Islamic Law and Finance:Religion, Risk, and Return

Author
Frank Vogel
Frank E. Vogel, Director, Islamic Legal Studies Program, Harvard Law School, Cambridge, MA, USA .
Samuel L. Hayes III, Jacob H. Schiff Professor of Investment Banking, Harvard Business School, Cambridge, MA, USA.

Publisher: Springer

ISBN-10: 9041106243
ISBN-13: 978-9041106247

Mirroring the expansion of wealth in the Middle East and Asia and a surge in Islamic self-identity, Islamic banking practices have either become the law of the land or coexist and compete with Western practices in at least six countries. A growing number of institutions and mutual funds (akin to Western ”socially responsible” funds) have established Islamic investment and other practices to cater to this burgeoning market. Because of its prevalence, practitioners in every banking-related area must familiarize themselves with current Islamic finance practices in order to do business with Muslim clients and to engage in cross-border financing. Injunctions from the Qur’an and the sayings of Prophet Muhammed have generated a web of interrelated norms which prohibit Islamic financiers from engaging in transactions that involve interest (riba) and speculation (gharar). Islamic Law and Finance describes the dynamic set of Islamically-sanctioned ways financiers can transacat business.

Islamic economic forum urges reduction of trade barriers

An international Islamic economic conference ended Wednesday with calls for the reduction of trade barriers, development of alternative energy sources and stricter regulations in the global financial industry.

The three-day World Islamic Economic Forum in Jakarta, attended by 1,500 delegates from 38 countries, discussed ways to deal with the global financial crisis and food security, as well as exploring possibilities for non-carbon fuels.

A statement issued at the end of the conference called on delegate countries to “reduce regulatory barriers such as food subsidies, which would hinder sustainable food production and trade”.

“The declaration has a host of policy recommendations that, if implemented widely, would enact real change within the Muslim and non-Muslim world,” said Musa Hitam, chairman of the World Islamic Economic Forum Foundation.

The statement urged countries to develop policies to ensure a proper balance between food production for human consumption and energy usage.

Effective regulations are needed in the global financial industry to mitigate risk and failure, the declaration said.

“Governments, corporations and individuals can use this as a road map to not only help out their local communities, but also affect real change within their districts, countries and regions as other people and organisations join in,” said Sofyan Djalil, co-chairman of the conference.

Organisers say the forum aspires to change the global perception of the Muslim world from a conflict zone to a lucrative economic region. It is also aimed at promoting trade and investment opportunities in the Muslim world.

Speakers also called for the promotion of Islamic finance, which has not not been hit as hard as its Western counterpart mainly because Islamic banking prohibits speculation and high levels of debt.

The sixth World Islamic Economic Forum will be held in Malaysia May 18-20, 2010.

The New Takaful Landscape in the Current Global Financial Crisis

4th Asian Takaful Conference

Date : 30-31 March, 2009
Venue : Orchard Hotel, Singapore

With the global financial crisis raging, Islamic finance seems to have been relatively unscathed. Takaful still remains a viable option, if not a more attractive option now for both Islamic as well as conventional clients. Asia Insurance Review, therefore together with our Lead Sponsor B.E.S.T Re is putting together the next Asian Takaful Conference this year to address the challenges and opportunities facing takaful in the current global financial crisis. The conference, supported by International Cooperative and Mutual Insurance Federation (ICMIF) & the International Insurance and Takaful Companies Federation (FIITC) will look at the theme, “The New Takaful Landscape in the Current Global Financial Crisis”.

Takaful seems to have become a fundamental part of the insurance landscape and is growing from strength to strength, within the region and internationally with more players sprouting up even in the West and North America. However, takaful players together with regulators and rating agencies must remain vigilant to ensure that proper risk management practices are in place to determine solvency and capital requirements.

The 4th Takaful Conference will look at issues that affect the Takaful industry in this current financial crisis – the growth potential, corporate governance, maintaining solvency, the role of regulators in ensuring a balanced regulatory framework, and the operational and strategic challenges faced by takaful operators. There will be special panel discussions on issues like surplus distribution, as well as a comparison between how takaful is run in Asia and the Middle East. The conference will touch on the need to boost standards in the takaful world and offer real value to consumers while making sure the industry remains effi cient, competitive and compliant. There will be a sharing of success stories in the arena as well as the factors limiting the growth of takaful and retakaful.

Sign up today for this important event to learn from the leaders and to find out how to sharpen the edge of your takaful business and how to make it a serious platform for success. The conference is expected to attract takaful as well as conventional companies from around Asia including insurance and reinsurance companies, Islamic banking institutions, regulators, Shariah scholars, consultants, brokers as well as service providers keen to tap the potential of the takaful market. We hope to see you in Singapore.

source : aarstore