Tag Archives: islam

Keiser Report: Housing Bubble Ponzi (E499)

Max Keiser and Stacy Herbert discuss the triangle of fraud in the housing sector and the policy of Icarus economics in which banks can’t crash soon enough be… Continue reading

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India Shariah Market Tested With Property Funds

Taqwaa Advisory is setting up a Rs. 250 crore real estate fund to give Indian muslims a Shariah investment option Liau Y-Sing    Yudith Ho A file photo of BSE. India has two Shariah equity funds and BSE introduced a new Islamic share index on 2 May. Photo: Hemant Mishra/Mint Taqwaa Advisory and Shariah Investment Solutions Pvt. Ltd, a Mumbai-based consultancy, is setting up the Rs. 250 crore fund on behalf of a company backed by the Kerala government, director Shariq Nisar said in an interview on Wednesday. Secura Investment Management (India) Pvt. Ltd manages the country’s only other such real estate vehicle. India has two Shariah equity funds and BSE Ltd, the stock exchange operator, introduced a new Islamic share index on 2 May. “Islamic finance is in a nascent stage in India and definitely any new product will create more awareness and opportunity,” Taqwaa’s Nisar said. “There’s a lack of awareness and interest, which will take some time to be removed.” In 2008, a 13-member panel of experts led by Raghuram Rajan , a former chief economist at the International Monetary Fund and now the top adviser in India’s finance ministry, recommended that the country allow banking that complies with Islam’s ban on interest. The government did not take any action, and central bank governor D. Subbarao said this month that Shariah-compliant banking is inconsistent with the nation’s laws. Political barrier India’s 10-year sovereign bonds yield 7.15%, well ahead of 5.97% in Indonesia, the next highest in the region, data compiled by Bloomberg show. “The challenge is that every time India tries to offer Islamic banking, the tendency is to politicize this product,” Raj Mohamad, managing director at consulting company Five Pillars Pte, said in an interview from Singapore on Wednesday. “India should look at non-traditional Islamic finance markets and see how they have done it.” Stock funds Internationally, an increasing amount of Shariah-compliant financial assets has buoyed demand for sukuk, with worldwide sales reaching a record $46.5 billion last year. Issuance has risen 7% so far in 2013 to $18 billion, data compiled by Bloomberg show. The average yield on Islamic debt rose 10 basis points, or 0.1 percentage point, to 3.38% on Wednesday, the HSBC/Nasdaq Dubai US Dollar Sukuk Index shows. Borrowing costs have climbed 57 basis points this year, after reaching a record low of 2.67% in January. The yield premium over the London interbank offered rate, or Libor, widened five basis points to 181. Some 13% of India’s 1.2 billion people are Muslim, according to the CIA World Factbook, the third-biggest population behind Indonesia and Pakistan. Those two countries have 209.6 trillion rupiah and 837 billion Pakistani rupees of Islamic banking assets, the latest central bank data show. In Malaysia, a global pioneer in Shariah-compliant finance, holdings total 399 billion ringgit. Bloomberg Continue reading

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Thought leader: Spread Arab culture of moderate Islam

Thought leader: Spread Arab culture of moderate Islam (Wam) / 28 May 2013 “The Arab-Islamic culture of moderation is in a real crisis amid the flood of ideological militancy and extremism,” Dr Jamal Sanad Al-Suwaidi, director-general of the Emirates Centre for Strategic Studies and Research (ECSSR), said. “There is no way out or alternative but to support and enhance this culture of moderation, not only so that our Arab and Islamic nations can overcome these difficult historical circumstances, but also in order to protect future generations from the spread of militancy and extremist ideology, he told the opening session of a conference on ‘The Future of Arab-Islamic Culture’. The two-day conference will deliberate on ‘Analytical View of the General Currents in Islamic Thought,’ ‘Islamic Thought and the Arab Renaissance Movement’, ‘Movements in Contemporary Islamic Political Thought: The Muslim Brotherhood’. The Closing Discussion Panel will tackle ‘Experiences of Political Islam in Power: Visions and Ideas.’ He stated: “In recent years, the Arab region has witnessed obvious and significant political transformations, the result of which has been that religious groups and movements stand at the forefront of politics in several countries. It stands to reason that such shifts have specific implications and consequences worthy of close research and study, particularly in the light of Islam itself becoming a subject of escalating political argument and controversy in conflicts that will undoubtedly yield adverse consequences. “Such consequences will not be limited to the stability of Arab communities in the current moment, but may also spread to affect the image of Islam that has prevailed for centuries, namely its unique characteristics of tolerance and acceptance of others.”  He added: “Observance of the vast overlap between religion and politics in the daily practices of certain Islamic groups and movements shows the systematic distortion of Islam through the adoption of slogans and media coverage, ostensibly to defend religion. However, their essence and goals are political and aim for authority, power and influence by exploiting certain religious perceptions that utilise the innate tendency of Arab people towards religiosity, in order to fulfill their aims. “Therefore, we see that the Arab world is in a dilemma, which some movements and groups try to justify and interpret in a historical and religious context. This also leads us to struggle against a close-minded religious discourse that paralyses the potential of our youth, closes the window of hope and throws the destiny of the Arab world into the abyss.” The Director-General of the ECSSR stressed that the only way to tackle the several problems Arab countries are facing, at present, is holding on to moderate Islam to strike a balance between material gain, spirituality and the preservation of cultural identity without falling into the traps of excess, negligence, extremism or violence. The proper understanding of Islam will rid the Arab and Islamic world of its deterioration and fortify societies against extremism, he said. He added: “We fully trust that moderate Islamic culture is immune from fundamentalism, extremism and all attempts at hijacking of Islam by those claiming its exclusive representation. This trust stems from the existence of well-established religious institutions which protect moderate Islamic culture, preserve the true identity of Islam, and aim to spread it worldwide. The most prominent of these institutions is Al Azhar, the biggest religious institution in the Arab and Islamic world. He concluded by saying: “Our aim in this conference is not to criticise practices that have been rejected by Islamic societies. Rather, our goal is to provide a driving force for the efforts aimed at developing the Arab nation on the basis of sound Islamic thought and introducing the true image of Islam, thereby replacing its image presented by some groups as a closed, fanatical religion that rejects the other.   Continue reading

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