Singapore launches first Islamic bond program

SINGAPORE -- The Monetary Authority of Singapore (MAS) announced on Monday its first Islamic bond program worth 200 million dollars (about 134 million U.S. dollars).

The bond program, also named sukuk, is the Sharia-compliant equivalent of Singapore Government Securities (SGS), and will help Islamic banks and other investors in Singapore manage their liquidity and investment portfolio. The sukuk will be issued on a reverse-enquiry basis, based on the demand of financial institutions operating in Singapore.

"This sukuk issuance facility underscores our strong commitment to the development of Islamic finance in Singapore. We invite eligible financial institutions to approach MAS to register their interest," said Heng Swee Keat, Managing Director of the MAS.

The MAS said it will continue to work closely with the industry to ensure that the regulatory and tax framework, and other necessary infrastructure and conditions are in place to foster good risk management and the further growth of Islamic finance in Singapore.

AMU to start 'Islamic Banking' course

LUCKNOW: In what is being touted as a first of its kind in the country, Aligarh Muslim University (AMU) will launch a one-year post graduate diploma course in 'Islamic Banking and Finance' based on tenets of Shariah. 

"The basic principle of Islamic banking based on Shariah, Islamic rules of transaction, is prohibition of Riba (interest)and is known as interest free banking system. As per the tenets of Islam earning interest on money deposit and loans in the bank is prohibited by law," Dr Mohammad Nejatullah Siddiqi, who designed the one-year diploma course, told reporters. 

The university academic council, highest body of the university, which decides on academic affairs, has approved of the introduction of the course early this month from the next academic session, he said, adding, that there would initially be 20 seats in the course. 

In this system of banking the depositor, who does not bear risk as in other banking systems, has to equally share the risk with the bank. Owner of the capital, however, is allowed to have a share in the bank's profits, Siddiqui, a retired AMU professor of Economics and Islamic Studies, said, adding that a similar system is followed by the banks while offering loans to the customers. 

Muslim scholars discuss Islamic banking

Leading Muslim scholars held a seminar on Friday to discuss emerging issues in Islamic Banking in view of new developments in the sector.

The conference held at the Nomad Hotel in Garissa, was organised by Barclays Bank of Kenya Ltd. under its Islamic Banking Division, La Riba.

Led by the Chief Kadhi, Sheikh Hammad Kassim, the scholars deliberated on Islamic banking issues. Sheikh Kassim, who sits on the Barclays Shariah Advisory Board, said the bank strives to be 100 percent Shariah-compliant in its Islamic banking products.

"In the annual reviews conducted by the board, I would like to confirm that the Barclays Islamic Banking Division is in line with the requirements of the Muslim faith,'' noted the Chief Kadhi.

Barclays Head of Islamic Banking, Omar Sheikh, gave an overview on one of the fastest-growing financial product in the market, noting that Barclays set the pace in Kenya when it pioneered the country's first Shariah-compliant financial product in 2006.

Barclays Bank Regional Managing Director, Adan Mohamed, said the bank launched La Riba in response to the needs of the bank's growing Muslim customer base.