Tag Archives: Islamic

Finance

The Challenges For Islamic Finance in Hong Kong

In my previous article, “How Does Shariah Compliance Work?” I touched upon the challenges that Hong Kong’s government faces when trying to implement the required changes to establish a level playing field between traditional financial products and the alternatives presented by Islamic finance. Looking at the experience in the UK provides a useful example of the absolute potential and growth this financial services niche offers.

The UK government made the establishment of a suitable fiscal and regulatory framework for Islamic finance in the UK a key focus in 2003. Since then the UK government has achieved the following:

o In 2003 it removed the double tax on Islamic mortgages and extended the tax relief on Islamic mortgages to companies as well as individuals.
o As a financial centre, London became more attractive to issue and trade sukuks, ie Islamic bonds, by reforming the arrangements for issuance of bonds so that returns and income payments could be treated as if they were interest.
o The UK’s financial services regulatory body, the Financial Services Authority, introduced initiatives that ensured that the regulatory treatment of Islamic finance is consistent with its overall statutory objectives and principles.

The UK government even considered issuing Shariah-compliant bonds as well as offering Shariah-compliant retail banking products via National Savings & Investments and conducted a corresponding review. Although it announced in November 2008 that neither presently offers value for money, the government confirmed that it would monitor the situation closely. At the same time, the UK government decided to support the development of Islamic finance whilst ensuring that conventional and alternative finance are treated equally. The focus is thus on identifying existing market barriers and using legislation to ensure that Shariah-compliant products can be offered and can compete on an equal footing with more conventional forms of finance. Particular efforts have been made to ensure that existing tax and regulatory systems in the UK do not distort the market for investors wishing to invest in those types of products.

The upshot of this pro-active and forward looking approach by the UK government can be seen by the results achieved so far. To-date, Islamic product offerings in the UK include:

o Five fully Shariah-compliant banks. An additional 17 provide Shariah-compliant services through “Islamic windows” whereby they can offer expertise in Islamic finance to businesses and members of the public. This is more than any other non-Muslim country.
o The London Stock Exchange has listed a total of 18 sukuk issues, which raised US$ 10bn. This is exceeded only by Dubai Nasdaq.
o Of the total seven Shariah compliant exchange traded funds, four were launched in 2008 alone. Also, 2008 saw an additional two new equity funds launched.
o In terms of non-banking products, the first company to offer Shariah-compliant insurance, known as takaful, to UK residents was authorised in 2008.
o Supporting this development of Islamic finance are 18 law firms that provide Islamic finance support. In addition, the Big Four professional service firms provide Islamic finance advisory services.
o To provide educational support in excess of 50 institutions offer the necessary Islamic finance educational and training products. This is significantly more than any other country worldwide.

This is a tough act to follow for the Hong Kong government. Not only will it have to compete with the solid legal and regulatory platform that the UK government has provided, but the UK has a six year head start. The UK has done an excellent job in securing its position as the key western centre for Islamic finance. Given the potential for, in particular, East Asia, I would hope that the Hong Kong government is suitably motivated to make the necessary changes in the Hong Kong legal and regulatory framework as well.

Let me therefore repeat my call to the Financial Secretary, John Tsang. Please, Mr Tsang, be bold, and take the plunge. Enact the required legislation as soon as possible. You will not only raise the profile of Hong Kong as a global financial centre but you will also create a significant number of new jobs, jobs that the financial services industry in Hong Kong badly needs. Just in case you require advice on any additional changes required, there are a number of locally resident experts who can point you in the right direction. In addition, my email address is also shown at the bottom of this article, and I would only be too happy to sit down and discuss this in more detail with you. The financial services industry, as well as its supporting professional services, like accounting and law, will thank you for it!

Ruediger Prenzlin is the CFO of HK Islamic Index Limited, Hong Kong’s first equity index to feature an Islamic compliant portfolio of companies. He can be contacted on cfo@hkislamicindex.com. For further information, please visit http://www.arabcci.org and click on the link to the HK Islamic Index.

Banking

Exporting Islamic Banking From The Middle East

The Islamic Banking market is one of the most powerful sectors of the banking market in the world today, with a majority of the estimated $ 700 billion in assets of Islamic banks concentrated in the Middle Eastern region. However, the industry has also started to gain momentum outside of the Middle East, as more and more financial institutions are beginning to introduce Sharia-compliant banking products and services to serve the more than 1 billion Muslims living worldwide.

The growth of this segment of the financial industry presents a new opportunity for financial institutions located in the Middle East to export their business outside of the region to serve the large global Muslim demographic in other countries. The growing success of Islamic Banking outside of the Middle East can be attributed to the following factors.

Global Presence
In 1975 there was one Islamic bank; today there are over 300 in over 75 countries, such as Indonesia, Pakistan, the United Kingdom, Bangladesh, Nigeria, Egypt, Turkey, Iran, Sudan, Algeria, Morocco, Iraq, Uzbekistan, Afghanistan, Malaysia, Saudi Arabia, Yemen, Syria and Kazakhstan. Most notably, the number of Islamic Banks has more than doubled over the past 12 months in the UK, with Islamic banks from the Gulf Corporative Counsel (GCC) as the major shareholders of most of these new financial institutions. Currently it is estimated that funds from Islamic Banking make up for $ 200 billion in the UK, and this is predicted to increase by up to 15% a year, to be worth a trillion dollars by 2010.

Growing Acceptance
Consumers around the world have started to show an interest in, and greater acceptance of Islamic Banking, greatly increasing the opportunity for this segment of the industry to be exported outside of the Middle East. Today, Islamic financial institutions are recognized as fully-functional counterparts of conventional institutions. Additionally, an increasing number of Islamic investments have outperformed conventional investments, making banks more eager to offer Sharia-compliant banking products and services worldwide.

Ease of Exportation
Many countries outside of the Middle East have shown an increased willingness to embrace Sharia-compliant banking products and services. By introducing new laws and regulations to permit the practice of Islamic Banking, countries have simplified the process that Middle Eastern banks must follow to open new branches and introduce Sharia-compliant banking products and services to customers. The UK, for example, has put in place new laws to facilitate further market entry and practice of Islamic finance in the country. Also, the UK has actively encouraged the growth of Islamic finance by introducing a number of changes to support the growth of Islamic finance, such as ensuring that Islamic mortgages would not be subject to double taxation.

Malaysia has also taken action to help make Islamic finance more widely available throughout the country. Through international road shows, training programs aimed at regulatory bodies, such as the Islamic Markets Program organized by the Securities Industry Development Corporation (SIDC), and public engagements, including articles, interviews and conferences, Malaysia has shown an increased interest in Islamic finance. And in Indonesia, through the establishment of a Muslim clerical body, known as the Ulema Council, and market regulators, it has become much easier and more practical for Islamic Banking services to be conducted in the country.

Steady Market
Even amidst the global financial crisis, Islamic Banking has remained steady, while many Western financial institutions have taken serious blows. The Islamic Banking market has been largely unshaken by the economy primarily due to its more cautious attitude towards money. Instead of using financial instruments as derivatives, Sharia law bans insurance and investment gains, as well as excessive risk-taking and trading in debt. According to Sharia law, the collection of interest is a form of usury, which is forbidden. Islamic Banks also do not collect late payment fees, which are considered a type of riba, or interest. Therefore, when the economy suffers, individuals are protected from losing out as well. The resilience of the Islamic Banking market in spite of the global crisis has encouraged more countries to use Islamic principles to help run their economies.

Ethical Banking
Islamic Banking has also attracted a large audience because of the ethical form of banking that it provides. Sharia law forbids engagement in investments that include financial unknowns such as buying and selling futures, as well as businesses that are haraam dealing in products that are contrary to Islamic law and values such as alcohol, pork, gossip or pornography. These principles apply to all individuals, companies and governments. Each Islamic bank has its own Sharia Board in place to manage and maintain ethical Islamic Banking principles.

Training
Exporting Islamic Banking products and services will yield many benefits for Middle Eastern financial institution. However, to ensure that financial institutions in the Middle East will be successful in taking their products and services abroad, it is important that they implement comprehensive training for their employees.

Through training, banks will be able to build a well-educated staff that is familiar with Sharia-compliant banking products and services and educated on how to communicate them to their customers. With the number of Islamic banks growing throughout the world, it is important for Islamic financial institutions to offer banking products that are competitive with conventional products offered by other retail banks. Therefore, it is vital to provide training for employees to help to retain existing customers, as well as attract new customers to the bank.

It is also important for employees to become familiar with the appropriate laws and regulations that are specific to each country. When exporting their products and services outside the Middle East, financial institutions must be aware of the different laws put in place in each country which facilitates further market entry and practice of Islamic finance. For example:

In the UK, the Finance Act 2003 introduced relief to prevent multiple payment of Stamp Duty Land Tax on Islamic mortgages.

In Malaysia, the Government Investment Act 1983 was enacted empower the Government of Malaysia to issue Government Investment Issue (GII), which are government securities issued based on Sharia principles.

By training employees to become familiar with the laws specific to each country, Middle Eastern financial institutions will ensure success when taking their products and services abroad.

Final Word
Financial institutions located in the Middle East will benefit from the growing Islamic Banking industry by exporting Sharia compliant products outside of the region. Due to Islamic Bankings global presence, growing acceptance, ease of exportation, steady market and strong ethical foundation, exporting Islamic Banking outside of the Middle East will continue to be a prosperous venture for financial institutions throughout the world. Through comprehensive training for all bank staff, Middle Eastern banks will remain competitive in the flourishing Islamic Banking market, both inside and outside of the country.

Dr. Linda Eagle is Founder & President of The Edcomm Group Banker’s Academy www.bankersacademy.coma 24-year-old education and consulting firm dedicated to serving Banks, Credit Unions, Money Services Businesses (MSBs) and all areas of the Global Financial Community with thousands of generic and customized training programs in areas such as BSA/AML, Regulatory Compliance, Teller Training, Systems Training, Sales and Service Training, and many more.

The Edcomm Group Banker’s Academy is headquartered in New York, NY. For more information, email linda.eagle@edcomm.com or call +1.212.631.9400.

Banking

Qatar?s Newest Islamic Bank, Providing Innovative Banking Options

The banking industry in Qatar is one that is growing in diversity at a growing pace, making it easy for anyone to find a bank in Qatar that could handle all their consumer banking, commercial banking, financing, and investment needs. Especially with the Qatar Central Bank’s (QCB) ruling early in 2011 stipulating that conventional banks operating in the country close down its Islamic banking businesses by the end of the year, local Islamic banks are seen to grow substantially and its customers are seen to enjoy the benefits of such consolidation of resources. One of the newest players in Qatar’s Islamic banking scene, Barwa Bank, is poised to take on the challenge, being the first to acquire an Islamic portfolio as the International bank of Qatar (IBQ) sought to comply with the QCB ruling.

This newest bank in Qatar is one of a handful of banking operations in Qatar composed of Qatari banks, Arab banks, and foreign banks. Only a few of these Qatar banking operations service the Islamic banking needs of the country’s residents. Islamic banking differs from conventional banking in that it has to be compliant with Islam laws, otherwise referred to as Shari’ah. There are specific values and ideals dictated by Shari’ah laws that financial institutions servicing the Muslim populace have to comply with. Barwa Bank’s products and services offerings are 100% Shari’ah compliant, providing the bank’s customers with an array of options in deposits, loans, investments, and insurance.

Banking customers in Qatar can avail of deposit and checking accounts, home and vehicle loans, business banking services, and corporate and investment banking accounts that are creatively designed to match their needs. Most banks like Barwa Bank has off-site facilities such as ATMs, online banking, and phone banking to give their customers access to their account information anywhere they are. Those looking for a banking institution in Qatar should look for one that is committed to providing innovative financial solutions devised using the highest quality Islamic banking products and services while adhering to the principles of Shari’ah.

Barwa Bank is the newest Islamic bank in Qatar specializing in the full range of retail and commercial banking services. An allied business of Qatar’s Barwa Real Estate Company, Barwa Bank has succeeded in completing several acquisition deals over its short history. This includes the largest closed shareholding Qatari investment banking firm The First Investor QSC in 2009, the First Finance and the First Leasing Company in 2010, and the most recent International Bank of Qatar’s Al Yusr retail loans and deposits portfolio.
 

If you are interested in Qatar banking then Barwa Bank could be the right banking choice for you. They offer high quality business banking in Qatar.

Banking

Annuity Indonesia and Islamic Banking System

As is known, Indonesia is one of the largest Muslim country in the world. Of course this is very influential  on the development of annuity Indonesia. It often happens pros and cons in terms of application of the annuity system of Indonesia due to differences in perception among users of annuities in Indonesia.

One effort to overcome this, the Government Republic of Indonesia issued Law No. 10 of 1998 which is an amendment above Act No.7 of 1992, then in Indonesia are two of the banking system (Dual banking system) is a system of conventional banking and Islamic banking system. System Islamic Banking operations are different from other commercial banks (conventional).

Majority of conventional bankscondensed scent in the pursuit of material benefits alone (capitalistic) with a system of interest, so do not know of any other party loss, while Bank Sharia emphasizes the nature of ta’awun (mutual help in the joys and sorrows / partnership), so there for the profit sharing principle known as the “profit and loss sharing” or “Mudlarabah” and also there are good loans (social) for customers who are very weak with the scheme (the form of financing) “qordlul hasan” ie loans where the customer is not burdened anything except just return anyway Specialized in banking, after the birth of the Law No.10 of 1998 which explicitly recognizes Islamic banking system in addition to conventional banking, then the existence of the Bank Muamalat Indonesia and other Sharia Commercial banks and financial institutions generally, the Shari’a sturdy and strong because there is a definite legal footing.

The existence of a definite legal basis is then up to the year 2011 have been born decades Commercial Bank is a Sharia Unit Sharia (windows) of the Bank of Conventional, As for the objectives established sharia banking are:

Directing economic activity in the Islamic Ummah to rmuamalah, particularly in the field banks to avoid the practice of usury;  to create a justice in the economy by way of smoothing income through investment activities, so there is no noticeable gap between capital owners and capital management; to improve the quality of life by encouraging people to berwira business; to help overcome the problem of poverty is the main program of State develop;

To maintain stable economic / monetary government, namely to avoid / curb inflation and interest rates due to the application of unfair competition from financial institutions Conventional and entrepreneurs in general.

To save the Muslims from the dependence of conventional banks so that the Muslims can develop its economy in Islamic; Further characteristics / traits that distinguish Islamic bank with conventional banks among others: 

Costs  to be mutually agreed at the time the contract is manifested in the form of nominal and its flexible and reasonable;

A percentage of the payment be avoided because it is attached to the rest of the debt although the time limit has expired agreement; Islamic banks do not implement the financing contract based on a definite advantage (fixed return) are determined upfront, but rather to profit sharing in both profits and in losses.

Islamic banks will not make money by selling the same type of currency, with In other words money is seen not as an item so that the transaction always komudite use the term financing / credit not credit the money stuff.

In Islamic banking there Sharia Supervisory Board to oversee the operationalization bank of syari’ah aspect.

 

Economics in Islam plays a very important role in life, syaria banking system developed in Indonesia, more or less influenced the development of annuity in Indonesia. The authors are interested in presenting this material in written form which is expected to provide benefits to all parties.

Banking

Annuity Indonesia and Islamic Banking System

As is known, Indonesia is one of the largest Muslim country in the world. Of course this is very influential  on the development of annuity Indonesia. It often happens pros and cons in terms of application of the annuity system of Indonesia due to differences in perception among users of annuities in Indonesia.

One effort to overcome this, the Government Republic of Indonesia issued Law No. 10 of 1998 which is an amendment above Act No.7 of 1992, then in Indonesia are two of the banking system (Dual banking system) is a system of conventional banking and Islamic banking system. System Islamic Banking operations are different from other commercial banks (conventional).

Majority of conventional bankscondensed scent in the pursuit of material benefits alone (capitalistic) with a system of interest, so do not know of any other party loss, while Bank Sharia emphasizes the nature of ta’awun (mutual help in the joys and sorrows / partnership), so there for the profit sharing principle known as the “profit and loss sharing” or “Mudlarabah” and also there are good loans (social) for customers who are very weak with the scheme (the form of financing) “qordlul hasan” ie loans where the customer is not burdened anything except just return anyway Specialized in banking, after the birth of the Law No.10 of 1998 which explicitly recognizes Islamic banking system in addition to conventional banking, then the existence of the Bank Muamalat Indonesia and other Sharia Commercial banks and financial institutions generally, the Shari’a sturdy and strong because there is a definite legal footing.

The existence of a definite legal basis is then up to the year 2011 have been born decades Commercial Bank is a Sharia Unit Sharia (windows) of the Bank of Conventional, As for the objectives established sharia banking are:

Directing economic activity in the Islamic Ummah to rmuamalah, particularly in the field banks to avoid the practice of usury;  to create a justice in the economy by way of smoothing income through investment activities, so there is no noticeable gap between capital owners and capital management; to improve the quality of life by encouraging people to berwira business; to help overcome the problem of poverty is the main program of State develop;

To maintain stable economic / monetary government, namely to avoid / curb inflation and interest rates due to the application of unfair competition from financial institutions Conventional and entrepreneurs in general.

To save the Muslims from the dependence of conventional banks so that the Muslims can develop its economy in Islamic; Further characteristics / traits that distinguish Islamic bank with conventional banks among others: 

Costs  to be mutually agreed at the time the contract is manifested in the form of nominal and its flexible and reasonable;

A percentage of the payment be avoided because it is attached to the rest of the debt although the time limit has expired agreement; Islamic banks do not implement the financing contract based on a definite advantage (fixed return) are determined upfront, but rather to profit sharing in both profits and in losses.

Islamic banks will not make money by selling the same type of currency, with In other words money is seen not as an item so that the transaction always komudite use the term financing / credit not credit the money stuff.

In Islamic banking there Sharia Supervisory Board to oversee the operationalization bank of syari’ah aspect.

 

Economics in Islam plays a very important role in life, syaria banking system developed in Indonesia, more or less influenced the development of annuity in Indonesia. The authors are interested in presenting this material in written form which is expected to provide benefits to all parties.

Banking

Islamic Banking in Modern Times

Islam is a religion which encompasses the entire life its adherents. The source of all laws regulating the Islamic way of life flows from the Quran and Shariah. That includes the business and commercial aspects of the Islamic community. In fact, Mecca and Medina, the two most sacred places of Islam had always been flourishing centers of trade. The banking as we know it today d id not exist then. It is a western institution which came into being after the industrial revolution in Europe. Certain elements of modern banking did exist at time when Islam was revolutionizing the Arab region. Interest is central element of modern banking which is prohibited in Islam. It is known as Riba(interest) the acceptance and payment of which is considered un-Islamic. These principles did well as the economy at the time was prosperous.

The Islamic banking grew out of the need of the Muslims to evolve a  system of finance which while fulfilling all the needs of the business and people yet remains within the principles of Shariah. It came into being during the late 20th century. During last three decades, a large number of Islamic banks have come in all parts of the world catering to the financing needs of the Muslims. Though the name is a bit of misnomer as the Islamic banking is not exclusively for Muslims. It is same as conventional banking  but functions in accordance with the injunctions of the Shariah and Quran.

During the colonial times, the Muslims came in contact with the western banking institutions. The Muslims faced a banking system which was value-neutral. They had a choice to accept this or evolve a Shariah-compliant banking  institution. There was debate going on in 19th century amongst the scholars of Islam whether interest(Riba) referred to loans for consumption or those undertaken for commercial purposes. Such proposals were rejected as the does not distinguish between different kinds of loans.

In the sixties, the Islamic Economists started working on devising ways of establishing commercial banking compliant with Shariah principles. Such an experiment was successful in rural Egypt which functioned on zero-interest policy operating three types of accounts,i.e.,saving accounts, Zakat accounts and investment accounts. the project was later terminated but had shown Islamic banking can become reality.

The oil boom and oil price rationalization during seventies gave further fillip to the establishment of modern Islamic banking. Islamic banking is based on the principle of Mudarabah(Islamic Way, Profit-Loss-Sharing). It also stipulates another rule no reward without risk-bearing. Mudarabahah can be best illustrated by the example of two persons one of whom has got the capital and the other has the managerial and entrepreneurial skills. They join hands pooling their respective resources and agreeing to share profit and bear loss in accordance with the contract they signed before starting the enterprise. So the depositors take a percentage of profit the bank generates from their capital whereas the entrepreneurs shares the profits generated from the capital of the bank.

Shariah Fortune is an Islamic Finance Portal and Community, Share your experience and details information about Islamic Banking, finance, asset management, real estate etc.

Banking

Difference Between Islamic Banking And Conventional Banking

ISLAMIC bankers, caught between scholar and layman,devote much of their time to educating an often skeptical public about the authenticity of their products. Time well spent.The purgative effects of ridding the Islamic financial sector of pretenders (and there are many) at the hands of an educated consumer are obvious.Too often,however,this education-al process is long on theory and short on practical relevance.

Perhaps the easiest way to determine whether Islamic banking is true to Qur’an,Sunna and customer is to see how it actually works in practice.The Islamic banking discussed here is the same one that earns consensual acceptance from the field’s leading scholars of the traditional schools of jurisprudence.And while unscrupulous banks do exist,increasing market regulation and customer sophistication ensure that those Islamic banks that are truly Shari’ah-com-pliant lead the industry.By learning the basics about these banks,individuals will be better able to stand their ground when not-so-Islamic bankers push non-compliant instruments in the name of Islam.

At the outset,though, it is necessary to emphasize two important points.First,just because an Islamic product and a conventional product are identical does not render the Islamic pro-duct impermissible.As obvious as this seems,it is an argument detractors often use to discredit Islamic banking.The vast majority of Islamic financial instruments bear a strong resemblance to their conventional counterparts,particularly equity-based ones (see “In Your Interest”,Islamica,winter 2003). What distinguishes them from conventional instruments is usually nothing more than a set of processes,which leads to the second point.

In Islam,the difference between whether something is forbidden, offensive,permissible,recommended or obligatory usually depends on a validating process.Two couples,one married the other unmarried,may look the same, but the agreement of a simple marriage contract makes the one Islamically valid and the other not.Two hamburgers,one using Islamically slaughtered meat the other not,may look the same,but a simple process makes one valid.So too,two financial products,one Islamic the other not,is differentiable by a set of steps:ostensibly cosmetic,Islamically defensible.

The following are among the most commonly asked questions by customers new to Islamic banking (ordered in increasing degree of complexity).

There was no Islamic bank during the Prophet’s (Allah bless him and give him peace) time,so how can there be Islamic banking now? Sounds like a bid’a (innovation)

Microchips,potato chips and Islamic banks are examples of permissible things for which the Prophet (Allah bless him and give him peace) gave us no specific guidance.Rather,he forbade us from engaging in blameworthy innovations (bid’a) that would contravene the Islamic Sacred Law (Shari’ah),rather than from new things that possess no intrinsic blameworthiness.The bid’a is in the blameworthiness,not in the newness.

Admittedly,some Islamic banks do carry out impermissible transactions,but that implicates the entire field of Islamic banking no more than the sins of a few Muslims incriminate the entire Islamic community.

As for the claim that Islamic banking is just part of the “system” and is therefore best avoided,is to put one’s head firmly into the sand;romantic anachronists need not apply.As long as Muslims,money and capital markets co-exist,there will always be a need for Muslims to put their money into some kind of a market (even a little money in a checking account circula- tes into global capital markets).The question Muslims should really be asking themselves is:What now? Whether they would not rather keep their money in the most Islamically acceptable manner available to them given the options.And while new customers might be forgiven some level of healthy skepticism,we should all under- stand the limits of our own unqualified ijtihads1 when declaring something a bid’a.

To get more knowledge about islamic banking courses and other factoid,visit the islamic finance courses site.

Finance

Affordable Islamic Finance Dubai

Islamic finance has emerged as a viable alternative the world over after the financial meltdown of the west. It is growing at the rate of more than 15%. Not only Muslim countries but modern, secular and industrialized countries like UK, France, Japan, Singapore and Hong Kong have become a hub of Islamic finance and banking as well.  The rapid development and growth of such finance is considered a priority area by international banks of world stature.

Dubai is seen by many industry watchers as the leading center of Islamic finance today. It has more sukuk listed than anywhere else, with $ 16 billion worth, and international investors are flocking to the emirate’s latest sukuk issuances and initial public offerings, thus making Islamic Finance Dubai, a viable option.

Essentially, Islamic finance is finance under Islamic law (or Shari’ah) principles. The basic sources of Shari’ah are the Qur’an and the Sunna, which are followed by the consensus of the jurists and interpreters of Islamic law.

Islamic Finance Dubai, like other countries in the Middle East, practices banking in consonance with the main principles underlying Islamic finance.  These include the prohibition of taking or receiving interest; capital must have a social and ethical purpose beyond pure, unfettered return; investments in businesses dealing with alcohol, gambling, drugs or anything else that the Shari’ah considers unlawful are deemed undesirable and prohibited; a prohibition on transactions involving masir (speculation or gambling); and a prohibition on gharar, or uncertainty about the subject-matter and terms of contracts – this includes a prohibition on selling something that one does not own.

In addition, Islamic finance can be combined with conventional funding sources and export credit agency (ECA) support, for the closure of innovative transactions, in Dubai and other Middle Eastern countries. In the world of commercial banking, the more commonly encountered methods of Islamic financing include Murabaha (cost-plus financing),Mudaraba (profit-sharing),Musharaka (partner- ship financing), Ijara (leasing), Istisna’a (commissioned Manufacture)

Islamic loans are as plentiful as they are life and comfort-enhancing! The Shari’a compliant repayment plan termed the Al Khairi Liabilities Settlement, seeks to ease your financial burden and begin afresh by transferring your conventional bank liabilities to the loaning agency; you can avail Hajj and Umrah Finance on a no profit and no processing fees basis; an amazing no mortgage, zero down payment option gets you  an AED 200,000 Boat Loan to be repaid in 5 years, Tamweel Finance for wedding expenses and renting an apartment, Travel Finance for religious or enjoyable family vacations, Islamic loans also include exciting Car, Personal and extremely comprehensive Education, Home and Shares Finance, to loan you happiness permanently!

Find and compare Islamic finance Dubai at souqalmal.com