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...

A very warm welcome back to the second edition of my blog. I was torn between the above title and an alternative of “Back to the future”, but decided to show off my modest grasp of the French language! The point of the title is to draw your attention to something we have seen before and perhaps, have not paid as much attention to as we should. Let me continue.About a month ago I was having a detailed discussion with one of our senior professors on the state of play regarding Responsible Finance, Risk Sharing, and The Islamicity Index and fulfilling the objectives of Maqasi...

 What is Shari'ah rating:Shari'ah rating is a process the purpose of which is to provide the public with an independent appraisal that assesses the commitment of the management of a financial institution to follow Shari'ah injunctions in their business and to avail Muslims with an unbiased opinion on the Shari'ah quality of the Islamic banking and financial products offered to the public by that institution.Shari'ah rating is fundamentally different from traditional “credit rating” which assesses the ability of a bank, a company or a bond issuer to fulfill its obligation...

Defining RibaThe Holy Qur'an did not give any definition for the term for the simple reason that it was well known to its immediate audience. It is like the prohibition of pork, liquor, gambling, adultery etc., which were imposed without giving any hard and fast definition because all these terms were well known and there was no ambiguity in their meaning. The case of riba was similar. It was not a term foreign to Arabs. They all used the term in their mutual transactions. Not only Arabs but all the previous societies used to practice it in their financial dealings and nobody had any...

I have been active in the field of Islamic Finance for a number of years now and during that time have been asked many questions. The most frequent question has been “Do I have to be a Muslim to participate in Islamic Finance?” The answer to which, I am sure you all know, is NO you do not. Islamic Finance is for the benefit of all humanity.Leading on from this and probably the second most frequent question I get asked, goes along the lines of “What is it that you have to do to set up Islamic Finance in a country?” The answer to that is the subject of this, my firs...