THE INDEPENDENT: Prime Minister hopes London can tap into the rapidly expanding global market in Islamic investments
David Cameron has announced plans to encourage investment in the UK by Muslim countries, saying he wants to make London “one of the greatest centres for Islamic finance anywhere in the world”.
Politicians and business leaders gathered in the capital for the ninth annual World Islamic Economic Forum – the first time the major event has not been held in a Muslim country.
The Prime Minister appeared on stage alongside a number of world leaders, including King Abdullah of Jordan and the Sultan of Brunei.
Among the measures unveiled was a plan from the Treasury to issue an Islamic bond - or sukuk - worth around £200 million. It would issue fixed returns based on the profit made by a named asset, allowing for Muslims to invest without breaking Islamic laws forbidding interest-bearing bonds.
A “world first” set of indices at the London Stock Exchange to help investors identify faith-compliant firms and projects was also announced as well as a £4.5 million boost to a small business growth fund.
The global market in Islamic investments is rapidly expanding, rising by 150 per cent since 2006 and expected to be worth £1.3 trillion next year.
Mr Cameron said Britain had already taken steps to ensure Muslims were not discriminated against - such as ending “double tax” on Islamic mortgages and introducing alternative forms of student and start-up loans to comply with a ban on interest payments.
It already had more Islam-compliant banks than any other Western country and many law firms and university courses centred on the subject, he said.
But he said that his ambition was for the country to compete with finance centres such as Dubai and Kuala Lumpur - not just other non-Islamic capitals. Read on and comment » | Adam Withnall | Additional reporting by PA | Tuesday, October 28, 2013
Democracy is an illusion! It’s become a political system fostered by the élite, for the élite, in order to fool the people that they have a stake in the system. In actual fact, they have virtually none. The whole political system in the modern era, despite having noble beginnings, is now used to benefit the few at the expense of the many. – Mark Alexander, June 29, 2018
Showing posts with label Sharia-compliant finance. Show all posts
Showing posts with label Sharia-compliant finance. Show all posts
Tuesday, 29 October 2013
Islamic Investment: David Cameron Moves to Make London a Mecca for Middle East Wealth
The Prime Minister will signal his determination to tap into the rapidly growing global market for Islamic investments, which are forecast to reach £1.3 trillion next year as oil-rich states fund major building projects.
He will set out plans to establish a new Islamic index on the London Stock Exchange, which will help investors comply with Islamic finance principles, such as bans on investing in alcohol, tobacco and gambling. He will also detail proposals for Britain to become the first country outside the Muslim world to issue its own Islamic bonds, known as sukuk. » | Nigel Morris | Tuesday, October 29, 2013
Britain to Become First Non-Muslim Country to Launch Sharia Bond
THE DAILY TELEGRAPH: David Cameron to unveil £200m Sukuk at the World Islamic Economic Forum in London on Tuesday
Britain is set to become the first non-Muslim country to sell a bond that can be bought by Islamic investors in a bid to encourage massive new investment into the City.
David Cameron will say in a speech on Tuesday at the World Islamic Economic Forum in London that the Treasury is drawing up plans to issue a £200m Sukuk, a form of debt that complies with Islamic financial law.
The new sharia-compliant gilt will enable Britain to become the first non-Muslim country to tap the growing pool of Islamic investments that is forecast to top £1.3 trillion by next year.
The Prime Minister will say that it would be a “mistake” to miss the opportunity to encourage more Islamic investment in the UK and that the City of London should rival Dubai as a centre for sharia-compliant finance.
“When Islamic finance is growing 50pc faster than traditional banking and when global Islamic investments are set to grow to £1.3 trillion by 2014, we want to make sure a big proportion of that new investment is made here in Britain,” Mr Cameron will tell an audience of senior officials from Islamic countries.
Among those at the meeting are Sultan Hassanal Bolkiah of Brunei, King Abdullah of Jordan, Afghan president Hamid Karzai and Prince Salman bin Hamad Al Khalifa, Crown Prince of Bahrain.
The World Islamic Economic Forum has never been held before in a non-Muslim country and highlights the growing role London is playing in the Islamic finance industry. » | Harry Wilson | Tuesday, October 29, 2013
Britain is set to become the first non-Muslim country to sell a bond that can be bought by Islamic investors in a bid to encourage massive new investment into the City.
David Cameron will say in a speech on Tuesday at the World Islamic Economic Forum in London that the Treasury is drawing up plans to issue a £200m Sukuk, a form of debt that complies with Islamic financial law.
The new sharia-compliant gilt will enable Britain to become the first non-Muslim country to tap the growing pool of Islamic investments that is forecast to top £1.3 trillion by next year.
The Prime Minister will say that it would be a “mistake” to miss the opportunity to encourage more Islamic investment in the UK and that the City of London should rival Dubai as a centre for sharia-compliant finance.
“When Islamic finance is growing 50pc faster than traditional banking and when global Islamic investments are set to grow to £1.3 trillion by 2014, we want to make sure a big proportion of that new investment is made here in Britain,” Mr Cameron will tell an audience of senior officials from Islamic countries.
Among those at the meeting are Sultan Hassanal Bolkiah of Brunei, King Abdullah of Jordan, Afghan president Hamid Karzai and Prince Salman bin Hamad Al Khalifa, Crown Prince of Bahrain.
The World Islamic Economic Forum has never been held before in a non-Muslim country and highlights the growing role London is playing in the Islamic finance industry. » | Harry Wilson | Tuesday, October 29, 2013
Monday, 12 September 2011
FINANCIAL NEWS: Sharia-compliant funds had been proving increasingly popular until the global financial crisis and then the Arab Spring frightened off investors and stymied private equity activity in the Middle East.
Fundraising volumes have collapsed, with not a single sharia fund raised so far this year, acacording [sic] to data provider Preqin.
Sharia-compliant funds, which enable investors to comply with Islamic law, are simple to structure and are guided by certain principles relating to interest accrual and the types of investment they can make.
Funds could be restricted, for example, from investing in businesses related to alcohol, gambling, pornography, weapons, tobacco and pork-related products. The funds are overseen and approved by a sharia supervisory board.
Sharia funds have varying degrees of flexibility depending on their target investors, which can include ultra high net worth individuals, institutional investors and sovereign wealth funds, according to Richard Hughes, a senior fund services manager at fund administration specialist Vistra Group.
Private equity firms based outside the Middle East can target Muslim investors by offering side-vehicles set up alongside existing funds that are not sharia-compliant.
Before the onset of the financial crisis, interest in sharia funds had been on the rise, with private equity firms raising $5.6bn of capital through six such funds in 2006. » | Ayesha Javed | Monday, September 12, 2011
Saturday, 17 July 2010
FINANCIAL TIMES: Islamic Finance is a method of financing and banking operations that abides by Sharia Law. With the help of Bank of London and Middle East we outline the rules that all sharia-compliant financial products have to adhere to.
What are the main rules for Islamic finance?
Bank of London and the Middle East (BLME), a Sharia compliant bank, says the main principles of Islamic Finance is the avoidance of all haram (harmful) activities such as charging interest. In addition to the prohibition on charging interest, Islamic financial institutions must ensure that ambiguity (gharar) or gambling/speculation (maysair) is minimised in transactions and contracts. Complying with Sharia law also means that Islamic Financial Institutions are not permitted to invest in alcohol, pork, pornography or gambling.
How does Islamic finance work?
The overarching principle of Islamic finance is that all forms of interest are forbidden.
The Islamic financial model works on the basis of risk sharing. The customer and the bank share the risk of any investment on agreed terms, and divide any profits between them.
The main categories within Islamic finance are: Ijara, Ijara-wa-iqtina, Mudaraba, Murabaha and Musharaka. >>> Lucy Warwick-Ching | Wednesday, July 14, 2010
Related articles here and here and here
Tuesday, 23 February 2010
FINANCIAL TIMES: Dubai-based trading company Surgi-Tech has awarded Aston Business School £1.5m to set up an Islamic Finance and Business Centre at its campus in Birmingham.
The centre will allow Aston to increase teaching and research into Islamic finance, which has been expanding as Muslims seek alternatives to Western finance that are compliant with sharia law. >>> Jonathan Guthrie | Monday, February 15, 2010
Friday, 18 September 2009

REUTERS – INDIA: PARIS - The French parliament passed a law on Thursday which will facilitate the issuance of Islamic bonds despite opposition from leftist parties.
The adoption of the law, which was voted in by the Senate, or upper house of parliament, on June 9 modifies the legal framework for what is known as "fiducie", the French equivalent of trust in the United Kingdom.
In theory, this should facilitate the issuance of Islamic bonds, also known as "sukuk", although the government has been working on an alternative tool for issuing such debt, which could involve further legal measures.
The move is part of France's two-year drive to create a new European hub for Islamic finance, whose value globally is estimated at $1 trillion.
The ruling UMP party and the New Centre voted for the law while opposition came from the Socialist Party and other left-leaning groups, highlighting resistance from some quarters in France to altering the law in a way that could be seen to affect secular traditions.
"We are introducing Islamic law into the French legal framework," said Henri Emmanuelli from the Socialist Party. "This deeply shocks us, it is unacceptable," he said. Some experts hope that France… >>> Additional reporting by Cecilia Valente in London; Reporting by Emile Picy; Editing by Ruth Pitchford | Thursday, September 17, 2009
Monday, 1 June 2009
AME Info: Islamic Finance Info Inc., the online company dedicated to offering the Muslim investors financial and investment information service in compliance with Islamic principles, announces the launch of its Islamic Finance web portal at www.islamicfinanceinfo.com.
The ultimate goal of establishing the web portal is to create a platform that is totally dedicated to Islamic Finance so that the relevant information could be disseminated across the globe.
Islamic Finance have been proven to be resillient against the current global financial crisis because it follows the tenets of Shariah that have prohibited its association to elements such as riba, speculation and uncertainty. Now, many people, Muslims and non Muslims alike are curious to find out more about Islamic Finance. IFI's objective is to provide the answers to all things related to Islamic Finance.
The Islamic Finance portal will provide educational information on the basic principles of Islamic finance, the various types of Islamic finance products and the other key principles in Islamic Finance.Membership is currently free and will entitle the users to access the various databases that are currently set up. Amongst those that are available would be the list of Islamic banks. Takaful companies, Shariah scholars and Islamic funds.
Islamic Finance Info Inc. was founded by two investors with extensive experience in Islamic Finance and Information Technology. The company is currently in the process of setting up its various offices. It will eventually have a key presence in Dubai and Singapore respectively. [Source: AME Info] Monday, June 01, 2009
Saturday, 4 April 2009
THIS IS MONEY: As borrowers and savers call for a fairer banking system, are the principals of Islamic banking the answer? We take a look at the Islamic Bank of Britain
Tired of hearing about fat cat bank bonuses when you have been a bank's loyal saver for decades and received nothing?
Well, there is a new bank in Britain offering out a share of its profits, not just to shareholders, but those who deposit savings into its coffers.
The main aim of the Islamic Bank of Britain is to offer 'Sharia compliant' ways of borrowing and saving for British Muslims, which are in tune with Islamic law.
Non-Muslim bank customers can also benefit from this as Sharia rules – based on ethical trading principles – mean ordinary customers benefit along with the bank in the good times.
But they can also lose if the bank starts to lose funds. Is Islamic Banking the Model for Fairness? >>> Alan O’Sullivan | Saturday, April 4, 2009
The Dawning of a New Dark Age (Paperback & Hardback) – Free delivery >>>
Thursday, 12 March 2009
TIMES ONLINE: Sharia-compliant finance is prospering in Britain. But how can it stay insulated from the credit crunch?
As the credit crunch has mutated inexorably into a recession, with bankers having eclipsed politicians, lawyers and even journalists as public enemy number one, the growing number of Islamic finance institutions in Britain might just be sitting pretty.
The UK now has five fully Sharia-compliant banks and another 17 financial institutions have set up special branches or firms. They include the Qatar Islamic Bank (QIB), with its London-based European Finance House in Berkeley Square, and the Islamic Bank of Britain, which has headquarters in Birmingham.
Both have answered Gordon Brown’s call of two years ago for Britain to become the global centre for international Islamic banking; a report by the International Financial Services London even says that Britain’s Islamic banking sector is now bigger than that of Pakistan.
Islamic banks, says Steven Amos, the Islamic Bank of Britain’s head of marketing, are prospering. “Our core business will always be Muslims but the numbers of non-Muslims are really picking up. We’ve had massive interest — and that’s down to a number of reasons, all of which have kept us insulated from the credit crunch.”
He alludes to the nuances of Islamic banking — specifically that Islamic finance has to be Sharia, or Islamic law, compliant. Sharia is taken from the Koran, one of whose central tenets — that money has no intrinsic value — might sound alien to the denizens of the City.
One British businessman believes that adopting Sharia principles might be just what the West needs. Roger Smee, a former professional footballer and now businessman, says the West has “lost the plot. All we have as a success guide is a number of rich lists. Instead of looking down on what we are quick to reject as cumbersome legal restrictions, we should take a page out of the Middle East’s book and use the principles of Sharia to begin building real and sustainable economies.” Crossing Over to Islamic Banking >>> Alex Wade | Thursday March 12, 2009
The Dawning of a New Dark Age (Paperback & Hardback) – Free delivery >>>
Friday, 6 March 2009
RELIGIOUS INTELLIGENCE: A British campaigning group has hit out at plans that would allow current financial arrangements to be altered to allow Sharia-compliant bonds to be issued.
The warning comes from two bodies, the Christian Legal Centre and Christian Concern for Our Nation (CCFON). They spoke out after changes were recommended to the Legislative Framework for the Regulation of Alternative Finance Investment Bonds (Sukuk). They say that if the changes are accommodated, the British Government would be ‘capitulating’ to Islamic religious law.
The subject of Sharia law has been hotly debated in the UK following comments by the Archbishop of Canterbury when he said that it "seems inevitable" that some parts of sharia would be enshrined in this country's legal code. Earlier this week the former Prime Minister Tony Blair backed the Archbishop. He commented in The Church of England Newspaper: "I thought at the time all this was a lot of fuss over nothing."
But in a written submission to the Treasury, the Christian Legal Centre and CCFON said that any change could radically change the fundamental basis of British society through its financial regulation. >>> By Judy West | Friday, March 6, 2009
NATIONAL SECULAR SOCIETY: Raise Your Voice against Sharia Law
The demonstration and meeting to protest at the introduction of sharia law into Britain will take place Saturday 7 March in Central London. We urge you to be there.
The One Law for All Campaign is calling on members and supporters of the NSS to come along to the demo and raise their voice against the rising clamour for official recognition of the pernicious sharia system of injustice. We will also be objecting to all religious-based tribunals that operate here of any religion. >>> | Friday, March 6, 2009
The Dawning of a New Dark Age (Paperback & Hardback) – Free delivery >>>
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Thursday, 5 February 2009
REUTERS: MUMBAI/KUALA LUMPUR - Money managers in India have begun launching sharia-compliant funds, hoping to tap the country's large Muslim population, the world's third-biggest after Indonesia and Pakistan.
The push toward the new funds comes in the wake of dwindling cash flows into more traditional investment channels, which have been hit by a stock market slump and slowing economic growth.
In January, the portfolio management services unit of HSBC's (HSBA.L) Indian fund arm started offering a sharia product, and on Wednesday Mumbai-based Benchmark Asset Management launched India's first exchange-traded sharia fund.
"There is a need gap...for investment products that are sharia-compliant," said Vikramaaditya, chief executive of HSBC Asset Management.
Zafar Sareshwala, chief executive of Mumbai-based Islamic brokerage Parsoli, said sharia-compliant funds could easily raise $1 billion from millions of potential Muslim investors. >>> By Nishant Kumar & Liau Y-Sing | Thursday, February 5, 2009
The Dawning of a New Dark Age (Paperback & Hardback) – India >>>
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Thursday, 4 December 2008
TIMESONLINE: Islamic finance principles may be a thousand years old but they have attracted the attention of the West only recently. Now business schools are offering specialist masters programmes on the subject
While the world’s financial systems are shaken to their foundations, global stock markets tumble and thousands of bankers are made redundant, one area of finance goes from strength to strength.
Islamic banking and finance principles may be a thousand years old but they have attracted the attention of Western financial services companies only recently. Now business schools are offering specialist masters programmes on the subject.
Islamic banking and finance must comply with Islamic law, or Sharia. This is governed by a number of fundamental principles and prohibitions and there are many differences from conventional finance.
“There is the absolute prohibition on the charging of interest,” says John Board, director of the International Capital Market Association (ICMA) Centre, part of Henley Business School at Reading University. ICMA runs an MSc in investment banking and Islamic finance, taught jointly with the International Centre for Education in Islamic Finance in Kuala Lumpur. “This leads to the question: how do you raise money in a way that is commercially sensible but does not involve paying interest?
“And on the investment side, there is a range of prohibited activities. For example, Islamic investors may not invest in businesses that trade in alcohol or pork-related products, or are involved in certain types of entertainment.”
Other restrictions include not being able to sell something unless you own it, or to invest in companies with high levels of debt. Taking all the restrictions into account, many conventional financial products, such as deposit accounts, mortgages, credit cards, insurance, bonds and many derivatives, such as futures and options, are out of bounds to Islamic investors.
Until recently, certainly in non- Islamic countries, there was little on offer for people who wanted Sharia-compliant banking and finance. However, substantial growth in this market over the past five to ten years, partly driven by Middle Eastern countries investing oil revenues, means more institutions are beginning to offer appropriate products and services. Islamic assets under management are about £400 billion, according to the Islamic Financial Services Board, an industry body.
Today Islamic finance and banking touches everything from large capital infrastructure projects to retail banking. HSBC in the UK, for example, has Sharia-compliant bank accounts and mortgages. And the increase in Islamic finance activity means there is a need for postgraduates with knowledge in this area. “There is a big demand for Islamic finance as a professional activity,” Board says. >>> Steve Coomber | December 3, 2008
The Dawning of a New Dark Age (Paperback & Hardback) – Free delivery >>>
Tuesday, 18 November 2008
INTERNATIONAL HERALD TRIBUNE: KUALA LUMPUR: Islamic banking is set to rise from its modest 2 percent share of bank assets as the government encourages growth and Muslims overcome their suspicion, sharia lender Gatehouse Bank said on Tuesday.
Islamic finance, which rejects interest-based lending and speculation in favour of profit and loss sharing between venture partners, has been in Britain since the 1970s, but only a small number of Muslims have embraced it.
In recent years, Britain has been viewed as the European leader in providing Islamic financial services, aiming to serve both domestic Muslim markets as well as tapping into the vast wealth of Gulf investors.
"The government is very keen on social inclusion and economic inclusion and it feels that still there are areas of the UK where there's not enough economic inclusion," Gatehouse Chairman Richard Thomas told reporters on the sidelines of an Islamic finance forum in Malaysia.
"So they feel that if they open up alternative finance such as Islamic finance then that will allow people to be included in the British economy in a way they weren't before."
He did not give estimates for the Islamic finance industry's growth.
Britain intends to issue its own sovereign sharia-compliant sukuk debt in a rolling programme worth around 2 billion pounds, although it has said legal barriers still remain and it will make a final decision later. >>> Reuters (Reporting by Liau Y-Sing) | Novemebr 18, 2008
THE GUARDIAN: Standardisation Moves to Help Sharia Finance-scholar
KUALA LUMPUR, Nov 18 (Reuters) - Efforts to standardise the reading of the sharia will not stifle the Islamic finance sector, a leading sharia scholar said on Tuesday, dismissing concerns that the industry risks being smothered by too much regulation.
A lack of standardisation in Islamic finance contracts is one of the biggest complaints among bankers in the $1 trillion industry, but there are also worries that a growing effort to harmonise across the globe could create a one-size-fits all approach in structuring deals.
"In Islamic law we encourage debate, research, scholarship and it is an ongoing process which cannot be stopped by anybody," Sheikh Nizam Yaquby, a highly regarded scholar, told reporters on the sidelines of an Islamic finance forum.
"However, for the purpose of standardisation, it is important to have certain prudential rules and basic contracts especially repetitive ones to be accepted among a group."
Sharia scholars are experts in Islamic law and international finance. They are seen as the industry's gatekeepers as they sit on the Islamic boards of institutions and rule on whether or not proposed products are sharia compliant.
Islamic law is open to diverse interpretations, resulting in some financing structures that aren't accepted by all Islamic markets.
An Islamic finance structure called bai bithaman ajil that is popular in Malaysia, for example, is not accepted by Middle East markets as Islamic.
Under bai bithaman ajil, a bank purchases an asset for its customer and sells it to him at a profit, with the sum to be repaid in instalments.
Recent attempts to harmonise industry standards include a plan by the International Swaps and Derivatives Association to launch standards next year for over-the-counter sharia-compliant derivative contracts. >>> Reuters, Tuesday November 18 2008
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Sunday, 14 September 2008
ISLAM BANK: TORONTO, ONTARIO -- It's an unlikely image: staffers at the Office of the Superintendent of Financial Institutions - surely one of Ottawa's driest regimes - are busy brushing up on the fine points of sharia law these days to cope with the anticipated expansion of Islamic financial services in Canada.
"Lately we have had more expressions of interest," said Normand Bergevin, managing director at OSFI's approvals and precedents division.
Several people on his staff are learning about business plans, legal structures, accounting methods, types of governance and other issues related to Islamic finance.
"It's fairly new to us," he said. "There's not a whole lot of experience here in terms of supervising or even understanding the different types of products. They all have little twists on them that make them very unlike anything we've ever seen before."
They're likely to see a lot more. Islamic finance is becoming one of the hottest areas in banking and insurance in the world as the Muslim population grows and wealth increases. A Hot New Banking Trend: Sharia-compliant Finance >>> By Tavia Grant | September 14, 2008
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The Dawning of a New Dark Age (Hardback – Canada) >>>
Friday, 30 May 2008
It has been announced that Tony Blair wants to ’devote his life to faith’. By ‘faith’ I suppose we are to understand ‘interfaith dialogue’, so as to try and ensure that we all live together in harmony.
This is a noble ambition indeed; unfortunately, however, there is one stumbling block: The nature of Islam!
For ‘interfaith dialogue’ to be meaningful, there has to be a readiness by all parties, in this case especially Jews, Christians, and Muslims, to compromise, for without compromise, interfaith dialogue becomes a meaningless exercise.
In Islam we find an implacable faith, an unyielding belief system founded on totally different principles than both Judaism and Christianity.
Christianity is based on love: The love of God, the love for God, the love of humanity. Islam, by contrast, is not a religion based on love; rather, it is based on total submission to Allah, and where there is no total submission to Him, we find the sword used to rein in the people. Indeed, Muhammad himself announced the sword to be an instrument of faith. Who, then, are we to argue with Muhammad’s declaration? How can we put a positive spin on that?
It is interesting to note that there is a maxim used by Muslims which states the following: ‘To convince stubborn unbelievers, there is no argument like the sword.’ [Source: Washington Irving: Mohammed]
For this reason, if for no other, it is difficult to see what Tony Blair hopes to achieve with his devotion to interfaith dialogue. How does he hope to change the nature of the faith of Islam? It is impossible to change nature. Indeed, can we change the nature of anything? And if this is so, then what hope have we of changing the nature of Islam, especially after more than fourteen hundred years?
The only man who could have changed its nature was the Prophet Muhammad himself. But as he is no longer around to make any changes, it is not going to be possible for mere mortals to change anything in that religion. You see, Islam is not a religion like Christianity anyway. Christianity has evolved, and has undergone a reformation. This reformation was made possible partly because Christianity, being based on the Bible, especially the New Testament, is to all but fundamentalist Christians considered to be a book that is inspired by God. The words contained therein are not generally considered to be God’s actual words.
In this respect, Islam is very different. Islam, as we all know, is based on the Qur’an, and that book is not considered be inspired by Allah; rather, Muslims consider the book to comprise the actual words of Allah as dictated to Muhammad by the Angel Gabriel in the form of a recitation. In fact, the very meaning of ‘Al Qur’an’ is ‘The Recitation’.
The result of this difference between the holy books has led to two quite different civilizations and cultures. Muslims are very defensive of Islamic culture and civilization in a way that Westerners are not defensive of theirs.
Take our leaders. They are reluctant to face up to the fact that we have a huge problem on our hands with Islam in general, and with the rapid growth of Islam in the West in particular. In this reluctance, they are doing us no favours. On the contrary, they are remiss in their duties as guardians of our way of life, as guardians of our Judeo-Christian civilization.
What, for example, are our leaders doing to protect our values and our way of life? Interfaithing will offer no protection; actually, on the contrary, it will probably lead to compromise – the compromise of Westerners. To me it seems like a cop out. It is a smokescreen to enable the top echelons to put profit above principle.
The jihad which is being waged against the West threatens us all. It is not something we can afford to ignore; yet people are ignoring it, largely in the hope that it will go away. It won’t. If anything, it will get worse.
The jihad has many guises. One of the latest is the economic jihad being waged against capitalism. Only this morning, it was reported that there have been calls for Ireland to introduce Shari’ah-compliant finance as a matter of urgency. As a matter of urgency, no less! Why? So that Muslims living and working in Ireland can live their lives according to their faith, without feeling conflicted by the terms and conditions of living in the ‘evil’ capitalist system.
One can but ask oneself one question here: If living under capitalism is so onerous for these Muslims, then why did they come here to live in the first place?
The leaders of finance houses who are working so hard to introduce Shari’ah-compliant financial services and products seem to be oblivious to the fact that Islamic economics is competing in every respect with capitalism. Isn’t it true to say that the interest rate is the keystone of a capitalist economy? Take that keystone away and the whole system will start to fall apart.
In Islam, riba is frowned upon. But let’s get one thing straight: Riba is generally translated as usury, not as the interest rate per se. There is a world of difference between usury, which is the charging of extortionate rates of interest for loans, and the general interest rate which is not to be equated with such extortion. Yet nobody seems to be making any difference between them. The financiers appear to have been hoodwinked into believing that the interest rate is itself frowned upon in Islamic economics. It must be said that one’s definitions in this matter depend on the Islamic scholars one reads: Some scholars frown upon the interest rate altogether, calling it all usury, whilst others take a more liberal approach and make a distinction between a reasonable rate of interest and an extortionate rate.
Whichever is the case, the fact remains that Islamic economics is not compatible with the long-term interests of a capitalist economy. One can but worry about the tentacles of Islam tightening their grip on Western economies. Lest we forget, the old adage, He who pays the piper calls the tune comes to mind. We need not wait to learn that this is indeed true. We can discern the verity of the adage already when we look around us. Take the power of the petrodollar as a case in point. Its power is profound, and it can be felt around the globe.
It is one reason why our leaders and business people are reluctant to speak out. They are overcome by greed and fear: They are greedy to earn back the petrodollars, and they are fearful that if they speak out they will incur the wrath of the Muslims living in the West, and cut off our oil supplies into the bargain.
You see, they do not have the stomach for any form of confrontation. The sad reality is, however, that the West will not survive this onslaught without a confrontation of some kind or other. It’s just not possible. Muslims are too determined to replace our Judeo-Christian civilization with an Islamic one, too determined to replace capitalism with an Islamic economic system.
But by confrontation, I do not necessarily think that we need to go to war (though that cannot, of course, be ruled out in the long-run). But we do need to protect our own values and our own way of life. Alas, this is not happening. Our leaders are giving in at every turn. Appeasement of Muslims both at home and abroad is the norm of the day. It will do nothing for the West except accelarate the demise of our civilization, and accelerate the demise of capitalism, too.
Can’t the people in power see what they are doing? Are bankers and financiers so greedy that they are willing to bring down the West for their own short-term gain? Do they not realize that they are playing with fire? Do they really believe that capitalism and Islamic economics can co-exist? Can they really be that ignorant?
Personally, I think they are not; rather, I think these people are out to get all they can before the house of cards is brought down. Remember the fall of communism? Capitalism will fall equally easily if we do not pay more attention. It’s hard to believe, I know. But the introduction of Shari’ah-compliant finance and other Shari’ah-compliant products is just the start. It is the introduction of Shari’ah law by the back the door. Today it’s banking; tomorrow it will be Shari’ah enshrined in the laws of the land, enshrined in the constitutions of Western countries. How foolish our leaders, bankers and financiers are!
Before 9/11, it would have been hard to imagine that the West could have been so weak and unwilling to fight for a way of life we have come to expect and love. But it all started going wrong after those attacks, because we were too reluctant to state the case against Islam, clearly and unequivocally. The politicians have busied themselves making excuses for Islam and have deceived the public in so doing; the business people and bankers have busied themselves making money from the countries awash with petrodollars. And in so doing they have chosen to turn a blind eye to the financing, by Saudi Arabia, of the propagation of Wahhabi Islam in the West.
So what exactly is Tony Blair going to achieve with his lifetime spent interfaithing? Is he merely going to sell the West farther down the river? And in any case, what are his qualifications for doing this job? What does he know about Islam? And where has he learnt that which he does know?
One thing is for certain: People like Tony Blair are not going to learn the true nature of Islam by sitting in five star hotels in Bethlehem, talking to fabulously rich Muslims from oil-rich countries. To learn about the true nature of Islam one has to mix and talk with people at the grassroots level. The rich are generally Western-educated, indulge in alcohol, spend enormous amounts of money in casinos, live in the lap of luxury, and generally do not adhere strictly to their faith. They are also generally well-travelled; so they are not representative of the ordinary man in the Arab street. Ergo, little can be learnt from them when it comes to the faith of Islam.
Isn’t it high time that we all started taking stock? Isn’t it high time that we woke up to the reality which confronts us? Isn’t it high time that we started to put principle before profit?
©Mark Alexander
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At this rate, capitalism will be dead in a short time. It took the West years to defeat communism. Western capitalism eventually won the day as it was seen to be superior. Indeed it was and still is superior. Islamic economics is now winning the day, though. And there has been no need of a Cold War, and no need for guns (or swords). All it has taken is intimidation of Westerners by an assertive Muslim population, a sense of subservience to the Gulf Arabs, especially the Saudis, ignorance of the true nature of Islam and its goals, a refusal to admit to the dangers of that faith, appeasement, meekness, and timidity on the part of Westerners who are afraid of confronting the ideology, a loss of belief in our own destiny, and a dogged determination on the part of our leaders and captains of industry NOT to call Islam what it actually is: A political system wrapped up in a deity.
The end of capitalism and liberty, dear readers, is nigh! - ©Mark
THE IRISH TIMES: THERE IS an “urgent need” for sharia-compliant financial services to be made available in Ireland so that Muslims living here do not contravene religious teachings, representatives from Irish financial institutions were told at a seminar on Islamic banking yesterday.
The seminar was held at the Islamic Cultural Centre of Ireland (ICCI), which is based at Ireland’s largest Sunni mosque in Clonskeagh, Dublin.
“We organised this conference because there is an urgent need for the Muslim community here to have mortgages and other financial services that do not drive them to break their Islamic teachings,” said Ali Selim, a theologian and secretary to Imam Hussein Halawa of the ICCI.
During yesterday’s seminar Imam Halawa outlined the religious tenets of Islam that forbid the payment or receipt of interest, known as riba.
Representatives from the Arab Banking Corporation’s London subsidiary and the Islamic Bank of Britain gave presentations on how the market for Islamic finance has developed in the UK in recent years.
Several high street banks in Britain now offer a variety of sharia-compliant services, including mortgages.
One of the most common types is based on the Islamic principles of “diminishing musharaka” or diminishing ownership. Under this scheme, the customer and bank jointly acquire a property, with the customer’s share usually similar to the normal deposit, but the property is bought in the bank’s name only.
The customer makes monthly payments made up of rent and contributions towards the purchase price over an agreed period of time.
The amount of rent decreases as the customer’s share in the property increases. Ownership is transferred when the customer eventually buys out the bank.
Similar partnerships are available so Muslim business people in the UK can avoid interest repayments.
Mr Selim told the seminar that as Ireland’s Muslim population increased there would be more demand for such services here. Call for Sharia-Compliant Finance Services to Be Available in Ireland >>> By Mary Fitzgerald | May 30, 2008
The Dawning of a New Dark Age (Paperback - UK)
The Dawning of a New Dark Age (Hardback - UK)
Thursday, 1 May 2008
FINANCIAL TIMES: A new Islamic bank will be launched in London on Tuesday, reaffirming the City’s status as the leading western financial centre for this fast-growing sector.
Gatehouse Bank is the fifth Islamic bank to be awarded a licence in Britain, demonstrating the resilience of Sharia-compliant finance in spite of the credit crisis that has wiped billions off the balance sheets of conventional banks.
David Testa, chief executive at Gatehouse, said: “Islamic finance is a healthy and growing industry, stimulated primarily from the Gulf, but also from growing interest in south-east Asia, including new centres such as Indonesia.
“Investors in the Middle East are increasingly looking to diversify out of their region and they see London as a key marketplace to help them in this. One of the main reasons why London has become such an important centre for this kind of finance is due to the legislative changes pushed through by the government over the last five years.
“It has brought in new laws to level the playing field with conventional finance and make the City an attractive place to invest in a Sharia-compliant way. For London, what with the problems of Northern Rock and the crackdown on non-doms [non-domiciled foreigners], this really is one area where the City has got it right.”
Britain is the only country in the European Union to have licensed Islamic banks as the government has realised the potential of this market for the City as a financial centre. It has also seen the development of Islamic finance as a way of building bridges with the 2m Muslims who live in the UK.
The UK has also stolen a march on New York, the world’s other leading financial centre, as a hub for Islamic finance, partly because of its timezone and partly because of the antipathy towards this sector in the US following the September 2001 attacks. UK’s Fifth Islamic Bank to Tap Demand Growth >>> By David Oakley, Capital Markets Correspondent | April 21, 2008
The Dawning of a New Dark Age (Paperback - UK)
The Dawning of a New Dark Age (Hardback - UK)
Saturday, 5 April 2008
NATIONALREVIEW ONLINE: If you’ve seen Geert Wilders’s film Fitna, you may not have noticed a single headline amongst all the bombings, beheadings, and earnest expressions of Islam’s eventual world domination: Halal-fund: investments for Muslims. But the investment vehicles referenced are an essential part of radical Islam’s efforts to insinuate itself into Western societies in order to destroy them from within. And Wall Street, barely out of the woods from its disastrous run-in with sub-prime mortgages — and having lost one of its historic investment houses, Bear Stearns, in the process — is now chasing the very kind of "sharia finance" against which Wilders's movie warns, a business line that may eventually wind up being even more calamitous than the subprime-mortgage fiasco.
For the growing army of its acolytes, who salivate at the prospect of tens of billions of dollars in transaction fees from the burgeoning industry, sharia-compliant finance is seen as little more than a cuddly Islamic version of socially conscious investment — with ethical strictures forbidding usury and sin industries, and emphasizing charity. Indeed, a conference on the subject last Fall co-sponsored by the Wall Street Journal was titled just that: "Islamic Ethical Investment." According to this rosy interpretation, sharia finance is a windfall for capital markets — allowing Wall Street to skim some foam off the ocean of petrodollar liquidity in the Middle East, and put it to good use.
Other interpretations are possible, of course. Critics see sharia finance as a massive subversion campaign by radical Islam designed to legitimize sharia in the West, to undermine our markets, and ultimately to imperil our free-enterprise system and national security — all the while exposing banks to financial risks that make the sub-prime fiasco look like a walk in the park. For its proponents and ideological enablers — such as the well known suicide-bombing advocate, Sheikh Yusuf al-Qaradawi — sharia finance is nothing less than "Jihad with money." As al-Qaradawi explains, "God has ordered us to fight enemies with our lives and with our money." Unfortunately for Wall Street, it’s hard to argue with the good sheikh on that score. Far from being a guide to ethical investment, sharia finance is indistinguishable from sharia itself.
Sharia is a reactionary-to-the-core medieval Islamic doctrine that claims control over every aspect of every Muslim’s life. It imposes such "ethical" mandates on Muslims as the obligation to discriminate against women and non-Muslims; to kill homosexuals, adulterers, and apostates; to establish and maintain Muslim rule around the world; and to carry out violent offensive jihad against infidels. Notably, for those Muslims who cannot engage in physical jihad using force of arms, sharia requires that they support jihad financially. This is what sharia finance is all about. Jihad Comes to Wall Street >>> By Alex Alexiev
Hat tip: Revereridesagain
Cross-posted at A New Dark Age Is Dawning
Mark Alexander
Thursday, 17 January 2008

ARABIAN BUSINESS.COM: There is no such thing as an Islamic Sukuk; these are conventional bonds that are coated with an Islamic shell." To say Hassan Heikal, the CEO of the leading home-grown investment bank in the Middle East, EFG-Hermes, is sceptical about Islamic finance is an understatement. On the other side of the spectrum, Dr Abdul Moman Al-Olaby, a professor who was one of the pioneers in the industry agrees that some Sharia-compliant structures are questionable, but says "Sharia-compliant finance is our jewel, and even in its infancy, it is well positioned to compete among global banking giants."
Dr Ibrahim Warde, a professor of international business at Tufts University in the USA, and author of Islamic Finance in the Global Community, has been studying the industry for the past decade. As an academic, he takes a more nuanced approach, and tells Arabian Business "the initial hope of the sector was that it would be a completely different approach to finance and it would have many economic and social benefits, and would be based on the principle of sharing profits and losses." Critics today claim that "it evolved into a mimicking of conventional finance" and some question if it is a "new model", but supporters defend the approach on the grounds that they are leading the much needed modernisation of the financial sector.
While the debate will undoubtedly continue, it is undeniable that the cat is out of the bag. Sharia-compliant finance is a growth sector all over the world, and has now become a US$600bn industry. Given the immense wealth of the Arab world and the billion-plus global Muslim population, market dynamics forced the creation of Sharia-compliant finance. From Singapore to London, from Doha to New York, bankers are developing new products, chasing new clients, and laying the groundwork for global expansion.
In this report, Arabian Business examines the origins of Sharia finance, modern banking products, and the rise in corporate finance. We also speak to some of the players behind the burgeoning Takaful (insurance) market, see the Qatari innovation of Sharia-compliant private equity, and look at the scholars and boards endorsing the various structures. Banking on piety >>> By Christina Corbett and Mohammed Aly Sergei
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