Islamic Finance

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This article contains excerpts from the keynote address at the inauguration of the Islamic Financial Services Board IFSB, given by the Prime Minister of Malaysia Dr. Mahathir Mohamad. As a result of the growing uncertainty and weakening global economic prospects, international financial reforms need to be undertaken to promote stability, equity, and alleviate poverty. Free markets have not demonstrated the ability to regulate their own ethical behavior; governments need to provide effective oversight while promoting the benefits of free trade and globalization.

An address at the inauguration of the Islamic Financial Services Board IFSB, given by the Governor of Bank Negara Malaysia Dr. Zeti Akhtar Aziz. The IFSB will develop international regulatory standards for the Islamic financial industry, cooperate with international financial organizations, and encourage development of risk-management practices. These efforts are necessary for the industry to grow in the face of increasing competition and to attract new customers. The goal of the Islamic finance industry should be to gradually increase equity-based financial operations.

While Islamic financial products are being provided to Muslims in the UK (through windows in conventional banks), these products should also be marketed towards non-Muslims who support an interest-free banking system. This article summarizes the results of a study conducted by Loughborough University in East-Midlands, a region with a high proportion of Muslims, to determine theier attitudes towards and needs for Islamic financial services. There may not be a great demand for Islamic savings accounts, and there already exist non-interest yielding current accounts.

The full title of this article is: 'A Murbaha Transaction in An English Court - The London High Court of 13th February 2002 in Islamic Investment Company of the Gulf (Bahamas) Ltd. V. Symphony Gems N.V.

[First of two installments]. Insurance is acceptable under shari`a if the arrangements are founded on mutuality and cooperation.

An interview with Pervez Said, Head of Marketing & Business Development, iHilal.com. Said talks about iHilal's choice to start focusing in the US, then in Europe, and later in the Middle East. He talks about the regulatory framework under which iHilal.com operates, and the specific facilities they are trying to provide for investors.

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The Bahrain Monetary Agency (BMA) has taken steps to solidify Bahrain as a global leader and innovator in Islamic finance, particularly through issuing sukuk and a secondary trading market. In recent years the BMA has led regulatory reforms that refine regulations originally geared for conventional banks. However, regulatory standards have had a difficult time keeping pace with the rapid development of new Islamic products.