Gaffney: Treasury submits to Shariah
WASHINGTON POST / Commentary: The U.S. Treasury Department is submitting to Shariah - the seditious religio-political-legal code authoritative Islam seeks to impose worldwide under a global theocracy.

As reported in this space last week, Deputy Secretary of the Treasury Robert Kimmitt set the stage with his recent visit to Saudi Arabia and other oil-rich Persian Gulf states. His stated purpose was to promote the recycling of petrodollars in the form of foreign investment here.

Evidently, the price demanded by his hosts is that the U.S. government get with the Islamist financial program. While in Riyadh, Mr. Kimmitt announced: "The U.S. government is currently studying the salient features of Islamic banking to ascertain how far it could be useful in fighting the ongoing world economic crisis."

"Islamic banking" is a euphemism for a practice better known as "Shariah-Compliant Finance (SFC)." And it turns out that this week the Treasury will be taking officials from various federal agencies literally to school on SFC.

The department is hosting a half-day course entitled "Islamic Finance 101" on Thursday at its headquarters building.

Treasury's self-described "seminar for the policy community" is co-sponsored with the leading academic promoters of Shariah and SCF in the United States: Harvard University Law School's Project on Islamic Finance. At the very least, the U.S. government evidently hopes to emulate Harvard's success in securing immense amounts of Wahhabi money in exchange for conforming to the Islamists' agenda. Like Harvard, Treasury seems utterly disinterested in what Shariah actually is, and portends.

Unfortunately, such submission - the literal meaning of "Islam" - is not likely to remain confined long to the Treasury or its sister agencies. Thanks to the extraordinary authority conferred on Treasury since September, backed by the $700 billion Troubled Asset Relief Program (TARP), the department is now in a position to impose its embrace of Shariah on the U.S. financial sector. The nationalization of Fannie Mae and Freddie Mac, Treasury's purchase of - at last count - 17 banks and the ability to provide, or withhold, funds from its new slush-fund can translate into unprecedented coercive power.

Concerns in this regard are only heightened by the prominent role Assistant Treasury Secretary Neel Kashkari will be playing in "Islamic Finance 101." Mr. Kashkari, the official charged with administering the TARP fund, will provide welcoming remarks to participants. Presumably, in the process, he will convey the enthusiasm about Shariah-Compliant Finance that appears to be the current party line at Treasury. >>> Frank J Gaffney Jr | November 4, 2008

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Islamic Finance Down, Far from Out
THE AGE: IN THE aftermath of the US financial crisis, the future is uncertain for Islamic investment in Australia.

While the impact of the global credit crisis has had a minor effect on sharia-compliant investments compared with debt-laden conventional bourses, some stocks that dominate Islamic indices have fallen.

And the lack of confidence in the banking and finance sector has made Islamic finance providers from the Middle East and South-East Asia hesitant to set up shop Down Under.

The Dow Jones Islamic Market Financials Index measures the performance of about 70 sharemarkets around the world that are sharia-compliant, or in line with Islamic ethics. "Conventional banks and insurance companies are banned from the DJIM universe," says Gerard al-Fil, a Dubai-based financial journalist and portfolio manager.

"Non-Islamic or haram sectors, such as alcohol, tobacco, weapons, pornography and gambling companies are likewise excluded."

The index lost 2.74% in September — a month in which conventional sharemarkets lost a fifth of their value. In that month, AIG, Fannie Mae and Freddie Mac all became de facto state-owned enterprises, while the Lehman Brothers declared bankruptcy and the Bank of America took over Merrill Lynch.

As sharemarkets around the world were rattled by the rapid changes on Wall Street, Islamic stocks also felt the impact.

Mr Fil says other asset-based investments might still drag down the Islamic indices. "The Islamic markets are very heavy on basic materials and raw materials and these prices dropped as well."

But Islamic stocks were sheltered from the most extreme jolts to the global financial market, by a historical and theological tendency to avoid credit.

"Islamic stocks operated in the wider global stockmarkets, so the effects of the crisis will be felt," says Hussain Rammal, a lecturer in international business at University of Adelaide. >>> Nasya Bahfen | October 23, 2008

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London Summit to Focus on Islamic Finance
GULF DAILY NEWS: MANAMA: Islamic finance issues will be discussed at a major summit to be held in London next month.

The second annual Islamic Financial Intelligence Summit will be held on November 6 at London's Victoria Park Plaza.

It has been organised by Financial Times Global Events, the Banker magazine and HSBC Amanah.

The event brings together key economic players and high-profile Islamic finance specialists to lead discussion and debate on the core issues and latest research in the world of Islamic finance. >>> | October 22, 2008

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UK Looks to Become a Global Provider of Islamic Finance
MORTGAGE STRATEGY: A government organisation is looking to educate financial institutions in a bid to help the UK become a global provider of Islamic finance.

UK Trade & Investment, which incorporates the work of the Foreign & Commonwealth Office, has leant its support to a breakfast briefing hosted by the Association of Corporate Treasurers.

The aim of the briefing is to give financial companies more understanding of Islamic finance by explaining whom it applies to, how it can complement existing financial services strategy, and what the benefits are.

Sharia Islamic law forbids the practice of making money from money, such as charging or paying interest.

Sharia-compliant mortgages involve the bank buying the property with the buyer then buying it back and renting it at a slightly inflated price. Buyers also have to be sure that the money the bank is using to buy the property has come from permissible sources.

The sector is currently thought to be worth $500bn (£294bn) and it is predicted the sector will grow by a further 15% per annum over the next few years.

Andrew Cahn, chief executive of UK Trade & Investment, says: “In these tough times it's more important than ever that we make the most of growing sectors like Islamic finance. >>> Natalie Holt | October 21, 2008

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Bahraini Shares Down 1% as Banks Post Profits
GULF NEWS: Manama: The Bahrain All Share Index on Wednesday closed down 1.05 per cent as more financial institutions posted third-quarter profits and the prime minister highlighted the need to ensure the robustness of the financial system.

Bahrain Islamic Bank (BIsB) reported $85 million net profit at the end of the third quarter, an increase of 84 per cent over the $46 million during the same period of last year.

"Despite the prevailing global financial crisis due to the mortgage credit crisis in the US, the bank was able, through the application of the Sharia-compliance standards laid down by the Sharia Supervisory Board, to properly select its banking transactions to achieve positive results. In addition, the bank enjoys a high level of liquidity that would enable it to go forward with confident steps," chairman Khalid Abdullah Al Bassam said. Bahraini Shares Down 1% as Banks Post Profits >>> By Habib Toumi, Bahrain Bureau Chief | October 15, 2008

INVESTOR’S BUSINESS DAILY:
’All Riches Are Ours’ >>> | October 15, 2008

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A View on Islamic Banking Which Sees All the Benefits But None of the Dangers Inherent in Its Growth Here in the West
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

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Targeting Opportunities in the United Arab Emirates
EMIRATES BUSINESS 24/7: Dow Jones Indexes has opened its first office in the region in Dubai. While the office will promote all the company's indexes, attention is likely to be given to the Dow Jones Islamic Market Indexes, which were launched in 1999. The Dubai office will target investment banks, asset managers, fund managers and exchanges across the region. Sumeet Nihalani, senior director for Asia Pacific and Middle East, spoke to Emirates Business about what Dow Jones Indexes hopes to achieve from its presences in the region and the general outlook for Islamic banking.



Why has Dow Jones Indexes decided now is the time to establish a new presence in the Middle East? 



We have been in the Islamic market and business index for a long time. But we have been growing our business with the licensees in the Middle East. As this business grew, it was important to have somebody in terms of proximity to be able to efficiently and in a timely manner to serve and support potential clients. We have seen a lot of growth in the Middle East – mainly in GCC countries. And we have seen a lot of growth in the Middle East around Islamic index opportunities. It is important to have somebody on the ground to see what are the emerging trends. And to see how we can fit our competence with local knowledge and understanding to the local market place to create more products or different products. 



What are the challenges facing Islamic financial banking? 


I would like to use the word opportunities rather than challenges. I do think there are a number of opportunities. As a lot of banking and financial professionals engage themselves with Islamic finance activities, they are able to create new products and services that can be [useful] across regions. And they can address the different aspects of Islamic finance in insurance, mortgages, etc. Our office has given us a good opportunity to contribute to this and bring our global experience to Dubai and the region in similar services in this market place. Also, the members of our Sharia board who provide Islamic Finance expertise to Dow Jones Indexes and provide the Sharia rules that we apply to our index components are located here.
Targeting Opportunities in UAE >>> By Rami Eljundi | April 29, 2008

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GCC Islamic Banks Assets Hit $300bn
ISLAMONLINE: A new report by Morgan Stanley has found that the 22 Islamic banks in the GCC have over $300bn of Sharia-compliant assets and were poised for double digit growth sustainable over the next decade, reported Bahrain Tribune. The report also forecasts that Islamic assets in the GCC would grow to 18% of system assets by 2012 from its current 13%.

A new report by Morgan Stanley has found that the 22 Islamic banks in the GCC have over $300bn of Sharia-compliant assets and were poised for double digit growth sustainable over the next decade, reported Bahrain Tribune. The report also forecasts that Islamic assets in the GCC would grow to 18% of system assets by 2012 from its current 13%. [Source: GCC Islamic banks assets hit $300bn]

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Islam-Fonds mit Allahs Wohlgefallen
FOCUS.DE: Kein Alkohol, kein Tabak, kein Schweinefleisch, keine Zinswucherer – die Scharia, das religiöse Gesetz des Islam, ist streng und schließt vieles aus, womit sich Geld verdienen ließe. Gläubige Moslems dürfen weder Zins nehmen noch sich an Banken beteiligen, die Zinsen verlangen, tabu sind auch Aktien von Bierkonzernen oder Rüstungsfirmen. Kursgewinne sind hingegen erlaubt.

Da in islamischgeprägten Ländern aber viel Geld auf Anlage wartet, haben sich mehrere Fondsgesellschaft daran versucht, scharia-adäquate Fonds aufzulegen. Einer davon ist die in Luxemburg ansässige UBS Fund Services, deren Islamic Fund Global Equities selbst für gläubige Muslime geeignet ist. Die Gesellschaft leistet sich ein mit zwei Scheichs besetztes „Scharia-Board“, das die Einhaltung der Regeln sicherstellen soll. Das Wächterkomitee prüft die Anlageziele und berät die Fondsmanager. Sollte trotzdem eine der Aktiengesellschaften im Depot Erträge erwirtschaften, die nicht scharia-konform sind, so legt das Wächter-Komitee ein Bußgeld für den Fonds fest, das für wohltätige Zwecke gespendet wird. Islam-Fonds mit Allahs Wohlgefallen >>>

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Sciences économiques islamiques?
DANIEL PIPES: Sans que le monde extérieur en prenne vraiment conscience, une quantité d'argent importante et en croissance rapide est gérée aujourd'hui en accord avec la loi islamique, la charia. Selon une étude, «à la fin 2005, plus de 300 institutions de plus de 65 juridictions géraient des actifs d'une valeur globale de l'ordre de 700 milliards à un billion de dollars d'une manière compatible avec la charia».

L'économie islamique prend une ampleur de plus en plus incontournable grâce à une profusion de portefeuilles d'exportateurs de pétrole et une multiplication d'instruments financiers islamiques (tels que des emprunts sans intérêts et des obligations sukuk). Mais à quoi rime tout cela? Les instruments conformes à la charia peuvent-ils concurrencer l'ordre financier international? L'instauration d'un régime économique islamique va-t-elle vraiment de pair, comme l'affirme un enthousiaste, avec la fin de l'injustice grâce à «l'intervention de l'État pour le bien de tous»?

Pour comprendre ce système, le meilleur point de départ est Islam and Mammon, un brillant ouvrage que Timur Kuran a écrit alors qu'il occupait (paradoxalement, vu le soutien saoudien à l'économie islamique) la chaire «King Faisal Professor of Islamic Thought and Culture» (pensée et culture islamiques) de l'université de Californie du Sud.

Kuran, qui enseigne actuellement à Duke University, estime que l'économie islamique ne remonte pas à Mahomet, qu'elle est une «tradition inventée» qui a émergé en Inde, dans les années 1940. La notion de discipline des sciences économiques «qui serait clairement et ouvertement islamique est très récente». Il y a encore un siècle, même les plus savants des Musulmans auraient été interloqués par l'«économie islamique».

L'idée a été forgée à l'origine par un intellectuel islamiste, Abul Ala Maududi (1903-79), pour qui l'économie islamique servait de moyen vers de nombreuses fins: minimiser les relations avec les non-Musulmans, renforcer le sentiment collectif d'identité musulmane, étendre l'Islam dans un nouveau domaine d'activité humaine et moderniser sans occidentaliser. Sciences économiques islamiques? >>> par Daniel Pipes, Jerusalem Post
| 26 septembre 2007

Version originale anglaise: Islamic Economics: What Does It Mean?
Adaptation française: Alain Jean-Mairet

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Finanz: Islamische Prinzipien
Das Wesen und die Rolle von Finanzsystemen im Islam erklärt sich aus dem Einfluss der Scharia als rechtliche und moralische Handlungsrichtlinie und dem in ihr enthaltenen sozial-ethischen Gedankengut, das in eine islamische Wirtschaftsethik einfließt. Die Scharia zielt auf soziale und ökonomische (Verteilungs-)Gerechtigkeit und Solidarität ab. Geld wird nicht als selbst arbeitende Gewinnanlage betrachtet, sondern als ein Mittel zur Schaffung von Wohlstand für die Gesamtheit der muslimischen Gemeinschaft.

In einer islamischen Wirtschaft werden Handel und Unternehmertum gefördert. Dies sollte jedoch nicht auf einige wenige Akteure beschränkt sein, sondern zum Wohl aller dienen. Gewinne aus Handel und Investitionen sind erlaubt. Jedoch sollen Investitionen nicht spekulativ, sondern produktiv sein. Sie dürfen in Form von Risikobeteiligungen an Unternehmen, deren Produkte der islamischen Moral nicht widersprechen, getätigt werden. So sollen wirtschaftliche Kooperationen und soziale Gleichheit begünstigt werden. Sieht ein Muslim sich nicht in der Lage, seine finanziellen Ressourcen selbst konstruktiv auszugeben, so hat er die Pflicht, sie anderen in Form einer Beteilungsfinanzierung zur Verfügung zu stellen. So soll eine gesamtgesellschaftlich effiziente Allokation von Kapital nach Kriterien von Produktivität und Rendite erfolgen. Islamische Prinzipien >>>

PRIVATE BANKING SUMMIT:
Wachstum bei Scharia-konformen Anlagen: «Islamische Bonds» auch bei Nichtmuslimen beliebt

QANTARA.DE:
Aktien unter Scharia-Aufsicht

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