Global Islamic Microfinance Forum, 8th December, 12 at Dubai.

Global Islamic Microfinance Forum

About AlHuda Centre of Islamic Banking and Economics

AlHuda Centre of Islamic Banking and Economics is a globally recognized name working in the areas of Islamic banking & finance and microfinance in order to provide specialized Trainings, Advisory and Research for the last seven years with an aim to serve the community by providing state-of-the-art Advisory, Consultancy and Education to masses through various well recognized modes i.e. Distance learning programs, Trainings Workshops, Awareness Programs and Islamic Microfinance Products Development. Our specialized and research oriented publications are another source of knowledge delivery. For further details, please visit: www.alhudacibe.com

About Akhuwat

Akhuwat is dedicated to improve the lives of the poor, especially those who are financially abused, abandoned and disregarded by society. It was established with the objective of providing interest free microfinance to the poor so as to enhance their standard of living. Drawing on principles of social justice and brotherhood, Akhuwat strives to alleviate poverty by creating a system based on mutual support in the society. Akhuwat’s philosophy is based on the principle of Qarze Hasn, helping someone in need with an interest-free loan, has been favored over charity. From a first loan of Rs. 10,000, Akhuwat’s total disbursements have now become round about Rs. 2 billion in just eleven years. For further details, please visit: www.akhuwat.org.pk

About International Conference on Islamic Microfinance, 2011

AlHuda CIBE organized an International Conference on Islamic Microfinance on 13^th of June, 2011 at Faisal Mosque, Islamabad. The conference was a great success. Vision of the conference was to create a value in the line of Islamic microfinance for the benefit of human kind and motive was to create awareness in the masses and International Market through this event.

A good number of valued professionals attended the event and renowned speakers shared their valuable knowledge and experience. Some of the well-known speakers of the conference were Justice Khalil ur Rehman - Shariah Advisor - AlBarka Bank Pakistan, Mr. Jasim Sheikh- Project Manager – IMED, Islamic Relief, Mr. Khobaib A Vahedy - Country Director, Muslim Aid – Pakistan, Mr. Amjad Arbab - Chief Executive Officer, Shore Bank International, Mrs. Farida Toor Tariq - Chief Executive Officer, CWCD etc.

The Media partners in this event were True Banking, Takaful (Islamic Insurance) Blog, Micro Capital, Business Islamica, The Islamic Globe, Microfinance Bulletin, Microfinance Focus, International Alternative Investment Review, TV One Global, Microfinance Africa, Noozz.com Bringing Business Closer, Microfinance Hub, ecPluse The Pulse of Economies and Shirkah whereas the sponsors and supporters were Akhuwat, Islamic Relief, Halal Research Council, Islamic Microfinance Network, Helping Hand for Relief and Development, Awqaf SA Empowering Communities, Muslim Aid Serving Humanity, Micro Enterprise Development, The Scottish Government, Pakistan Microfinance Network, Khwendo Kor, Naymet for Everyone.

In continuity of the last year’s conference, AlHuda-CIBE is going to arrange a 2^nd International Conference on Islamic Microfinance entitled as “Global Islamic Microfinance Forum” scheduled to be held on 11^th & 12^th November at Dubai, U.A.E.

About Islamic Microfinance

Microfinance has emerged as an important instrument to help a large number of “Unbankable” members of society, as a tool to help reduce poverty and encourage economic growth in neglected parts of the world. However, time has proved that conventional microfinance is not fully reaching the poorest of the poor.

During the latest research on Microfinance sector, it is evaluated that Islamic financial system provides the best solutions for Poverty alleviation and Social sustainability, it is not only providing opportunity to utilize a sustainable system but also offers good rate of return & ideal performance compare to conventional microfinance system.

Islamic Microfinance is a sub-set of Islamic Economic & Financial System. The demand for Shari’ah complaints financial products and services is increasing with the rapid progress of Islamic finance industry. It is widely accepted that micro finance is the most effective tool for alleviation of poverty and uplift the living standards of poor through real economic activities in society, but as per market studies conventional micro financial system could not serve the potentially as should expectation due to the few deficiencies in the system. So, it is an immediate need to develop substitute financial products for microfinance institutions.

Need Assessment of Islamic Microfinance

We are in great need of Islamic microfinance to be implied due to the failure of microfinance structure all over the world and its most unprecedented example is India where microfinance companies had failed after a biggest clampdown due to exorbitant interest rates. Islamic microfinance has traits to provide a parallel support to the poorest of the poor and its imminent qualities leaves no room for structural devastation as emphasizes ethical, moral & social factors to promote equality and fairness for the good of the society.

It is estimated that 3 billion people are living below the poverty line around the world among them approximately 44% conventional microfinance clients reside in Muslim countries. Almost one-half of the 56 IDB member countries in Asia and Africa are classed as United Nations Least Developed Countries (LDCs), so there is an immediate need to start Islamic Microfinance in Muslim Majority countries for financial inclusion. Right now, there are about 250 Islamic Microfinance Institution, working globally in 32 countries. Islamic Microfinance have proven track record that it deals with long lasting & complete solutions for Sustainability.

Is Islamic Microfinance only for Muslims?

It is a misconception that only Muslims can opt. Islamic Microfinance but non Muslims can also take the edge from Islamic microfinance for social sustainability worldwide. It is a best alternative to microfinance and a system which has to be extracted from the golden beam of Islam that covers all the qualities of micro financing by providing alternative solution. Non Muslims can also utilize this system to lessen poverty. In not only Muslim communities but also in the non Muslim societies, conventional interest based microfinance has being been rejected, principally of its non-compliance with the Islamic principles and practically on the issue of paying of interest or Riba, which is forbidden under the Shari’ah.  This has somehow caused failure of agencies’ initiatives to overcome poverty and promote economic development through micro financing.

Islamic Microfinance is a system not a Religion; it can be utilized & operated by both Muslims and Non-Muslim Communities for Poverty Alleviation and Social & Economic Development. Islamic Microfinance is very much compatible with the all the models which are being utilized in conventional microfinance like Grameen Model, Village Bank Model, Credit Union Model, Cooperative Model and Self-Help Group etc.

Key Objectives of this Forum

The vision of this Islamic Microfinance Global Forum is to create a value in the line of Islamic microfinance for the benefit of human kind and motive to create awareness in the masses and International Market through this event.

Islamic Microfinance Global Forum aims at evaluating the state-of-the-art knowledge in the field of Islamic Microfinance. Over the course of this forum, participants will have the opportunity to be trained from learned Professionals, Experts, and Panelists and to learn many things by their experiences through sessions, speeches and presentations designed under different tracks within the specific subject. The core objectives of this Forum are:

• Promoting awareness of Islamic Microfinance among the masses, government and Non Governmental Sectors and Multilateral Donor agencies.
• Promote Islamic Microfinance Model which is compatible with the models being used in Conventional Microfinance.
• Create a more favorable environment for Islamic Microfinance at national and international level
• To promote Islamic microfinance as a social phenomenon instead of business oriented model
• Gain global practices on Islamic microfinance through learned national and international scholars and experts
• To recognize Islamic Microfinance as sustainable system worldwide
• Awareness of Islamic Microfinance system as sustainable and viable solution for poverty alleviation

§  Buildup the recognition of Islamic Microfinance system, for  the encouragement of practitioners/microfinance institutions/ donor agencies/ Government institutions

§  To provide a Platform to start a dialogue with multilateral donor organizations and Microfinance Network

§  Providing innovative knowledge of the various aspects of Islamic microfinance

§  To provide the opportunities for collaborations/partnerships with donor agencies, Islamic banks and Islamic Microfinance Institutions/Networks. 

§  To ensure continued growth of Islamic Microfinance Institutes

Who should attend this Forum?

§  Microfinance Institutions & Banks

§  Local and International Donor’s Agencies

§  Rural Support Programs

§  Islamic and conventional Banks

§  Insurance and Takaful Companies

§  SMEs & Corporative Societies

§  NGOs and NPOs

§  Microfinance Professionals and Experts

§  Academia

§  Philanthropist and Investors

§  Regulators and Govt. Officials

§  Shari’ah Scholars and Experts

Promotional and Marketing Opportunities

No Company can afford to miss this Great Interactive Marketing Opportunity!

Islamic Microfinance Global Forum is practice driven but interesting for senior level executives event, designed to explore and share strategies within Islamic microfinance industry. This platform is expected to provide a healthy liaison and calls for tremendous marketing and promotion opportunities for the following business and social segments:

§     Microfinance Institutions & Banks

§     Local and International Donor’s Agencies

§     NGOs and NPOs

§     Islamic and Conventional Banks

§     IT Companies

§     Rating Agencies

§     Investment Banks

§     Local and Multinational Companies

§     REITs

§     Financial Solutions Providers.

Islamic Microfinance Workshop www.alhudacibe.com/yemen2012

Islamic Microfinance Workshop www.alhudacibe.com/yemen2012 http://www.facebook.com/photo.php?fbid=508725462489929&set=a.119358161426663.15787.100000574393931&type=1

Yemen will Host an International Workshop on Islamic Microfinance

Islamic Microfinance is getting appreciation by the whole world for alleviation of poverty and Muslim and non-Muslim Countries are utilizing it. Microfinance Institutions in Arab Countries are also providing Microfinance to Muslims which is in accordance with Islamic standards in order to get poor out of obscurity of poverty. Amongst these Arab Countries, Yemen is at the top of the list with other countries like Iraq, Syria, Jordan and Egypt.

Due to the escalating popularity of Islamic Microfinance in Arab countries with the intention to increase the reach of Microfinance Institutions, AlHuda Centre of Islamic Banking and Finance and Yemen Microfinance Network is going to arrange 2 days training workshop on Islamic Microfinance on 16^th & 17^th September, 2012 to be held in the Capital City of Yemen - Sana’a, in which different topics like the proper utilization of Islamic Microfinance for alleviation of poverty in poor countries, Islamic Microfinance Products and their structure, Shari’ah principles of Microfinance and MicroTakaful would be discussed.

The Chairman of Yemen Microfinance Network, Mr. Mohammed Al Lai has declared the arrangement of this two days international workshop on Islamic Microfinance, a good step for the Microfinance sector. He said that Islamic Microfinance is rapidly growing in Yemen and the workshop like this will provide more awareness about it.

Chief Executive Officer of AlHuda Centre of Islamic Banking and Economics, Mr. Muhammad Zubair Mughal has said that AlHuda has established a separate department for the promotion of Islamic Microfinance, named as “Centre of Excellence in Islamic Microfinance” so that awareness, consultancy and training could be provided to the Microfinance Institutions and in this regard, during this year, workshops will be arranged in Yemen, Azerbaijan, Nigeria, Kazakhstan, Indonesia and Niger. He further said that the purpose of this training in Yemen is to make Arab countries aware of the importance and benefits of Islamic Microfinance which is in accordance with the religious beliefs of Arab Countries because in Arab Countries, people avoid conventional microfinance due to the factor of interest and remain stuck in poverty. So, Islamic Microfinance is very much needed to alleviate poverty in Arab countries. It should be noted that in spite of abundant oil and natural resources in Arab regions, some Arab countries are having poverty in them like 23% people in Iraq, 18% in Iran, 34.8% in Yemen, 13.3% in Jordan, 12.5% in UAE, 28% in Lebanon and 11.9% in Syria are living under the poverty line.

The Pioneer Islamic Microfinance Magazine will be Launched in September, 2012

Centre of Excellence in Islamic Micro finance - AlHuda CIBE,  is a well established name in the Islamic Banking and Finance market, working for Advisory, Education, Islamic Financial products development & Awareness. AlHuda CIBE is going to add one more dimension in its portfolio by launching the first ever magazine of its kind on Islamic Microfinance News.

Research shows that almost one-half of the 56 IDB member countries in Asia and Africa are classed as United Nations Least Developed Countries (LDCs) and approximately 44% conventional microfinance clients worldwide reside in Muslim countries. So, with the aim of spreading timely and accurate information regarding Islamic microfinance, “AlHuda Islamic Microfinance News” would create a more favorable environment for Islamic Microfinance at national and international level and would help in reducing poverty of the world.

In this regard, we request you to share your suggestions/feedback, views, related articles, scholarly ideas or any message with us. Your valuable contribution is highly needed in order to make our effort a big success.

You can write us at : info@alhudacibe.com , or Visit: www.alhudacibe.com/imhd  

AlHuda CIBE introduces Free Advisory services during the Holy Month of Ramadan

AlHuda Centre of Islamic Banking & Economics (CIBE ) is a well established name in the Islamic Banking and Finance working for Advisory, Education, Islamic Financial products development & Awareness.
Muslims around the world are welcoming the arrival of the holiest month of the Islamic year. In this Holy month, Alhuda Centre of Islamic Banking and Finance offers the following complementary services to masses to reap the full benefit of this blessed month:

- Free Shariah Advice and Consultancy

Alhuda has established an expert panel of Shariah Scholars & Finance professional for giving free advisory services to businessmen/General Public for removing the day to day problems and issues related to:
- Zakah & Usher Calculation
- Religious issues related to business, financial, banking and Halal Food etc.
- Other religious matters & Free literature service about Islamic Finance
The imminent Shariah experts would receive your live calls from 9:00 am to 12:00 (noon) till end of Ramadan. So do not hesitate to contact and get your problems resolved.
AlHuda CIBE also offers 25% discount on its distance learning programs on Islamic banking and finance during the Holy month with the theme to spread the blessings of Ramadan by bringing individuals in Shariah compliant and true profession to earn their livelihood.
Get Registered and Reap the Benefits of the Holy Month! For more information please visit: www.alhudacibe.com/dlp

South Africa Names Six Companies to Advise on Sukuk Sale

South Africa’s National Treasury appointed six companies, including Standard Bank (SBK) Group Ltd., BNP Paribas SA (BNP) and Albaraka Banking Group (BARKA), to advise it on its debut Islamic bond issue.
Nova Capital Partners LLC, Liquidity Management House for Investment Co., and Regiments Capital (Pty) Ltd. were also appointed, Tshepiso Moahloli, a senior analyst in the Pretoria- based Treasury, said by phone today.
The Islamic bonds, or sukuk, may form part of the Treasury’s plan to raise $3 billion in international markets over the next three years, she said. South Africa, where less than 2 percent of the 49.1 million people are Muslim, is looking to tap the Islamic finance industry’s $1 trillion in assets.
“We’re engaging with the banks now; the amount, currency and timing will depend on the outcome of our discussions,” Moahloli said. “From what we have observed, issuance tends to be from $500 million to about $700 million and movement around the five-year sukuk area looks like it’s the most favored area.”
The structuring and issuance of the sukuk may be used as a benchmark for state-owned companies that also plan to issue Islamic bonds, Moahloli said.

Public Finance Law

Sukuk are usually backed by assets sold to a special- purpose company by the issuer, which then rents them back in lieu of paying interest. The debut Islamic bond issue was delayed after the government decided to review public finance law, which doesn’t provide for the government to issue asset- based securities, Thuto Shomang, head of asset and liability management at the Treasury, said on May 17.
Moody’s Investors Service rates South Africa A3, the second-highest investment grade on the continent, according to data compiled by Bloomberg.
The country should not limit itself to an international sukuk, Jay Henning, an executive at Cape Town-based money manager Oasis Group Holdings, said by phone.
“While we agree with an international issue, there is definitely demand for a South African issue as well,” Henning said. “We have capacity for it and I’m sure other Sharia- compliant asset managers do as well.”
To contact the reporter on this story: Stephen Gunnion in Johannesburg at sgunnion@bloomberg.net

 Bank Sohar, Path Solutions ink pact for Islamic banking system

 Bank Sohar, Oman's dynamic banking institution and Path Solutions, a global provider of software solutions to the Islamic financial services industry yesterday announced that they have inked pact at a signing ceremony in Muscat, Oman.

As per the deal, Path Solutions' pioneering Islamic banking system iMAL will be implemented at Bank Sohar to assist the bank extend Islamic banking services.

Bank Sohar selected Path Solutions after evaluating several software solutions providers. Bank Sohar has become the fourth bank in the Sultanate of Oman to adopt Path Solutions' iMAL system reaffirming Path Solutions' position as a leading banking and financial software powerhouse in the region.

Speaking on the occasion, Dr. Mohamed Abdulaziz Kalmoor, CEO of Bank Sohar said that innovation is imperative in this era of globalization and added, "We were impressed with Path Solutions' willingness to meet our needs in providing end-to-end AAOIFI-certified Islamic banking solution. iMAL is a flexible and scalable banking platform that will drive new business models around Sharia principles, which will in turn increase the volume of our business, thus helping Bank Sohar achieve and maintain competitive edge."

Recently Bank Sohar partnered with Dar al Sharia, a reputed Sharia consultancy firm, to make sure that there is no compromise in the development of products, processes and systems and to also make sure that the staff is trained by experts from the region.

Bank Sohar has identified three areas of utmost importance for ensuring that its Islamic window is a solution that respects the basic tenets of Islam, the sensibilities of Omanis and is within the guidelines of the Central Bank of Oman. These include proper training and development of staff to deliver Islamic products, a proper and certified Islamic banking system and products that have a proper grounding in Sharia and are backed up by relevant Fatwa from respected scholars.

Mujahid Said al Zadjali, AGM and Head of IT, Bank Sohar said, "The bank leverages IT to make the customer's experience more convenient, effective and efficient through services such as 'Anytime, Anywhere Banking' through a range of Delivery Channels, such as Branches, ATMs, e-Banking and SMS, and across Payment and Settlement systems and it is our endevour to implement Islamic banking solution smoothly within a given time frame."

Mohammed Kateeb, Group Chairman & CEO, Path Solutions commented, "We consider this opportunity to work with Bank Sohar an endorsement of Path Solutions' leadership positioning in the Islamic banking sector. Bank Sohar will seek to service a market niche in Oman that has only been lightly tapped by local financial institutions, becoming a major participant in the market for Sharia-compliant Islamic securities, treasury and investment products. We look forward to working with Bank Sohar for the successful completion of this project."

Path Solutions' customer base spans across 28 countries. The company has a strong presence in the Middle East, Africa, Asia Pacific and England. Path Solutions' other customers in the Sultanate of Oman include Bank Nizwa, Bank Dhofar and Ahli Bank Oman.

Internationalisation to Drive Islamic Capital Markets

It has been reported that the next phase of growth of the Islamic capital market would be characterised by greater internationalisation, which would see more product issuers and service providers expanding beyond their home market. The Securities Commission's executive director of Islamic capital market, Zainal Izlan Zainal Abidin said that more investors would seek products or instruments with international exposure. Speaking at the 7th Islamic Markets Programme, he said there would also be greater diversity in terms of currencies used in issuing Shariah-compliant instruments. Izlan said the Islamic finance industry was at a crucial stage where it needed to redefine and establish the enabling environment that will spur its next phase of growth. Islamic finance, he said, had developed into an industry with global appeal, marked by a 15% average annual growth rate over the past decade, to reach US$1.3 trillion to date. As for Malaysia's Islamic capital market, the Capital Market Masterplan 2 was expected to grow at an average rate of 10.6% per annum, over the 10-year period to 2020. Izlan said Islamic finance had developed not only in traditional Muslim markets like Malaysia and the Middle East, but also in conventional markets and financial centres such as the UK, with a growing number of jurisdictions across the globe at various stages of developing their capabilities in Islamic finance. Themed "Building the Environment for the Growth of Islamic Finance", the IMP attracted 41 local and international participants including Islamic finance practitioners, members of academia and regulators.

Central Asian and African Countries are the New Destinations of Islamic Finance: Zubair Mughal

Islamic Banking and Financial Industry Lacks Better Human Resources

29/06/2012

Muhammad Zubair Mughal, CEO, AlHuda CIBE is speaking at The First International Forum on Islamic Banks and Financial Institutions, at Jordan

The First International Forum of Islamic Banks and Financial Institutions held under the patronage of His Excellency, Dr. Fayez al-Tarawneh– Prime Minister of Jordan has come to end today in Amman; the Capital city of Jordan. The Forum was jointly organized by General Council of Islamic Banks and Financial Institutions - Bahrain and Strategy - Jordan. In this forum, different topics like Emerging trends of Islamic Banking in Arab Countries, Legal and Taxation matters of Islamic banking, Role of International Institutes in Islamic Banking and finance and Importance of Education and awareness of Takaful and Islamic banking etc. were discussed. A good number of Experts & Professionals from different countries like Pakistan, Malaysia, Palestine, Indonesia, Bahrain, UAE, Qatar, Saudi Arabia etc. participated in this mega forum. While addressing to the concluding session, Chief Executive Officer of AlHuda Centre of Islamic Banking and Economics, Mr. Muhammad Zubair Mughal said that presently, Islamic banking is growing at a very rapid pace and the Central Asian Countries (Kazakhstan, Afghanistan, Tajikistan, Uzbekistan, Kyrgyzstan, Azerbaijan) and African Countries (Nigeria, Tanzania, Kenya, Ghana, Tunisia, Senegal etc) are its new destinations of Islamic Banking and Finance where the rapid increase in the demand of Islamic banking is being observed and majority of these countries are providing shield to Islamic banking and finance industry by bringing alterations in Laws through parliaments. While presenting the review of present Islamic Finance Industry, he said that the market of Islamic finance has reached to $1.3 Trillion, in which the share of Islamic banking is 77% ($1 Trillion), share of Sukuk is 14% ($180 Billion), share of Islamic Funds is 5% ($64 Billion) and share of takaful is 1% ($12 Billion) whereas the share of other Islamic financial products like Islamic Leasing, Mudarabah Companies, Islamic Microfinance and Islamic REITs is 3% ($44 Billion). He said that in comparison with the rate of growth of Islamic Banking; the Islamic banking graduates are not being produced accordingly due to which there is a lack of supply of Man Power than the demand of Islamic Banking and finance which should be resolved immediately. He said that not only new Experts of Islamic banking and finance should be produced to be utilized in the emerging market of Islamic banking and finance but the non-qualified personnel in Islamic banking and staff of conventional banks should be changed into Islamic Financial experts so that Islamic banking could be run by qualified Islamic bankers. He further said that Islamic banking and Finance should not be only for well-off, Business personnel or middle class but its benefits should also be disseminated to poor through Islamic Microfinance so that they could get rid of poverty and live their lives respectfully through proper employment.

50 Thousand Islamic Financial Professional Needed Globally

HR Crisis May arise if Demand and Supply Remain Unbalanced

Zubair Mughal, CEO, AlHuda Centre of Islamic Banking and Economics speaking about Islamic Banking and Finance at Moscow Halal Expo at All Russian Exhibition Centre - Moscow, Russia

(Moscow) - In accordance with the growing industry of Islamic Banking and Finance, the whole world needs 50,000 Islamic Finance Experts right away so that the emerging market of Islamic Banking and Finance may be easily promoted. These thoughts were expressed by Mr. Muhammad Zubair Mughal, Chief Executive Officer – AlHuda Centre of Islamic Banking and Finance, during his speech on the topic of “Importance of Islamic Finance Education” in “Moscow Halal Expo” held in All Russian Exhibition Centre - Moscow; the capital city of Russia. He said that due to the recent International Financial Crises in conventional banking and finance, the world is moving rapidly towards alternative system of banking and finance and undoubtedly, the Islamic banking and finance system is the first and the foremost choice in this regard because the during financial crisis had very fewer impact on Islamic finance industry which is the assurance of its future success. He said that education of Islamic banking and finance is immediately needed internationally. At this time, 38 universities in the world are producing approximately 5000 graduates of Islamic banking and finance per annum, whereas relatively its demand is 10 times more around the globe. If this demand and supply would not be balanced in short time then Islamic banking and finance industry may face many obstacles in its growth and promotion. In the recent era, conventional bankers are being provided with trainings having some of the essentials of Islamic banking and finance in order to adjust them in Islamic financial industry which is a wrong approach and is creating many reservations in financial industry. He further said that in order to establish Islamic banking and finance system on strong foundations, it is needed to produce graduates with complete knowledge of Islamic banking and finance having full command on Shari’ah, Fiqah and Islamic financial products. In this regard, AlHuda Centre of Islamic Banking and Economics has introduced its MBA and Post Graduate Diploma on Islamic banking and finance based on the mode of Distance learning so that the people of countries which currently do not have any facilities of Islamic banking and finance could get advantage of this facility from their office or home and strengthen the rapidly emerging market of Islamic banking. He said that 4 pronged approaches should be adopted in order to educate masses in the field of Islamic banking and finance. 1) Graduation, Masters and Post Graduate Diploma programs on Islamic banking and finance should be arranged at University or College level in order to produce incumbents who could fulfill the responsibilities in Islamic financial institutions at managerial level in an excellent manner. 2) At post graduate level, one year diploma and six months certificate courses on different topics like Islamic banking, Sukuk (Islamic Bond), Takaful (Islamic Insurance), Islamic Fund and Islamic Microfinance should be arranged so that the experts in these fields could be produced. 3) Online programs on Islamic banking and finance should be promoted so that the awareness of Islamic banking and finance may be promoted worldwide as only 20 countries are providing education in this field. 4) Workshops, trainings and publications in the field of Islamic banking and finance should be promoted in order to encourage awareness among masses regarding this.

Pakistan to host an International Conference on Islamic Funds

Islamic Finance and Funds gaining popularity in the backdrop of current global financial crisis: Zubair Mughal

23 February 2012 (Lahore) The Financial world is banking upon the Islamic Finance and Shariah Compliant Investment Funds, in the backdrop of the current global financial crisis, which in turn is bringing a boost to the Islamic Funds and Sukuks. Considering the healthy global growth in this sector, an International Conference is being organized on April 23, 2012 in Karachi in order to strengthen the Islamic finance sector in Pakistan. Research papers will be presented and productive discussions will be undertaken to highlight the role of Pakistan in the global Islamic finance market. Islamic finance is making healthy growth in Pakistan which now stands over 1000 Islamic banking branches from 05 Islamic Banks and 13 Conventional Banks with Islamic finance operations. In addition, we have good support from 05 Takaful Companies, Mudarabah Companies, 20 Islamic Microfinance Institutions, over 30 Sukuk issues and 15 fund managers have launched their Islamic Funds, which have made prominent role of Pakistan in the global Islamic finance canvas.

The organizer of this International Conference and Chief Executive Officer, AlHUda-Centre of Islamic Banking and Economics, Mr Zubair Mughal while declaring the objectives behind this conference, highlighted the valuable contribution by Pakistanis in research, shariah and skilled professionals bringing strong alternative in a difficult financial situation faced by the world.

Mr Zubair added that Islamic funds are rapidly gaining popularity in US$1.3 Trillion worth of global Islamic finance market gaining 6.1% share from over 650 funds spread all over the world, of which the highest 230 is in Saudi Arabia while Malaysia has 172, Cayman Island 59, Bahrain 46, Luxemburg 29, Dubai 16, Singapore 11 are the prominent players in the world.

Zubair Mughl further informed the media that a healthy number of participants from different countries will be attending in this conference which will be followed by a Two Days Specialized Workshop on the Shariah and Regulatory Framework for Islamic Funds on 24^th and 25^th of April, 2012 to be conducted in Karachi, Pakistan.

Islamic Finance and Funds Industry gaining brisk popularity

International Conference on Islamic Funds and Investments opened in Karachi; A large number of investors participated in the Conference

February 23, 2012

(Karachi) An International Conference on Islamic Funds and Investment opened today in a local hotel in Karachi, participated by a large number of investors from UAE, USA, UK, Canada, Malaysia and Qatar. The topics covered on first day of the Conference were, Investment opportunities for Islamic Funds, Shariah status and Mechanism of Islamic Investments and Funds with global trends, Standardization and Brokerage and exchange rules and the Islamic Exchange Indices. The next two days have been allocated for training workshops on the allied topics on Islamic Investments, Marketing and Shariah guidelines. A large number of well known Shariah Scholars and Islamic finance professionals including: Mr Irfan Siddiqui, CEO, Meezan Bank Limited. Pakistan; Majid Siddique Dawood, CEO, Yassar Ltd. UK; Mr. Asif Arif Commissioner, Securities and Exchange Commission of Pakistan; Mr. Saleem Ullah, Director, Islamic Banking State Bank of Pakistan; Omar Farooq Kalair, CEO, Um Financial Group, Canada; Shamshad Nabi, CEO, MUFAP; Prof Dr. Aurangzeb, HOD, Business Administration Department, Dadabhoy Institute Of Higher Education, Karachi; Mohammad Shoaib, CFA, Chief Executive, Al Meezan Investment Management Limited; Nadeem Naqvi, MD, Karachi Stock Exchange Limited, Pakistan; Kavilash Chawla, MD, Nur Global Strategies, Chicago, U.S.A; Ms. Tara Uzra Dawood, Chief Executive Officer, Dawood Capital Management Ltd, Pakistan; Dr. Zubair Usmani Shariah Advisor MCB Bank Limited, Pakistan; Syed Tariq Ali, Executive Director, Pathway Global LLC, UAE; Mufti Muhammad Najeeb Khan, Shariah Advisor, Habib Metropolitan Bank Limited, Pakistan; Qazi Abdul Samad, Shariah Advisor, The Bank of Khyber, Pakistan; Azeem Iqbal Pirani Regional Manager FWU Group and Muhammad Asad, Chief Investment Officer, Al-Meezan Investments Ltd. Islamic finance is making healthy growth in Pakistan which now stands over 1000 Islamic banking branches from 05 Islamic Banks and 13 Conventional Banks with Islamic finance operations. In addition, we have good support from 05 Takaful Companies, Mudarabah Companies, 20 Islamic Microfinance Institutions, over 29 Sukuk issues and 15 Asset Management Companies have launched their Islamic Funds, which have made prominent role of Pakistan in the global Islamic finance canvas. The organizer of this International Conference and CEO, AlHUda-CIBE, Mr Zubair Mughal while declaring the objectives behind this conference, highlighted the valuable contribution by Pakistanis in research, shariah and skilled professionals bringing strong alternative in a difficult financial situation faced by the world. Mr Zubair added that Islamic funds are rapidly gaining popularity in US$1.3 Trillion worth of global Islamic finance market gaining 6.1% share from over 650 funds spread all over the world, of which the highest 230 is in Saudi Arabia while Malaysia has 172, Cayman Island 59, Bahrain 46, Luxemburg 29, Dubai 16, Singapore 11 are the prominent players in the world. Mr Zubair Added that Islamic Funds industry is growing with other aspects of Islamic Finance including Mudarabah and Takaful businesses. Some of these funds are the leading funds in Asian markets as well, which is a matter of honor for Pakistan and can be taken as the source of further development in this sector. He further added that from the bright prospects for Islamic Funds other allied sectors like brokerage houses; stock market indices etc will also gain momentum. The hosts and organizers of the Conference AlHuda Center of Islamic Banking and Economics are organizing it with the technical support of Meezan Bank and UBL Asset Management limited and the support of other including Al-Meezan Investment Management Ltd, Dawood Capital Management Ltd, FWU, Burj Bank Ltd, Dadabhoy Institute of Higher Education, Diyanah Financial Services, Khyber Bank Ltd, ABL Asset Management Ltd, Habib Metropolitan Bank and Babib Mudarabah to make the Conference successful.

International Conference on Islamic Fund and Investment

Greetings from AlHuda Centre of Islamic Banking and Economics – Pakistan

AlHuda Center of Islamic Banking and Economics is a recognized name in Islamic banking and finance Market for Trainings, Research and Advisory over the last six years. We are dedicated to serve the community as a unique institution providing Trainings, Education and Consultancy in the field of Islamic Banking & Finance not only in Pakistan but all over the world.

AlHuda Centre of Islamic Banking and Economics is pleased to invite you on the “International Conference on Islamic Fund and Investment” scheduled to be held on 23 April, 2012 at Avari Tower, Karachi - Pakistan.
The Islamic funds market is one of the fastest growing sectors of financial industry not in Muslim but also in Non Muslim Countries. The key goal to conduct this conference is to highlight the value and importance of Islamic funds, Islamic means of investments and alternatives and to identify the characteristics that distinguish Islamic funds from conventional investments.

At this conference, you will enjoy meeting and setting connections with the key players of Fund & Investment Management Industry. You are requested to “Support & Participate” in this international conference. Your timely confirmation will facilitate us to finalize the event details and schedules. For any further details about conference, please visit: www.alhudacibe.com/Islamicfunds2012

Pakistan is emerging as a global leader of Islamic Microfinance: Zubair Mughal

UN-Millennium Development Goal (MDGs) can be achieved by eliminating Poverty through Islamic Microfinance

01-02-2012
(Istanbul) Two days International summit on Islamic Microfinance is started in Istanbul. The basic purpose behind this summit is to promote Islamic Microfinance and to elucidate the strategy to remove obstacles from its way to progress. Microfinance experts from different continents like Africa, Asia, Europe and America etc. are participating in this Int’l summit. While speaking to the opening session of the Summit, Muhammad Zubair Mughal, Chief Executive Officer, AlHuda Centre of Islamic Banking and Economics said that Pakistan has been acknowledged as a leader of Islamic Microfinance Industry and right now in Pakistan; more than 20 institutions are providing microfinance services. While highlighting the importance of Islamic microfinance, he said that around the world, conventional Microfinance has badly failed and its examples can be clearly seen in India and Latin America. He further added that due to the failure of conventional financial system, many countries in the world are adapting Islamic microfinance system for poverty alleviation through which not only poverty will be eradicated but also a sustained economy shall come into being in these countries.
While addressing to the International Summit, he further added that one reason behind expansion of Poverty is interest base mechanism in Muslim countries, People do not use Financial and Banking system due to interest as it is strictly prohibited in Islam hence forced to live in poverty whereas through Islamic Microfinance by using the financial products based on Shari’ah principles, we can get the people out from poverty. He further highlighted the need assessment of Islamic microfinance in Muslim Countries by saying that 44% of conventional Microfinance clients live in Muslim Countries and United Nations has added half of the countries of Islamic Development Bank in the list of least developed countries which shows that Islamic Microfinance can be used to eradicate poverty from Muslim-Majority Counties. While identifying the Muslim population and poverty in different regions of the world, he said that 85.5% in East Asia, 34% in South Asia, 58% in West Africa, 58% in Caucasus and 97.3% in MENA are Muslims and collectively, in 2.4 Billion population of these regions, Muslims are of 48.3% which clearly shows the need of Islamic Microfinance for poverty alleviation in these countries. He further added that not only Muslims but Non-Muslims can also get benefits from Islamic Microfinance because Islamic Microfinance is not a religion but a system which is equally useful for Muslims and Non Muslims as well and the clear example of this fact is that Non-Muslims consider it very attractive.
He said that Islamic Microfinance is essential to achieve Millennium Development Goals( MDGs), proposed by United Nations for alleviating poverty and social uplifting. He further added that if development of Islamic Microfinance starts right from today, these goals can easily be achieved till 2015. He said that Islamic Microfinance sector is facing difficulties due to apathy of Donors and to fulfill this deficiency, Sukuk (Islamic Bonds) can be issued. He further said that more financial products can be introduced by enhancing research in the field of Islamic microfinance and there are many opportunities for development in this field. AlHuda Centre of Islamic Banking and Economics has established a specific Microfinance help desk so that trainings, research and technical consultation could be provided to Microfinance Institutions worldwide.
In this Summit, the role of Pakistan in the development of Islamic Microfinance has very much appreciated and Pakistan is considered to be as global leader of Islamic Microfinance Industry. This conference will continue for 2 days in Istanbul.

Kazakhstan is the central hub of Islamic finance for CIS countries

Press Release

Kazakhstan is the central hub of Islamic finance for CIS countries: Zubair Mughal
International Islamic financial Institutions are ready for doing investment in Kazakhstan

(Lahore/Kazakhstan, 24th September, 11) They are many chances of investment in Kazakhstan regarding International Islamic Banking and financial institutions are in looking on different options for investments in Kazakhstan because the world sees the Kazakhstan a central hub for Islamic banking and finance for CIS countries. These are the views of Muhammad Zubair Mughal the Chief executive officer of Al-HUDA centre of Islamic banking and economics, which he expressed in his speech in the International finance forum that is held in the Astana the capital of Kazakhstan in this week. In which the Finance minister Mr. Zhamishev Bolat of republic of Kazakhstan, the vice member of the chancellor of Prime Minister Mr. Tolevkhanov Dauren, the member of the area of department of strategic progress and research of President Administration Mr. Sadvawasov Darmen, the senator of the Kazakhstan Parliament Mr. Yensegenov Sarsenbag, the chairman of the committee of national bank of republic of Kazakhstan Mr. Nurpeissov Darkhan, the executive director of Zakat fund Mr. Alpysbay Edige and include International experts. The theme of the conference was to make fruitful plan and procedures for the development and expansion of Islamic finance in Kazakhstan.
By addressing to the forum, Mr. Muhammad Zubair Mughal presented the origin and starting of Islamic banking and finance in Pakistan in the form of case study that how Pakistan make fast success in Islamic banking in a short period of time. They said that Kazakhstan while doing Islamic banking and Sukuk should also utilize and use the Takaful, Islamic fund, Islamic microfinance and Islamic Reits side by side and for the development of infrastructure the government and Kazakhstan should issue Sukuk in International market so that the Kazakhstan is recognized as the Islamic Financial state in the international market.
He said Kazakhstan is one of the ninth biggest countries of world which holds the 70% population of Muslims from the 16.5 million populations, that is the sign of huge market of Islamic banking and finance. Due to which by making the Kazakhstan the model of Islamic Finance for the rest of CIS countries so that the implementation of Islamic banks and finance their can easily be done. Especially in Central Asian countries because there the population of Muslims is very much huge like Kazakhstan 70%, Uzbekistan 97%, Azerbaijan 99%, Turkmenistan 94%, Kyrgyzstan 86%, Tajikistan 84% is Muslim population. That is the clear sign of the progress and demand of Islamic banking there.

Press Release

Kazakhstan is the central hub of Islamic finance for CIS countries: Zubair Mughal
International Islamic financial Institutions are ready for doing investment in Kazakhstan

(Lahore/Kazakhstan, 24th September, 11) They are many chances of investment in Kazakhstan regarding International Islamic Banking and financial institutions are in looking on different options for investments in Kazakhstan because the world sees the Kazakhstan a central hub for Islamic banking and finance for CIS countries. These are the views of Muhammad Zubair Mughal the Chief executive officer of Al-HUDA centre of Islamic banking and economics, which he expressed in his speech in the International finance forum that is held in the Astana the capital of Kazakhstan in this week. In which the Finance minister Mr. Zhamishev Bolat of republic of Kazakhstan, the vice member of the chancellor of Prime Minister Mr. Tolevkhanov Dauren, the member of the area of department of strategic progress and research of President Administration Mr. Sadvawasov Darmen, the senator of the Kazakhstan Parliament Mr. Yensegenov Sarsenbag, the chairman of the committee of national bank of republic of Kazakhstan Mr. Nurpeissov Darkhan, the executive director of Zakat fund Mr. Alpysbay Edige and include International experts. The theme of the conference was to make fruitful plan and procedures for the development and expansion of Islamic finance in Kazakhstan.
By addressing to the forum, Mr. Muhammad Zubair Mughal presented the origin and starting of Islamic banking and finance in Pakistan in the form of case study that how Pakistan make fast success in Islamic banking in a short period of time. They said that Kazakhstan while doing Islamic banking and Sukuk should also utilize and use the Takaful, Islamic fund, Islamic microfinance and Islamic Reits side by side and for the development of infrastructure the government and Kazakhstan should issue Sukuk in International market so that the Kazakhstan is recognized as the Islamic Financial state in the international market.
He said Kazakhstan is one of the ninth biggest countries of world which holds the 70% population of Muslims from the 16.5 million populations, that is the sign of huge market of Islamic banking and finance. Due to which by making the Kazakhstan the model of Islamic Finance for the rest of CIS countries so that the implementation of Islamic banks and finance their can easily be done. Especially in Central Asian countries because there the population of Muslims is very much huge like Kazakhstan 70%, Uzbekistan 97%, Azerbaijan 99%, Turkmenistan 94%, Kyrgyzstan 86%, Tajikistan 84% is Muslim population. That is the clear sign of the progress and demand of Islamic banking there.

Islamic Microfinance Network ( IMFN ) now unlock for membership worldwide

July 25, 2011
Islamic Microfinance sector is currently progress aggressively by addressing of deficiencies and challenges faced by the traditional Microfinance industry, right now near about 300 Islamic Microfinance Institutions are operating around the globe effectively, due to tremendous performance of Islamic Microfinance Institutions, now conventional Microfinance Institutions are opting Islamic system for poverty alleviation at large.
For addressing all the challenges and opportunities Islamic Microfinance, Islamic Microfinance Islamic Microfinance Network (IMFN) has launched in 2010 with the aim to provide a unique and common platform for National and international Islamic microfinance institutions (MFIs). The activities of IMFN includes coordinate the efforts of its members in jointly addressing poverty alleviation, establishing best practices in Islamic microfinance, developing guidelines and the implementation that comply with Shariah law.
Now the membership is being opened for nationally and internationally organization who are serving in the sector of Islamic Microfinance. The membership is available who are practicing Islamic Microfinance in their operations as Permanent members while other conventional Microfinance Institutions are also welcome as observers members, so that they enable to learn about Islamic Microfinance System. It is not only for the institutions while the academician and Advisor also becomes the member of this network.
Zubair Mughal – Chief Executive Officer , Islamic Microfinance Network ( IMFN) said that it is common responsibility of the industry stakeholders to address the things at one platform for brush up and standardization with the objective toward poverty alleviation, he also said that Almost 17,000 million people live below the poverty line in the world of which 44% live in the Muslim majority countries which become the prime reason behind Islamic Microfinance. At the moment 300 Islamic Microfinance Institutions in 32 countries including: Indonesia, Kenya, Afghanistan, Bangladesh, Sri Lanka, Yemen, Egypt, Sudan, Tanzania, Mauritius, South Africa, Malaysia and Pakistan are working on Poverty alleviation. Due to its more productive role, Islamic Microfinance is gaining popularity in those countries where Muslims are in minorities.

Islamic Microfinance can work with all the Microfinance Models of the world: Zubair Mughal

(July 14, 2011)
An International Seminar on Financial Inclusion for Central Asia, the Caucasus, and South Asia organized by Asian Development Bank Institute-Japan, APEC Business Advisory Council -China, & Asia-Pacific Finance and Development Center from 12th – 14th July, 11, concluded days today in Urumqi, Peoples Republic of China. Delegate from China, Japan, Pakistan, Bangladesh, India, Malaysia, Singapore, Kazakhstan, Uzbekistan, Tajikistan, Georgia, New Zeeland, Romania, Kyrgyz, UK and Afghanistan are participating in this Seminar, wherein Current State of Financial Inclusion Developing in Asia, Rural Finance in PR China, Key Regulatory Issues in Promoting Financial Inclusion, Evolution of Microfinance Institutions towards Financial Self-Sustainability through Innovation, Service Diversification and Islamic Microfinance were discussed in details.

The third day was allocated to Islamic Microfinance and Zubair Mughal – Chief Executive Officer, AlHuda Centre of Islamic Banking and Economics Pakistan gave the Key Note speech on Islamic Microfinance, said that Islam has given the best system for poverty alleviation and both Muslims and non-Muslims can benefit from it. He emphasized that the people from Central Asia, the Caucasus, and South Asia can equally get benefit from Islamic principles of Microfinance. He said the out of the total population of 1.7 billion about 562 million are Muslims in these regions, which becomes important for financial inclusion through this system. Islamic Microfinance is compatible to work with any model of Microfinance and it has the alternative to all the products of Conventional system.

Mr. Zubair Mughal further said that in the wake of the current financial crisis all around the globe, the Islamic Microfinance has gained even more importance due to its transparency and sustainability. He also discussed the poverty issues of Central Asia, the Caucasus, and South Asia separately so that Islamic Microfinance becomes an effective tool for poverty alleviation in these areas. Mr. Zubair Mughal offered his services from AlHuda-Centre of Islamic Banking and Economics who have also set up a Help Desk for Advisory, Trainings and Capacity Building for Microfinance Institutions. We provide complete solutions in Islamic Microfinance for poverty alleviation are practiced effectively.

Islamic Microfinance can eliminate the Poverty from the world

AlHuda Centre of Islamic Banking and Economics (AlHuda-CIBE) jointly with Akhuwat organizing an International Conference on Islamic Microfinance on June 13, 2011 at Faisal Masque Auditorium in Islamabad.

The objective of this conference is to share the experiences and research of the seasoned scholars and practitioners of Islamic Microfinance from all over the world for ensuring poverty alleviation from the world. A variety of experiences and models in Islamic Microfinance, Shariah Principles, QArz-e-hasan, Waqf, Micro-Takaful and the use of Technology in Islamic Microfinance will be discussed and shared at the Conference.

One of the important points is to share the Qarz-e-hasan model of Akhuwat which has so far achieved the milestone of Rs. One Billion (Rs.1,000,000,000/-) lending to over 90,000 poor beneficiaries. Almost 17,000 million people live below the poverty line in the world of which 44% live in the Muslim majority countries which become the prime reason behind Islamic Microfinance. In the recent past, the international donor agencies like: USAID, CGAP, World Bank, IFC, Frankfurt Finance School etc have conducted surveys and research which became convincing that Islamic Microfinance in the genuine need in these Muslim majority countries. At the moment 300 Islamic Microfinance Institutions in 32 countries including: Indonesia, Kenya, Afghanistan, Bangladesh, Sri Lanka, Yemen, Egypt, Sudan, Tanzania, Mauritius, South Africa, Malaysia and Pakistan are working on Poverty alleviation. Due to its more productive role, Islamic Microfinance is gaining popularity in those countries where Muslims are in minorities. AlHuda-CIBE has take initiative to setup an Islamic Microfinance Network in coordination with many Islamic Microfinance institutions to bring them together at one platform.

The Organizer of the Conference Mr Zubair Mughal (CEO, AlHUda-CIBE), while declaring the objectives and targets, said “Pakistan is gaining a unique position in Islamic Microfinance, and playing a leading role in this sector, and so hosting of this conference on Islamic Microfinance will further strengthen this idea” Mr. Zubair further explained that this conference will make Islamic Microfinance globally popular and and it will work as the genuine ray of hope for the 40% Pakistanis living below the poverty line.

Other national and International institutions participating in this conference are Islamic Relief Pakistan (IRP), ASASA, CWCD, Muslim Aid, Helping Hand, Khwendo Kor, Scottish Government, Nymet Islamic Microfinance, Awqaf-South Africa, Albaraka-MPCS. Pakistan Microfinance Network (PMN) and Islamic Microfinance Network also supporting this conference.

A new chance in Egypt for Islamic finance

DUBAI: Covered head-to-toe in a black abaya embroidered with red and yellow flowers, Amal Abbas waits for her turn to place a deposit at Cairo’s Al Baraka Egypt Bank, one of Egypt’s two fully-fledged Islamic banks.

Although Egypt is considered the birthplace of Islamic finance, which adheres to Islamic principles banning interest and speculative trading, its growth has lagged due to past corruption scandals, while the previous government sought to enforce a more secular financial system.

But after the Egyptian revolution toppled Hosni Mubarak and his government, Muslims like Abbas are embracing Islamic banking, raising the prospect that Egypt could become another thriving centre of Islamic finance.

“I prefer Islamic finance, it keeps me far from usury and I feel my money is blessed,” said the 50 year-old research centre manager at the Mohandessin branch of Al Baraka Egypt Bank.

“My husband has been dealing with mainstream banks for more than 30 years and all his projects failed because they were funded by unblessed money.”

According to a 2009 report by consulting firm McKinsey, Islamic banking only accounts for three to four per cent of Egypt’s $193 billion banking industry. That compares with 46 per cent in the United Arab Emirates.

“In a post-Mubarak era, the urgency of rebuilding and changing things will clash with the absence of resources and lack of money,” said Ibrahim Warde, adjunct professor at The Fletcher School of Diplomacy at Tufts University.

That will likely present an opportunity for Islamic finance houses in the Gulf region, which now serves as the industry’s global hub.

“Egypt is going to look towards the Gulf for money and it’s going to have to offer Islamic options to maximise investments.”

Cairo-based National Bank for Development, which is converting into a full-fledged Islamic bank, is already 49 per cent-owned by Abu Dhabi Islamic Bank. Al Baraka Egypt is in fact a unit of Bahrain’s Al Baraka Bank.

There’s also keen interest in Egypt for Islamic insurance, or takaful, which makes up five per cent of Egypt’s $1.45 billion insurance market but is expected to grow dramatically, according to a March report by Islamic consultancy BMB Islamic.

Salama Islamic Arab Insurance’s chief executive Saleh Malaikah said this month that demand for its products in Egypt have grown significantly since the revolution.

According to data from Bankscope and Thomson Reuters, Egypt could see Islamic finance assets grow to $10 billion in 2013 from $6 billion in 2007.

POLITICAL TOOL

Challenges remain, given the less than encouraging history of Egypt’s Islamic finance industry.

Millions of Egyptians were stung by ponzi schemes in the mid-1980s, when a number of money management companies touted Islamic investments at returns above local interest rates.

A new post-Mubarak administration is expected to show more interest in Islamic finance, despite concerns that a growing Islamic finance industry could also provide political support for Islamic opposition groups in the country of 80 million.

Egypt will need to adopt Islamic banking as one tool to appease politically active Islamic groups or face a barrage of criticism for adhering to the previous regime’s hard line against the industry, said Humayon Dar, chief executive of consultancy BMBIslamic.

“Egypt is a religiously sensitive country. There are a number of families and small savers who wouldn’t want to use the conventional system,” he said. “If there’s a movement towards interest-free banking, that would draw deposits.”

Grassroots support is already emerging among conservative Muslims. Manal al-Moursi, another bank customer at Al Baraka Egypt Bank, said Egyptians are turning to Islamic finance, in part, to show their support for the Muslim Brotherhood.

The Muslim Brotherhood, founded in 1928, was long persecuted as the main challenger to the ruling National Democratic Party in parliament and was one of the most vocal protesters during the demonstrations that toppled Mubarak on Feb. 11.

With the dissolution of the NDP and growing acceptance of the Muslim Brotherhood in mainstream politics, experts say extremists will have increasing influence in the new Egypt and Islamic finance will serve as one way to propagate Islamic values and gain supporters.

“The Muslim Brotherhood are for Islamic finance because it is related to religion,” said Mohasseb Refaat, deputy manager at Bank of Alexandria. “They will promote the idea so long as it is in their benefit.”

Refaat said the industry is likely to gain more footing in Egypt if the Brotherhood secures a significant number of seats in the 508-member parliament in September. One leading Brotherhood figure said the group could field candidates for as many as 49 per cent of the seats.

Even secularists calling for less religion in society may make a pre-emptive attempt to promote Islamic finance ahead of elections to reach a wider group of constituents.

Takaful Malaysia launches risk management product

KUCHING: Syarikat Takaful Malaysia Bhd (Takaful Malaysia) introduced its latest exclusive and innovative product, Takaful mySME which focuses on risk management solutions for the four top business sectors in Malaysia.

In a media conference held here yesterday, Takaful Malaysia chief marketing officer Alex Tan initiated a panel discussion by stating that ‘risk management’ was understood to be ‘insurance’ which in turn meant ‘protection’ for individuals and businesses alike.

As such, mySME risk management solutions were offered to small-and-medium-enterprise (SME) entrepreneurs to enjoy the best comprehensive protection plan.

He pointed out that Takaful products were open to all Malaysians provided the businesses conferred to islamic principles.

Tan also emphasised that Takaful Malaysia premiums were on average lower than conventional insurance coverage and that the takaful certificate holders who did not make any claims in the first 12 months would be entitled to a 15 per cent rebate automatically.

Also present in the panel discussion were head of EONCap Islamic Bank Bhd (EONCap Islamic) business banking-i Ruslena Ramli, Rabiah Amit managing director of Rabiah Amit Cake House, managing director of SME Factors Sdn Bhd Syed Zed Al Qudsy and panel mediator Vickneswari Gannason.

Takaful Malaysia had recently signed a Memorandum of Understanding (MoU) with SME Corp Malaysia on April 5 to bring awareness to Malaysian SMEs via roadshows themed “Powering SMEs with Takaful mySME’.

SME Corp (Sarawak) state assistant director Florence Mawar said that SMEs made up 99.2 per cent of the business sector and the four sectors being focused on were light manufacturing, retail, food and beverages as well as office and services.

Ruslena pointed out that EonCap Islamic currently offered a whole suite of banking and financial products as well as custom-tailored combinations for SMEs as outlined in the working capital enhancement scheme.

Syed Zed emphasised that assistance of local SMEs, talent retention, enhanced customer service innovation and market focus were essential in developing SMEs on a larger scale.

Rabiah, with almost 30 years experience as a SME operator, started the business at home and faced many challenges over the years, including a fire which destroyed the business premises and a vehicle.

As such, she concluded by stating that protecting the business was absolutely essential. This concurred with Tan’s earlier statement that insurance was about protecting the business and self.