THE resolve of Nigeria Osun State government to expand the scope of economy and create more job opportunities for the people informed the floating of its N1o billion Sukuk bond recently.
A new financial institution, Mouamalat Assahiha Bank, has been established in Mauritania to operate exclusively according to the Islamic finance code.
“The new bank, with a US$20 billion capital, was set by young and successful Mauritanian business people,’ according to a statement from the bank.
The bank will target both individuals and corporate organisations, and base its operations on the highest ethics and standards of the country’s financial industry.
Islamic banking abhors loans with interest and financial speculation, and recommends risk sharing.
Mauritania currently has 18 banks, five of which operate according to the Islamic finance code.
source : http://www.afriquejet.com
September 26, 2012
A Detailed Look at the Fast-Growing Islamic Banking and Finance Sector
The severity of the global financial crisis that followed the years 2008 and 2009 has been described as second only to the Great Depression. Yet, during those two years, the assets of the 500 top Islamic financial institutions grew — from $639 billion to $820 billion.
What sets apart the Islamic finance industry from the rest of the financial world? And how have its differences helped this sector thrive when the rest of the global financial market struggles to regain its balance?
Faleel Jamaldeen, author of Islamic Finance For Dummies, says: “I’m bullish on Islamic finance: I’m a firm believer in the market potential of this industry. I’m also a firm believer in the benefits of Westerners understanding the concepts that lie behind the Islamic financial products — knowing why a separate industry exists and why many conventional products don’t work for Muslims.”
“In the West, the general public and even many financial professionals know absolutely nothing about Islamic finance. Those who’ve at least heard of it may assume that they can’t understand or participate in it because they aren’t Muslim and don’t speak Arabic.) Western women may assume that they aren’t allowed to participate in the Islamic finance industry because of misconceptions about Islamic law. (Women can and do fully participate in Islamic finance — as professionals and as investors.)”
“Islamophobia is a prejudice against Islam or Muslims that has unfortunately become more commonplace and more intense in the West since the attacks on the United States on September 11, 2001. Some people simply don’t want anything to do with an industry that’s affiliated with Islam. Until now, searching for a book to help you navigate the subject of Islamic finance wasn’t very rewarding. That’s because Islamic finance has been the topic of textbooks but not many nonacademic titles.”
Jamaldeen goes on to say, “I wrote this book to bridge the gap between people who need and want to know about Islamic finance and an industry that needs and wants their participation. You’ll find that you don’t need to learn a new language, change your personal religious views, and that job prospects are strong for both men and women with conventional banking and finance skills who are open to learning about new products and a new way of conducting business.”
“I wrote this book assuming that you have a strong interest in the financial industry already. Maybe you’re a banker, a mutual fund manager, an investment consultant, or an insurance agent. Perhaps you have Muslim clients asking you to consider adding sharia-compliant products to your roster of offerings, or your boss mentioned in passing that Islamic finance has been growing like crazy and your company should find out how to tap into the market. Maybe you’re a college student focusing your studies in finance, and you’ve read that job prospects are good for people with specific knowledge about Islamic finance.”
Whatever the scenario, you’ll find clear and easy-to-understand information on how the Islamic finance industry works.
source : wiley.com
During the twelfth Bank of Uganda annual Eid party, held at the central bank on September 7, a group of Muslims under their umbrella Contact Group on Islamic Banking, managed to get a word on Islamic Banking in, with bank governor Emmanuel Tumusiime-Mutebile. He assured them that the central bank had already done its homework and submitted the proposed amendments to the Financial Institutions Act.
“We also had a word with Dr Anas Kaliisa, renowned Sharia expert who presided over the closing ceremonies. Dr Kaliisa appreciated the pioneering efforts of Contact Group on Islamic Banking and assured us of his full technical support,” Kalinge Nyago wrote on an Islamic social networking website, Uganda Muslim Brothers and Sisters.
The chief guest, Gen Moses Ali, also called for the introduction of Islamic banking in Uganda.
“The bank should exacerbate the introduction of other forms of banking systems that will entail justice and fairness. BoU should play a leading and encouraging role in the introduction of Islamic banking, which is a banking system that has been embraced by both Muslims and non – Muslims because of its unique characteristics,” said Moses Ali who was minister of Finance in 1976 at the age of 38.
source : observer.ug
Eric Enslin, head of client engagement at FNB Wealth, said the shariah customer base is not exclusively Muslim.
Enslin said shariah banking is consistent with the principles of Islamic rulings and their practical application through the development of Islamic economics. Shariah prohibits the payment or acceptance of interest charges (riba) for the lending and accepting of money, as well as trade and other activities that provide goods or services considered contrary to its principles.
Read more at
Islamic finance banking options are increasingly being seen as a viable alternative to traditional banking services in Africa and are growing to support not only the African Islamic community but all those looking for an interest-free banking alternative.
The Islamic Finance Africa Conference, due to take place on 21 – 24 FeBRuary 2012 in South Africa, is drawing together experts in the field from across the world. Key speakers from Nigeria, Malaysia and Saudi Arabia will join leading South African experts from ABSA, alBaraka Bank, KPMG and other financial institutions. They will be meeting to discuss the growth potential for Islamic finance products and services in Africa.
The event will explore the challenges of and opportunities for providing Islamic Finance offerings in Africa, the growth of the industry and what it means to the continent. Shariah law compliance is at the core of Islamic Finance services and products, for conventional financial institutions wanting to open an Islamic finance window this might pose a challenge and many institutions have faced difficulties. The Islamic Finance Africa Conferences will address these issues and others facing financial institutions in Africa.
source : kuwait observer
AN Islamic bank, Amana Bank Limited, that would be observing Sharia regulations, was on Thursday launched in Dar es Salaam.
The Islamic banking system does not charge or accrue interests.
Addressing journalists on Thursday in Dar es Salaam, the Board of Directors Chairman, Mr Haroon Pirmohamed, said the Bank is a result of a need for an alternative to conventional banking system that provides ethical and fair modes of banking for all.
He said the bank will offer products and services that meet the needs of not just the Muslim community but all citizens and corporate bodies in the country.
“Amana Bank is well aware of its responsibility and being the pioneer of dynamic Islamic banking system, we intend to have a stable and a dynamic bank that employs modern technologies,” he explained.
Shareholders of the Amana Bank include prominent Tanzanian business people who adhere to Sharia principles.
“The bank would not hoard interests as other banks do, we would split our surplus to our customers as stipulated in the Sharia,” he said adding that non Muslim customers are welcome to join the bank.
Director Pirmohamed added that customers would be informed about their transactions and contracts.
The Bank’s Managing Director, Mr Idris Rashidi, said the financial institution will provide services to customers by abiding to the country’s laws without any discrimination.
Among services that will be provided by the bank include personal saving accounts, term deposits, current accounts and Ihsan account (for houses of worship).
The Amana Bank Limited is located at Tandamti Street in Kariakoo, another branch will be opened soon along Nyerere road.
Amana Bank Limited is the first fully Sharia compliant bank in Tanzania. Its beginning can be traced back to October 2009 when a group of prominent Tanzanian business personalities met and set in motion the establishment of an Islamic bank.
source : Daily news. tz