Blockchain And Islamic Banking Are Working Together

Source: Forbes

  • More and more banks in the Islamic world — a community of nearly 2 billion people worldwide — are adopting blockchain technology and cryptocurrency. As early as 2016, major Islamic banks such as ICICI Bank and Emirates NBD began researching blockchain's capabilities to reduce transactional costs, according to Coindesk. In 2017, the UAE’s Emirates Islamic became the first Islamic bank to use blockchain technology, namely for fraud prevention. In April, an Islamic scholar declared bitcoin permissible under Sharia law after a study conducted ...

With IMF Scrutiny, Islamic Finance Goes Mainstream

Source: Global Finance

  • Starting on January 1, the International Monetary Fund (IMF) will include Islamic finance in its financial sector assessments of select countries, evaluating the regulation and supervision of Islamic finance institutions under Shariah law by incorporating guidance from the Islamic Financial Services Board. The decision is a game-changer: By green-lighting oversight of Islamic banking, the fund seeks to speed up the incorporation of a large and expanding set of institutions, and the markets they serve, into the global financial system.....

Kenya: Calls for Specific Islamic Finance Laws

Source: Du Cameroun

  • The Central Bank of Kenya (CBK) and stakeholders in the banking and finance sector are now being asked to consider enacting a sector specific legislation tailored to Islamic finance sector to monitor and regulate such transactions in the country.Despite the considerable steps CBK has made in ensuring and recognizing the influence and positive market reception of Islamic finance since its inception, an Islamic Financing Act is urgently needed to take Islamic financing in Kenya to the next level....

Islamic Finance in the United Kingdom

Source: Reuters

  • As of 2017, the UK earned about US$77 billion from financial services alone making it among the leading global net exporters of financial services The UK has long maintained its position as a leading global financial center, owing to its favorable policies on taxation, political stability and access to the European market. The UK has leveraged these advantages to attract Islamic finance to its shores by creating an attractive environment for Shariah-compliant investors from the GCC and the other OIC countries...

Islamic Finance: How Does It Make Money Without Interest?

Source: Global Finance

  • Murhaba or cost plus selling: This is the most common product in asset portfolios and applies only to commodity purchase. Instead of taking out an interest loan to buy something, the customer asks the bank to purchase an item and sell to him or her at a higher price on instalment. The bank’s profit is determined beforehand and the selling price cannot be increased once the contract is signed. In case of late or default payment, different options are available including a third-party guarantee, collateral guarantees....

Globalisation, Digitisation Discussed at Islamic Finance

Source: Astana Times

  • Leading Islamic financial institution representatives highlighted Islamic finance developments and the role of globalisation, cooperation, digitisation, trade, governance and infrastructure in Islamic finance at a forum session titled Islamic Finance: Next Big Step. Dubai Islamic Bank Group Chief Executive Officer Adnan Chilwan highlighted three areas that will drive Islamic finance in the next two decades. “One is globalisation; more and more geographies are merging into the market. Globalisation is not only about...

How do Islamic Finance Products Work?

Source: Fin24

  • Understanding how conventional finance products work can be difficult enough. The increasing popularity of sharia finance means there’s another set of products available for the public to consume, which work differently to how we’ve come to know banking and investments. Islamic finance is by no means a new concept. According to one report, the first modern-day Islamic bank was founded in 1963, in the town of Mit Gham....

ADGM to Promote Islamic Finance

Source: CPI Financial

  • Al Hilal Bank has partnered with the Abu Dhabi Global Market (ADGM), aimed to promote Islamic finance in Abu Dhabi and across the UAE. The agreement will enable Al Hilal Bank to work closely with Financial Services Regulatory Authority (FSRA) in the development of Islamic products. Richard Teng, CEO, Financial Services Regulatory Authority of ADGM, said, “Together, we can grow and strengthen Islamic banking offerings and the financial landscape in Abu Dhabi.” Additionally, Al Hilal Bank and ADGM will collaborate on...

Islamic Scholars Debate Validity of Cryptocurrencies

Source: Banking and Finance

  • The world's top Islamic finance scholars are scrutinizing the validity of cryptocurrencies, as debate grows in the industry as to whether such fast emerging financial tools can be deemed sharia compliant. The issue of religious permissibility could help determine whether Islamic financial firms can invest in cryptocurrencies, widening their appeal in the industry's main centres in the Gulf and Southeast Asia. The discussions are part of the annual sharia...

Islamic Banking, Finance Outlook Bright in Asia

Source: Dawn News

  • In addition, a combination of strong political support, a large investor base, and generous tax incentives are enticements to further Islamic finance in Asia, the ADB says in a new report on ‘Islamic Banking and Finance in Asia’. The Muslim populations in different Asian countries, especially in South East Asia, are increasing. Rapid Muslim population growth and improving living standards may enhance the popularity of Islamic finance as a keen alternative...

Islamic Finance: Just For Muslim-Majority Nations?

Source: Global Finance

  • Islamic finance is today a $2.2 trillion industry spread over more than 60 countries with the bulk of it concentrated in very few markets. Data compiled by the Union of Arab Banks’ research department shows that just 10 countries account for 95% of the world’s sharia-compliant assets. Iran leads the way with 30% of the global total followed by Saudi Arabia (24%), Malaysia (11%), the United Arab Emirates (10%), Qatar (6%), Kuwait (5%), Bahrain (4%), Bangladesh (1.8%), Indonesia (1.6%) and Pakistan (1%)....

Islamic Finance and the US$900 Million Resource

Source: Sta Broek News

  • Initially it was announced that Guyana will borrow US$900 million credit from the Islamic Development Bank (IsDB). However, the Minister of Finance clarified that the US$900 million is not automatically available. He noted that the government has to come up with projects consistent with the lending mandate of IsDB. Therefore, they used the term resource envelope, which means the line of financing is available...

Higher Oil Prices are Threatening

Source: CNBC

  • Higher oil prices this year have reduced the need for energy-exporters in the Middle East to raise funds through the Islamic bond market — threatening the growth of a niche finance sector that has been struggling to gain wider traction. per barrel this year from the $55 per barrel it projected earlier. As the key commodity inched higher in its price, global issuance of Islamic bonds fell 15.3 percentOil prices have stayed above $60 per barrel so far this year. That's expected to persist: S&P Global Ratings has revised upward its forecast for oil to an average $65...

Uzbekistan to Develop Islamic Finance

Source: Reuters

  • Over the past year, the Tashkent government has liberalised foreign exchange rules and relaxed regulatory requirements for Kazakh banks looking to set up subsidiaries in the country. The establishment of the institution, which was announced in a decree on the government’s website, goes beyond existing legislation. It would allow the introduction of a wide range of sharia-compliant products, from Islamic bonds to insurance, said Yerlan Baidaulet, adviser to Kazakhstan’s Ministry of investments and development...

Cryptocurrency firm Stellar gets Islamic finance

Source: Zawya

  • The move highlights how fintechs are broadening their footprint to include growth markets in the Middle East and Southeast Asia, prompting Islamic scholars to assess the religious validity of digital currencies. The certification covers Stellar’s blockchain and its native currency called Lumens - the 7th largest cryptocurrency with a market capitalization of $4.3 billion. Over the past year the firm has been exploring partnerships with financial firms in the Gulf region and seeking sharia-compliance certification helped widen those discussions, said Lisa Nestor....

Islamic Finance in Luxembourg

Source: Reuters

  • Luxembourg has become a hub for traditional and cross-border investment management. It has also cultivated a favorable ecosystem for Islamic finance especially in the sukuk and Islamic funds space. Since 2009, the government has been proactive in developing its domestic Islamic finance industry, exploring areas where financial and tax regulations can be more accommodating towards Shariah-compliant transactions. Regulatory working groups determined that Luxembourg’s existing financial regulatory framework....

Dubai and Nasdaq Declare Islamic Finance Ambitions

Source: Funds Global

  • The Dubai Islamic Economy Development Centre (DIEDC) is collaborating with Nasdaq Dubai on a scheme to cement Dubai’s status as a domicile for sukuk issuance. The DIEDC was established in 2013 as part of Dubai's “capital of Islamic economy” initiative. In April 2017, Dubai’s sukuk issuance reached $53.1 billion, the highest in the world. The plans were announced at a session attended by Dubai dignitaries including the crown prince and chairman of the Dubai Executive...

Becoming the Best Modern Islamic Bank

Source: CPI Financial

  • The Islamic finance sector will continue to show strong growth in 2018, according to a new Moody’s report, with trade finance bankers pointing to their sector as an area with huge growth potential. In its recent in-depth sector report, the credit rating agency predicts that Islamic financing assets will grow at 7% this year, thus continuing to outpace conventional counterparts. This will leave....

Islamic Finance — Focus on Capital Market Development

Source: Malaysian Reserve

  • Just as a computer’s hardware and software have to work well together for optimal computing performance, so too the two sectors of the macro economy. Where one sector is stunted or lags, economic growth would be handicapped. The composition of the financial sector matters, too. A nation’s financial sector has two broad components, the banking system and capital markets. Whereas the banking system is typically monolithic...

Slow Growth in Islamic Finance

Source: Jakarta Post

  • Deputy Finance Minister Mardiasmo has said the slow progress of Islamic financial shares was disappointing, considering the fact that Indonesia has the largest Muslim population in the world. “Therefore, we need to intensify the education program on Islamic financial literacy,” said Mardiasmo in his speech at the third Annual Islamic Finance Conference in the South Sulawesi provincial capital of Makassar on Wednesday. The conference, with the topic “Enhancing the Role of Islamic Finance within Digital Economy Era: Opportunities and Challenge....

Clients and Participants