In its 2003 budget the Malaysian government has authorized a tax deduction on expenses incurred while structuring, documenting, and issuing Islamic Private Debt Securities (IPDS), in hopes of attracting more Middle Eastern investment. The deductions are intended to benefit issuers who utilize
As was the case in the early 1990's, the number of Islamic banking conferences being held worldwide has been increasing significantly. Some problems arise from an excess of conferences: participants recycle presentations, organizers are out for profit more than for contributing to development in the field, and some conferences are set up as marketing tools for a specific company and/or country. As they are currently organized many of these conferences do not provide valuable debates and discussions on policy, promoting little interaction between different institutions.
Islamic investors continue acquiring UK commercial property, with the leaders be ABC International Bank (ABCIB), Gulf Financial House (GFH), and First Islamic Investment Bank (FIIB). From 2002 to 2003 Gulf-based investments in UK property increased by 33%. The East Midlands region of the UK will be among the fastest growing locations for investment in the next decade.
Interview with Sulaiman H. Al-Baqsami, Assistant General Manager in the Commercial Banking Department at Kuwait Real Estate Bank (KREB). KREB has decided to apply for an Islamic banking license due to increasing demand for Islamic financial institutions, and will focus on real estate. The Kuwait real estate market is much more secure now than at the time of the Souk al-Manakh stock market crash in the 1980's. The real estate market and property values in Kuwait has been booming in recent years.
The UK based HSBC began offering through its Amanah Finance division an Islamic mortgage program and shari`a-compliant bank accounts at select UK branches.
The High Court in England has deliberated two cases in the past two years with regard to Murabaha contracts, each time reaffirming the freedom to contract using a
The annual meeting of the World Bank/International Monetary Fund (IMF) is being held in September 2003 in Dubai, the first time ever in the Middle East. The Islamic Financial Services Board (Malaysia) and the General Council for Islamic Banks and Financial Institutions (Bahrain) have organized meetings focusing on Islamic banking. The annual meeting is a good opportunity to promote the management and ethical principles of Islamic banking to the world.
The third quarter (Q3) of 2003 saw a continuation from the previous quarter of a global equity rally, stimulated in part by growing confidence and positive economic data. European and US equities grew at a much slower rate than those of other regions, and cost-cutting practices by US companies intended to increase growth may have detrimental long-term effects. In contrast to Europe and the US, other regional markets such as those in Japan, China, and other Pacific regions experienced much greater equity returns, driving the global economic recovery.
Interview with Dr. Adnan Buyukdeniz of Albaraka Turkish Finance House (ABTFH). Confidence has been restored to the Turkish Islamic finance sector after the banking crisis of 2001. Special financial houses (SFHs) are now regulated in the same way as conventional banks under the Banking Act, though they are still allowed to operate as profit-loss institutions. SFHs in Turkey have increased the amount of deposits held in Turkish lira (TL), as opposed to foreign currency, to about 25%, an indication of growing confidence in Turkish currency.
The Islamic Development Bank (IDB) has encountered difficulties due to the dysfunctional governance of some of its member states combined with the almost total absence of functioning democracies; yet the IDB has rarely discussed the issue of governance during its annual meetings. Good governance should be a higher priority of the IDB and the Organization of Islamic Conference (OIC), given that economic growth is linked to quality of governance, and that social progress has been impeded by government corruption.