ISRA to expand role of Islamic finance

Source: Pak Observer

Pakistan’s first and largest Islamic bank has recently signed a multi-faceted Memorandum of Understanding (MoU) with the International Shari’ah Research Academy for Islamic Finance (ISRA), aimed at jointly expanding the role of Islamic finance through collaborations on various aspects of this field. As per this MoU, the two organizations shall work on a collaborative arrangement that includes the provision of joint Shariah consultancy services which will cater to the relevant guidelines and regulations for Islamic finance markets...

Islamic Banks Slowly Embrace Green Finance - Survey

Source: Reuters

The two sectors have developed separately from each other, but green projects could benefit from tapping Islamic banks in countries like the United Arab Emirates and Malaysia, where they now hold a quarter of total banking assets. Around two-thirds of financing in Saudi Arabia follows Islamic principles, which forbid investing in gambling, tobacco and alcohol. This resembles the screening methodology used by ethical funds in Western markets. Commonalities could help converge two fast-growing bond markets...

SECP’s Islamic Financing Facility Centre Inaugurated

Source: The News

Securities and Exchange Commission of Pakistan (SECP) Chairman Zafar Hijazi on Thursday inaugurated an Islamic financing facility centre in Rawalpindi, which will help people to avail of affordable financing on Shariah principles to buy motorcycles and other products in due course of time, a statement said Securities and Exchange Commission of Pakistan (SECP) Chairman Zafar Hijazi on Thursday inaugurated an Islamic financing facility centre in Rawalpindi, which will help people to avail of affordable financing...

Sharia Banking: Supporting Establishment of KNKS

Source: The Jakarta Post

This has been a remarkable year for the development of Islamic finance in Indonesia. In early March, Indonesia hosted an Organization of Islamic Cooperation (OIC) summit. After an interval of five months, Indonesia became the host of the 12th World Islamic Economic Forum. There has also been a great close to the year as President Joko “Jokowi” Widodo finally signed Presidential Decree No. 91/2016 on the establishment of National Committee of Sharia Finance (KNKS) at the beginning of this month...

Islamic Finance Body Approves Standard for Gold-Based Products

Source: Reuters

Traditionally, gold has been treated as a currency in Islamic finance which has confined its use to spot transactions, but fresh guidance from AAOIFI is expected to spawn a wave of product development in the industry. AAOIFI approved the final version of the standard on gold and its trading controls during a meeting of its sharia board held last week, the industry body said in a statement seen by Reuters. This followed a year-long effort that included public hearings held in Oman, Sudan and Malaysia over the past few months...

Fast Growth of Islamic Finance Industry Calls for Robust Shariah Governance

Source: Bloom Berg

Standard & Poor’s believes that in view of the fast growth of the Islamic finance industry robust Sharia governance structures is very important. Generally, internal Sharia auditors have the task of checking whether an Islamic bank’s activity was performed according to the rules set by the institution’s Sharia board. While this model has provided an additional layer of control, strengthened by local regulations regarding the independence of the audit function, actions requested by internal auditors are typically not disclosed...

Sukuk Issuance Slows Sharply on Cheap Crude

Source: Nikkei

Cheap crude is forcing Middle Eastern oil exporters to restrict their issuance of Islamic sukuk bonds, while banks in the region are facing a liquidity crunch as governments withdraw funds to cover budget shortfalls caused by shrinking oil revenues. A rig drills into the Sahil oil field in Bahrain. © AP The total value of sukuk issued in the first nine months through September came to $48.8 billion, down...

Demand Rises for Education in Islamic Finance

Source: Financial Times

an energy contracts manager for the Benelux region at Dow Chemicals, acknowledges that he is among the “less obvious” students to enrol on an Islamic finance course as part of his self-funded executive MBA at London Business School. Sign up By signing up you confirm that you have read and agree to the terms and conditions, cookie policy and privacy policy. But the Dutch executive points out that this niche course, taught at the Dubai campus of LBS, has been among the most valuable subjects he took in terms of helping him to do...

Tunisia says Islamic Finance Bonds can Save the Economy

Source: Middle East Monitor

The Governor of Tunisia’s Central Bank, Chedly Ayari, said on Monday that his country needs to come up with $1 billion in the form of Islamic finance bonds — sukuk — in order to rescue the economy. Ayari made his comments on the fringe of a meeting about Islamic finance in the service of employment. “Tunisia needs Islamic sukuk that make money for economic growth,” he added. Islamic banking, said the governor, will have a big future in Tunisia after passing the psychological barrier of people understanding Islamic bonds...

ISRA Sign MoU to Promote Islamic Financing

Source: Daily Times

Pakistan's first and largest Islamic bank, has recently signed a multi-faceted Memorandum of Understanding (MoU) with the International Shari'ah Research Academy for Islamic Finance (ISRA), aimed at jointly expanding the role of Islamic finance through collaborations on various aspects of this field. This comprehensive MoU further sets out a clear roadmap for research into the domains of Shariah and Islamic...

Islamic Finance in Indonesia: Waking up the Sleeping Giant

Source: Legal News

Financial institutions have a largely untapped market in Indonesia’s “digitally enabled but unbanked” population. Providers with digital capabilities are particularly well placed to facilitate transactions, capitalising on the Indonesian government’s drive to promote its domestic Sharia’h-compliant capital market.This alert will bring to your attention the significant measures...

Spotlight on Careers of Women in Islamic Finance

Source: Gulf Times

Zeti Akhtar Aziz, then governor of Bank Negara Malaysia (centre) arrives at the venue of the Global Islamic Finance Forum in Kuala Lumpur in this file photo dated September 2, 2014. Malaysian women have not only set the pace to occupy high positions in Islamic banking, but have been playing a prominent role in the overall development of the industry as well. Zeti Akhtar Aziz, who presided over Malaysia’s central bank...

Islamic Finance Holds Promise for Dubai

Source: Khaleej Times

Increasing consumer awareness and growing demand for retail products are set to drive activity in Dubai's Islamic financial services (IFS) sector. This will offer scope for sustainable expansion despite forecasts of slower short-term economic growth. According to a recent report by the London-listed asset management group European Islamic Investment Bank...

Djibouti Sees Islamic Finance Sector Expanding

Source: Pak Observers

Djibouti expects to see new entrants in its Islamic finance sector and the government plans to work on a framework to allow the use of Sukuk, or Islamic bonds, to fund infrastructure projects, its central bank governor said.
Djibouti, a country of less than a million people located on the Horn of Africa, is a relative newcomer to Islamic finance, having introduced sector-specific legislation in 2011, but...

International Islamic Banking & Finance Conference Held

Source: The Nation

More than 53% of the population of OIC (Organization for the Islamic Conference) countries lives in the rural area which is globally more than the other areas and its commitment to the total agricultural department is 34%. On the other hand, 49% population lives in the rural areas while their commitment to the total agricultural department is 38%. OIC countries have 29% of the world’s total agricultural land while...

IIFM Announces New Standards to Develop Islamic Finance

Source: Saudi Gazette

A leading expert called on the Islamic finance industry to expand the range of Islamic products, develop IT solutions, establish legal and regulatory framework, develop human capital in order to grow further and gain a sizable share of the financial market. The expert made this statement at the International Islamic Financial Market (IIFM) recently. It held its 33rd Board of Directors...

'Islamic Window' in Banks Would Attract Huge Gulf Money

Source: News 18

Indian Centre for Islamic Finance (ICIF) said if the RBI proposal becomes a reality, huge investments from countries like the UAE, Qatar and Bahrain will flow into India. "There are various sovereign funds in Gulf countries with trillions of dollars waiting to invest in India. Introduction of Islamic banking will give a green signal to people in nations like the UAE, Qatar and Bahrain to invest here," ICIF General Secretary H Abdur Raqeeb told PTI...

Canada Ready for Islamic Banking

Source: York Region

Islamic banking is being touted as the next big thing for Canada's financial services sector, but experts say it's up to the new federal government to demonstrate that it welcomes Shariah-compliant investments. "It's absolutely fundamental that the Canadian government signal that, in fact, it is open to Islamic finance," says Walid Hejazi, an associate professor at the University of Toronto’s Rotman...

Islamic Finance Sets Sights on Centralized Sharia Boards

Source: Reuters

A global body for Islamic finance is developing a standard for centralized sharia boards to provide guidance for strengthening corporate governance and increasing the consumer appeal of sharia-compliant financial products. The move is the clearest indication yet that the industry is shifting away from self-regulation, an approach which proved flexible in its early years but which is now regarded as an obstacle to further growth...

Winners announced at 11th Islamic Business & Finance Awards

Source: Tribune

The winners of the 11th Islamic Business & Finance Awards were announced at a gala dinner held at here, Dubai, attended by some 200 Islamic bankers and financiers from around the world. A total of nearly 28,000 votes were cast across 49 voted-for categories in the online poll held on www.cpifinancial.net The top Award, for Best Islamic Bank, once again went to Dubai Islamic Bank (DIB), based on analysis of the bank’s audited financial statements as published in the annual Islamic Business & Finance supplement Leaders in Islamic...

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