Islamic Finance in Azerbaijan

Source: Azer News

  • The AlHuda Center of Islamic Banking and Economics will help Azerbaijan improve literacy in Islamic financial services and promote other services, the Center told Trend. The Al Huda Center has already conducted the necessary studies in Azerbaijan on the potential demand for Islamic banking services and the level of public awareness on Islamic finance. The center also signed a memorandum of mutual understanding with the Center for the Study of Economic Resources of Azerbaijan. The two organizations will work together to research and develop financial products consistent...

Regulations are Hindering Growth of Islamic Finance

Source: Business Daily

  • As per the Islamic Financial Services Industry Stability Report 2017, published by the Islamic Financial Services Board (IFSB), the composition of these assets as: Islamic banking (79 pec cent), Sukuk or Islamic bonds (17 per cent), Islamic funds (three per cent), and takaful contributions or Islamic insurance) one per cent. Middle East and North Africa jointly account for 30 per cent of the global Islamic finance assets. The Sub-Saharan Africa accounts for 1.7 per cent of total Islamic finance assets....

The Evolving Landscape of Islamic Finance

Source: Pak Observer

  • Being the apex regulator of the corporate sector, capital markets and non-banking financial industry the SECP is fully cognizant of its role for development of Islamic finance in the country. Islamic finance assumes a center stage in the SECP’s policies and it has taken a number of measures on the regulatory front for effective regulation of Islamic financial services industry. The SECP has constituted a Shariah Advisory Board, consisting of renowned scholars, to advise it on all matters related to Shariah. The SECP established a dedicated Islamic Finance Department (IFD),which....

Great News for the Islamic Banking Industry

Source: Albawaba Business

  • The Islamic banking industry is set to flourish further even in non-conventional markets as the International Monetary Fund (IMF) approved a plan to incorporate Islamic finance into its financial sector assessments of select countries starting from January 1, 2019 to improve regulation in the growing sector. Under a proposal by the IMF's executive board, guidance issued by the Malaysia-based Islamic Financial Services Board (IFSB) would be incorporated into IMF assessments to address the regulation and supervision of Islamic banks. It means the fund, which traditionally focuses on conventional banking, now also accepts Islamic financial principles to become....

IMF to Add Islamic Finance to Market Surveillance in 2019

Source: Reuters

  • The IMF has traditionally focused on conventional banking, but it has been increasingly engaging with regulators in countries where Islamic finance is now deemed to be systemically important. Under a proposal by the IMF’s executive board, guidance issued by the Malaysia-based Islamic Financial Services Board (IFSB) would be incorporated into IMF assessments to address the regulation and supervision of Islamic banks. Islamic finance, which bans interest payments and pure monetary speculation, is estimated to have over $2 trillion of assets globally and is offered in over 60 countries, according to the IMF...

Parliamentary Forum on Islamic Banking

Source: Daily Monitor

  • For instance, she cited the failure of the current regulations to capture some components such as Islamic Insurance and how Muslims should participate in the activities of the stock exchange in regard to Islamic norms. “Some of the things they are saying in the regulations cannot work under Islamic Banking for instance, the Central Bank, is the lender of the last resort, commercial banks under Islamic Banking cannot go to the Central Bank when it is charging interest,” she said...

Islamic Finance Should Keep an Eye on the ‘Petro Yuan’

Source: Gulf Times

  • An employee arranges genuine bundles of US one-hundred dollar banknotes and Chinese one-hundred yuan in an arranged photograph at the Counterfeit Notes Response Center of KEB Hana Bank in Seoul (file). The impact of the petro yuan on Islamic finance lies primarily on the changes in trade it would have on China’s Islamic trading partners in Southeast Asia, most of all Malaysia, and the Muslim countries in Central and West Asia and the Middle East and North Africa....

The Rise of Islamic Finance: What does it Mean for Consumers?

Source: Online Citizen

  • Islamic finance has expanded significantly in recent years. In 2016, Islamic financial institutions total assets totaled more than S$3 trillion. In this article, we explore the implications for investors and borrowers. Islamic finance describes financial activities conducted in accordance with Shari'ah Islamic law. This includes Islamic banking, funds, bonds ("sukuk") and insurance ("takaful") and other financial institutions. The emergence of Islamic banks and other financial institutions has provided financial inclusion for large populations that have...

Turkey to Play Leading Role in Islamic Finance

Source: AA English

  • Turkey plays a leading role in Islamic finance, said group chairman and chief executive officer of Path Solutions, an Islamic banking software provider. "I believe that Turkey has a role to play as a leader in Islamic finance and as a hub because it is one of the top three Islamic finance markets in the world," Mohammed Kateeb told Anadolu Agency on Thursday. He spoke on the sidelines of the General Council for Islamic Banks and Financial Institutions (CIBAFI) Global Forum in Istanbul. The two-day forum, which ended Thursday with Anadolu Agency...

Asia’s Islamic Finance Industry Growing Stronger by the Year

Source: Gulf Times

  • Asia is steadily cementing its substantial role in the global Islamic finance industry, a new report by the Malaysia International Islamic Finance Center (MIFC) published in cooperation with Jeddah-based Islamic Corp for the Development of the Private Sector found. According to the research, entitled “Islamic finance in Asia: Reaching new heights,” Asia’s Islamic finance assets – excluding the Gulf Co-operation Council (GCC) – registered annual growth of 8.4% between 2011 and 2016 and stood at $528.7bn, or 26% of the world’s Shariah-compliant financial assets, at the end of 2017...

Islamic Finance Pole Position

Source: Strait Times

  • Franklin Templeton Investments remains confident that Malaysia will continue to play a major role in islamic financing and the outlook looks encouraging. Franklin Templeton southeast Asia regional head Adam Quaife, in a statement, said Shariah-compliant strategies continues to be attractive to investors. “Globally, total investment in Franklin Templeton Shariah-compliant strategies grew 32 per cent last year to reach nearly US$2.4 billion at the end of 2017,” he said....

Turkey Holds Great Potential for Islamic Finance

Source: Daily Sabah Finance

  • "I think the potential is much bigger than it is now. The potential is very big. Maybe it is not utilized enough," Abdelilah Belatik, secretary general of the General Council for Islamic Banks and Financial Institutions (CIBAFI), told Anadolu Agency (AA) late Wednesday on the sidelines of the CIBAFI Global Forum in Istanbul.The two-day CIBAFI Global Forum 2018, which wraps up Thursday with AA as its global communication partner, is focusing on how the industry will fulfill its obligations while remaining competitive and relevant within global financial markets.Belatik said Turkey has three participation banks...

Matheson Advises on Landmark Islamic Finance Transaction

Source: Irish Legal News

  • Matheson has advised on the first issuance and listing of a Sukuk bond that complies with the Sharia financing provisions of Irish tax law. The Sukuk bond, issued by an Irish special purpose company, marks the first Islamic finance issuance under the Irish Taxes Consolidation Act 1997 and raised over $150 million. In 2010, Irish tax legislation was amended to introduce the concept of ‘specified financial transactions’ into Irish law. The amendments, set out...

The World’s Biggest Muslim Country Wants to Boost Sharia Finance

Source: The Economist

  • THE Indonesia Stock Exchange greeted its latest listing on May 9th: that of BRIsyariah, the Islamic arm of state-controlled Bank Rakyat Indonesia, the country’s biggest bank by assets. The initial public offering (IPO) of 27% of BRIsyariah’s equity raised around 1.3trn rupiah ($92m). Islam outlaws the payment of interest, the basis of conventional banking. Yet despite being home to an eighth of the world’s Muslims—225m, in a population of 260m—Indonesia’s Islamic banks are tiny. They account for just 5.8% of all banks’ assets. In neighbouring Malaysia....

Islamic Finance at a Crossroads

Source: Zawya

  • Islamic finance stands at a crossroads. After several decades of exponential growth since the introduction of modern Islamic finance in the 1970s, the industry faced headwinds following the oil price crash of 2014 as the oil-rich states of the GUlf Cooperation Council remain the industry’s biggest players. The industry began to recover in 2016 and by the end of that year its global assets had picked up to $2.2 trillion from $2.1 trillion the year before, according....

Jordan Islamic Bank Leading the Way in Sustainable Finance

Source: World Finance

  • One such accomplishment transpired last year, when JIB signed an agreement to establish a new renewable power station to provide clean electricity to its branches. The project will see the installation and connection of a solar cell system that will provide 85 percent of the electricity needed to power the bank’s offices in Jordan. Musa Shihadeh, CEO and General Manager at JIB, said this plan embodies the bank’s focus on sustainability. He explained: “JIB will also obtain licences to establish another power generation station to cover the electric power consumption of branches and offices....

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...

Muslims Demand Islamic Banking

Source: New Visions

  • Speaker of Parliament, Rebecca Kadaga told Parliament that they had passed the laws for Islamic banking but Bank of Uganda is reluctant to draft the regulations as well as issuing licenses for Islamic banking. “When will Islamic banking commence? According to Islamic laws, Muslims are not allowed to borrow money with interest . The delay to begin Islamic banking in Uganda is excluding the Muslims from the economy,” Kadaga said on Wednesday. Islamic banking principles prohibit interest paid on all loans of money and investment in businesses that provide....

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...

Islamic Finance Feels Heat from $700 Million

Source: Gulf Times

  • Global standards are likely to become more detailed and explicit and a shift to centralised regulation may accelerate after the United Arab Emirates firm reached a conditional deal with creditors on Sunday over a contested sukuk issue. Dana shook the $2.5 trillion global industry last June, saying it would not redeem its sukuk on maturity. It proposed swapping them for new sukuk with lower profit rates. The original sukuk used a mudaraba structure, an investment management partnership, which Dana said had fallen into disuse, making the instruments invalid under UAE law....

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