IslamicFinance.de

Dear Readers,

aside from Islamic banks there is another model in practice for more than 20 years avoiding the topic of interest. I usually cite it in my seminars to show that even interest free loans can exist along a banking model. Years ago, an in depht analysis was published online:

http://anielski.com/wp-content/documents/The%20JAK%20Bank%20Report.pdf

In the meantime interested groups can seek assistance to set it up by:

http://www.cajasweden.se/downloads/caja_folder_e-version.pdf

And also JAK offers courses and backgrounds for international interested groups from abroad in their first newsletter:

http://jak.aventus.nu/download/JAK_Int/JAK_International_Newsletter_1.pdf

Addendum: A master thesis about JAK Medlemsbank can be downloaded here:

http://www.jak.se/sites/default/files/folkbildning/dokument/MARK_BURTON_...

Enjoy reading and take it as a source of inspiration!

Best regards,

Michael Saleh Gassner

On 10 May 2012 BaFin will hold its second conference on Islamic financial services in Frankfurt. The agenda includes sharia-compliant capital market products and the opportunities and challenges they present.

The presenters at the conference will be leading international representatives of financial supervisory authorities, universities and market participants. The event features a mix of panels and will be held in English.

BaFin hosted its first conference on Islamic finance in autumn 2009 and received a very positive response.

As the number of participants is limited, please fill out the expression of interest form if you would like to attend the conference. We will inform you as soon as possible whether your registration was successful.

Agenda

Time: 10 May 2012 (10 am to 6 pm)

A. Welcome and First Overview

B. Panel I: Islamic Funds
Sharia-compliant Funds
Sharia-compliant Derivatives
Sharia-compliant Share Indices

C. Panel II: Sukuk and Securitization
Key Aspects of Sukuk
Key Aspects of Securitization

D. Panel III: Special Aspects of Islamic Finance
Market Potential of Islamic Finance
Aspects and Challenges of Taxation

Social Finance, Ltd. created a bond with social impact. Background on this project is provided free for download and could be a good base for innovation in the Islamic finance industry:

"In September 2010, our sister organization, Social Finance, Ltd., launched the world’s first Social Impact Bond in the United Kingdom. Targeted at reducing prison recidivism, the Peterborough pilot generated world-wide interest in the potential of this innovative financial instrument. We established Social Finance, Inc. in January 2011, to bring the Social Impact Bond to the United States. Since our founding, we have been collaborating with government, investors, nonprofit organizations, and thought leaders on how Social Impact Bonds might realign incentives for delivering social outcomes and augment public funding and philanthropy to support our collective efforts to improve the lives of individuals and communities in need.

Dear Reader,

IslamicFinance.de is privately funded for many years. Now, for the first time, you have the possibility to make a contribution, from one Dollar upwards!

The technical details, and the money transfer via paypal is organised by Kapipal a new online fundraising tool:

http://www.kapipal.com/islamicfinance

On the blog I gave some more thoughts about Islamic finance media for those interested: http://www.islamicfinance.de/?q=node/3454

Please also note: The fundraising action has a deadline, so act today, not tomorrow and tell your friends about it!

All donors who will leave a message will be listed in the article, which follows after closure of the fundraising period.

I am happy to meet you in person either on 19th March in Milano (http://www.islamicfinance.de/?q=node/3396) or on 10th May in Frankfurt (http://www.islamicfinance.de/?q=BAFINII) at the respective Islamic finance conference.

Wa at Taufiq min Allah, all the best,

Michael Saleh Gassner

Dear Readers,

Islamic finance media are a tricky service. This is true for various reasons: The Internet eats up the revenues, because everything ought to be free. Islamic banks are still a niche phenomena, and international banks like UBS or Deutsche are almost as large as the entire global Islamic finance industry. Consequently the marketing budgets are much lower, too.

Last not least, who should advertise? The banks among themselves or to the clients? Advertising from bank to bank, does usually not make much sense, but real client oriented formats are hard to find, too. May be this is a niche. Others, who could finance Islamic finance media are basically the service providers to the banks, but due to the limited number of Islamic financial insitutions, direct marketing, e.g. face to face meetings will be preferred.

This in short is the background why Islamic finance media are not so well established in terms of journalism and research, but mostly reflecting the press release as criticised by the makers of the Islamic Globe. See: http://www.theislamicglobe.com/index.php?option=com_content&view=article...

Mr. John Robertson Wright was appointed Non-Executive Director of EIIB by the Board of EIIB.
Mr. Wright is a career Banker with important experience in UK and international markets including assignments in India, Sri Lanka, West Africa, Canada, Hong Kong and the United States. Before this appointment he was Chief Executive of Oman International Bank for 7 years, Chief Executive of the Northern and National Irish Banks in Ireland for 5 years, Chief Executive of the Gulf Bank in Kuwait and finally Chief Executive of Clydesdale & Yorkshire Banks prior to retirement.

The OIC Ministers Responsible for Water embraced the OIC Water Vision at the conclusion of their Conference which was held in Istanbul, Turkey, from 5 to 6 March 2012.
The host of the conference was the Ministry of Forestry and Water Affairs of Turkey. Attending at the conference were the Ministers Responsible for Water, Deputy Ministers, senior officials, OIC institutions, observes and relevant international organizations.
The OIC Water vision gave a framework for cooperation among the OIC countries for overcoming the common and major challenge of maximizing the productive use of water and minimizing its destructive impacts.

A NEW BREED OF TECHNOLOGY & DESIGN INVESTMENT HOUSE TO BE LAUNCHED AND SHOWCASED PARIS, JULY 2012

Qatari Aurum will be launching its first large-scale foray into the world of Technology and Design during an annual gathering of other GCC-based investors and private equity houses in Paris during July this year. The newly¨established group, comprising high net-worth venture capitalists from Qatar, is yet to launch formally but has already set about making waves in an industry reserved for Silicon Valley start-ups and traditionally large-scale US private equity houses. It is expected that the Group will announce its inaugural acquisition of equity in a globally established internet start-up at the Capital & Projects Exchange, Paris, France, July 2012.

The focus of the group is toward bringing a wealth of technology know-how in the internet media and software design services to the GCC region. There is a course laid out to use this investor insight in gathering the choicest design and development houses locally within the region and injecting them with world-class expertise, fuelling a technology-drive unsurpassed in recent times.

Norton Rose Seminar Documentation

Making Their Mark: Women Working in the Middle Eastern Financial
Industry

OECD: Women’s Access to Finance in the Middle East and North Africa (MENA) Region

Women’s Empowerment through Islamic Microfinance in Egypt

IDB Prize for Women’s Contribution to Development: PROMOTING WOMEN’S ROLE IN FINANCE AND ECONOMY

Bahraini Islamic bank Al Baraka Banking Group set its purpose for 15% growth in net profit this year and wants to buy a 75pc stake in an unlisted Indonesian bank as part of its global expansion plan.
Adnan Ahmed Yousif, Al Baraka's chief executive, revealed that they are discussing with Chinese shareholders of an Indonesian bank.

Al Baraka had a 2011 full-year profit of $212m, up 10pc on the profit registered in 2010. The bank plans to open 50 more branches this year throughout the world, out of which 20 will be in Turkey and five in Algeria, respectively Egypt.

A new report shows that sovereign wealth funds (SWFs) and cash-positive pension funds from Asia and the Middle East are an arising force behind the high level of global capital currently flowing into the Central London commercial real estate market.
Central London has always had a pivotal role in international commercial property investment in an European and global context, completely overshadowing other global cities in terms of cross-regional investment into European real estate, because of its traditional strengths of transparency, long income flows and relative liquidity.

Report offers comprehensive reference material about Shariah scholars in the Middle East and around the world as Islamic Finance industry assets top US$1 trillion. Failaka Advisors, in partnership with Paris-based Grapes Market Research & Advisory, has released the second edition of The Shariah Report.

The 2012 version of the report is the world’s first comprehensive report on Shariah scholars, with detailed profiles of more than 120 of the top scholars in the Middle East and from around the globe highlighting Islamic Finance’s global reach.

“Spanning from East to West, The Shariah Report profiles Shariah Scholars from Asia, the Middle East, Africa, Europe & North America, providing insight into the depth and breadth of the industry”, added Anne-Sophie Gintzburger, Founding Director at Grapes. Each scholarly profile comprises country of birth, academic qualifications, a cross-referenced list of institution where each scholar serves as a Shariah Board member, and a list of their important works on Islamic finance.

By organizing a one-day conference on Islamic finance and bringing together some of the
major players in the field of islamic and ethical finance , Islamic Relief-Italy, in collaboration
with ASSAIF, intends to share some reflections, case studies and initiatives in order
to contribute to solve the actual financial crisis. Thanks to a significant experience in
implementing development projects that are shari’a compliant , Islamic Relief represents
an interesting and successful example of Islamic finance initiatives that are born and
developed in Europe.The financial crisis which is nowadays afflicting most of the European countries has had

The financial crisis which is nowadays afflicting most of the European countries has had a significant impact on the real economy and on the society itself. Particularly, a growing
number of people are marginalized within the Italian society (not only migrants but also
the so called “new poors”) as well as within financial circuits and last but not least are
prevented from accessing credit. The Islamic finance, which is already operational in
several European countries, can provide solutions which are complementary to those

K&L Gates Seminar
Islamic Finance: Recent Issues and Career Opportunities
February 20, 2012
The Arab Spring of 2011, the Goldman Sachs $2bn Islamic bond, the Islamic Interbank Benchmark Rate - just three recent topics that have reignited interest in Islamic Finance.

This programme addressed recent issues in Islamic Finance and potential career opportunities in the industry.

Specific topics covered included:

What happens when Islamic Finance transactions go wrong? The use of arbitration to resolve disputes.
The impact of the Arab Spring of 2011 on the growth of Islamic Finance.
The convergence of Islamic, Christian, Jewish and Socially Responsible Investment principles.
The role of private equity and leasing in Islamic investing.
The Islamic Interbank Benchmark Rate.
Career opportunities in Islamic Finance.
The global impact of Islamic Finance in Europe, the Middle East and the US.
Speakers included:

Dr Humayon Dar - Chairman, President & CEO - Edbiz Consulting
Jonathan Lawrence - Islamic Finance Partner - K&L Gates, London
Mohammed Amin - Islamic Finance Consultant - Conservative Muslim Forum
Kathleen Bradley - Counsel - K&L Gates, Doha

CALL FOR PAPERS - Islamic capital markets, Deadline: Submission of Abstract: March 15, 2012
Islamic Research and Training Istitute – Islamic Development Bank, Jeddah, Saudi Arabia

Islamic capital markets are to become an important part of the Islamic financial system. While new products are steadily coming into the market and the Islamic investment instrument are growing, Islamic capital markets still constitute a very small niche. For a discernible impact on the investment promotion, market stability, and equitable socio-economic development there is a growing need to accelerate the process of product development, to create conducive regulatory environment and to improve the market practices. This task requires development of new human capital and knowledge base.

With this larger objective, the immediate focus of this conference is on three issues:
• Design and use of Islamic financial products for Islamic capital markets.
• Identification of the needs for and the implications of market regulations for development of Islamic capital market.

In its 2012 Islamic Wealth Management Report illustrated by masterpieces of Islamic calligraphy, by the Chinese Muslim master Hajji Noordeen, deals with the theme “The path to corporate transformation – converting a company to Islam”.

Bank Sarasin reviews the complexities of converting a business to Islam, a topic which is rarely discussed or written about. Conversion is complicated by the need to address every aspect of a business, the lack of broadly accepted standards and regulations, and differences in the Muslim world itself. The Report, released today, is the Bank’s third on Islamic Wealth Management.

Converting a business to Islam can increase the value of a company by 18-25% due to the scarcity of genuine Islamic investments. But the conversion process is arduous, extending from the design to distribution and beyond, to how the company spends its profits. As Sarasin notes, the market potential is massive, with the global Muslim population expected to increase by 26% to 2030, to 2.2 billion, rivalling China and India in terms of market size.

Gatehouse Bank based in London, has surpassed the USD half billion mark in real estate investment acquisitions, on behalf of its GCC investors. This was succeeded after the acquisition of a multi-million dollar US student property portfolio, "The Republic at Denton" and "The Republic at Lubbock" in Texas, USA providing investors a net cash yield of 7.0% per annum and a projected IRR of 9.0% over a hold period of five years.
The newly built, multi-million dollar developed properties were obtained in partnership with US-based student housing specialty operator, The Scion Group LLC.

It seems that Citigroup Europe is interested in entering into the sukuk market in Turkey. The statement came from Alberto Verme, the group’s Middle East and Africa (EMEA) board director.
Interest-bearing bonds are not permissible in Islam., so sukuk securities are structured to comply with the investment principles of Islamic law.

Ireland has conducted its first Malaysian-managed fund platform. The Central Bank of Ireland has approved the establishment of CIMB-Principal Islamic Asset Management (Ireland) Public Limited: a joint venture between Kuala Lumpur headquartered CIMB Group and Principal Global Investors.
The newly created joint venture will uphold a range of international Islamic funds on the platform from its Dublin domicile. Three equity UCITS are being registered: Islamic Global Emerging Markets Fund; Islamic Asia-Pacific ex-Japan Fund, and Islamic ASEAN Equity Fund.
Once registered the funds will be spread in the UK, Switzerland, Germany, Saudi Arabia, UAE, Bahrain and Singapore.

The Moroccan Bank 'Chaabi' intends to launch a Sharia compliant account in June 2012 in Brussels, Belgium, the capital of the European Union according to newspaper 'La Libre'. The project is under review and the regulatory authoritz FSMA will be contacted according to Mr. Semlali, a representative of the bank.