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Al-Cordoby  
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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 27 March 2010 at 2:15pm

QIB set to enter retail insurance market in France

Qatar Islamic Bank (QIB) is all set to enter into the retail insurance market of France in a big way. QIB and the French insurance giant BpCE have signed a Memorandum of Understanding (MoU), setting up the framework of a common reflection in the field of Islamic finance.

The MoU is designed to promote cooperation between the two banks in France, and try to build a lasting partnership.

Islamic finance is a segment of world's finance experiencing a strong and sustained growth over the last decade. It can be considered as an alternative or ethical finance, taking into account extra-financial criteria, while offering competitive financing or investment solutions structured upon specific financial schemes, differing from those used in conventional finance,Salah Mohammed Al Jaida, CEO of QIB said. BpCE and QIB believe that they could take advantage of working together in this field by pooling their respective experiences and expertises.

QIB has more than 25 years experience in the provision of Islamic banking and finance services and is the first global Islamic bank, one of the 5 largest Islamic banks in the world and the leading Islamic bank in Qatar in all markets segments. QIB group is ideally equipped to provide superior quality and innovation in Islamic banking services to its growing customer base around the world. With a presence in the Middle East, Europe and Asia, QIB is constantly searching for opportunities to work in partnership with leading institutions to facilitate expanding its Islamic banking operations into new markets

http://islamonline.com/news/articles/28/QIB-set-to-enter-retail-insurance-market-in-France.html 
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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 31 March 2010 at 1:41am

Comparison of Islamic and Conventional Finance

Islamic Finance
Conventional Finance
Interest-free
Interest-based
Equity partnership (profit and loss sharing)
Profit is the chief motivation
Inherently micro-financing-friendly
Not inherently micro-financing-friendly
Checks and balances to maintain ethics and justice
Not enough checks and balances which can lead to excess, causing economic meltdowns

Indeed, while Islam prohibits dealing in interest, this does not mean that the system is not based on profit. In his book, An Introduction to Islamic Finance, Muhammad Taqi Usmani explains that commercial banking under Islam is based on the concept of profit and loss sharing. It is an equity partnership in which both parties not only benefit from the profit, but also share in the losses. Other features have been added to Islamic banking in view of contemporary needs, such as leasing, cost plus financing, delayed payment sale, etc. Yet, these are not substitutes for interest. “They have their own set of principles, philosophy and conditions without which it is not allowed in Islamic law to use them as modes of financing,” adds Usmani.

“Islam does not deny the market forces and the market economy. Even the profit motive is acceptable to a reasonable extent. Private ownership is not totally negated,” writes Usmani. “Yet, the basic difference between capitalist and Islamic economy is that in secular capitalism, the profit motive or private ownership are given unbridled power to make economic decisions. Their liberty is not controlled by any divine injunctions. … This attitude has allowed a number of practices which cause imbalances in the society.”

In fact, today’s severe economic downturn was triggered by banks excessively dealing in mortgage-backed securities and credit-default swaps, two of the practices which Islamic banks on principle do not transact.

“The global financial crisis and the credit crunch were inter alia the result of greed and avarice – since financial institutions advanced loans to people who did not have repayment capacity. If the aforesaid financial institutions were practicing Islamic finance, the problem might probably not have arisen,” stated Aftab Ahmad, an
economic writer from Islamabad, Pakistan.
   
“The present interest-based system is of an exploitative nature as capital earns profit under this system without taking any responsibility and running any risk,” he commented. “Besides, smaller sectors of the economy such as the small enterprises and small farmers can not often avail themselves of credit facilities under this system because they are unable to pay interest at the higher rate.”

However, under a profit and loss sharing system, not only is micro-financing easier, the finance system forces the financiers to ensure that their businesses remain profitable. In this way, there would be more “employment generation and national income would increase manifold. Thus, the society, at large, would be the gainer in this system,” Ahmad observed. ...

http://whyislam.org/SocialTies/IslamicFinance/tabid/328/Default.aspx

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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 07 April 2010 at 4:24am

Islamic finance assets grow to $950bn

The industry's assets grew in 2009 despite the global crisis

Islamic finance industry saw its total assets grow to $950 billion (Dh3.48 trillion) in 2009 in spite of the global economic crisis. The market's potential is worth at least $5trn, Moody's said in its latest report.

Rapid growth in Islamic finance continues globally but the industry needs to be more innovative instead of being influenced by conventional derivative instruments, it said.

Islamic finance in this region would also grow more if it looks into opportunities of co-operation with Asian economies, many of which are under-banked markets ...

http://www.business24-7.ae/banking-finance/islamic-finance/islamic-finance-assets-grow-to-950bn-2010-04-07-1.103888

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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 10 April 2010 at 4:46am

Islamic Funds Attract Conventional Players

Market share of Islamic financial products is on the rise and Islamic funds have been attracting players who operate as conventional financial institutions, a new report has said.

Bank Sarasin-Alpen (ME) said in its Islamic Wealth Management Report 2010 that the importance of Islamic funds is expected to grow.

In spite of the setback faced by the global economic crisis across economies and sectors, considerable opportunities exist for Islamic finance industry.

"Despite the setback, the fundamentals of Islamic fund industry remain very strong. With almost $50 billion (Dh183.63bn) in fund assets under management and a large, expanding and untapped Muslim population, there are likely to be considerable opportunities in the future. This is a time when strategic choices have to be made and market participants have to adapt to survive," it said quoting an Ernst & Young report.

According to estimates by Asian Development Bank, Islamic assets which are almost $1 trillion are expected to rise 10-15 per cent annually ...

http://islamonline.com/news/articles/28/Islamic-funds-attract-conventional-players.html



Edited by Al-Cordoby - 10 April 2010 at 4:47am
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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 13 April 2010 at 1:35am

Qatar Islamic Bank (QIB) Launches PrePaid VISA Card

QIB, Qatar's first and largest Islamic bank, has announced the introduction of the QIB Hadiyati VISA prepaid card as the newest product in its line of innovative banking solutions. QIB is the first Islamic financial institution to offer the prepaid card which is both Sharia'-compliant and issued according to the high standards of VISA cards worldwide. The cards are currently available for purchase.

The QIB Hadiyati prepaid VISA card is available in six value categories ranging from QR 100 to QR 5,000, and allows the card holder ease of use through point of Sale (pOS) anywhere VISA is accepted around the world. VISA is the most widely-recognized global payment pand with over 29 million merchants and 805,000 ATMs.

The QIB Hadiyati prepaid VISA card looks like a credit card and can be purchased by anyone at QIB bank locations or six authorized mall booths located throughout Doha such as at City Center, Landmark, Hyatt plaza and Villaggio, as well as at Lulu stores. The cards are fully-loaded at purchase and activated by the salesperson. There are no credit checks or debt risks with the prepaid card. The cards have the added benefits of safety, as the card prevents the user from the hazzards involved in carrying cash, and capability to make easy electronic or on-line payments. The card limits the user's spending by only allowing the amount of money previously deposited on the card to be used, giving the cardholder full control over his or her expenses.

The card is the smart option for spending control and travel, and perfect for gift occasions such as graduations, as well as weddings and baby showers, so the happy couple may purchase exactly what they need ...

http://islamonline.com/news/articles/28/QIB-Launches-PrePaid-VISA-Card.html

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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 14 April 2010 at 12:48pm

Global takaful market forecast to surpass $8.8 billion this year 

The third edition of Ernst & Young's World Takaful Report 2010: Managing performance in a recovery, unveiled at the 5 th Annual World Takaful Conference of 2010, confirms that global Takaful industry is well on course to surpass US$8.8 billion in contributions in 2010. Contributions grew by 29% in 2008 to reach US$5.3 billion. Takaful refers to Shari'a-compliant cooperative insurance.

Saudi Arabia and Malaysia are biggest markets

Saudi Arabia, with contributions totalling US$2.9 billion in 2008, and Malaysia with US$900 million are the top two takaful markets in the world. Sudan is the most significant market outside of the GCC and SE Asia, with contributions totalling US$280 million in 2008.

UAE and Indonesia are fastest growing markets ...

http://islamonline.com/news/articles/28/Global-takaful-market-forecast-to-surpass-$88-bil.html

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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 18 April 2010 at 5:30pm
Islamic Development Bank (IsDB) and IFAD Signed Landmark Co-financing Agreement of US$1.5 Billion to help the Poorest People in Africa and Asia
 
 
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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 22 April 2010 at 1:13am

A recent TV interview conducted by Dr. Tariq Ramadan with Dr. Tarek El-Diwany titled (How Can Muslims Conduct Business Ethically in Today's World) which is a very interesting program

 
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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 26 April 2010 at 4:16pm
 Deutsche Bank forms Shariah-compliant home financing firm

JEDDAH - Deutsche Bank AG announced on Monday the formation of Deutsche Gulf Finance, a joint venture Shariah-compliant home financing company owned 40 percent by the bank's Riyadh panch and 60 percent by a group of prominent Saudi-based investors, led by Fahad Abdullah Abdulaziz Al Rajhi.

The launch of Deutsche Gulf Finance comes at a pivotal time for consumer finance in Saudi Arabia.

According to Deutsche Bank Research, the total outstanding home finance provided by the private sector in Saudi Arabia aggregates to less than 1 percent of GDp compared with well over 50 percent in most developed countries, and approximately 6 percent in Kuwait and 7 percent in the UAE.

Deutsche Bank Research projects Saudi Arabia will need 1.2 million additional housing units by 2015.

"We are excited to partner with Deutsche Bank and benefit from its global experience in housing finance. Deutsche Gulf Finance will benchmark itself against international best practices and looks forward to contributing to the growth of home ownership in Saudi Arabia," Fahad Abdullah Al Rajhi said.

The company has an initial capitalization of approximately $110 million, and at first will provide Shariah-compliant home financing for properties located in Saudi Arabia, with plans to expand its operations into Bahrain, Qatar and Kuwait over time. Deutsche Gulf Finance has commenced financing completed units as well as those under construction on individual lots or at real estate developments.

Jamal Al-Kishi, Deutsche Bank's chief country officer in the Kingdom, added: "The establishment of Deutsche Gulf Finance signifies our commitment to poaden and deepen our presence in Saudi Arabia."

http://islamonline.com/news/articles/28/Deutsche-Bank-forms-Shariah-compliant-home-financi.html



Edited by Al-Cordoby - 27 April 2010 at 2:33pm
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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 27 April 2010 at 2:33pm
A moral economy: interest, usury and Islam, by Ann Pettifor
 
The Qu’ran lays down clear ethical boundaries for lending and borrowing, and for trade.

These boundaries have been vital in the maintenance of great civilisations. As  Karl Polanyi, the great economic historian argued (in his 1944 book “The Great Transformation”) – the regulation of the conduct of human affairs by law  is vital to the maintenance of civilised society, and to the market, because

“robbed of the protective covering of cultural institutions, human beings would perish from the effects of social exposure; they would die as the victims of acute social dislocation through vice, perversion, crime and starvation…. neighbourhoods and landscapes defiled, rivers polluted, military safety jeopardized, the power to produce food and raw materials destroyed”.

So one of the great contradictions we in the West face today is this: law – or regulation –  needs boundaries, in particular ethical boundaries; but also geographical and political boundaries.

However markets, in particular financial markets, abhor boundaries.

How do we reconcile therefore, the ethical boundaries/regulation advocated by the world’s great religions with the resistance of, in particular financial markets, to these boundaries?
 
That is the great challenge faced today by  those who would promote the notion of a moral economy.

One of the most important ethical boundaries set by the Prophet in the Qu’ran has to do with the ‘price’ paid for a loan: the rate of interest. While many would regard the Qu’ran’s strictures on interest rates as antiquated, I would like to argue that they are acutely relevant to today’s financial crisis. ...
 
 
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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 29 April 2010 at 1:35am

Paving the Way for the Post-Banking Economy

This 2-day conference will take place this weekend (1 & 2 May 2010) in Norwich, UK, to analyze the current breakdown of the world's financial system and to discuss economic strategies for the future and the move to a post-banking economy

http://www.norwichconference.com/

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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 30 April 2010 at 1:57am
Bank Negara Malaysia Hosts Global Islamic Finance Forum 2010

Bank Negara Malaysia is pleased to host the second Global Islamic Finance Forum (GIFF). Themed "Islamic Finance: Opportunities for Tomorrow", GIFF 2010 will be held in Kuala Lumpur from 25 th to 28 th October 2010. GIFF 2010 is a key international event in the calendar of Islamic finance following the success of the inaugural GIFF in March 2007.

GIFF 2010 is a high-level multi-track event that brings together regulators, scholars and financial industry players who are key drivers in shaping Islamic finance globally. This event is organised in collaboration with the Association of Islamic Banking Institutions Malaysia (AIBIM), Malaysian Takaful Association (MTA), the International Shari'ah Research Academy for Islamic Finance (ISRA) and the REDmoney Group.

GIFF 2010 is organised in support of the Malaysia International Islamic Financial Centre (MIFC) initiative to develop Malaysia as a hub for international Islamic finance. ...

http://islamonline.com/news/articles/28/Bank-Negara-Malaysia-Hosts-Global-Islamic-Finance-.html

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Rating: 0 of 0 votes Quote a well wisher Replybullet Posted: 30 April 2010 at 11:40pm
Post-Crisis Reforms: Some Points to Ponder by Mufti Muhammad Taqi Usmani
 

Mufti Taqi Usmani writes: In modern economics, we are used to a purely materialistic and secular approach that does not allow religious concepts to interfere with its theories and concepts, on the premise that economy is outside the domain of religion. It is, however, an interesting irony that every dollar note has the admission: “In God we trust”, but when it comes to develop theories to earn dollars or to distribute or spend them, trust is placed only on human ideas based on personal assessments; God is held totally out of picture, as being irrelevant to economic activities!

It is perhaps for the first time that, as an aftermath of the present financial crisis, when different quarters are coming up with different suggestions to solve the problem, the ‘World Economic Forum’ has invited representatives of religion to give their input to the initiative of reshaping the economic set-up on the basis of values, principles and fresh thoughts. This commendable initiative deserves full support from religious circles. As a humble student of Islamic disciplines, and particularly of Islamic economic principles, I would like to highlight some basic points, derived from Islamic economic precepts, that I believe, are essential for independent and fresh consideration while seeking solutions to our economic problems…. 

Read entire paper… Mufti Taqi Usmani: Post-Crisis Reforms

La ilaha ill-Allah, Muhammadur Rasulullah
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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 02 May 2010 at 12:43am

Equity-focused Islamic market will reap long-term gains

At the micro level, the economics of using equity or debt are still the same. Companies will choose whichever tool suits them best as a means of raising funds. 

What hurt the market was the excessive leveraging and speculation via debt instruments. As with most things in life, anything that is excessive in nature will usually lead to trouble. 

Islamic finance fundamentally prohibits the activities of pure speculation and excessive leveraging, which is why Islamic finance is perceived to be the right answer to the problem. 

If a company raises funds through a Shariah-compliant debt instrument excessively and uses it to speculate in Shariah-compliant equity instruments, the risk is huge regardless of whether the instruments are Shariah-compliant or not. Therefore, the problem lies in the ethics and principles, not the instruments.

A debt instrument, however, is generally frowned upon in Islamic finance because the risk is lopsided. Islamic finance hence favoors the use of mudaraba (profit sharing) and musharaka (joint venture) because it is supposedly more just in the allocation of risk amongst the participants. 

In the absence of ethics and principles, both mudaraba and musharaka are also instruments that can be abused. At the macro level, however, the benefits of mudaraba and musharaka are very clear. They promote risk-sharing and spread the impact of an adverse condition amongst participants, thereby increasing the sustainability factor of a market ...

http://www.islamicity.com/articles/Articles.asp?ref=GT1004-4153

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