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Education in Islamic Finance - The Winds of Change

Last month I was able to reflect on events that had impacted positively on me and used the title of “Joining up the dots”. This month I would like to comment on an area that has been a concern of mine for almost as long as I have been engaged in Islamic Finance, which is now about a quarter of a century. The area is that of Education in Islamic Finance and I want to frame the discussion under the banner of “The Winds of Change.” As always, these are very personal observations shared from my own particular vantage point at this exact moment in time. So here goes!More...

Daud Vicary | September 28, 2016

Education in Islamic Finance - The Winds of Change

Education in Islamic Finance - The Winds of Change

Last month I was able to reflect on events that had impacted positively on me and used the title of “Joining up the dots”. This month I would like to comment on an area that has been a concern of mine for almost as long as I have been engaged in Islamic Finance, which is now about a quarter of a century. The area is that of Education in Islamic Finance and I want to frame the discussion under the banner of “The Winds of Change.” As always, these are very personal observations shared from my own particular vantage point at this exact moment in time. So here goes!More...

Daud Vicary | September 28, 2016

Lean Technology and Sharia Finance

As I write this article, hundreds of bright and energetic young minds are developing their ideas to catch the fintech wave. A trend that may be more popular in Western markets.One of the largest sources of funding for companies in developing markets is banking. However, banking penetration is not as deep as that in the more developed economies, due to limited infrastructure and awareness. This is where financial technologies can play an important role in bridging the demand and supply.Let's focus on Indonesia, a country with the largest Muslim population&nbs...

Dima Djani | September 13, 2016

Lean Technology and Sharia Finance

Lean Technology and Sharia Finance

As I write this article, hundreds of bright and energetic young minds are developing their ideas to catch the fintech wave. A trend that may be more popular in Western markets.One of the largest sources of funding for companies in developing markets is banking. However, banking penetration is not as deep as that in the more developed economies, due to limited infrastructure and awareness. This is where financial technologies can play an important role in bridging the demand and supply.Let's focus on Indonesia, a country with the largest Muslim population&nbs...

Dima Djani | September 13, 2016

Cash Waqfs: Process of Revenue Generation

 For the origins of the process of revenue generation in modern sukuk, we need to go back to the Ottoman cash waqfs. This special waqf form has a long history and goes back at least to the fifteenth century. What made these waqfs special was the fact that they were established with cash capital and had to invest this capital in order to finance the charity for which they had been established. [1] If we carefully examine the process of investing the endowed capital of an Ottoman cash waqf, we discover the very essence of the modern sukuk al-ijarah.A typical Ottoman cash waqf inv...

Murat Cizakca | September 04, 2016

Cash Waqfs: Process of Revenue Generation

Cash Waqfs: Process of Revenue Generation

 For the origins of the process of revenue generation in modern sukuk, we need to go back to the Ottoman cash waqfs. This special waqf form has a long history and goes back at least to the fifteenth century. What made these waqfs special was the fact that they were established with cash capital and had to invest this capital in order to finance the charity for which they had been established. [1] If we carefully examine the process of investing the endowed capital of an Ottoman cash waqf, we discover the very essence of the modern sukuk al-ijarah.A typical Ottoman cash waqf inv...

Murat Cizakca | September 04, 2016

INCEIF: “Joining up the Dots”

Welcome and thanks for coming back to this page once again! I am writing this piece on the Friday morning of a week that has probably been the most fulfilling that I have ever spent during my 5 years at INCEIF. I will now spend the remainder of this article to try and explain why it has been so.During the last week we have not signed any major deals, we have not engaged in any significant new collaborations and we have not published any major books or pieces of research. So why do I call it the most fulfilling week in my 5 year tenure? Simply because there have been numerous examples where...

Daud Vicary | August 20, 2016

INCEIF: “Joining up the Dots”

INCEIF: “Joining up the Dots”

Welcome and thanks for coming back to this page once again! I am writing this piece on the Friday morning of a week that has probably been the most fulfilling that I have ever spent during my 5 years at INCEIF. I will now spend the remainder of this article to try and explain why it has been so.During the last week we have not signed any major deals, we have not engaged in any significant new collaborations and we have not published any major books or pieces of research. So why do I call it the most fulfilling week in my 5 year tenure? Simply because there have been numerous examples where...

Daud Vicary | August 20, 2016

The Concept of Takaful and the Structure of a Takaful Program

Insurance, no matter what kind, is pooling of risks and applying the law of large numbers. The peril will only affect a small portion of those whose risks are pooled. Hence, if our probability calculation is accurate, a small premium from every one in the pool will be sufficient to compensate fully the small portion who will suffer during the term of the policy [1].The problem with conventional insurance is that it creates an "exchange contract" between the insurance company and the insured in the form of "policy". It simply says: you pay a premium of $ 100, and you will be covered from th...

Mohamed Elgari | August 09, 2016

The Concept of Takaful and the Structure of a Takaful Program

The Concept of Takaful and the Structure of a Takaful Program

Insurance, no matter what kind, is pooling of risks and applying the law of large numbers. The peril will only affect a small portion of those whose risks are pooled. Hence, if our probability calculation is accurate, a small premium from every one in the pool will be sufficient to compensate fully the small portion who will suffer during the term of the policy [1].The problem with conventional insurance is that it creates an "exchange contract" between the insurance company and the insured in the form of "policy". It simply says: you pay a premium of $ 100, and you will be covered from th...

Mohamed Elgari | August 09, 2016

Women in Islamic Finance

 Eid Mubarak!This month, after an Eid break and a family holiday, during which time I did a lot a background thinking, I thought I would reflect on the role of Women in Islamic Finance. To be honest, I do not consider myself to be an expert in this particular topic. However, I do have some relevant experience and, like anyone else, I am entitled to a point of view. Why did I choose this month to pick up on this subject matter? Plain and simple, I have been asked to give a presentation on the “Role of Women in Islamic Finance” at an assembly of participants of an organisa...

Daud Vicary | July 28, 2016

Women in Islamic Finance

Women in Islamic Finance

 Eid Mubarak!This month, after an Eid break and a family holiday, during which time I did a lot a background thinking, I thought I would reflect on the role of Women in Islamic Finance. To be honest, I do not consider myself to be an expert in this particular topic. However, I do have some relevant experience and, like anyone else, I am entitled to a point of view. Why did I choose this month to pick up on this subject matter? Plain and simple, I have been asked to give a presentation on the “Role of Women in Islamic Finance” at an assembly of participants of an organisa...

Daud Vicary | July 28, 2016

Islamic Banking in India and Engaging with Indian Muslim Scholars

 Professor Humayon Dar wrote a recent post titled "Islamic Banking in India: Some Suggestions" with interesting points with regard to establishing Islamic banking & finance (IBF) that should be welcomed by the IBF sector in order to get the debate moving in establishing IBF foothold in India. To have a foreign technical board without Shariah scholars/Muftis due to sensitivities in secular India and to overcome the fears of the secularists and Hindu nationalists in India, as suggested by Prof. Dar's post, is understandable. However, there are a number points worth conside...

Ismail Syed | July 12, 2016

Islamic Banking in India and Engaging with Indian Muslim Scholars

Islamic Banking in India and Engaging with Indian Muslim Scholars

 Professor Humayon Dar wrote a recent post titled "Islamic Banking in India: Some Suggestions" with interesting points with regard to establishing Islamic banking & finance (IBF) that should be welcomed by the IBF sector in order to get the debate moving in establishing IBF foothold in India. To have a foreign technical board without Shariah scholars/Muftis due to sensitivities in secular India and to overcome the fears of the secularists and Hindu nationalists in India, as suggested by Prof. Dar's post, is understandable. However, there are a number points worth conside...

Ismail Syed | July 12, 2016

Brexit: Could London Lose Its Islamic Finance Crown?

When Manchester, under the patronage of the Foreign and Commonwealth Office Minister for State Hugo Swire, hosted the third annual meeting of the Global Islamic Finance and Investment Group (GIFIG) on 28 April 2016 to discuss Islamic finance growth, Brexit was far from the reality.During the forum, the Economic Secretary to the Treasury, Harriett Baldwin, emphasised that the government was determined to cement the UK’s status as the leading Western hub for Islamic finance. This aspiration emanated from UK Export Finance guaranteeing its first Sukuk bond last year. This guarantee was...

Dr. Nafis Alam | July 03, 2016

Brexit: Could London Lose Its Islamic Finance Crown?

Brexit: Could London Lose Its Islamic Finance Crown?

When Manchester, under the patronage of the Foreign and Commonwealth Office Minister for State Hugo Swire, hosted the third annual meeting of the Global Islamic Finance and Investment Group (GIFIG) on 28 April 2016 to discuss Islamic finance growth, Brexit was far from the reality.During the forum, the Economic Secretary to the Treasury, Harriett Baldwin, emphasised that the government was determined to cement the UK’s status as the leading Western hub for Islamic finance. This aspiration emanated from UK Export Finance guaranteeing its first Sukuk bond last year. This guarantee was...

Dr. Nafis Alam | July 03, 2016

What Brexit means for Islamic Finance

Now that the markets have had a few days to react to the news of the UK referendum, perhaps we can take stock of what the future might hold for Islamic finance in Europe. It’s still way too early to call, of course, but I would certainly disagree with some commentators who are stating that Brexit is a blow for Islamic finance in the UK (or Europe for that matter). After all, leaving the EU may mean that authorised financial services firms in the UK may no longer be able to ‘passport’ business to the EU but how many of the UK’s Islamic banks are active in Europe anyway...

Harris Irfan | July 02, 2016

What Brexit means for Islamic Finance

What Brexit means for Islamic Finance

Now that the markets have had a few days to react to the news of the UK referendum, perhaps we can take stock of what the future might hold for Islamic finance in Europe. It’s still way too early to call, of course, but I would certainly disagree with some commentators who are stating that Brexit is a blow for Islamic finance in the UK (or Europe for that matter). After all, leaving the EU may mean that authorised financial services firms in the UK may no longer be able to ‘passport’ business to the EU but how many of the UK’s Islamic banks are active in Europe anyway...

Harris Irfan | July 02, 2016

Why Brexit (Probably) Won't Happen

 Summary: the nature of western representative democracy and vested interests makes Brexit highly unlikely. The only way it is likely is if markets stage a large recovery.The last few days have seen a maelstrom of opinions and recrimination after the shock referendum decision to leave the EU. The lack of a concrete plan of action for an exit has shocked markets, leaving even those who avoid politics worried about the future. However, looking at the structure of western democracy a departure from the EU is very unlikely.At Ecstrat our focus is on the intersection of politics, governa...

Emad Mostaque | June 28, 2016

Why Brexit (Probably) Won't Happen

Why Brexit (Probably) Won't Happen

 Summary: the nature of western representative democracy and vested interests makes Brexit highly unlikely. The only way it is likely is if markets stage a large recovery.The last few days have seen a maelstrom of opinions and recrimination after the shock referendum decision to leave the EU. The lack of a concrete plan of action for an exit has shocked markets, leaving even those who avoid politics worried about the future. However, looking at the structure of western democracy a departure from the EU is very unlikely.At Ecstrat our focus is on the intersection of politics, governa...

Emad Mostaque | June 28, 2016