Scotland perfectly positioned to cash in on Islamic financial products

Scotland's proud tradition of investment management makes it ideally placed to cash in on the multi-billion pound potential in the growing demand for Islamic financial products, a conference will be told next month.

Scotland's first-ever Islamic investment conference, to take place in Edinburgh, is a joint initiative between Scottish Financial Enterprise (SFE) and the Glasgow-based Islamic Finance Council (IFC). It will aim to outline how to offer investment products that comply with the principles of Islam.

Speaking exclusively to the Sunday Herald from Dubai, Omar Shaikh of the IFC said that Scotland's distinguished fund management heritage, coupled with the mutual roots of many of its largest life companies, means it is a short step for local firms to tap into growing demand for Islamic investments.
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"The reality of today's market is that people are coming back to ethics and values, and Islamic finance is fundamentally ethical finance." said Shaikh. "It is a set of principles on how you do business, which companies you fund and how you conduct yourself. These transcend any culture and nation."

Islamic banking escaping crisis shows strength

The Indonesian vice president, Jusuf Kalla, says Islamic banking has proved its strength by escaping relatively unscathed from the global economic crisis.

Speaking at a conference ahead of the World Islamic Economic Forum in the Indonesian capital, Jakarta, Mr Kalla says the one trillion US dollar Islamic banking and finance system had proved its strength by escaping the crisis.

Islamic banking prohibits speculation and high levels of debt, or the payment and collection of interest which is seen as a form of gambling.

Mr Kalla said the crisis had shown the global economic system - based on unreal transactions - is easily ruined.

Thousands of delegates from 30 countries are expected to attend the four-day Islamic economic forum, which will likely focus on the financial crisis and food and energy security.

Decision makers seek new growth map for Islamic insurance at takaful conference

The 4th Annual World Takaful Conference (WTC 2009), the world's largest gathering of Islamic insurance leaders, builds on 4 years of successfully meeting industry needs. At this critical juncture in the international financial markets, WTC 2009 is bringing together more than 300 global industry leaders representing key international Takaful operators, insurance institutions, Re-Takaful and Re-Insurance players, Captive insurance firms, underwriters, major brokers, and leading legal and advisory firms to debate how business models will change in the Shari'ah-compliant insurance industry in the context of the global economic crisis.

The World Takaful Conference (WTC 2009) is again held in strategic partnership with DIFC (Dubai International Financial Centre). HSBC Amanah, SALAMA Islamic Arab Insurance, Noor Takaful, and Takaful Re have already confirmed their participation in the conference as platinum sponsors. With new record level participation being achieved, WTC 2009 has set the stage for its most important industry gathering since its inception 4 years ago. Other leading sponsors at WTC 2009 include: ACR Re Takaful, Allianz Takaful Co., MNRB Takaful, Abu Dhabi National Takaful Co, t'azur, Munich Re Retakaful, enaya AIG Takaful, Ernst & Young, A.M. Best, Norton Rose, Hannover Re, and GIC Re.

Malaysia's Bank Negara, UKTI to cooperate on Islamic finance

Another sign of the UK's intention of becoming an international hub for Islamic finance is the signing on Wednesday of a memorandum of understanding (MoU) between Bank Negara Malaysia (central bank of Malaysia) and the UK Trade and Investment (UKTI), to establish a collaborative framework to promote mutual cooperation in the area of Islamic finance.

At the signing in London by Zeti Akhtar Aziz, governor of Bank Negara, and Sir Andrew Cahn, the chief executive officer of UKTI, there was some surprise that the MoU was between the Malaysian regulator and the UK trade promotion entity, and not with the equivalent UK financial services regulator, the Financial Services Authority (FSA). This ambivalence in the UK Islamic finance policy and the reluctance of the FSA to be seen to be encouraging the facilitation of Islamic finance in the UK is puzzling to many market players in the sector especially from the Middle East and Southeast Asia.

The agreement, according to Bank Negara, will pave the way for Malaysia and the UK to strengthen cooperation in the development of talent and expertise, business linkages and infrastructure support in Islamic finance. It will also facilitate the exchange of resources in the development of human capital and promote mutual recognition of common standards in Islamic finance transactions.

Al-Jasser may usher in new banking era

LONDON: The appointment of Muhammad Al-Jasser last month as the new governor of the Saudi Arabian Monetary Agency (SAMA) has been widely welcomed by regulatory officials and bankers both in the Kingdom and abroad.

Al-Jasser up to now served as the vice-governor of SAMA. He succeeds Hamad Al-Sayari, the former SAMA governor. Al-Jasser’s appointment was announced by Custodian of the Two Holy Mosques King Abdullah. The governorship of SAMA carries the rank of minister, which means that Al-Jasser will also sit in the Saudi Cabinet.

The differences in style and personality between Al-Sayari and Al-Jasser could not be more stark. The former, according to bankers, is an introvert — quiet, cautious and bureaucratic. The latter is more proactive, outspoken and approachable. As such, foreign regulatory officials and bankers expect a much more proactive policy approach from the new governor. Others expect SAMA under Al-Jasser to open up to Islamic banking in particular and to show leadership in this field in the light of the growing globalization of the industry.