New York-based AIG is looking to tap in to the $4 billion Shariah-compliant insurance, or takaful, market in Malaysia. AIG formed a joint venture with Alliance Bank Malaysia Bhd in January, four months after winning a licence from Malaysia’s central bank. There are 10 Shariah-compliant insurance companies in Malaysia, with US-taxpayer owned AIG owning two, [...]
There is something about Sukuk (Islamic Bonds) which must make them more susceptible to default than conventional financing instruments. Since the outset of 2009, there have been no fewer than 34 defaults by Sukuk issuers. Keep in mind that this rash of defaults comes from an industry that touts itself as a form of “ethical [...]
Malaysian Central Bank Shariah Advisers forbid forward forex fee
On August 27, 2010 · In Islamic Banking, Islamic Finance, Malaysia, Shariah Banking, Shariah Finance
The Malaysian central bank’s sharia advisers have outlawed the payment of a fee to support a pledge made in Islamic forward foreign currency transactions, saying such charges contravene the religion. Islamic banks tend to levy a payment when a promise or “waad” is made to enter into a forward foreign currency hedging contract to reflect [...]
Worldwide Sukuk issuance forecast to reach $30 billion this year
On August 25, 2010 · In Indonesia, Islamic Bonds, Kuwait, Malaysia, Saudi Arabia, Shariah Bonds, SUKUK
A report on Islamic banking issued by Kuwait Finance House (KFH) has said global issuance of Islamic bonds will reach $30 billion this year, up from $20 billion in 2009. According to the KFH report, the rising optimism over the health of the global economy as well the increasing popularity of Islamic banking products have [...]
The Shariah scholars are a central concern in Shariah Finance because several of the most prominent are Jihadists with ties to extremist groups. Placing more power in such hands doesn’t help matters. There appear to be two competing entities in this movement: Mufti Taqi Usmani’s AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) and [...]
What this article ignores is the tendency of Arab Muslims to treat non-Arabs with prejudice. That is one of the chief sources of this “rivalry.” Split by an age-old rivalry stemming from the fight for market share and differences in sharia interpretation, Islamic banking hubs Malaysia and the Middle East have struggled to work together [...]
Civil law and Shariah continue to butt up against each other, this time in Malaysia, where lawyers, bankers and Shariah scholars have had to assess the Shariah Finance industry where Sukuk holders rank in priority of payment when default occurs. A near-default in December of the dollar-denominated Sukuk from Dubai property developer Nakheel created fears [...]
Reliance Capital Asset Management’s subsidiary is set to launch two Shariah-compliant funds in Malaysia by July 2010. http://assetmanagement.banking-business-review.com/news/reliance_capital_to_launch_two_islamic_funds_in_malaysia_100629/?
Malaysia’s central bank has ordered Shariah banks to give borrowers a rebate for early settlement under new rules designed to prevent legal disputes and restore confidence in troubled Shariah-Compliant financing contracts. http://www.reuters.com/article/idUSSGE65N0C520100625?rpc=401&feedType=RSS&feedName=rbssFinancialServicesAndRealEstateNews&rpc=401
Sukuk “Alert”
On June 23, 2010 · In Abu Dhabi, Debt Bonds, Dubai, GE Capital, Indonesia, Islamic Bonds, Islamic Finance, Jordan, Kazakhstan, Kuwait, Lebanon, Malaysia, Pakistan, Saudi Arabia, Shariah Bonds, Shariah Finance, Sudan, Thailand
Official and private entities in Jordan, Indonesia, Abu Dhabi, Malaysia, Saudi Arabia, Qatar, Dubai, Luxembourg, Sudan, Pakistan, Kazakhstan, Lebanon, Kuwait, Thailand, Islamic Development Bank and General Electric (GE) all are contemplating or planning Sukuk (Islamic bond) offerings in the near future… http://www.bloomberg.com/news/2010-06-22/jordan-indonesia-islamic-development-bank-plan-sales-islamic-bond-alert.html
Deutsche Bank (Malaysia) Bhd (DBMB) has launched an online zakat settlement solution in Malaysia. A subsidiary of Deutsche Bank AG, DBMB is the first foreign bank to provide an end-to-end Islamic tithe collection solution which is Shariah compliant. As regular readers of SFW no doubt know, zakat is used for a variety of purposes, but [...]
Maybank Islamic, Asia-Pacific’s largest shariah bank, forecast strong financing and deposit growth on Monday but said the lack of business-savvy religious scholars was a challenge to expansion. This fits in with the growing movement to establish a centralized Shariah governing body, which would be outrageously powerful and probably also opaque… http://www.reuters.com/article/idUSSGE65D0C120100614
The efforts to push Shariah out to the rest of the world via the financial back door continues… http://www.businessweek.com/news/2010-06-03/khazanah-said-to-plan-biggest-singapore-dollar-sukuk-correct-.html
Bank Negara of Malaysia claims to be in the final stages of developing instruments that will facilitate cross- border transactions by financial institutions to improve liquidity in the Islamic banking system. After announcing this development, the bank declined to provide any details. This is a microcosm of Shariah-Compliant Finance: big on claims, small on disclosure [...]
For those who ignore the issue of zakat in Shariah-Compliant Finance, the photograph below should be a revelation. It shows an executive with a Malaysian Islamic Bank handing over a zakat payment to a zakat official with the Malaysian government. At this point we don’t know if a portion of that money will end up [...]
Back on 13 March, we posted a link to a story about a lawsuit between a customer of Bank Islam Malaysia and the bank: http://www.shariahfinancewatch.org/blog/2010/03/13/bank-islam-malaysia-sued-by-customer-for-possible-violation/ The lawsuit involves the possible wrongful sale of the investor’s shares of the common stock of a company called Guthrie. The bank has so far refused to disclose any documentation [...]
An Illiquid Sukuk Market? No Worries, Just Issue Some More
On March 18, 2010 · In Islamic Bonds, Malaysia, Sharia Products, Shariah Bonds, Shariah insurance, SUKUK, Takaful
Malaysia may sell longer dated government sukuk to help alleviate a shortage of investments for takaful firms, an Islamic insurer said, which would help address a barrier to the industry’s growth. An illiquid sukuk market and a shortage of Islamic assets, especially long-term paper, have generated an over-reliance on regional equity and real estate markets, [...]
SFW readers should note that the bank has refused to disclose documents relating to this case. One of the chief concerns surround Shariah-Compliant Finance is the lack of transparency and disclosure characteristic of it around the world… Abdul Khalid filed the suit against BIMB for alleged wrongful sales of his shares in Guthrie under an [...]
As we have pointed out previously, Malaysia is fast becoming ground zero in Shariah Finance, at least in the Far East… http://www.theage.com.au/business/kuala-lumpur-a-world-financial-centre-through-growth-in-islamic-banking-20100308-pss0.html?
Islamic “megabank” to launch
On February 18, 2010 · In Bahrain, Financial Institution, Islamic Banking, Islamic Development Bank, Islamic Finance, Kuwait, Malaysia, Saudi Arabia, Shariah Banking, Shariah Finance
The creation of a planned Islamic investment megabank is in ‘fairly advanced stages’ and it will likely be launched in the next six to 12 months, an executive at a firm advising on the project said on Thursday. A plan to form the world’s largest sharia-compliant lender – which is being promoted by the chairman [...]
CIMB Islamic eyes Indonesia, Singapore for growth of Shariah-compliant financial products–including derivatives
On February 9, 2010 · In Da'Wah, Indonesia, Indonesia Sharia Banking, Islamic Banking, Islamic Bonds, Islamic Finance, Islamization, Malaysia, Sharia Compliant, Sharia Products, Shariah Banking, Shariah Bonds, Shariah Finance, Shariah insurance, Singapore, SUKUK, Takaful
CIMB Islamic bank of Malaysia, the world’s top sukuk arranger, will offer new sharia products this year to expand its business in Indonesia and Singapore, as the Islamic finance market struggles to recover from the financial crisis. The bank plans to launch products such as Islamic auto financing, structured instruments, derivatives and unit trusts to [...]
Asia to Drive 24% Growth in 2010 Global Sukuk Sales, CIMB Says
On February 5, 2010 · In Islamic Bonds, Islamic Finance, Malaysia, Shariah Bonds, Shariah Finance, SUKUK
Sales of Islamic bonds (sukuk) may increase 24 percent this year, led by Southeast Asia says CIMB Group Holdings Bhd., the leading arranger of such issuance. This forecast comes despite the rash of defaults which hit the sukuk market in 2009. http://www.businessweek.com/news/2010-02-03/asia-to-drive-24-growth-in-2010-global-sukuk-sales-cimb-says.html
A week ago, we reported on capital flight from Malaysia, something that has received very little attention from the financial media. http://www.shariahfinancewatch.org/blog/2010/01/12/money-fleeing-malaysia/ In the middle of the growing problems in Malaysia, the country’s prime minister is continuing to promote his nation as a center for Shariah Finance. Could this be another Dubai Debacle in the [...]
Long time readers of SFW are likely familiar with Sheikh Yusuf al-Qaradawi. Qaradawi chairs the Shariah advisory boards of some major international financial firms and is also chairman of the Union of Good, a group of Islamic charities which support Jihadist terrorist organizations. Qaradawi is also infamous for declaring in late 2008 that “Islamic” finance [...]
Money Fleeing Malaysia
On January 12, 2010 · In Defaults, Islamic Banking, Islamic Bonds, Islamic Economics, Islamic Finance, Kuala Lumpur, Malaysia, Sharia Products, Shariah Bonds, Shariah Finance, SUKUK
Here on Shariah Finance Watch we have documented that Malaysia is ground zero in the Pacific Rim for Shariah Finance: http://www.shariahfinancewatch.org/blog/category/malaysia/ Almost all of the financial news out of the Malaysian capital of Kuala Lumpur over the past year has been centered around “Islamic” finance and banking. The country’s prime minister and other cabinet members [...]
No nation in the world is more active in promoting and exporting Shariah Finance than the nation of Malaysia. Illustrating that is the fact that there are more entries for Malaysia on this blog than for any other country name, except for Iran and Saudi Arabia. http://www.shariahfinancewatch.org/blog/category/malaysia/ Also, a Malaysian bank, CIMB Islamic, just received [...]
Malaysia continues in its role as the epicenter of Shariah finance in Asia. As if Thailand doesn’t have enough to worry about from Al Qaeda-inspired and affiliated insurgents, now the financial jihadists have their sights set on the country… http://www.bernama.com/bernama/v5/newsgeneral.php?id=461776
A Shill for Shariah Finance In Power in Kuala Lumpur
On December 16, 2009 · In Islamic Banking, Islamic Finance, Malaysia, Shariah Banking, Shariah Finance
Prime Minister Datuk Seri Najib Tun Razak of Malaysia continues to promote his country at the head of financial jihad in Asia. It was he who proclaimed back in the spring that Shariah finance was “missionary work,” meaning that the purpose of Shariah finance is to promote Shariah itself. Malaysia does seem to be the [...]
Abu Dhabi Islamic Bank plans expansion throughout Asia
On December 8, 2009 · In Abu Dhabi, Indonesia, Islamic Banking, Islamic Finance, Malaysia, Shariah Banking, Shariah Finance, UAE
As if the United Arab Emirates had not done enough to the world financial system through the debacle of Dubai, now Abu Dhabi Islamic Bank has announced plans to expand its business throughout Asia. http://www.arabianbusiness.com/575493-adib-plans-expansion-throughout-asia
Malaysia and Hong Kong in Landmark Pact to Develop Islamic Capital Market
On November 24, 2009 · In Hong Kong, Islamic Finance, Islamic Law, Kuala Lumpur, Malaysia, Shariah Finance, Shariah Law
Malaysia is hell bent for leather to establish itself as the epicenter of Shariah Compliant Finance. It is, of course, no coincidence that Malaysia is also in the process of attacking free speech and imposing other aspects of Shariah on its populace… http://news.yahoo.com/s/prweb/20091124/bs_prweb/prweb3253974?
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