Ratings Firm Confirms Negative Outlook for Malaysian/Indian Telecom Sukuk
On February 16, 2013 · In India, Indonesia, Islamic Bonds, Islamic Finance, Malaysia, Shariah Bonds, Shariah Finance, SUKUK
RAM Ratings Services Bhd has reaffirmed its negative outlook for Binariang GSM Sdn Bhd’s senior sukuk and junior sukuk ratings. Sukuk are also referred to as “Islamic bonds” and “Shariah Bonds.” Binariang GSM Sdn Bhd is an investment holding company with interests in telecommunications company Maxis Bhd and Aircel Ltd – India’s seventh largest mobile operator – and PT Axis Telekom Malaysia, the fifth [...]
The purpose of Shariah Finance is to promote Shariah. The chief weapon for achieving that over the past 2 years has been what is known as the Islamic bond, or sukuk. Sukuk are increasingly being used on both sides of the credit market. When Islamic nations and companies want to raise money in the credit [...]
Sukuk, or Shariah-Compliant Bonds, have a poor record in terms of ethics and defaults in particular. The latest example of this comes from Malaysia, one of the Islamic world’s leading nations when it comes to Shariah-Compliant finance. MCRB Southern Link, a conglomerate involved in a variety of businesses in Malaysia, including wholesale foodstuffs, has seen [...]
One of the challenges facing the Shariah Finance industry is a shortage of qualified Shariah scholars to serve as “advisers” to Shariah-compliant financial institutions. Not only is their a shortage of Shariah scholars, but many of the existing Shariah scholars are very old. Sheikh Youssef al-Qaradawi and Mufti Taqi Usmani are examples of the old [...]
Shariah Comes to Ireland Via the Financial World
On November 21, 2012 · In Creeping Shariah, IRELAND, Islamic Finance, Islamization, Malaysia, Shariah Finance
The financial jihad has come to Ireland, something that will not come as a surprise to regular readers of SFW. Still, the ascent of Shariah in Western Europe via Shariah-Compliant Finance is something to which we must never grow accustomed. It is truly the modern day Trojan horse… Islamic finance company Amanie Advisors is to [...]
Bloomberg, a leader in financial news and information, continued to demonstrate its commitment to the barbaric, medieval code of Shariah with its announcement of a new Sukuk (Shariah-compliant bond) index in Malaysia. The timing of this is especially ironic given the fact that Bloomberg depends on freedom of speech, freedom of the press and free [...]
RAM Ratings has downgraded the long-term ratings of two of MRCB Southern Link Bhd (MSLB)’s secured sukuk issues and cautioned that there was a high chance the company would default on them in December. MSLB is a funding conduit for the 8.1km Eastern Dispersal Link Expressway (EDL) in Johor Baru. The highway opened to the [...]
“Ethical Investing” from Countries Overrun With Corruption?
On August 30, 2012 · In "Ethical Investment", Countries, Egypt, Indonesia, Iran, Iraq, Islam, Islamic Finance, Lebanon, Libya, Malaysia, Pakistan, Saudi Arabia, Sharia Compliant, Shariah Finance, Somalia, Sudan, Syria, Yemen
Transparency.org has publishes a Corruption Perceptions Index that rates the level of corruption in the world’s nations. The most recent year for which there is data is 2011. The results are instructive for observers of Shariah Compliant Finance. Shariah-Compliant Finance is often touted by the financial jihadists as “ethical” investment. There are a variety of [...]
The good folks at Jihad Watch have an extensive report posted today on a disguised form of jizya tax at work in Malaysia: It is open secret that most income tax paid to the Malaysian Muslim government comes from more prosperous, more entrepreneurial non-Muslims, despite them being less than half the population. http://www.jihadwatch.org/2012/07/infidels-funding-islam-a-primer-to-malaysias-disguised-jizya-system.html
The Islamic Financial Services Board (IFSB) forecasts that the Shariah Finance industry will grow at a 15% annual rate over the next ten years. Meanwhile, HSBC, one of the leaders of the financial jihad in the West, points out that Shariah banking has grown at a 15% to 25% annual rate. As if to celebrate [...]
Shariah Finance Watch editor briefs Congressional staffers on Shariah-Compliant Finance
On June 8, 2012 · In "Ethical Investment", AIG, Al Qaeda, Amana Funds, Center for Security Policy, Creeping Shariah, Da'Wah, Dow Jones, Dow Jones Islamic Market, Elena Kagan, Hamas, HARVARD, Hezbollah, Hizb ut-Tahrir, Holy Land Foundation, HSBC, Interest, Investors Business Daily, Iran, Islam, Islamic Banking, Islamic charities, Islamic Economics, Islamic Finance, Islamic Law, Islamization, Jihad, Jihadist Groups/Individuals, Malaysia, Money Laundering, murabaha, MURAHABA, Muslim Brotherhood, Obama, OIC, purification, Qaradawi, Qatar, Regulation, Saudi Arabia, Sharia Compliant, Shariah Banking, Shariah Finance, Shariah in Academia, Shariah insurance, Shariah Law, Shariah Mortgage, Sovereign Wealth Funds, Sudan, Takaful, Taliban, Terror, Terror Funding, terrorism, The Banker, U.S. Policymakers, UAE, United Kingdom, USA, Usmani, Usury, VIDEOS, Wahhabism, Zakat
Recently we had the opportunity to brief staff members from 10 Congressional offices on the threat of Shariah Finance. The briefing was recorded and we have posted the full 1-hour briefing here for SFW viewers… Shariah Compliant Finance and Financial Jihad
Bank Islam in Malaysia has launched a new Shariah-compliant derivative product called an Islamic Dual Currency Investment-i (DCI-i). This product is wrapped in a murky Shariah cloak, but make no mistake about it: it is a derivative product designed to squeeze additional returns out of fluctuations in foreign currencies. The foreign currency markets are highly [...]
One of the key aspects of a secure investment is liquidity. The ability to turn your investment to cash is considered a key component of mature financial markets. That’s why it is so important that sukuk, also known as Islamic bonds, lack liquidity, especially as compared to conventional bonds. Investors holding sukuk that get into [...]
An International Conference on Islamic Funds and Investment opened this week in Karachi, Pakistan. According to the Pakistan Observer, among the large number of attendees were investors from the USA and Canada. The report indicated that some $1.3 trillion is invested in 650 Shariah-Compliant funds worldwide, including 230 in Saudi Arabia, 172 in Malaysia, 59 in [...]
Thai Jihadist Bombers Get Big Payout
On April 10, 2012 · In Jihad, Jihadist Groups/Individuals, Malaysia, Terror, Terror Funding, terrorism, Thailand
H/T Money Jihad blog Back on 31 March, Jihadist terrorists launched a coordinated bomb blitz in southern Thailand in a major escalation of the ongoing Islamic insurgency there: http://terrortrendsbulletin.com/2012/03/31/the-jihad-in-thailand-escalates-sharply/ The Bangkok Post has published a report that indicates that the Thai Jihadists who successfully conduct such attacks head to the Malaysian border for big bonuses. [...]
Evidently there aren’t enough high quality sukuk to go around…
On April 10, 2012 · In Indonesia, Islamic Bonds, Islamic Finance, Malaysia, Shariah Bonds, Shariah Finance, SUKUK
Malaysian and Indonesian pension funds, which have a combined $192 billion of assets, say plans to increase holdings of Islamic bonds are being hampered by a shortage of investment-grade sukuk. Yesterday we pointed out that Yemen had floated a sukuk with a projected 1-year return of between 15% and 18%, a sure sign of risk-a [...]
Maybank Islamic Bhd of Malaysia has unveiled Maybank Islamic Ikhwan Visa Infinite, a credit card designed for affluent Muslims. This certainly raises some eyebrows in the West since “Ikhwan” (Arabic for “brothers”) is the word used as the popular name for the Muslim Brotherhood, the political wing of the global Islamic insurgency and the organization [...]
Saudi Arabia has overtaken the UAE to become the largest Sukuk (Islamic bond) issuer in the Gulf region, raising $6.4 billion in Q1 2012, compared to issuance of $1.9 billion by the UAE. Malaysia accounted for 71 per cent of total issuance and was the top Sukuk issuer with $31 billion followed by Saudi Arabia [...]
Regular readers of SFW know of the concerns over zakat, a form of tithing in Islam that is at least partially authorized–and in some cases mandated–to go to those waging jihad for allah. Our latest essay on this subject can be found here: http://www.shariahfinancewatch.org/blog/2011/10/17/correcting-the-new-misinformation-on-islamic-charities-funding-jihadist-terrorism/ Obviously, this only tells half the story. The other side of [...]
Islamic governments are lining up to support the Sukuk market. For instance, like other nations, Malaysia has granted special tax advantages for Sukuk offerings, essentially crowding out conventional forms of financing. The Islamist movement keeps rolling in the financial world… http://www.businessweek.com/news/2011-10-07/malaysia-gives-tax-deduction-for-sukuk-sales-for-3-yrs-from-12.html
Yet another sukuk arrangement seems to have gone awry, this one in Malaysia. Printing company Dawama Sdn Bhd missed a sukuk payment and has been downgraded by Malaysian Rating Corp Bhd (MARC). During the round of defaults that plagued sukuk issuers in 2008-2009, most of the problems surfaced in the Persian Gulf region. It is too early [...]
Malaysia is known as a bustling hub of Shariah Finance, but what many people do not realize is that they have implemented a system whereby non-Muslims pay higher tax rates to fund Islamic missionary projects. The good folks at Jihad Watch have the details… http://www.jihadwatch.org/2011/07/malaysias-dhimmis-fund-islamic-dawah.html
The Pacific Rim nation of Malaysia is still–by far–the largest issuer of sukuk (Islamic bonds) in the world, accounting for a whopping 72% of market value. The fact that the nations that dominate the rest of Shariah Finance–Iran and Saudi Arabia–along with the balance of Islamic nations, account for such a small percentage of sukuk [...]
Keep this in mind when choosing where to conduct your banking business… The global Islamic capital market is once again focused on Malaysia with the recent launch by Bank Negara Malaysia, the central bank, of its new Islamic monetary management instrument, the Bank Negara Monetary Notes-Istithmar (BNMN-Istithmar). At the same time, according to Islamic banking [...]
Philippine authorities arrested a Malaysian “follower of Osama bin Laden” last week known as Abdul Aziz Usman Aziz Othman. Aziz is said to be the financial officer of a jihadist organization. He was well suited for such a task, having attended the University of Tennessee in the 1990s by studying accounting and finance there… http://moneyjihad.wordpress.com/2011/06/13/malaysian-terror-financier-studied-accounting-in-tennessee/
One concern about Shariah Finance is the whole shadowy practice of “purification,” in which “ill-gotten gain” is donated to Muslim charities selected by Shariah advisors to literally “purify” a fund or financial institution that may have garnered income or gains from some haram (forbidden) source. There is obviously a moral hazard here with the potential [...]
Maybank Islamic today distributed a total amount of RM 7.07 million to 15 State Zakat centers as well as to charity bodies and organizations in Malaysia, an increase of RM2.06 million compared to the financial year of 2009. The total amount of zakat is derived from the profits earned by Maybank Islamic Berhad for the [...]
Egypt delays sukuk as financial jihad comes to South Africa and elsewhere
On April 12, 2011 · In Creeping Shariah, Egypt, Islamic Banking, Islamic Bonds, Islamic Finance, Islamic Financial Services Board, Kenya, Malaysia, Nigeria, Sharia Compliant, Sharia Products, Shariah Banking, Shariah Bonds, Shariah Finance, South Africa, SUKUK
The political unrest in Egypt has forced that country to delay setting up the structure for sukuk (Islamic) issuance, but the financial jihad is moving into Nigeria, Kenya and, most ominously, South Africa. The delay in Egypt will no doubt be short-lived, given the growing influence of the Muslim Brotherhood in the political power structure [...]
Malaysia has been aggressively emerging as a central force in Shariah-Compliant Finance for some time. Now the Asian nation stands to benefit from the unrest in the Middle East as financial firms shy from the unrest that is gripping the Arab world and HSBC is helping them lead the financial jihad… http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=126957#axzz1J80h2Utf
Malaysia, the world`s largest Islamic financial market, has rejected providing loans through ringgit bonds to Korean financial companies, the Korean Strategy and Finance Ministry said Wednesday. Korean financial institutions have faced difficulty tapping Mideast oil money after a bill on Islamic bonds called sukuk failed to pass the Korean parliament. The Malaysian government has asked [...]
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