Download - IFP - July and August 2013
-
7/27/2019 IFP - July and August 2013
1/17
Islamic FinancePakistanIslamic Finance IndustryNewsletter
Volume 4, Issue 6, July and August 2013
-
7/27/2019 IFP - July and August 2013
2/17
2
EditorialIslamic finance industry has grown rapidly within the last few years and it
seems that growth rate will further increase in the coming years. In the
past few years, overall market growth has been estimated at between 15-20 % annually.
Islamic finance is also on the rise in emerging markets such as Lebanon,
Syria, Turkey and Canada. Within a short span, it has been recognized in as
an alternate to conventional banking, although there are issues in Islamic
banking which are being dealt by the regulators. For instance, in UK, due to
its tax laws Sukuk badly suffered, but when changes were made in tax
laws, U.K. Sukuk issuance looked like a valid financing option to be
explored by businesses which seek Shariah compliant solution.
According to Global Islamic Finance Report 2012, the size of the Islamicbanking industry has grown to $1.35 trillion with the annual growth rate of
more than 20 %. Globally the Islamic financial industry now comprises 430
Islamic banks and financial institutions and around 191 conventional banks
with Islamic banking windows operating in more than 75 countries. The
share of Islamic banking in Pakistan has reached 8.2 % in assets and 8.9 %
in deposits of the total banking industry.
However, everything is not as perfect as it appears. A recent fraud scam
has shook the confidence of masses in the Islamic finance market when an
unregistered Modaraba company defrauded many investors who trusted
the company due to their religious sentiments.
The need of the time is to create awareness among the masses to develop
their understanding with respect to Islamic finance so that they be able to
determine appropriate and credible avenues to invest their hard earned
money into Shariah compliant avenues.
Regulators for all relevant financial institutions should step in and take
rigorous actions against all who are involved in defrauding people in the
name of Islamic finance and hence protect the market from any defame.
Happy Reading !
Advisory Board
Mufti Irshad Ahmed Aijaz
Mufti Najeeb Khan
Anwar Ahmed Meenai
Mohammad Aslam
Mujeeb Baig
Faizan Memon
Syed Abdul Rafay Ather
Associate Editors
Shakil Khan
Muhammad Shahzad Hussain
Arshad Hussain Zubairi
Rima Farooq
Editor-in-Chief
Nusrat Ullah Khan
Ayat of Month:
Wealth and children are theembellishment of the worldly life, and the
everlasting virtues are better with your
Lord, both in rewards and in creating good
hopes. [Alkahf: 46]
Hadith of Month:Narrated by Abu Huraira the Prophet
(sallahu alaihe wasallam) said, "Whoever
takes the money of the people with the
intention of repaying it, Allah will repay it
on his behalf and whoever takes it in order
to spoil it, then Allah will spoil him."
[Sahih al-Bukhari, Volume 3, Book 41, No
572]
IFP is an initiative of IFP Forum and Hidaya Islamic Business Support Services Pvt. Limited (IBSS)
-
7/27/2019 IFP - July and August 2013
3/17
3
News Story
Mr. Saleem Ullah, Head of State Bank of Pakistan Islamic Banking
Division (SBP-IBD) announced, in the Second Islamic Expo and Conference
2013 held at Marriott Hotel in June 2013, that SBP has taken initiative in
collaboration with the existing Islamic banks in the market to promote
Islamic banking on the electronic media.
This marketing strategy will help in achieving the targeted 15% market
share of Islamic finance in overall banking industry in Pakistan and todouble the number of branches network from 1,000 to 2,000 across the
country.
Mr. Saleem Ullah urged for the joint national level effort for the
promotion of Islamic banking in Pakistan. In this regard he said Islamic
banking should be a part of national agenda to promote Shariah based
financial system in the economy having potential to develop the economy
and for the prosperity of the people.
The initiative will not only create awareness about Islamic banking but it
will also educate the general public about basic terms and principles of
Islamic finance because when spreading awareness of Islamic finance, it is
important to educate the customers. They will be more willing to emerge
themselves into Islamic finance if they have the knowledge.
However, it is highly important that appropriate methods are used for
marketing Islamic finance products so that the marketing tools do not
damage the Shariah image of the products.
The players in the industry need to be very careful in selecting the
marketing strategy as it is one of the most important areas that needs to
be carefully examined by the policy makers of Islamic banks. The
terminology used should be easy enough to be comprehended by the
general public.
Care should also be taken when selecting marketing statements, symbols
and images.
A sound marketing strategy becomes imperative as Islamic banks not only
operate in an environment where service quality and financial returns are
perceived as the essential criteria from customers viewpoint, but they
must also compete with conventional banks which are known to have
better experience and expertise in the banking business.
Islamic banking
should be a part of
national agenda to
promote Shariah-based
financial system in the
economy having
potential to develop
the economy and
prosperity of the
people
Mr. Saleem Ullah -
Head of SBP-IBD
IFP is an initiative of IFP Forum and Hidaya Islamic Business Support Services Pvt. Limited (IBSS)
The Need for Advertisement of Islamic Banking on
Electronic Media
-
7/27/2019 IFP - July and August 2013
4/17
-
7/27/2019 IFP - July and August 2013
5/17
5
Islamic Finance Expo and Conference 2013
(Contd)
The primary objective of the event
was to create awareness about Islamic
Finance industry and to clarify the
doubts people have in relation to
Shariah based financial institutions.
The event showcased all the major
industry players with their products
and services to learn more about the
offerings for the masses of Pakistan.
The event included an Expo and a
Conference on different aspects of
Islamic Finance such as discussion on
current issues in Islamic bankingindustry. On the first day, various
Islamic banks, Takaful companies
and even different universities
arranged their stalls and their
representatives guided about their
various products to the visitors who
were interested in Islamic Finance
expo and conference. They
enlightened participants about the
potential of Islamic banking and its
benefits over conventional banking.
Moreover, they also underlined the
need for awareness of Islamic
banking and Takaful services acrossPakistan.
Experts present on Meet with the experts session on 20 June 2013
Inaugural session began with recitation of Holy Quran by Mufti Zeeshan Abdullah and Guest of honor speech by Mr.
Majeed Aziz (former president KCCI) and Qazi Abdul Samad (Shariah Advisor The Bank of Khyber).
Inauguration of Islamic finance expo
and conference by Organizers and
Karachi Chamber of Commerce andIndustrys (KCCIs) representatives.
Session 1
Vision 2020
Session 2
Islamic Banking -is it really
Islamic?
Session 3
Introduction toTakaful and
Family Takaful
Session 4
Islamic bankingintroduction and
criticism
Session 5
Role ofMudaraba in
Islamic finance
Session 6
Open housediscussion
Mr. Muhammad
Naeem, Chief
Executive
Publicity Channel.
Mr. Mehmood
Tareen, Director
IFEC.
Mr. Ateeq ur
Rehman, Advisor
to KCCI,
Qazi Abdul
Samad, Shariah
Advisor BOK.
Mufti Zeeshan
Abdullah.
Mr. Majeed Aziz,
President KCCI.
Qasar Waheed,
Chairman PPMLA.
Moderator:
Mr. Faizan
Memon, HBL
Panelists:
Mr. Irfan,
Mufti Sabir,
Mufti Ehsan
Waqar.
Panelists:
Mr. Azeem
Pirani,
Mufti Ibrahim
Essa.
Moderator:
Shakil Khan,
Hidaya IBSS.
Panelists:
Mufti Yahya
Asim, Shariah
Advisor HabibBank Limited,
Mufti Zahid Siraj,
Head of Shariah
Department Burj
Bank Limited and
Mufti Ibrahim
Essa.
Panelists:
Mufti Satar
Laghari, Shariah
Advisor NBP,
Mr. Zulfiqar, Bank
Islamic Pakistan
Limited and
Mr. Mujeeb Baig,
Head of product
development
MCB.
Moderator:
Mr. Asif
Amanullah.
Panelist:
Mr. Abdul Jabber
Karimi, Head of
productdevelopment
HMB,
Mufti Abdullah
Najeeb, Shariah
Advisor Al-Baraka
Bank and
Mufti Mubeen
HMB.
-
7/27/2019 IFP - July and August 2013
6/17
6
Islamic Finance Expo and Conference 2013
(Contd)
Experts present on Meet with the experts session on 21 June 2013
Inaugural session began with recitation of Holy Quran by Mufti Zeeshan Abdullah and Guest of honor speech by Mr.Ebrahim Sidat (Country Managing Partner Ernst & Young Pakistan) and Mr. Nusratullah Khan (Head of Islamic banking
UBL)
Session 1
Experience of a
decade
Session 2
Speech by HIBD
of State Bank of
Pakistan
Session 3
Presentation -
Growth and
future outlook of
Takaful industry
in Pakistan
Session 4
Presentation -
Growth of
Islamic Mutual
Funds and future
outlook
Session 5
Critical eye on
Islamic finance
Session 6
Islamic banking
and finance
outlook in
current
economic
situation
Session
chairman:
Mr. Saleem Ullah,
HIBD SBP.
Moderator:
Mr. Abdur Rab
Khan, Head of
Hidaya IBSS.
Panelists:
Mr. Muhammad
Zubair Haider
Shaikh, Group
Chief IBD NBP,
Mr. Rizwan Atta,
Head of IBD, UBL
Ameen,
Mr. MuhammadRaza, Head Retail
and Marketing,
Meezan Bank
Limited,
Qazi Abdul
Samad, Shariah
Advisor, BOK and
Mr.Fawad
Farooq, HIBD
Faysal Bank.
Speech given by
Mr. Saleem Ullah,
HIBD SBP.
Presentation
given by Mr.
Saleem Qureshi,
General Manager
Pak Qatar Family
Takaful
Company.
Presentation
given by Mr.
Faraz, Chief
Executive of
Fortune Islamic
Services.
Moderator:
Laeeq ur
Rehman, Unit
Head of Takaful
Bank Islami.
Panelist:
Mr. Mujeeb Beig,
Head productdevelopment,
MCB IBD,
Mufti Najeeb,
Shariah Advisor
Summit Bank
Limited,
Mufti Ibrahim
Essa,
Mr. Aziz Adil, CFO
Summit Bank
Limited,
Mr. Ahmed Ali
Siddiqui, Head of
product and
compliance,
Meezan Bank and
Mufti Khalil
Aazmi, Bank
Alfalah.
Panelists:
Mr. Shamim
Ferpo, Senior
Vice President
KCCI,
Mr. Mehmood
Tareen, Project
Director IFEC,
Mr. Ateeq ur
Rehman, Advisor
to KCCI for
banking, CSR,
insurance and
investments,
Mr. Anees
Asghar, Director
of Capital
Management,Dubai,
Mr. Abdur Rab
Khan, Head of
Hidaya IBSS and
Mr. Naeem
Qureshi, Chief
Executive of
Publicity
Channel.
-
7/27/2019 IFP - July and August 2013
7/17
-
7/27/2019 IFP - July and August 2013
8/17
-
7/27/2019 IFP - July and August 2013
9/17
9
JPMorgan recommend clients to
purchase Nakheel Islamic bonds
QIB profit reached QR 630 Million
during first half of 2013Qatar Islamic Bank (QIB), Qatar's
leading Islamic financial institution,
has announced the second quarter
2013 results.
Total assets of the Bank now stand
at QAR 74 billion having increased
by 17.2% compared to second
quarter 2012. Financing activities
have strongly rebounded in the
second quarter to reach QAR 41.4billion having grown 9% compared
to March 2013 and 15.6% growth
compared to June 2012.
Indonesias BMT microfinance
system should be introduced
globally
Baittul Maal wa Tamwil (BMT)
microfinance system which is being
working in Indonesia should be
introduced all-around the globe as a
best system to eliminate poverty
which will boost-up Islamic
microfinance industry worldwide.
These thoughts were expressed by
Chief Executive Officer of Al-Huda
Center of Islamic Banking and
Economics Mr. Muhammad Zubair
Mughal.
Islamic finance in 2013: beyond
the growth
The Islamic finance industry posts
stellar growth figures. With its
estimated 15% to 20% annual
growth rate considerably out
weighting the growth seen in the
conventional banking industry.
Global Islamic assets held by
commercial banks stood at $1.3bn
in 2011, but the industrys forecast
growth of around 40% over two
years will see this figure rise to
$1.8bn in 2013, according toresearch by Ernst & Young.
Money market gets a boost as
rules allow global Shariah
compliant deals
Global standards for agency
contracts will help the fragmented
$1.6 trillion Islamic finance industry
develop international money
markets, according to Asian Finance
Bank Bhd. and CIMB Group
Holdings Bhd.
The International Islamic Financial
Market, a Bahrain-based standards
setting body, issued the guidelinesto broaden the range of tools for
Shariah lenders to manage excess
funds, Chief Executive Officer Ijlal
Ahmed Alvi told the conference.
The rules govern Wakala contracts,
where the bank acts as an agent for
a client looking to invest funds and
profits are shared to comply with
t h e S h a r i a h c o m p l i a n t
requirements.
Harmonization of standards will
avoid different schools of thought
blocking the expansion of banks
across jur isdict ions, said
Muhammad Akram Laldin, a
Shariah scholar with Malaysias
central bank.
Disclaimer:The news included here is on the basis of information obtained from local and international print and
electronic media sources. IFP and Hidaya IBSS team does not accept any responsibility about their bona-fide.
JPMorgan Chase & Co. is advising
clients to buy Nakheel PJSCs
Islamic bonds after last months
record slump as new projects boost
the Dubai developers earnings,
while government backing makes a
default improbable.
State-run Nakheels 4.27 billion
dirhams ($1.2 billion) of Sukuk
yielded 9.88 percent in Dubai,down seven basis points during
July, after surging 179 basis points
in June.
GlobalNews
Global standards urge to boost Islamic finance
Islamic finance experts have flagged the urgent need for harmonious international industry standards and cross-
border co-ordination and collaboration. According to CIMB Islamic Bank Berhads Chief Executive, Badlisyah Abdul
Ghani, in this phase of growing international transactions, Islamic finance needs to be dynamic and innovative.
http://www.globalislamicfinancemagazine.com/?com=news_list&nid=2973http://www.globalislamicfinancemagazine.com/?com=news_list&nid=2973http://www.globalislamicfinancemagazine.com/?com=news_list&nid=2973http://www.globalislamicfinancemagazine.com/?com=news_list&nid=2968http://www.globalislamicfinancemagazine.com/?com=news_list&nid=2968http://www.globalislamicfinancemagazine.com/?com=news_list&nid=2968http://topics.bloomberg.com/islamic-finance/http://topics.bloomberg.com/islamic-finance/http://www.globalislamicfinancemagazine.com/?com=news_list&nid=2968http://www.globalislamicfinancemagazine.com/?com=news_list&nid=2968http://www.globalislamicfinancemagazine.com/?com=news_list&nid=2968http://www.globalislamicfinancemagazine.com/?com=news_list&nid=2973http://www.globalislamicfinancemagazine.com/?com=news_list&nid=2973 -
7/27/2019 IFP - July and August 2013
10/17
10
Australia seeks tax changes on
Sukuk
HSBC sees 2013 Sukuk sales
doubling to $3 Billion: Turkey
Credit
Islamic bond sales in Turkey may
double to $3 billion this year as
companies join the government in
accessing Shariah-compliant
investors, according to HSBC
Holdings PLC, the worlds biggest
underwriter of Sukuk.
Economic growth may help propel
Islamic bond sales beyond the
government and banks this year,Martin Spurling, Chief Executive
officer of HSBCs Turkey unit, said
at a conference in Istanbul.
Pilgrim funds give Indonesian
banks Booster Shot
Indonesias plan to shift 11 trillion
Rupiah ($1.1 billion) of pilgrims
savings into Shariah compliant
lenders is a booster-shot that will
help narrow the gap with
neighboring Malaysia.
Shariah banking assets in Indonesia
jumped 35 percent in the year
through February and the
government wants to lift its marketshare from 4.6 percent to 10
percent by 2015.
London Mayor sees plenty of
opportunities for Islamic finance
London Mayor Boris Johnson calledfor a greater U.K. role in the Islamic
finance market as a Malaysian
delegation visited the capital city.
The London Stock Exchange listed
$24 billion of Sukuk in the past two
years, Johnson said in his office at a
meeting with Malaysian Prime
Minister Najib Razak. The capital
should be at the heart of the Islamic
finance market, which is set to grow
to $1.6 trillion by 2015, he said.
Oman's Bank Nizwa obtains
investment banking license
Bank Nizwa, Oman's first fullfledged Islamic bank, has received
an investment banking license that
will allow it to manage funds and
issue instruments such as Islamic
bonds, the lender said in a bourse
filing.
The bank launched operations in
January and is gradually rolling out
a range of Shariah compliant
products, aiming to grab a 5
percent share of the country'soverall banking market in five years.
Islamic finance industry enters
2013 with new strength
The volume of Sukuk (Islamicbonds) issued by end of the first
quarter of 2013 reached $34.2
billion, increasing on a quarterly
based rate at 21.5 percent, after an
abundant year that witnessed a 54
percent increase in issuance,
Kuwait Finance House (KFH).
Disclaimer:The news included here is on the basis of information obtained from local and international print and
electronic media sources. IFP and Hidaya IBSS team does not accept any responsibility about their bona-fide.
Australia plans to change laws to
ensure Islamic finance products are
taxed fairly as the government
seeks to attract investors from the
Middle East and Asia, paving the
way for Sukuk sales.
The national taxation board will
hold talks in Sydney, Canberra and
Melbourne on how to best ensure
that Islamic finance transactionsare treated the same as equivalent
non-Islamic deals.
GlobalNews
Islamic Finance is as British as Fish and Chips and the FA Cup Final says Lord Mayor of London
Beyond the talk of proliferating market size, volume of issuances outstanding and innovative new structures and
underlying assets, the global Sukuk market is poised to take that great leap forward to a new higher level. Emerging
Sukuk models, such as that of the International Islamic Liquidity Management Corporation, for instance, serve not
only to enhance financial stability by facilitating liquidity management for international Islamic financial services,
but also to cater for economic development and debt management.
http://topics.bloomberg.com/turkey/http://www.bloomberg.com/quote/HSBA:LNhttp://www.bloomberg.com/quote/HSBA:LNhttp://www.bloomberg.com/quote/HSBA:LNhttp://topics.bloomberg.com/indonesia/http://topics.bloomberg.com/malaysia/http://topics.bloomberg.com/boris-johnson/http://topics.bloomberg.com/islamic-finance/http://topics.bloomberg.com/islamic-finance/http://www.globalislamicfinancemagazine.com/?com=news_list&nid=2966http://www.globalislamicfinancemagazine.com/?com=news_list&nid=2966http://topics.bloomberg.com/islamic-finance/http://topics.bloomberg.com/islamic-finance/http://topics.bloomberg.com/boris-johnson/http://topics.bloomberg.com/malaysia/http://topics.bloomberg.com/indonesia/http://www.bloomberg.com/quote/HSBA:LNhttp://www.bloomberg.com/quote/HSBA:LNhttp://topics.bloomberg.com/turkey/ -
7/27/2019 IFP - July and August 2013
11/17
11
Dubai to launch global Islamic
economy summit
Dubai Financial Group sells its
stake in Bank Islam to BIMB
Holdings
Dubai Group, a diversified financial
services company, announced that
its subsidiary Dubai Financial Group
LLC, has signed an agreement with
BIMB Holdings, concerning the sale
of DFGs 30.5 per cent stake in Bank
Islam.
The sale transaction, which
concluded on July 31, was valued at
$550 million.
Cagamas issues 3 year variable
rate Sukuk in Malaysia
T h e N a t i o n a l M o r t g a g e
Corporation, announced the
successful RM 230 million issuance
of its award winning variable rate
Sukuk Commodity Murabaha along
with RM 180 million floating rate
Conventional Medium Term Notes.
The variable rate Sukuk and floating
rate CMTNs will be issued via its
existing RM 60 billion IslamicCommercial Paper and Medium
Term Notes Programme in tenures
of 3 years.
Cagamas Berhad (Cagamas), the
National Mortgage Corporation,
was established in 1986 to promote
the broader spread of house
ownership and growth of the
secondary mortgage market in
Malaysia.
It issues debt securities to finance
the purchase of housing loans from
financial institutions and non-
financial institutions. The Cagamas
model is well regarded by the
World Bank as the most successful
secondary mortgage liquidity
facility.
Emirates mulls Sukuk for $4.5
billion in airplanes
Emirates, the worlds biggest airline
by international passenger traffic, is
considering the sale of Islamic
bonds as it seeks to raise $4.5
billion in the financial year starting
April 2014 to pay for planes.
The Dubai based carrier will need
an average of $5.34 billion a year
over the next five years, including
2013, to finance 119 aircraft
deliveries.
Bank Negara Malaysia and Hong
Kong Monetary Authority
strengthen links
Bank Negara Malaysia (BNM) and
Hong Kong Monetary Authority
(HKMA) held a bilateral meeting in
Kuala Lumpur to discuss economic
and financial issues and to consider
initiatives that help promote
financial market development in
Malaysia and Hong Kong.
Disclaimer:The news included here is on the basis of information obtained from local and international print and
electronic media sources. IFP and Hidaya IBSS team does not accept any responsibility about their bona-fide.
The Dubai Chamber of Commerce
and Industry will launch the first
Global Islamic Economy Summit in
November. The conference is
aimed at bringing together leading
thinkers and policy makers from
around the world.
The summit will be organized in
partnership with Thomson Reuters
and will initiate dialogue on thedevelopment of integrated sectors
of the Islamic economy, covering
Islamic financial services and Halal
manufacturing.
GlobalNews
Successful issuance of Brunei Darussalam Government short-term Sukuk Al-Ijarah Securities
Bandar Seri Begawan, Brunei Darussalam (August 2013) - The Autoriti Monetari Brunei Darussalam (AMBD), agent
to the Government of His Majesty The Sultan and Yang Di-Pertuan of Brunei Darussalam in managing and
administering Sukuk Al-Ijarah issuances, is pleased to announce the successful pricing of its 92nd issuance of short-
term Sukuk Al-Ijarah securities. With this issuance, the Brunei Government has thus issued over B$6.03 billion worth
of short-term Sukuk Al-Ijarah securities since the maiden offering on 6th April 2006.
-
7/27/2019 IFP - July and August 2013
12/17
12
Nigeria is opening up to Islamic
finance
Noor Islamic Banks CEO calls for
global body to regulate Islamic
finance industryStandardization of the regulations
governing Islamic finance is a must
to ensure the globalization of
Islamic finance, according to
Hussain Al Qemzi, CEO of Noor
Investment Group and CEO of Noor
Islamic Bank.
Speaking at a DIFC hosted
conference on the future of Islamic
finance, jointly organized by Noorand Thomson Reuters, Al Qemzi
said the lack of standardization is
holding back the growth of Islamic
finance.
Atlantic Lux sets up $100m
insurance linked Sukuk program,
eyes $20m debut
Luxembourg based Atlantic Lux has
setup a $100m life insurance-linked
Sukuk program
The Salam III Limited programme is
a $100m insurance-linked Sukuk,
according to Fitch Ratings who have
reviewed the deal and assigned an
expected rating. A first $20m
tranche issuance is currently
planned to be issued in Septemberand will see Atlantic Lux transfer
the policy holder lapse risk
associated with a defined block of
in-force life insurance policies
through securitization as a tranche
of notes to be sold to investors.
RAM Ratings assigns final ratings
to Axis REIT Sukuk's second issue
RAM Ratings has assigned thefollowing final ratings to Axis REIT
Sukuks proposed Second Sukuk
Issue, to be issued under its MYR
300 million Nominal Value Islamic
Medium-Term Notes Programme.
Under the transaction structure, the
REIT Trustee will sell the Properties
to the Issuer, who will in turn, sell
them back to the REIT Trustee. The
sale price will be paid on a deferred
basis, funded via rental receipts
from the properties.
Jeddah-based Al khabeer Capitalsays it plans to broaden its
investments around the Gulf and
seek a listing on the Saudi stock
exchange, underscoring an
improvement of investor sentiment
in the region.
They are expanding their range of
Shariah compliant investments,
catering to clients' appetite for both
regional and Western markets,
according to Al khabeer's CIO.
CBB Sukuk Al-Ijarah
oversubscribed 270 per cent
The Central Bank of Bahrain (CBB)announces that the monthly issue
of the short-term Islamic leasing
bonds, Sukuk Al-Ijarah, has been
subscribed by 270 per cent.
The expected return on the issue,
which begins on 15 August 2013
and matures on 13 February 2014,
is 0.87 per cent compared to 0.85
per cent for the previous issue on
18 July 2013.
Disclaimer:The news included here is on the basis of information obtained from local and international print and
electronic media sources. IFP and Hidaya IBSS team does not accept any responsibility about their bona-fide.
Nigeria is gradually opening up to
Islamic finance, a move that could
bring non-interest banking to over
80 million Muslims. Home to
the largest Muslim population in
sub-Saharan Africa, Nigeria is trying
to establish itself as the African hub
for Islamic finance, which follows
religious principles.
In recent months, a string of
regulatory initiatives have set thegroundwork for products such
as Islamic bonds (Sukuk),
Takaful and interbank lending
products, although there is still only
a small number of local market
participants.
GlobalNews
Thomson Reuters and Dubai Chamber Of Commerce Host a Global Islamic Economy Summit in November
The world's leading source of intelligent information for businesses and professionals, announced that it will host
the Global Islamic Economy Summit in Dubai in collaboration with the Dubai Chamber of Commerce and Industry.
The event will take place on 25th & 26th November 2013 in Dubai, United Arab Emirates .
With a consumer base of 1.6 billion Muslims, much has been said about the significance of the Islamic world and the
promise it holds for economic growth and profitability. Yet very little transformative dialogue has been undertaken
to assess the scale of opportunities and challenges within the global Islamic Economy.
Saudi's Al khabeer eyes regional
investments, bourse listing
-
7/27/2019 IFP - July and August 2013
13/17
13
Islamic Financial Accounting
Standard on PLS Deposit (IFAS 3)
issued by ICAP
ICAP aims at setting out the
accounting principles to be
followed by institution offering
Islamic financial services for
recognizing, measuring, presenting,
and disclosing the transactions
relating to equity of unrestricted
investment / PLS deposit account
holders.
The standard is also applicable tofunds received on PLS Sharing basis
such as export refinance from SBP
unrestricted investment account.
Adoption of AAOIFI Shariah
Standard No. 17 on Investment
Sukuk by SBP
In continuation of the efforts to
strengthen Shariah compliance
framework and harmonize the
Shariah practices in Islamic banking
industry, the AAOIFI Shariah
standard No.17 on Investment
Sukuk has been adopted by SBP
with immediate effect subject to
clarifications / amendments.
The adoption of the Shariah is inaddition to current Regulations /
instructions and directives issued
by SBP from time to time and is not
replacing them by any means.
Experts have urged bankers,
financiers as well as people in
profession to improve their
understanding about Shariah-based
banking and insurance in the
country.
M a k i n g t h e i r r e s p e c t i v e
presentations at the second Islamic
Financial Expo and Conference
(IFEC) they said growing concern
among the people about
implications of interest basedbanking made it prudent that an
alternative and interest-free
financial system is introduced, on
strong lines, in the country.
SECP constitutes Shariah Advisory
Board
The Securities and ExchangeCommission of Pakistan (SECP)
announced the formation of the
Shariah Advisory Board (SAB), which
will be responsible for harmonizing
Shariah interpretations and
strengthening the regulatory and
supervisory oversight of IFIs and
Islamic Capital Markets (ICMs) in
Pakistan.
The board will also advise the SECP
on the Shariah compliance aspects of
various products launched and the
processes being adopted by the
regulated entities. It will also provide
guidance for issuance of new laws,
rules and regulations for effective
monitoring and supervision of
Islamic financial products.
The equity market regulator has
designated Mohammed Asif, the
insurance commissioner of SECP, tooversee the functioning of the SAB,
whereas Mufti Muhammad Hassan
Kaleem has been appointed as the
chairman.
Omar Mustafa Ansari, a professional
accountant, and Sultan Mazhar Sher,
a legal expert, will represent the
technical committee.
LocalNews
Experts for improved public
understanding about Islamic
financial system
Disclaimer:The news included here is on the basis of information obtained from local and international print and electronic
media sources. IFP and Hidaya IBSS team does not accept any responsibility about their bona-fide.
Islamic banking should be part of
the national agenda in order to
promote a Shariah-based financial
system, according to State Bank of
Pakistan (SBP) Head of Islamic
Banking Salimullah.
The SBP has planned to intensify its
efforts towards creating awareness
and promoting Islamic banking
across the country in collaboration
with all Islamic banks.
Its in the agenda of the central
bank to double the Islamic banking
branches network from 1,000 to
2,000 nationwide, and increase its
share in the overall banking
industry from 5% to 15%
Islamic banking should be on
national agenda
http://www.brecorder.com/pakistan/banking-a-finance/124675-experts-for-improved-public-understanding-about-islamic-financial-system.htmlhttp://www.brecorder.com/pakistan/banking-a-finance/124675-experts-for-improved-public-understanding-about-islamic-financial-system.htmlhttp://www.brecorder.com/pakistan/banking-a-finance/124675-experts-for-improved-public-understanding-about-islamic-financial-system.htmlhttp://www.brecorder.com/pakistan/banking-a-finance/124675-experts-for-improved-public-understanding-about-islamic-financial-system.htmlhttp://www.brecorder.com/pakistan/banking-a-finance/124675-experts-for-improved-public-understanding-about-islamic-financial-system.htmlhttp://www.brecorder.com/pakistan/banking-a-finance/124675-experts-for-improved-public-understanding-about-islamic-financial-system.html -
7/27/2019 IFP - July and August 2013
14/17
-
7/27/2019 IFP - July and August 2013
15/17
15
BookintheSpotlight
This book is edited by Katuri Nageswara Rao. He is anIndian author and he has written many books on the
topic of banking and finance. Some of his books are
Global banking-emerging trends, innovations in
financial system and US banking strategic issues.
Islamic Banking: The New Dynamics, deals with the
global perspective of Islamic Banking. It is set in two
sections namely Perspectives and Country/Regional
Experiences.
Section I Perspective has six parts namely:
Islamic banking and overview;
Islamic banking can you afford to ignore it?
Islamic financing arrangements used in Islamic
banking;
Islamic banking and finance Shariah compliance
and the reinterpretation of Riba;
Banking for the poor: the role of Islamic banking
in microfinance initiatives; and
Ethical money: financial growth in the Muslim
world.
Section II Country / Regional experiences has five
parts namely:
Srilanka and the scope for Islamic banking;
Settlement of Islamic banking disputes in
Indonesia: Opportunities and challenges;
Islamic banks in Jordan: Performance and
efficiency analysis;
Funding and financing in Islamic banking system;
and
Risk management: Islamic financial policies
Islamic banking and its potential impact.
Islamic Banking: The New DynamicsBy Katuri Nageswara Rao
Publisher:
The ICFAI University Press
-
7/27/2019 IFP - July and August 2013
16/17
16
AskUs
Questions / Answers
Feed Back Corner
Please provide us with your feedback on the following
email address:
Or you can call to Mr. Shakil Khan, Hidaya IBSS on:
0333-2256392
Question
When an agent under paid agency agreement refrains to carry on the work or forced to discontinue the work, will he be
entitled for the agreed remuneration?
Answer
When the agent, for no reasonable excuse, refrains from carrying on agency that he has been paid for, and the work he
has done was beneficial, he becomes entitled to the remuneration commensurate with part of work done, and within
the limits of the contract value for that part of work. The agent in this case is bound to indemnify the principal for any
loss resulting from his refusal to continue the work.
However, when the principal, for no good reason, forces the agent to discontinue the work before the end of the agency
period, the agent becomes entitled to the full remuneration agreed upon. But if the principal, for a valid reason, forcesthe agent to discontinue the work before the end of the contract, the agent becomes entitled to remuneration for that
part of work he has already performed.
Question
Is it permissible for the buyer in Salam contract to exchange the subject matter of Salam with any other commodity with
the consent of the seller? What are the commandments of Shariah in this regard?
Answer
It is permissible for the buyer to exchange the subject matter in Salam for other goods, except currency, after the
delivery date falls due, as long as such substitution was not stipulated in the contract. This rule applies whether or not
the substitute is similar in kind to the subject matter of Salam. This is provided that the substitute is suitable for being
exchanged as the subject matter of Salam for the capital of the Salam contract. Furthermore, the market value of the
substitute should not be greater than the market value of the subject matter of Salam at the time of delivery.
-
7/27/2019 IFP - July and August 2013
17/17