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Six Factors Driving the Future of Islamic Banking (Part I)

During the last few decades, the Islamic Banking industry witnessed a sustained growth that resulted the total asset size exceeding over two trillion dollars. Now the Islamic Banking is no longer an alien in the global financial industry.Besides the forerunner countries, such as Malaysia, UAE, Iran, Saudi Arabia, Kuwait and Bahrain, many Non-Muslim cities are becoming increasingly popular as an Islamic Banking hub. Despite such increasing visibility globally, there is a need for self-check for the Islamic Bankers in order to sustain such growth in the future.In this five part article ser...

Mabroor Mahmood | January 02, 2017

Six Factors Driving the Future of Islamic Banking (Part I)

Six Factors Driving the Future of Islamic Banking (Part I)

During the last few decades, the Islamic Banking industry witnessed a sustained growth that resulted the total asset size exceeding over two trillion dollars. Now the Islamic Banking is no longer an alien in the global financial industry.Besides the forerunner countries, such as Malaysia, UAE, Iran, Saudi Arabia, Kuwait and Bahrain, many Non-Muslim cities are becoming increasingly popular as an Islamic Banking hub. Despite such increasing visibility globally, there is a need for self-check for the Islamic Bankers in order to sustain such growth in the future.In this five part article ser...

Mabroor Mahmood | January 02, 2017

Fallacies of Islamic deposit and investment accounts in Sabah

According to Bank Negara Malaysia (2015), the total deposits for savings, current and fixed accounts were RM33,989.30 million, RM63,753.1 million and RM236, 045.4 million, respectively as at December 2015. In the same period, the total investments for special and general investment accounts were RM142.2 million and RM1,746.2 million, correspondingly.  This trend, somewhat, captures the reclassification of deposit and investment products according to Islamic Financial Services Act (IFSA) 2013, in which the former cogitates three purposes viz., safekeeping, transaction and investment where...

Dr Hanudin Amin | December 26, 2016

Fallacies of Islamic deposit and investment accounts in Sabah

Fallacies of Islamic deposit and investment accounts in Sabah

According to Bank Negara Malaysia (2015), the total deposits for savings, current and fixed accounts were RM33,989.30 million, RM63,753.1 million and RM236, 045.4 million, respectively as at December 2015. In the same period, the total investments for special and general investment accounts were RM142.2 million and RM1,746.2 million, correspondingly.  This trend, somewhat, captures the reclassification of deposit and investment products according to Islamic Financial Services Act (IFSA) 2013, in which the former cogitates three purposes viz., safekeeping, transaction and investment where...

Dr Hanudin Amin | December 26, 2016

Responsible Investing - Are We Missing A Trick?

I would like to thank you all for returning to this page and I have enjoyed reading your comments and feedback during the last few weeks.  I would like to spend a little time, in this article, to reflect on some of the issues that have been drawing my attention in recent months and that I have commented on in this column previously.I am delighted that more and more traction is being gained with ESG and Responsible Investing all over the World.  The latest numbers that I am able to glean from the RFI Foundation are that over USD 62 trillion in Assets are invested in accordance wit...

Daud Vicary | December 24, 2016

Responsible Investing - Are We Missing A Trick?

Responsible Investing - Are We Missing A Trick?

I would like to thank you all for returning to this page and I have enjoyed reading your comments and feedback during the last few weeks.  I would like to spend a little time, in this article, to reflect on some of the issues that have been drawing my attention in recent months and that I have commented on in this column previously.I am delighted that more and more traction is being gained with ESG and Responsible Investing all over the World.  The latest numbers that I am able to glean from the RFI Foundation are that over USD 62 trillion in Assets are invested in accordance wit...

Daud Vicary | December 24, 2016

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...

Dr. Mohamed Ali 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...

Dr. Mohamed Ali 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