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...

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...

 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...

 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...

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...

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...

 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...

Taking stock of our spiritual health is the first part of Ramadan. So much drains away from us during the year. After some time it seems that we only have dunya on our minds. The balance of akhira in our hearts seems to have dropped to an all time low. The business of the world with its crashing din and clutter, put strain on our hearts. The peace of the heart seems so far away.In kindness, Allah the most merciful has given us a chance to open the two storerooms and evaluate the shelves. How did our mind get so filled with useless jumbles and desires? How did the hearts inventories flit aw...

Ramadan Kareem!This month I thought I would reflect on something that I have used for well over a decade. The phrase Education, Perception and Liquidity (EPL) is one that I have used since 2005 and thought you might find it interesting how this came about.Sadly, there was not any profound logic or deep rooted strategic thinking that gave birth to the statement. Closer to the truth would be a knee-jerk reaction to a question. So let me share how it all started and how the discussion grew.I recall taking on my first Managing Director role at a newly formed Islamic banking subsidiary, of...

Bangladesh is booming. In a decade of global economic gloom, the country has seen poverty fall by one-third and economic growth of almost 6 percent, per year, with the agriculture sector leading the charge in reducing poverty. A recent joint study by the World Bank and Bangladesh Planning Commission, outlines exactly how agriculture can benefit poor people and lead to sustainable development in the country. The research, “Dynamics of Rural Growth in Bangladesh: Sustaining Poverty Reduction”, published last month, reveals a number of important findings: The analysis provide...