some countries in the Arab world are a key reminder that much remains to be done.

"In the near term, these events and associated uncertainties are likely to lower economic prospects in the affected countries. At the same time, they present a valuable opportunity to accelerate the pace of implementation of wide-ranging reforms, including promoting further economic diversification and private sector development, and strengthening the financial systems, to support sustainable and inclusive economic growth and secure employment for our people, particularly, the youth. In short, our immediate priority is to respond to peoples' expectations while preserving macroeconomic stability," he added.

To his credit, he did make a passing reference when he welcomed "the intensified focus on regional programs and projects, in collaboration with the regional development banks, Arab and Islamic financial institutions, other multilateral and emerging country donors. The five-country concentrated solar power program under the World Bank's Arab world initiative and the IFC's initiative are two notable cases in point."

In contrast, Iran's governor for the World Bank, Seyed Shamseddin Hosseini, had no illusions about the ills of the global economy and the financial system what needed to be done to ensure its future stability. "The current architecture of the world's economy, due to inconsistency between the financial and the real sectors," he emphasized, "creates unavoidable periodical instabilities. Settling this issue requires amending the current financial and monetary models, and shifting toward new models, such as Islamic finance, which are based on the balance between the financial and real sectors of the economy."

He went on to stress that Iran is developing its capital market, and privatizing state-owned firms. In addition, the issuance of sukuk has increased are done through the stock exchange and OTC. All this has resulted in a 146 percent growth of the Tehran Stock Exchange (TSE) index and a 100 percent growth in market value of the TSE at December 2010 compared with 2007.

The biggest disappointment came in the statement of Ahmad Husni Mohamad Hanadzlah, governor of the World Bank for Malaysia who is also the country's finance minister II. No mention of Malaysia's spectacular Islamic finance success story - both at a government finances level where Malaysia is the only country that has issued three sovereign international sukuk issuances and has included a robust role for the industry in the government's economic transformation program (ETP), and at an industry level where the Malaysian Islamic capital market for instance has broken the RM1 trillion barrier and is projected to reach just under RM3 trillion by the year 2020.

The Malaysians like the other IDB member countries save Iran seem to forget the adage that the more you repeat something the better the chance that it may stick and be heard.

Instead, the governor from Malaysia, in his underwhelmed utterings stressed, that "we are now at a critical junction. Our present actions may very well define the course of global economic growth for many years to come. Since its founding, the scope of the International Monetary Fund's responsibilities has evolved to accommodate the changing world. The fund's role in ensuring the stability and proper functioning of the world's financial system is now more critical than ever. We are looking to the fund to provide a guiding hand and resolute advice to ease the prevailing situations."

One cannot help conjecture that should someone like Mahathir Mohamad had had the platform he would have said especially in today's turbulent global economic and financial dispensation and the share of culpability of the World Bank Group and the IMF: "It is not what the World Bank/IMF can do for you; it is what the emerging countries and the lessons they have learnt from their experiences in managing their own financial crisis and the reforms they have adopted, including the facilitation of Islamic finance, can do and contribute to the World Bank/IMF."

This especially since the World Bank has already formally recognized Islamic finance and has designated it as a priority area for its financial sector program.

http://arabnews.com

Raising awareness on Islamic banking

BankMuscat will host a seminar on Islamic banking tomorrow at Grand Hyatt Muscat, it was declared at a press conference yesterday. The seminar, which is designed to raise awareness on customer benefits derived from Islamic banking, will be addressed by Shaikh Ibrahim bin Nassor al Sawafi and Shaikh Azan al Amri, researchers at Ifta’a office, Ministry of Awqaf and Religious Affairs.

In his briefing Al Sawafi highlighted the significance of the seminar in enlightening the community about the differences and similarities between the conventional and Islamic kind of banking. “Discussions will also explore home financing through the musharakah mutanaqadha contracts — a contract of partnership between two parties, whereby one of the parties buys the entire property and the other repays in instalments until all dues are cleared.

The seminar will also look into aspects of Islamic bonds, an assortment of services that could be shared between both types of banking structures and many issues that govern the Islamic type of banking, among others”, remarked Al Sawafi. Also speaking on the occasion, Sulaiman bin Hamad al Harthy, Group Deputy General Manager, Consumer Banking, said: “BankMuscat strives to increase the range of benefits for customers and we are confident that the Islamic banking seminar will shed light on important aspects of Islamic banking from the Shariah perspective.”

As a follow-up measure, the bank will organise a series of presentations on Islamic banking across the Sultanate, highlighting the difference between Islamic banking and conventional banking. The presentations will familiarise people with the main characteristics of Islamic finance. Experts and scholars will make presentations and educate the public on the features and benefits of Islamic banking.

The CBO has initiated steps to incorporate Islamic banking legislation into the banking law and thereby form a legal framework for Islamic banks and Islamic banking branches in line with the best international practices. “Since Islam is the religion of the Sultanate of Oman as stated in the Basic Law, Oman is ideally placed to play a leading role in Islamic finance. Omani commercial codes are completely supportive to Islamic banking structure without any conflict. The commercial code has a very strong Sharia foundation in the form of Article 2, 4 and 5 of Royal Decree 55/1990”, affirmed Al Harthy.

http://main.omanobserver.om

Malawi creates first Islamic pension fund

Malawi's Vanguard Life Assurance, part of Zimbabwe's ZimRe Holdings, is set to introduce what they say will be Malawi's first Shari'ah compliant pension fund.

Speaking to The Islamic Globe acting MD Emmanuel Saruchera said VLA's Mudaraba Equishare Fund has been created as a result of the Malawi Pensions Act, introduced in June this year that has made the universal holding of a pension fund mandatory.

The fund will invest in conventional investment vehicles that do not compromise Shari'ah stipulations.

Working with the Muslim Association of Malawi, VLA is planning to create further products for the 13% of Malawians that are Muslim.

Saruchera said the fund will be officially launched in December but has already received a high volume of interest from prospective clients nationwide.

© The Islamic Globe 2011