Islamic finance and halal industry are twins separated at birth. The Halal industry, as an asset class, is looking for compliant liquidity. Islamic finance, as a movement connected to the real economy, is looking for impactful intra-OIC (compliant) investment and financing opportunities.
Muslims, like other people with strong beliefs, do not see themselves exclusively focused on or defined by such issues. Islam has spread throughout the world because of its dynamic nature, where it influences local customs and is ‘influenced’ by the older local culture.
The Republic of Tunisia is keen to invest in Malaysia given its large market potential and the fact that Europe was currently facing an economic crisis, says Second Finance Minister Datuk Seri Husni Hadanzlah.
HDC CEO Datuk Seri Jamil Bidin said, “We can use the fund as a mechanism and propose it to the wealthy countries like in the Middle East and Brunei to inject funds and then, channel it to IDB member countries that have the ability to produce food supply.”
Given they are barred from charging interest and must abide by a strict religious code, Islamic financial institutions are often dismissed by sophisticated western bankers as living in the dark ages. However, Islamic finance, a cash-rich sector, has much to teach the west’s financial system.
Islamic finance officials will gather in Kuala Lumpur next week to debate the industry’s future path and craft crisis measures, as banks’ limited capital base and liquidity management ability render them vulnerable to a global slowdown. Product diversification and deepening the secondary sukuk market will also be high on the agenda.
Over the last few years, there has been encouragement from the UK Government for the growth of Islamic finance in the UK through legislative adjustments and creating a supportive environment, but this has focused on promoting the financial centre of London.
A group of officials representing seven ministries and government agencies, as well as businessmen from over 32 companies, will be in Muscat on April 29-30, at Crowne Plaza Muscat for a very special event, ‘1Malaysia Promotion in Oman’.
Kazakhstani President Nazarbayev showed great interest in promoting Islamic financing in Kazakhstan, “probably because both countries have a similar background of government based on Islam.” They also plan joint ventures to produce Halal food.
From humble beginnings in the 1990’s, Islamic finance has become a trillion-dollar industry. The market consensus is that Islamic finance has a bright future, owing to favourable demographics.
Jafza plan to set-up an incubation centre in the free zone to encourage Small and Medium Enterprises from Malaysia and other countries from the region to set up their operations.
Young Muslims, one of the newest groups to make inroads in American finance, can face steep barriers to entry. Some obstacles are remnants of a less tolerant era. But prominent, too, are the limitations of Islam itself.
The proposed Philippines-Qatar Joint Investment Fund includes projects in agriculture, energy, halal food, labour, mining, petrochemicals, real estate, steel, tourism, trade and infrastructure development.
A BUSINESS delegation from Belgium observed that Brunei, with its strategic location in Asean and known high quality ‘halal’ certification, has the potential to be the centre for halal certification for the region.
“The company is not over. A re-launch with a new strategy is currently on the table, and I don’t think we should be celebrating the demise of any startup company prematurely when we all know that for example, Google changed it’s business model 3 times before finding the right one.”
Speculation in food commodities by banks and hedge funds has risen from $65bn to $126bn (£41bn to £79bn) in the past five years, helping to push prices to 30-year highs and causing sharp price fluctuations that have little to do with the actual supply of food
Today is my last day at Goldman Sachs. After almost 12 years at the firm – first as a summer intern while at Stanford, then in New York for 10 years, and now in London – I believe I have worked here long enough to understand the trajectory of its culture, its people and its identity. And I can honestly say that the environment now is as toxic and destructive as I have ever seen it.
Dr Mohammad Daud Bakr, president and CEO of Amanie Advisors, has the distinction of being both a globally-renowned Sharia scholar as well as an acclaimed entrepreneur. Dr Daud provides insights into Arab Spring countries’ potential for Islamic finance, scholars sitting on multiple Sharia boards and some of the challenges faced by the $1 trillion (Dh3.67 trillion) industry.
Islamic Finance news – IFN Today, Wednesday, 23rd May 2012
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