IslamicFinance.de

The 1st Ernst & Young World Islamic Banking Competitiveness Report 2011 presented at the 18th Annual World Islamic Banking Conference stated that Islamic banking assets with commercial banks globally will reach US$1.1 trillion in 2012, a significant jump of 33% from their 2010 level of US$826 billion. In the MENA region, Islamic banking assets increased to US$416 billion in 2010, representing a five year CAGR of 20% compared to less than 9% for conventional banks. As new geographies open up to Islamic banking, the MENA Islamic banking industry is expected to more than double to US$990 billion by 2015.

Abstract academic paper:

Using a large international sample of 35 developed and emerging markets, we analyze
whether Islamic indices exhibit a different performance to conventional benchmarks. While there is no compelling evidence of performance differences in robust Sharpe ratio tests and after controlling for market risk, we find a significantly positive four-factor alpha for the aggregate developed markets region. This outperformance stems, however, mainly from the U.S. and is largely attributable to the exclusion of financial stocks in Sharia-screened portfolios. As the extensive downturn of financials is related to the recent financial crisis, we do not argue that this outperformance will continue over time. The style analysis reveals that

Islamic indices invest mainly in growth stocks and positive momentum stocks. This, for a passive portfolio intriguing result can, however, be explained by the strong sector allocation towards energy firms and their strong momentum characteristic during the sample period.

Abstract Islamic banks are said to possess ethical identity (Haniffa and Hudaib, 2007) because their social goals are just as important if not more important than financial goals because of the fact that they are based on religious foundations, i.e. the Islamic Shari?ah which has as its ultimate goal, the betterment of society. Islamic banks are thus expected to portray a high level of corporate social responsibility which would be evident in their social reporting practices as evidenced in their annual reports. However, two prominent studies of the social reporting practices of Islamic banks have shown otherwise (Maali et.al, 2003; Haniffa and Hudaib, 2007). This study replicated the Haniffa and Hudaib study by examining the social reporting practices of Islamic Banks in Saudi Arabia. This examination involved a comparison of the social disclosures of 4 Islamic banks made through their annual reports against an ideal level of social disclosures that Islamic banks ought to make, over the years 2008-2009. This comparison was accomplished using the Ethical Identity Index (EII) developed by Haniffa and Hudaib (2007).

The prime theme of this event will be the impact of the recent rapid changes on the
Islamic finance sector in all pertinent aspects. The Conference will consider the
spectacular political and socio-economic developments that we have been witnessing and
their probable effects on the performance and future position of Islamic financial
institutions (IFI’s), the regulatory set-ups, and popularity of Islamic products being
offered to the public, governments and business firms.

The Conference is being organised by Emerald Group Publishing, the world’s leading
scholarly publisher of journals and books on business and management. Over 220
academic journals are currently published by Emerald, covering some 24 managerial
disciplines, in addition to a strong and growing presence in other related fields such as
LIS, social sciences, and engineering.

This Conference follows on the success of the Global Islamic Marketing Conference held
in Dubai over the period 20-22 March 2011, organised by Emerald in association with the
United Arab Emirates University.

Conference Objective

The chief objective of the forthcoming Conference is to assess the future of this sector,

State Bank of Pakistan (SBP) has issued Guidelines for Islamic Microfinance Business by Financial Institutions.

This report has been prepared to assist the International Development Law Organisation (IDLO) in
understanding the basic Islamic law (Shari'a law) principles governing the provision of Islamic
finance products and services, the processes typically involved in obtaining Shari'a approval for
Shari'a-compliant financing transactions and products and the relationship between Shari'a law and
secular law in certain jurisdictions. This report also summarises the results of our research into the
state of Islamic microfinance in certain Middle Eastern, South Asian and Southeast Asian countries.
The information included in this report is derived from a combination of our experience of advising
on Shari'a-compliant financing transactions and publicly available sources and materials. We have
not independently verified the information obtained from external sources that we used and make no
representations as to its accuracy or completeness. In addition, we did not undertake an exhaustive
search of all information or materials which are publicly available in relation to Islamic microfinance

IdealRatings® Islamic Investor™ is the only iPhone application that tells you if a stock is Shariah compliant or not, gives you a detailed report explaining why, and alerts you if it changes status, it is designed for personal use by individual investors.

IdealRatings® is the most trusted provider of accurate, and timely, Islamic Finance information. Most Islamic index providers, and financial institutions in 18 countries rely on IdealRatings to create and manage their Islamic,Shariah compliant, products. Our data is available directly, or on Thomson Reuters and Bloomberg terminals.

Features:

-Find out, instantly, if a stock in your local market is Shariah compliant or not.
-Learn why by reading a detailed report.
-Explore Shariah compliant stocks from the Top Stocks and Featured sections.
-Track the compliance of your favorite stocks.
-Receive an alert if a stock changes compliance status.
-Share your findings with your friends and colleagues.

Despite the existence of Shariah advisory councils, Islamic banks and financial institutions in Malaysia may be failing to carry out their duties. An article in this month’s JSSH investigates transactions on purchasing houses specifically on transactions involving houses pending completion using the current practice of ‘sale by deferred payment’ also known as Bay’ Bithaman al-Ajil (BBA).

Islamic banking gained foothold in Malaysia, with the establishment of Bank Islam Malaysia Berhad in 1983 and facilities have since expanded. Products include Wadiah - where the bank acts as the safe-keeper of deposits but may provide returns to the depositors as a gift; Murabahah, or partnership and equity financing; Ijarah – leasing; Musharakah – partnership and Bay’ Bithaman al-Ajil – sale by deferred payment. Nuarrual Hilal Md. Dahlan and Sharifah Zubaidah Syed Abdul Kader Aljunid looked at sale and purchase and loan agreement to see if they comply with the requirements of the Islamic Law in protecting stakeholders and to provide practical suggestions to improve the existing practice.

In its new publication, Islamic Banking and Finance in North Africa, the African Development Bank assesses the state of Islamic banking in the region and explains why its use has been limited. The report considers the future potential of Islamic finance, including its possible alignment with North Africa’s development goals, particularly its ability to increase the diversification of funding sources.

The report takes into consideration the effect of Islamic banking’s focus on the equitable distribution of risk and returns between suppliers and users of funds. Islamic Banking and Finance in North Africa goes further by exploring whether Islamic-style finance contracts could contribute to the development objectives of North African countries.

full report for free download: http://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operati...

The 2nd Quarter 2011 issue of the Malaysian ICM quarterly bulletin published by the Securities Commission Malaysia (SC) is now available online at:
http://www.sc.com.my/eng/html/icm/11_2Q_msianicm.pdf

The 1st Quarter 2011 issue of the Malaysian ICM quarterly bulletin published by the Securities Commission Malaysia (SC) is now available online.

Submission deadline 15 September 2011

Palgrave Macmillan is pleased to announce a call for papers for the Journal of Derivatives & Hedge Funds

For Islamic banking to grow further and develop there are many challenges relating to financing instruments, market structure and market regulation. The aim of the special issue is to provide a central platform and communication channel for researchers, academics, business leaders and industry practitioners relating to Islamic Banking. The key contextual challenges in the Islamic finance industry today include the innovations and developments at the leading edge of the field, and the long-term impact, scope and authenticity of these ideas in the context of an Islamic community and way of life. View full details at:

http://www.palgrave-journals.com/jdhf/jdhf_cfp_islamic.pdf

Topics of interest include, but are not limited to:

- The Shari'ah requirements in Islamic banking and risk identification.
- Current practices of asset management and portfolio management in Islamic banking
- Need of financial innovation in Islamic banking.
- The impact of the Basel Accords on Islamic banking
- Islamic banking and corporate governance

ISF Workshop 2011
International Sustainable Finance Workshop:
Responsible Finance, Ethical Finance, Islamic Finance, Social Finance, Micro Finance...

September 22, 2011

Venue: Paris-Dauphine University

Place du Maréchal de Lattre de Tassigny

75775 PARIS Cedex 16

§ Deadline for the submission of full paper : May 16, 2011.
§ Complete papers must be sent to BOTH following email addresses:
kaouther.jouaberping@dauphinepong.fr
and
dhafer.saidaneping@skemapong.edu

Download call for papers (pdf)

The Workshop is organised by the European Research Group (Groupement de Recherche Européen (GDRE)) “Money, Banking & Finance” (Monnaie Banque Finance) and its working group Islamic Finance jointly with Skema Business School and Paris-Dauphine University

The recent financial crisis has pointed out the limits of conventional finance. The role of financial markets is to provide products and tools that allow an efficient redistribution of risk among agents and over time.

ISF Workshop 2011
International Sustainable Finance Workshop:
Responsible Finance, Ethical Finance, Islamic Finance, Social Finance, Micro Finance...

September 22, 2011

Venue: Paris-Dauphine University

Place du Maréchal de Lattre de Tassigny

75775 PARIS Cedex 16

§ Deadline for the submission of full paper : May 16, 2011.
§ Complete papers must be sent to BOTH following email addresses:
kaouther.jouaberping@dauphinepong.fr
and
dhafer.saidaneping@skemapong.edu

Download call for papers (pdf)

The Workshop is organised by the European Research Group (Groupement de Recherche Européen (GDRE)) “Money, Banking & Finance” (Monnaie Banque Finance) and its working group Islamic Finance jointly with Skema Business School and Paris-Dauphine University

The recent financial crisis has pointed out the limits of conventional finance. The role of financial markets is to provide products and tools that allow an efficient redistribution of risk among agents and over time.

The key challenges and opportunities addressed in the Islamic Wealth Management Report are:

•Managing the Islamic wealth cycle through the entire process of wealth acquisition, preservation and distribution and achieving the required balance between spiritual and worldly obligations.
•Understanding the primary issues facing Waqf donors despite the strong growth drivers in this market: poor performance is due in part to the shortage of professionals leading to low quality asset management and lack of transparency.
•Considering the suitability of the Swiss private banking family office structure as a wealth management tool to ensure effective Islamic governance.
•Addressing the challenges facing Islamic mutual funds to achieve growth and performance.
•Recommending standardisation, education and diversification of Sukuk in order to increase the supply of products and the liquidity of the market.
•Analysing Islamic equity and indices performance over the last year to illustrate that diversification remains key for investment without compromising Islamic principles.

CIPE and the Global Corporate Governance Forum published a new guidebook with an accompanying video named Advancing Corporate Governance in the Middle East and North Africa: Stories and Solutions. The purpose is to help bussiness reach a better situation. They speak about self-dealing, lack of accountability and rampant corruption.

They try to proove that it is a good solution to incorporate sound corporate governance practices that assure that proper mechanisms are in place to preserve the core principles of fairness, accountability, responsibility and transparency.

The Quarterly Bulletin of Malaysian Islamic Capital Market by the Securities Commission Malaysia is online; it features thoughts of Professor Volker Nienhaus on Regulations and Shariah in the aftermath of the crisis and contains further market updates.

"Stand & Default: An exclusive detailed insight to sukuk restructuring after defaults. The author brings for the first time the three approved structuring approaches: 1) Debt/Equity SWAP 2) Extending Maturity, 3) Haircut "

"The Private Equity Calamity

This paper dissects the balance sheet and business model of Gulf Finance, and scrutinizes the existence of a "pre-exit premium" in their activities - on top of the usual exit fees and/or performance fees. The study suggests that this practice (uncommon even for conventional Private Equity businesses - much less for an Islamic Private Equity house) was pioneered by GFH and it is this same practice that brought them down to their knees. "

"The claims that the Islamic gold dinar will avoid inflation and other ills of current economic crises are examined by studying how coinage systems actually functioned in history.The article shows that not only these claims are baseless but also that coinage would increase the prevailing interest rate in an economy - hardly an Islamic position. It is argued that a gold or silver based dinar would be harmful for Islamic societies and attempts to introduce them should therefore be prohibited."