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Corporate Sukuk: Building the Ecosystem to Finance Sustainable Infrastructure

2016 was a challenging year for corporate sukuk, with issuances declining across key markets. A whitepaper recently published by Deloitte, addresses some of the key regulatory and practice issues that this asset class faces, in particular delving into three areas: regulation, markets, and business support and guidance. The full whitepaper was recently published on IslamicBanker Publications, and can be read below: Corporate Sukuk: Building the Ecosystem to Finance Sustainable Infrastructure

IB Insights | December 19, 2016

Corporate Sukuk: Building the Ecosystem to Finance Sustainable Infrastructure

Corporate Sukuk: Building the Ecosystem to Finance Sustainable Infrastructure

2016 was a challenging year for corporate sukuk, with issuances declining across key markets. A whitepaper recently published by Deloitte, addresses some of the key regulatory and practice issues that this asset class faces, in particular delving into three areas: regulation, markets, and business support and guidance. The full whitepaper was recently published on IslamicBanker Publications, and can be read below: Corporate Sukuk: Building the Ecosystem to Finance Sustainable Infrastructure

IB Insights | December 19, 2016

AAOIFI Shariah Standard On Gold

AAOIFI Shariah Standard On Gold Under Development In Collaboration With The World Gold Council And Its Expected ImpactsI have been asked to articulate on why a stand-alone Shariah standard on gold is essential. Many people would have assumed that gold does not deserve a separate Shariah standard in the AAOIFI production house. They have thought that the guiding principles of gold can be provided under, or made reference to, the existing AAOFI Shariah Standard No (1) under the heading of Trading in Currencies as gold has been perceived by the overwhelming majority of the scholars, both...

Dr. Mohd Daud Bakar | December 04, 2016

AAOIFI Shariah Standard On Gold

AAOIFI Shariah Standard On Gold

AAOIFI Shariah Standard On Gold Under Development In Collaboration With The World Gold Council And Its Expected ImpactsI have been asked to articulate on why a stand-alone Shariah standard on gold is essential. Many people would have assumed that gold does not deserve a separate Shariah standard in the AAOIFI production house. They have thought that the guiding principles of gold can be provided under, or made reference to, the existing AAOFI Shariah Standard No (1) under the heading of Trading in Currencies as gold has been perceived by the overwhelming majority of the scholars, both...

Dr. Mohd Daud Bakar | December 04, 2016

"Do I have to be a Muslim to participate in Islamic finance?"

 Once again my sincere thanks for returning to this page and for all your helpful and constructive comments after last month’s article on “Oil up the gears and move through them.” The comments I made certainly stimulated some feedback and the constructive discussion that ensued is as always welcomed. This month’s article is very much a continuation of the last two. Under normal circumstances, I would probably be looking for another topic to explore, but as a result of attending an event towards the end of October, I thought I might share with you the impact tha...

Daud Vicary | November 24, 2016

"Do I have to be a Muslim to participate in Islamic finance?"

"Do I have to be a Muslim to participate in Islamic finance?"

 Once again my sincere thanks for returning to this page and for all your helpful and constructive comments after last month’s article on “Oil up the gears and move through them.” The comments I made certainly stimulated some feedback and the constructive discussion that ensued is as always welcomed. This month’s article is very much a continuation of the last two. Under normal circumstances, I would probably be looking for another topic to explore, but as a result of attending an event towards the end of October, I thought I might share with you the impact tha...

Daud Vicary | November 24, 2016

An Islamic Perspective on Risk

The whole discipline of finance revolves around the study of risk. Insurance exemplifies another field where the study of risk is the core of the whole industry.However, if we survey how risk was handled theoretically we find that there are three aspects to the study of risk.Risk in the decision making process:In every decision we take, we seek an outcome that will, hopefully, take place shortly or longly after that, decision has been taken. However, we know that there are always "forces" that may not allow the outcome to materialize the way we intended for it to be. Some of these forces...

Mohamed Elgari | November 19, 2016

An Islamic Perspective on Risk

An Islamic Perspective on Risk

The whole discipline of finance revolves around the study of risk. Insurance exemplifies another field where the study of risk is the core of the whole industry.However, if we survey how risk was handled theoretically we find that there are three aspects to the study of risk.Risk in the decision making process:In every decision we take, we seek an outcome that will, hopefully, take place shortly or longly after that, decision has been taken. However, we know that there are always "forces" that may not allow the outcome to materialize the way we intended for it to be. Some of these forces...

Mohamed Elgari | November 19, 2016

Egypt devalues - now the hard work starts

After struggling with a lack of dollars in its economy for over a year, the Egyptian central bank finally threw in the towel, moving to a liberalisation of the pound against the dollar to allow the market to set the rate and the economy to start moving again.The initial range of devaluation is from 8.9/$ to 13/$, meaning the pound has more than halved from the level it was at during the Arab Spring. This is in line with where the black market rate has been in recent days as the economy ground to a halt, having appreciated from a rate of 18/$ over the weekend and from 15/$ last week. The unce...

Emad Mostaque | November 04, 2016

Egypt devalues - now the hard work starts

Egypt devalues - now the hard work starts

After struggling with a lack of dollars in its economy for over a year, the Egyptian central bank finally threw in the towel, moving to a liberalisation of the pound against the dollar to allow the market to set the rate and the economy to start moving again.The initial range of devaluation is from 8.9/$ to 13/$, meaning the pound has more than halved from the level it was at during the Arab Spring. This is in line with where the black market rate has been in recent days as the economy ground to a halt, having appreciated from a rate of 18/$ over the weekend and from 15/$ last week. The unce...

Emad Mostaque | November 04, 2016

Real Estate Investment Trusts (REITs) in Indonesia - Part 2

Real Estate Investment Trust is known in Indonesian regulation terminology as “Dana Investasi Real Estate” or abbreviated nicely as DIRE (read: dee-ray or dē-rā). DIRE is not an exact translation of REIT. This is because Trust Law, heavily utilized in common law countries, is not recognized in civil law-based jurisdiction of Indonesia. Capital Market Law of 1995 managed to circumvent the non-existent of Trust Law by introducing a legal form known as Collective Investment Contract (CIC). CIC provides the legal basis for public pooling of investment funds to be managed by investmen...

Yoga Prakasa | November 02, 2016

Real Estate Investment Trusts (REITs) in Indonesia - Part 2

Real Estate Investment Trusts (REITs) in Indonesia - Part 2

Real Estate Investment Trust is known in Indonesian regulation terminology as “Dana Investasi Real Estate” or abbreviated nicely as DIRE (read: dee-ray or dē-rā). DIRE is not an exact translation of REIT. This is because Trust Law, heavily utilized in common law countries, is not recognized in civil law-based jurisdiction of Indonesia. Capital Market Law of 1995 managed to circumvent the non-existent of Trust Law by introducing a legal form known as Collective Investment Contract (CIC). CIC provides the legal basis for public pooling of investment funds to be managed by investmen...

Yoga Prakasa | November 02, 2016

Real Economy and Islamic Finance: “Oil up the gears and move through them”

Thank you so much for returning to this page and for all your helpful and constructive comments after last month’s article. Your support and engagement is much appreciated. This month I would like to continue on the “Winds of Change theme” by trying to stimulate some discussion and thought around how we lubricate the mechanism and move up through the gears. Hence the title!After nearly a quarter of a century in the Islamic finance business and with my 65th Birthday looming (retirement age?) I thought I would try to describe how we can move forward effectively and com...

Daud Vicary | October 28, 2016

Real Economy and Islamic Finance: “Oil up the gears and move through them”

Real Economy and Islamic Finance: “Oil up the gears and move through them”

Thank you so much for returning to this page and for all your helpful and constructive comments after last month’s article. Your support and engagement is much appreciated. This month I would like to continue on the “Winds of Change theme” by trying to stimulate some discussion and thought around how we lubricate the mechanism and move up through the gears. Hence the title!After nearly a quarter of a century in the Islamic finance business and with my 65th Birthday looming (retirement age?) I thought I would try to describe how we can move forward effectively and com...

Daud Vicary | October 28, 2016

How to fix the oil market

The oil market is broken. Volatile prices are undermining global energy security and increasing geopolitical risk. Getting agreement for a production cut among the Organization of the Petroleum Exporting Countries is proving difficult, and would in any case be hard to enforce. Instead of looking to the so-called swing producers, there is an alternative solution: create a swing consumer. Or to put it another way, a “tactical petroleum fund”.The collapse in oil prices since 2014 has cost producers around $1.8 trillion a year. Rich oil exporters have cut discretionary spending and d...

Emad Mostaque | October 26, 2016

How to fix the oil market

How to fix the oil market

The oil market is broken. Volatile prices are undermining global energy security and increasing geopolitical risk. Getting agreement for a production cut among the Organization of the Petroleum Exporting Countries is proving difficult, and would in any case be hard to enforce. Instead of looking to the so-called swing producers, there is an alternative solution: create a swing consumer. Or to put it another way, a “tactical petroleum fund”.The collapse in oil prices since 2014 has cost producers around $1.8 trillion a year. Rich oil exporters have cut discretionary spending and d...

Emad Mostaque | October 26, 2016

Islamic REITs as an Investment Asset for Waqf Management in Indonesia - Part 1

Editor's Note: In this series of articles on IslamicBanker.com, Yoga Prakasa explores Islamic REITs as an investment asset for waqf management in Indonesia, with particular focus on regulatory framework and shariah-compliancy. Waqif (the party who part with its asset) has created awqaf (plural of waqf) since the time of the Prophet (pbuh). They are considered as avenues for waqif to obtain continuing religious rewards as the awqaf assets are to be maintained in perpetuity to fulfil the needs of the beneficiaries as intended by the waqif. [1] Traditionally in the past, waqif...

Yoga Prakasa | October 22, 2016

Islamic REITs as an Investment Asset for Waqf Management in Indonesia - Part 1

Islamic REITs as an Investment Asset for Waqf Management in Indonesia - Part 1

Editor's Note: In this series of articles on IslamicBanker.com, Yoga Prakasa explores Islamic REITs as an investment asset for waqf management in Indonesia, with particular focus on regulatory framework and shariah-compliancy. Waqif (the party who part with its asset) has created awqaf (plural of waqf) since the time of the Prophet (pbuh). They are considered as avenues for waqif to obtain continuing religious rewards as the awqaf assets are to be maintained in perpetuity to fulfil the needs of the beneficiaries as intended by the waqif. [1] Traditionally in the past, waqif...

Yoga Prakasa | October 22, 2016

A cunning plan for Saudi & Deutsche Bank

Markets are starting to feel post-traumatic stress once more as the looming DoJ fine of up to $14bn weighs on the share price and perceived credit-worthiness of Deutsche Bank.Some hedge funds are winding down exposures and risk departments are scratching their heads to figure out if this is another Bear Stearns, Lehman or a different beast entirely.The curious element here is that as opposed to being in our normal framework of the returns of a private company being determined by the Governance Regime and policies of its home country, Germany, the fate of the equity of Deutsche Bank i...

Emad Mostaque | October 02, 2016

A cunning plan for Saudi & Deutsche Bank

A cunning plan for Saudi & Deutsche Bank

Markets are starting to feel post-traumatic stress once more as the looming DoJ fine of up to $14bn weighs on the share price and perceived credit-worthiness of Deutsche Bank.Some hedge funds are winding down exposures and risk departments are scratching their heads to figure out if this is another Bear Stearns, Lehman or a different beast entirely.The curious element here is that as opposed to being in our normal framework of the returns of a private company being determined by the Governance Regime and policies of its home country, Germany, the fate of the equity of Deutsche Bank i...

Emad Mostaque | October 02, 2016