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Wednesday, 29 August 2012

Islamic Finance May Help Develop Indonesia Infrastructure


(The following was released by the rating agency)
SINGAPORE (Standard & Poor's) Aug. 28, 2012--Islamic finance could be a viable option to help Indonesia meet its ambitious infrastructure plans, according to an article that Standard & Poor's Ratings Service released today, titled "Islamic Finance Could Plug The Gap In Indonesia's Infrastructure Funding."
"We believe Indonesia can emulate Malaysia's success thus far in utilizing Islamic finance for infrastructure development. This is due to Indonesia's large infrastructure development needs, the government's willingness to attract private capital to fund these investments, and the rising demand for investable assets of a growing domestic Islamic finance market," said Standard & Poor's credit analyst Allan Redimerio.
The report says that the poor state of Indonesia's infrastructure is hindering the growth potential of South-east Asia's largest economy. Indonesia plans to spend more than US$200 billion to upgrade and expand its infrastructure from 2010-2014, with the private sector likely to meet 30%-40% of the investment. The government is mulling over various financing alternatives to fund the rest.
The report examples the successful contribution of Islamic finance to Malaysia's infrastructure development and the obstacles to similar adoption in Indonesia.
"We believe the lack of recognition for beneficial ownership and tax incentives is impeding the growth potential of this funding source. Ways to generate interest in this sector include offering a range of products to the population with support from the country's political, corporate, and financial institutions," said Mr. Redimerio.
(Reuters / 28 August 2012)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Islamic funds going cross border with UCITs (Undertakings for Collective Investment in Transferable Securities)


Kuala Lumpur-based CIMB-Principal Islamic Asset Management (CIMB-Principal Islamic), a joint venture between the CIMB Group and Principal Global Investors (PGI), has set the stage for other Islamic fund managers in their bids to penetrate the overseas markets.

Its three UCITS-compliant Islamic equity funds – which it launched early this year and which invest in global emerging markets, the Asia-Pacific ex Japan and the Asean region, respectively – are designed for cross-border distribution within Asia. 
 

Demonstrating UCITS’ potential

They came after the Central Bank of Ireland, via a memorandum of understanding between itself and the Securities Commission Malaysia on November 4 2011, approved the establishment of the Dublin-based CIMB-Principal Islamic Asset Management (Ireland) Public Limited, a joint venture specifically designed to distribute Islamic UCITS funds globally. 

While the UCITS platform has been used to market Islamic funds to European investors, this is the first time it is being done in Europe. In a way, CIMB-Principal Islamic is paving the way for other fund managers to use this platform to market Islamic funds globally.

“We have opened the door for other Malaysia-based fund managers to establish a UCITS platform in Ireland,” says Datuk Noripah Kamso, chief executive of CIMB-Principal Islamic. “The UCITS funds were established to develop a visible performance track record and make it easier for global investors to place their money with CIMB-Principal Islamic. These funds are recognized beyond Europe and meet the needs of institutional and retail investors from many jurisdictions. This is an important step in the development of Malaysia as a centre for Islamic fund management.”

Targeting private banking clients

CIMB-Principal Islamic has been building their overseas networks for marketing Islamic funds.

It has launched marketing activities to Muslim investors in Germany where, Noripah says, there are 4.1 million Muslims, the bulk of them of Turkish descent.

Noripah shares that CIMB-Principal Islamic is dynamically marketing Shariah funds to private-banking clients based in Geneva as an alternative investment for diversification and risk management.

“The private bankers in Geneva that are serving Middle-Eastern investors have shown a keen interest. Following the Arab spring, they are pushed to understand what is being offered as an underlying in the whole story of Islamic investments, because there has been a flight to safety from GCC countries to Geneva and London,” Noripah says.

With the launch of its UCITS platform, CIMB-Principal Islamic is expected to strongly market its Islamic funds to European markets. Noripah explains that CIMB-Principal Islamic has crafted a business model for each different target market for building its Islamic funds business.

First, the institutional business – direct mandates from pension funds, sovereign wealth funds, takaful and central banks. Second, the high net worth business – targeting individual investors in GCC countries and family offices and, third, a part of the mass market.

“For that third market segment, we have to come out with a global fund platform – which is why we have launched the Islamic UCITS – but we cannot sell the funds all by ourselves, we have appointed other banks and fund distributors to reach farther,” Noripah says.

If the funds are authorized in one European Union (EU) member state, it can be distributed in any other EU member state without the need for any additional authorization. UCITS-compliant funds are distributed in a large number of countries, not just in Europe, but also the Americas, the Asia-Pacific, the Middle East and Africa.

The funds will eventually be registered and distributed in seven jurisdictions: the UK, Switzerland, Germany, Saudi Arabia, the United Arab Emirates, Bahrain, and Singapore.

Having the funds on this platform means that institutional and retail investors globally will be able to see CIMB-Principal Islamic’s asset management track record. If the funds do well, not only will this attract investment into those funds but institutional investors may also appoint CIMB-Principal Islamic to manage their discretionary mandates as well.  

(The Asset / 28 August 2012)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Ireland: Islamic fund sets up in Dublin



THE FIRST Malaysian funds promoter has set up in the Irish financial services sector with the arrival of the CIMB-Principal Islamic Asset Management in Ireland, according to the Irish Funds Industry Association.
The Malaysian company is setting up a range of investment schemes that can operate throughout the European Union, authorised from Ireland.
Pat Lardner, chief executive of the association, welcomed the establishment of Irish funds or Ucits (Undertakings for Collective Investment in Transferable Securities) by CIMB-Principal Islamic Asset Management.
Citing figures from accountancy firm PricewaterhouseCoopers saying that Ireland accounted for 20 per cent of Islamic finance outside of the Middle East, Mr Lardner said he hoped others would set up similar funds here.
Noripah Kamso, chief executive of the Malaysian company, said: “Ireland is right for us as we believe it will provide global flavour to our products and be the passport for international investors beyond Europe.”
Dublin was more cost-effective due to the company’s existing operations in Ireland, she said, and through the conventional funds operated by its shareholder, Principal Financial Group, in Dublin.
The Government has targeted Islamic finance as one of the key growth areas for the development of the financial services industry under plans to create 10,000 new jobs in the sector by 2016.
The funds association estimates that the value of funds under administration in Ireland reached €2 trillion recently, while Irish domiciled funds have also reached a record high, surpassing the €1 trillion mark for the first time.
Islamic finance applies Sharia, the moral code of the Islamic religion, to financial services. This prohibits charging interest and unethical investments.
(Irishtimes.Com / 28 August 2012)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

South Africa's FNB to appoint new sharia board by year-end


* Sharia board resigned in July after disputes over role
* FNB Islamic division plans expansion in Africa, India
By Xola Potelwa
JOHANNESBURG, Aug 28 (Reuters) - South Africa's First National Bank (FNB) aims to appoint a new sharia board for its Islamic finance division by the end of 2012, after the previous board dealt a blow to the bank's effort in the sector by resigning a month ago.
"It's top priority for us. We are certainly aiming to have our final committee together towards the end of the year," Amman Muhammad, chief executive of FNB Islamic Finance, told Reuters late last week.
Muhammad joined FNB's Islamic finance division on July 1. The previous head, Ebrahim Patel, resigned after the bank conducted an investigation into "internal processes and practices of the businesses aligned to internal governance practice", according to Eric Enslin, head of client management at FNB Wealth, who declined to elaborate on the investigation.
FNB's sharia advisors quit after disagreements over the board's role when the new management took charge of the division, according to former board members.
A bank's sharia board supervises the institution's products and activities and certifies that they comply with Islamic principles.
FNB said its new sharia board would probably be made up of scholars from local and international Muslim communities, as its Islamic finance division would leverage the bank's presence in India and the rest of Africa to grow there.
A new sharia board for FNB, the retail arm of South Africa's second-biggest bank FirstRand, could help its business by increasing consumer confidence in its Islamic products.
"(When) members of the community have no method to get confirmation or comfort from the sharia board, that puts them on guard. They say, 'I'm not getting information from the sharia board, do I continue to deal with the bank?" said South African businessman and FNB client Abdur Moosa.
FNB says Islamic finance is currently not a "material contributor" to its bottom line, but that it intends the business to expand its contribution in future.
BOUNDARIES
Muslims make up only about 2 percent of South Africa's population but the country is looking to establish itself as a centre for Islamic finance in sub-Saharan Africa.
There are no national rules for Islamic finance in South Africa - banks are subject only to conventional banking laws - so the Islamic operations of institutions such as FNB, Al Baraka and Absa are under pressure to demonstrate to the public that their sharia boards are effective.
"Up until we get to a point where we start seeing a concerted regulatory change to the way Islamic banks operate in the country, and defined governance standards specifically around the functioning and the role of sharia boards, we ensure ourselves that through the boards we have, sharia compliance is always adhered to," Muhammad said.
The bank says it has learned a lesson from the recent incident and will draft clear rules and roles for its new sharia board, which will not include approving the appointments of senior personnel - a point of contention with the previous board, according to bank sources.
"In the absence of terms of reference, everybody (wonders) what's the role of the board," said Enslin.
"What is really key is to ensure that there's proper terms of reference and a constitution in place, which will (ensure) roles are quite clear, and their accountabilities."
Businessman Moosa, who has been a client of FNB Islamic Finance for nearly all eight years of the division's existence, said he had not entered new transactions with the bank since the last sharia board resigned.
( Reuters / 28 August 2012)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Indonesia: Islamic finance could support infrastructure sector - S&P


Aug 28 (Reuters) - Indonesia could utilize the potential of Islamic finance to fulfil its ambitious infrastructure plans, Standard & Poor's said in a report on Tuesday.
The poor state of infrastructure is hindering the growth of Southeast Asia's largest economy, the report said, while noting that the government is planning to spend more than $200 billion through 2014 to upgrade and expand infrastructure.
It also noted that most infrastructure projects are backed by the private sector while the government is considering various financing alternatives to fund the rest.
"We believe Indonesia can emulate Malaysia's success thus far in utilizing Islamic finance for infrastructure development. This is due to Indonesia's large infrastructure development needs, the government's willingness to attract private capital to fund these investments, and the rising demand for investable assets of a growing domestic Islamic finance market," said S&P credit analyst Allan Redimerio.
(Reporting by Andjarsari Paramaditha in Jakarta)
(Reuter / 28 August 2012)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Monday, 27 August 2012

Indonesia: Bank Syariah Mandiri considering IPO



Bank Mandiri, the country’s largest lender by assets, is considering an initial public offering next year for its Islamic unit, Bank Syariah Mandiri, a top executive has said.
Sunarso, a commercial director of Bank Mandiri, said on Thursday that the preparations for the offering were under way and the IPO was likely for next year.
“The preparations for the share sale, still have to be completed first but I don’t think it will take too long,” he said.
“We want the IPO to help strengthen the capital [of Bank Syariah Mandiri] .”
He did not provide any details regarding the size of the IPO or the total estimated funds to be raised.
Bank Mandiri has five units: Bank Syariah Mandiri, a Shariah-compliant lender; AXA Mandiri, a joint venture insurer; Mandiri Tunas Finance, a financing company; Mandiri Sekuritas, a brokerage company; and Bank Sinar Harapan Bali, a mid-size lender with a focus on microlending in Bali.
Sunarso said Bank Mandiri’s units had a combined net income of Rp 900 billion ($94 million) in the first half of the year and were expected to yield Rp 2 trillion in net income for all of 2012. Bank Syariah Mandiri contributed Rp 800 billion to Bank Mandiri’s total combined net income in the first half of the year, he said.
But if the Shariah lender wants to expand its reach, Sunarso said, it needs a stronger capital structure.
“BSM still needs a further injection of capital,” he said.
Raising funds from the public, he added, is one of the best options for Bank Syariah Mandiri to boost its capital.
Bank Mandiri said its net income rose 13 percent to Rp 7.1 trillion in the first half of this year from Rp 6.3 trillion in the same period last year.
Its net interest income—interest earned on loans after deducting interest paid for deposits—increased 11 percent to Rp 12.7 trillion from Rp 10.4 trillion.
Mandiri’s president director, Zulkifli Zaini, said late July’s solid lending helped the bank post positive results.
Total outstanding loans climbed 27 percent to Rp 350.4 trillion at the end of June from Rp 276.7 trillion a year earlier.
Bank Syariah Mandiri is one of 11 Islamic lenders in Indonesia. Others include Bank Muamalat, Bank Syariah Mega and Bank BRI Syariah. Islamic lenders follow the principles of Shariah, which, among other things, prohibits interest payments.
Shares of Bank Mandiri fell 1.8 percent to Rp 8,200 on the Indonesia Stock Exchange on Friday.
(Eberling Heffernan / 24 August 2012)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

India offers vast scope for Islamic banking


Dubai: Islamic banking may be in for some windfall gains if a reported move by Indian authorities to introduce some form of interest-free banking, aimed at bringing the country’s unbanked Muslim populations into mainstream banking, bears fruit.
If the initiative is taken to its logical conclusion, the Indian banking sector too stands to gain significantly as it will add huge numbers of new customers, while opening up a channel for substantial fund flow from regions such as the Gulf.
The Indian banking sector, which grabbed international news headlines last week, although for the wrong reasons — a nation-wide strike by employees of public sector banks and figuring in the controversy centering on Iran sanctions-related breaches by some international banking majors — however, provided some clues to the outside world about the kind of clout it enjoys in terms of customer base and business volumes.
Over a million employees of public sector banks went on a two-day strike protesting against possible financial reforms that might open up the banking sector to foreign ownership beyond the current ceiling of 20 per cent, which the employees feel will dilute their bargaining power and benefits. Given that public sector banks account for only 70 per cent of the overall banking sector, the country’s bank employee population is roughly of the same size as the population of Qatar. That should give an idea about the size of India’s banking sector.
(Gulfnews.Com / 27 August 2012)
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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Sunday, 26 August 2012

Bangladesh: Islamic funds gain stronger foothold

Bangladesh can improve its weak infrastructures by utilising Islamic funds available globally, said a senior official of a foreign bank.
The country's stable economy can help attract more Islamic funds from international financiers, said Afaq Khan, chief executive officer (Islamic banking) of Standard Chartered Bank.
Khan was sharing his views on the prospects of Islamic banking in an interview with The Daily Star at Sonargaon Hotel recently.
“The total size of the world's Islamic funds is estimated at $1- $1.3 trillion, which is growing at 15-20 percent on average annually,” said Khan, who came to Dhaka to launch the bank's Shariah-based product Saadiq for its corporate clients in the country.
Most shariah-based financiers in the world are eager to invest in large infrastructure projects, he said. Bangladesh can attract these investors, thanks to a positive economic outlook of the country.
“All the ingredients are here to attract the Islamic financiers as you have a stable economy, stable regulations and fast economic growth,” said Khan.
The country needs to tell its success stories and future plans to the Islamic investment community globally, he added.
Standard Chartered Saadiq is ready to cooperate with the government in the processes of bringing in the Islamic investors to the country by utilising its global network, said Khan.
Islamic banking is now an issue of great interest for many, including the western non-Muslims, as the system remained almost unhurt during the global financial crisis, said the official.
Shariah-based banking is growing much faster than conventional banking, he said. Currently, the banking giant has Islamic banking operation in six countries -- Indonesia, Malaysia, UAE, Bahrain, Pakistan and Bangladesh.
Of the countries, Indonesia has the highest annual growth rate at 45 percent, followed by Bangladesh at 25-30 percent, said the 50-year-old official.
“Conventional banking is riskier than Islamic banking because it deals with debt trading and keeps itself involved in market speculations, which the European and American banks experienced,” he said.
“At present 19 percent of the industry assets and 16 percent of the industry deposits are Islamic. So, there is an accelerated demand for Islamic banking products in the market,” said Khan.
The London-based bank started its Islamic banking operation in Bangladesh in 2004 with consumer banking products under the bank's group branding Saadiq.
“Islamic banking operates in real economy. This banking has no room for gambling, speculation, excess leverage, or the greed for windfall profit,” said Khan.
He joined StanChart in 2003 with a mandate to launch the Islamic business division for the bank. Since then, he has been responsible for the strategic build-up of a global Islamic banking business covering retail, corporate and investment banking with a wider product capabilities and award winning solutions.
Khan, who has 22 years of banking experience, believes Bangladesh could be a big market for the Islamic banks. “Around 90 percent people here are Muslims. So, the country has an immense potential for the growth of Islamic banking.”
But he feels the business prospect would depend on diversification of products, services and adequate training of the officials.
"Saadiq" is the brand of this bank's Islamic banking, which has rolled out more than 250 products and solutions relating to consumer and wholesale banking.
An Islamic bank traditionally generates its profits from Sharia-compliant investment activities. This profit is shared back with the bank's customers at a pre-agreed ratio. An account holder is entitled to a share of these profits according to the funds he holds in his account.
Khan said Islamic banking differs from conventional banking, primarily because it does not look to charge or deliver interest.
In Islamic banking, profit is generated through investment and trading, said Khan, who did an MBA from the University of Western Illinois in the US.
The official said this return rate has to match the level of return provided by interest levels of conventional banking.
Islamic banking in Bangladesh continues to show strong growth since its launch in 1983.
At present, out of 47 banks, seven private commercial banks are operating as full-fledged Islamic banks. Besides, 16 conventional banks are engaged in Islamic banking, according to Bangladesh Bank's annual report for 2010-11.
The total deposits with Islamic banks and Islamic banking branches of the conventional banks stood at Tk 67,580 crore by the end of December 2010. This deposit accounts for 17.5 percent of the deposits with the total banking system, according to BB Data.
Total credit of the Islamic banks and the Islamic banking branches of the conventional banks stood at Tk 62,870 crore by the end of December 2010. This was 19.1 percent of the credit of the total banking system.
The global banking giant targets Bangladesh as one of the potential markets for its Islamic financial products and services.
As part of the move, the bank launched its Shariah-based wholesale banking product Saadiq for its corporate clients on August 2. Earlier the product was for retail customers only.
The Saadiq brand will offer a core comprehensive suite of products related to cash management, trade, term and working capital financing for corporate clients to fulfil their banking requirements in a Shariah compliant way.
(The Daily Star / 26 August 2012)
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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

$ 66.4 bn sukuk issued globally in H1


The volume of sukuk issued globally during the first half of the current year reached $ 66.4 billion, according to a report released by KFH-Research, an affiliate of Kuwait Finance House (KFH).

The increase in sukuk issuance during the period was triggered by large sums of money pumped by sovereign authorities and central banks to absorb excess liquidity, the report said.


It said the GCC countries used to be a main market for sukuk during the first half of the year, despite the absence of Kuwait and Qatar.


The global sukuk currently represents a dynamic part of the Islamic financial system that continues to grow at a remarkable pace.


After the largest quarterly issuance witnessed to date in the Q1 2012, the global sukuk market has continued its growth trend throughout the Q2 2012 on both primary and secondary market fronts, the report said.
The first half of 2012 witnessed a diverse range of new issuances which round up at $ 66.4 billion for the period, while the secondary market grew to $ 210.8 billion, representing a y-o-y growth of 40.1 percent and 30.5 percent, respectively, it said.


The growth of sukuk issuances this year can be attributed to a number of factors, including the declining yields for both corporate and sovereign issuances given significant demand, the rarity of high quality high yielding papers and the flight to fixed income safety amid more concerns emerging from Europe, the report said.
The primary sukuk market has been driven by the increasing number of funds raised by sovereigns and central banks to soak up excess liquidity and provide short-term investments, while new jurisdictions continue to enter the fray.


Malaysia has continued its dominance in the market issuing $ 18.5 billion in the second quarter to total $ 46.8 billion for the first half period.


The market share of Malaysian issuances has consistently been around 70 percent over the past five years and shows no signs of slowing down.


The UAE was the second largest domicile of issuances over the quarter with $2.4 billion worth, closely followed by Saudi Arabia with a pinch lower than $ 2.4 billion, according to the report.
By region, South Asia accounts for the majority of sukuk issuances in H1 2012 (79.3 percent), Indonesia maintaining the region’s second spot outside of Malaysia.


Indonesian issuances have grown significantly of late with the nation launching its “project sukuk” program as well as issue an encouraging number of sovereign certificates, mostly via auction or private placement, for fiscal financing.
Year-on-year Indonesia’s primary sukuk market has grown by 221.1 percent until end-1H 2012, it said.
According to the report, the MENA region, and more specifically the GCC region, has been a key market for issuances this year, growing by 6.1 percent despite no Qatari or Kuwaiti issuances thus far.


On a quarterly basis, GCC sukuk issuances have grown by 112.3 percent y-o-y in the 2Q12, although 39.5 percent lower than the Q1 2012.


During the Q2 2012, there have been a number of notable sukuk. Among them are the Islamic Development Bank’s $ 800 million, issued with a return of 1.357 percent over its five-year tenure, significantly lower than the $ 750 million issued at 2.350 percent during the Q2 2011.


Dubai issued its dual tranche sovereign sukuk Ijarah during April with a return of 4.900 percent for the five-year tenure ($ 600 million) and 6.450 percent for a 10-year tenure ($ 650 million).


Subsequently Dubai Islamic Bank entered the market in May with a five-year $ 500 million paper, managing to set a return at 4.752 percent, almost 15 basis points lower than its sovereign counterpart, the report said.
The second quarter has bolstered projections for the sukuk market moving forward given the higher uptake in sukuk issuances as well as the continued lower funding costs.


Significant demand for high quality papers means that issuers continue to benefit from better credit terms, it said.
The second half of the year is expected to have a further $ 30 billion worth of sukuk papers mature as at end-Q2 2012 and corporates will be eager to raise and refinance long-term facilities and improve financing efficiencies, the report said.


(Arab News / 23 August 2012)

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Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Oman: Strong demand for Islamic banking products projected

Yet another category of potential customers will be those who currently do business with conventional banks out of necessity and in the absence of Sharia-compliant options. They will very likely switch to Islamic banking as soon as it becomes available, he points out. The third category belongs to strict adherents of religious tenets who do not deal with conventional banks at all because they consider their activities as “haram” and “riba-based” and as a result, deal in cash only. “They’re very likely to transfer their funds and use the services of Islamic Banks and Windows. Islamic Banking in Oman will also encourage Omanis resident abroad to deal with Islamic Banks and Windows back home,” says Yousaf.


The KPMG Director is of the view that development of Islamic banking products and services in a new market like Oman will be gradual, rather than explosive. “Islamic banks will need to educate their target market customers about the Sharia-compliant aspects of their products and services, their competitive features and advantages over conventional banking. Customers who have a better understanding of Islamic banking will switch to it faster than others who may take the ‘wait and watch’ approach. There may also be skeptics who may challenge the Sharia-compliance aspects. Their objections and concerns would need to be addressed by the executive management and scholars in Sharia Supervisory Board of Islamic banks.”

The Central Bank of Oman (CBO) has opened the door for the licensing of full-fledged Islamic Banks, as well as Islamic Windows of conventional domestic and foreign banks operating in the Sultanate. In the pipeline are two Islamic Banks, Bank Nizwa and Bank Al Izz. Also gearing to launch Islamic Window operations are: bank muscat, National Bank of Oman, BankDhofar, Bank Sohar, ahlibank, National Bank of Abu Dhabi and Oman Arab Bank.


(Oman Daily Observer / 26 August 2012)

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Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Redefining Islamic finance


An indicator of how this very important debate has begun to enter the mainstream was published in this newspaper some time ago in which the legitimacy of the interest-free financial instruments proffered by these banks was questioned. It was argued that an economic transaction would be considered riba- (interest) free if it avoids the multiplier mode of money-making, profit-taking and capital creation.
But the questioning of claims made by financial institutions, Islamic or otherwise, which purport to offer interest-free banking and products apparently styled according to the Sharia is not a phenomenon confined to Pakistan. With the Islamic finance sector termed as the fastest-growing segment of the global finance industry, religious and financial experts, in tandem, are making more and more queries about the authenticity, according to religious scriptures, of the financial services on display.
A widely held view is that since the Sharia dictates pure Islamic values and provides direction to religious goals, perhaps if Islamic banks were to adhere to these basics they could end up playing a much bigger role in the new frontier of banking and finance.
The generic term here becomes ‘contextual’ banking but, in reality, the bigger picture appears to provide for a healthy future for Islamic finance, if, of course, its basic principles are followed, in the key markets of the future: Africa, Asia and the Far East.
Some experts are of the opinion, though, that the issue plaguing Islamic finance today is not that the industry is not realising its ideal (tayyib) but the concern that even the halal is being diluted. They point out that, just as in conventional finance, Islamic finance also sees many cases where the transactions claim to be legitimate but may be considered unethical. The key here would be the creation of a business model that is truly Sharia-based — not merely tagged as ‘Sharia-compliant’.
But the problem may not rest entirely with financial institutions. A widely held belief questions why individual governments do not endorse holistic frameworks designed to help the Islamic finance industry expand in a sustainable manner. Some blame is also apportioned to politicians and policymakers with critics questioning if they even understand the true meaning of Islamic finance.
Even within the world of Islamic finance, many inconsistencies in the legal, accounting, regulatory and fiscal frameworks have been pointed out by experts, who point to a heavy industry reliance on exemptions which they term as being ad hoc.
Additionally, most Islamic banks appear to function in a tax-free environment and regulators have sometimes been thought to be influenced by political agendas, or by the presence of dignitaries acting as directors.
In market-driven countries, say experts, Sharia governance can be an issue and that across the board there is a need for some regulatory oversight for Sharia governance. Unfortunately, most Sharia boards appear to only have a role limited to certifying certain products; they still do not have industry-wide standards. This would appear to be particularly true in Pakistan where the line between so-called Sharia-compliant banking and products and conventional financial options has become increasingly
blurry.

Islamic finance experts across the world ask a very relevant question concerning this state of affairs. Does the Islamic finance mission need to be restated? In order to achieve this a completely new strategy would have to be devised. A more transparent Sharia-governance structure could lead to a more forward-looking corporate approach for Islamic financial institutions. And this could, in turn, help this sector to clearly define corporate targets for social responsibility. There could be a concerted effort to ensure that these targets are completely aligned with Islamic principles and that the integrity of these principles is not compromised. Unfortunately, as appears to be evident from the current state of affairs, most Islamic financial institutions seem bent upon trying to justify their actions through what can only be termed sketchy Sharia guidelines tailored to suit their needs.
No thought is given to the important concepts of personal social responsibility or corporate social responsibility — both key and indispensable components of Islamic teachings. And no planning seems to have been put in place to attempt to overhaul the state of affairs.
Perhaps if the Islamic finance sector worldwide were to evolve a definite vision that truly focuses on the socio-religious implications of its financial instruments, it would help to create definitive change not just in the Muslim world but far beyond.
After all, this sector has no shortage of funds. A recent report by the Deloitte Middle East Islamic Knowledge Centre states that Saudi Arabia, one of the main contributors to the global Islamic finance industry, has an estimated $94bn in Islamic finance assets. According to the report, these Saudi assets represent 26 per cent of total GCC Islamic finance assets and 8.2 per cent of global Islamic finance assets.
So there is no question about the lack of finances. But in order to bring about the kind of lasting change that the Islamic finance sector aspires towards, these statistics will need to be backed up by genuine dedication and the will to design, create and implement this revolution.
(Dawn Opinion.Com / 24 August 2012)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Malaysia reforms could aid Islamic banks in rural areas


KUALA LUMPUR/DUBAI, Aug 24 (Reuters) - Financial reforms in Malaysia could spur the growth of the country's Islamic banks by giving them more opportunity to tap into rural areas, which have a greater proportion of Muslims than urban centres. But concerns about profitability may slow the expansion.
The central bank issued new agent banking guidelines this month that expand a pilot programme allowing lenders to offer basic financial services through non-bank retail outlets.
"It will be a cost-effective channel for financial institutions to reach out to the underserved parts of the population, particularly those in rural areas," said central bank governor Zeti Akhtar Aziz.
The guidelines list 474 rural districts, or mukims, which can be serviced through the initiative; some of them have the highest proportions of Muslims in the country, and also the lowest average household incomes. This could give Islamic banking an important role in the government's efforts to expand financial services to the poorest sections of the population.
The populations of the Malaysian states of Kedah, Kelantan, Perlis and Terengganu are on average 89.3 percent Muslim, much higher than 46.4 percent for the capital Kuala Lumpur, data from the Malaysian Department of Statistics shows. Those same four states hold 40 percent of the mukims that could be reached through the new agent banking programme.
Malaysia's Islamic banks collectively held 19 percent of the country's banking assets as of June, according to central bank data.
The agent banking scheme originally started as a pilot programme in 2010 with participation from Maybank, RHB Bank and government-owned Bank Simpanan Nasional - all conventional lenders with sharia-compliant offerings. The pilot currently serves over 65 percent of the mukims identified in the guidelines, against 46 percent at the end of 2011, according to the central bank.
At present the combined network consists of 2,322 agents who have handled more than a million transactions worth over 190 million ringgit ($61 million) since the pilot began. No data is available on how many transactions were sharia-compliant.
The prospects for tapping new Muslim consumers appear healthy; RHB's Islamic business has been growing at an average rate of 20 percent compared to 8 percent for its conventional business, according to Abdul Rani Lebai Jaffar, chief executive of RHB Islamic, part of the RHB group.
PROFITABILITY
The relative poverty of some of the mukims involved in the agent banking scheme may deter banks from expanding into them aggressively, however.
Expansion will depend on whether banks choose to create separate task forces to manage larger groups of agent relationships, Jaffar said.
"We currently have a very small number of agents operating under the programme, but it has shown a positive response," he said. "For now, we are still leveraging on the bigger RHB network."
Executives at other banks said they would be cautious. "We are looking into the guidelines to see what kind of role we can play," said a senior official at Maybank, who asked not to be named under briefing rules.
"We have always striven to use all the distribution channels that are available to us, but I think we have a pretty good reach at this stage. For now it will be business as usual."
Foreign banks in Malaysia will tend to remain focused on urban areas which have proven to be more profitable, said Wasim Saifi, chief executive of Standard Chartered Saadiq, the Islamic arm of Standard Chartered Malaysia.
At present the agent scheme is outside the bank's scope of operations, but it will consider the scheme in the long term, Saifi added. "There is a lot of value in getting our distribution to reach more local areas. It would certainly be a great opportunity, and going forward it is something we will have to look at.
(Reuter / 24 August 2012)

---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Saturday, 25 August 2012

Collection of Short Hadith



Introduction:

The two most highly respected collections of hadith are the authenticated collections the Sahih Bukhari and Sahih Muslim. (Sahih literally means "correct, true, valid, or sound.") In addition to these, four other collections came to be well-respected, although not to the degree of Bukhari and Muslim's sahih collections. These four other collections are the Sunan of Tirmidhi, Nasa'i, Ibn Majah, and Abu Da'ud. Together these four and the two sahih collections are called the "six books" (al-kutub al-sitta). Two other important collections, in particular, are the Muwatta of Ibn Malik, the founder of the Maliki school of law, and the Musnad of Ahmad ibn Hanbal, the founder of the Hanbali school of law.

GENERAL

The Prophet s.a.w. said: "Whoever avoids the doubtful matters, safeguards his religion and honour.'' [Al-Bukhari and Muslim].

"The entire world is full of resources, and among them the best resource is a righteous wife."
("Ad-dunya matawun; wa khairu mata-ihal mar'atus salihatu.") Reporter: Hadhrat Abdullah ibn Amr (r), Source: Sahih Muslim, Vol. 2, 3465

"Richness does not mean having a great amount of property, but richness is self-contentment." ("Laisal ganiyya an kathratil arad, wa lakinnal ghina ghinan nafsi.")
Reporter: Hadhrat Abu Hurairah (r), Source: Sahih al-Bukhari, Vol. 8: 453

"Facilitate things to people, do not make it hard for them; give them good tidings and do not make them run away." ("Yassiru wa la tuassiru; wa bashshiru wa la tunaffiru.") Reporter: Hadhrat Anas bin Malik (r), Source: Sahih al-Bukhari, Vol. 1, 69

"A believer is not stung twice (by something) out of one and the same hole."
("La yuldagul mu'minu min juhrin wahidin marratain.") Reporter: Hadhrat Abu Hurairah (r), Source: Sahih al-Bukhari, Vol. 8, 154; Muslim, Vol. 4, 7137

"The people who exaggerate are ruined." ("Halakal mutanattiwun.")
Reporter: Hadhrat Abdullah ibn Mas'ud (r), Source: Sahih Muslim, Vol. 4, 6450

Abu Hurairah (May Allah be pleased with him) reported: Messenger of Allah (SAW) said, "If anyone calls others to follow right guidance, his reward will be equivalent to those who follow him (in righteousness) without their reward being diminished in any respect, and if anyone invites others to follow error, the sin, will be equivalent to that of the people who follow him (in sinfulness) without their sins being diminished in any respect". [Muslim: Book 34, Chapter 06, Hadith  6470].

“It is the excellence of a man’s faith that he gives up meaningless work.” -- Prophet Muhammad s.a.w [Tirmidhi, Ahmad]

Abu Huraira reported Allah’s Messenger (may peace be upqn him) as saying:Verily Allah does not look to your faces and your wealth but He looks to your heart and to your deeds. (Book 032, Chapter 8, Number 6221 : Sahih Muslim)

Righteousness is good character, and sin is that which wavers in your heart and which you do not want people to know about. - [Sahih Muslim] 


Prophet Muhammad s.a.w. said : "If anyone of you sees something objectionable, he should change it with his hand, but if he cannot, he should change it with his tongue, and if he cannot he should do it in his heart, that being the weakest form of faith."
(Reported by Muslim)

Narated By Abu Huraira : The Prophet (p.b.u.h) said, "Seven people will be shaded by Allah under His shade on the day when there will be no shade except His. They are:
1. A just ruler.
2. A young man who has been brought up in the worship of Allah, (i.e. worship Allah (Alone) sincerely from his childhood).
3. A man whose heart is attached to the mosque (who offers the five compulsory congregational prayers in the mosque).
4. Two persons who love each other only for Allah's sake and they meet and part in Allah's cause only.
5. A man who refuses the call of a charming woman of noble birth for an illegal sexual intercourse with her and says: I am afraid of Allah.
6. A person who practices charity so secretly that his left hand does not know what his right hand has given (i.e. nobody knows how much he has given in charity).
7. A person who remembers Allah in seclusion and his eyes get flooded with tears."


(Sahih Bukhari, Volumn 002, Book 024, Hadith Number 504)


AKHLAK (Character)

"The best among you are those who have the best manners and character."
("Inna min akh-yarikum ahsanukum khuluqa")
Reporter: Hadhrat Abdullah ibn Amr (r), Source: Sahih al-Bukhari, Vol. 8: 56b

A'isha (RA), Prophet Muhammad's (SAW) wife, stated that, ‘The Prophet never used foul language and never entertained people with obscene jokes. He was well behaved when he entered the market places. His habit was not to repel evil with mutual evil. He was forgiving and could grant pardon." (Tirmizi) 

Righteousness is good character, and sin is that which wavers in your heart and which you do not want people to know about. - [Sahih Muslim] 

Narrated 'Abdullah bin 'Amr (Radi-Allahu 'anhu):The Prophet (Sallallahu 'Alaihi Wa Sallam) said, "Whoever has the following four (characteristics) will be a pure hypocrite and whoever has one of the following four characteristics will have one characteristic of hypocrisy unless and until he gives it up. 1. Whenever he is entrusted, he betrays. 2. Whenever he speaks, he tells a lie. 3. Whenever he makes a covenant, he proves treacherous. 4. Whenever he quarrels, he behaves in a very imprudent, evil and insulting manner." (Bukhari Vol. 1 : No. 33)

Messenger of Allah s.a.w said: There are three signs of a hypocrite: when he speaks he speaks lies, when he makes a promise he breaks it, and when he is trusted he betrays his trust. (Sahih Bukhari)


“Whoever believes in Allah and the Day of Judgment should speak what is good or keep silent.” (Sahih al-Bukhari, Sahih al-Muslim)

Rasul Allah (sal Allahu alaihi wa sallam) said: “Give due respect and regard to your children and decorate them with the best of manners.” [Abu Daud]

Abu Huraira, r.a., said that the Prophet of Allah, s.a.w, said, "If one has good manners, one may attain the same level of merit as those who spend their nights in prayer."
(Hadith - Bukhari's Book of Manners no. 285, Hakim, and Abu Dawud)


“Whoever has an atoms worth of kibr (pride) in his heart will not enter Paradise.” ~ Prophet Muhammad s.a.w [Sahih Muslim]

BROTHERHOOD


"None of you will have faith till he wishes for his brother what he likes for himself."
("La yu'minu ahadukum hatta yuhibbu li akhihi ma yuhibbu li nafsihi.")
Reporter: Hadhrat Anas (r), Source: Sahih al-Bukhari, Vol. 1: 12

"None of you will have faith till he loves me more than his father, his children, and all mankind."("La yu'minu ahadukum hatta akunu ahabba ilaihi min waalidihi wa waladihi wannasi ajmayin.")
Reporter: Hadhrat Anas (r), Source: Sahih al-Bukhari, Vol. 1: 14

"Do not rejoice over the troubles of your brother, lest God might have mercy on him and involve you in this trouble." ("La tuzhirish shamatata li akhika; fa yarhamahullahu wa yabtaliyak.")
Reporter: Hadhrat Wasila bin al-Asqa'i (r), Source: Sunan at-Tirmizi, Vol. 4, 3514

"Visit the sick, feed the hungry, and free the captive." ("Udul marida, wa at-imul ja-iya, wa fukkul aniya.")
Reporter: Hadhrat Abu Musa (r), Source: Sahih al-Bukhari, Vol. 7, 552

Hadhrat Abdur Rahman Ibn Ghanam and Asma Bint Yazeed (Allah be pleased with them) narrate that Prophet Muhammad (peace be upon him) said: "The worst among the servants of Allah are those who gossip and create rifts between friends." (Tirmidhi).

"Whoever defends the honour of his brother in his absence will be entitled to Allah's Protection from the Fire." [Hadith:Tirmidhi]

“He who visits the sick continues to remain in the fruit garden of Paradise until he returns.” [Sahih Muslim] 


'A Muslim has five rights upon other muslims: Responding to his Salaam, answering his invitation (to food), saying allhumdulillah when he sneezes, visiting him when he is sick, and following his Janazah when he dies..' (Hadith: Bukhari & Muslim)

Ibn `Umar and `Aishah (May Allah be pleased with them) reported: Messenger of Allah (PBUH) said, "Jibril kept recommending treating neighbours with kindness until I thought he would assign a share of inheritance". [Al-Bukhari and Muslim]

The Messenger of Allah (peace & blessings of Allah be upon him) said: “Your smiling in the face of your (Muslim) brother is charity; enjoining the good & forbidding the evil is charity; your guiding a man that has lost his way is charity; and your removing of stones, thorns, & bones from people’s paths is charity for you.” [Tirmidhi Hadith 36]

Iyad bin Himar (May Allah be pleased with him) reported: Messenger of Allah (Peace Be Upon Him) said, "Allah has revealed to me that you should humble yourselves to one another. One should neither hold himself above another nor transgress against another.'' [Muslim Book 40, Chapter 17, Hadith  6856]

Abu Musa reported Allah's Messenger (SAW) said: "A believer is like a brick for another believer, the one supporting the other." (Sahih Muslim)

A'isha (RA), Prophet Muhammad's (SAW) wife, stated that, ‘The Prophet never used foul language and never entertained people with obscene jokes. He was well behaved when he entered the market places. His habit was not to repel evil with mutual evil. He was forgiving and could grant pardon." (Tirmizi)

Iyad bin Himar (May Allah be pleased with him) reported: Messenger of Allah (Peace Be Upon Him) said, "Allah has revealed to me that you should humble yourselves to one another. One should neither hold himself above another nor transgress against another.'' [Muslim Book 40, Chapter 17, Hadith 6856]

Do not envy one another; do not hate one another; do not turn away from another; and do not undercut one another. [Muslim]

Rasulullah s.a.w said: "It is not permissible for a Muslim to have estranged relations with his brother beyond three days." (HR. Muslim)

CHARITY

The Messenger of Allah (peace & blessings of Allah be upon him) said: “Your smiling in the face of your (Muslim) brother is charity; enjoining the good & forbidding the evil is charity; your guiding a man that has lost his way is charity; and your removing of stones, thorns, & bones from people’s paths is charity for you.” [Tirmidhi, Hadith 36]

DAAWA

"To spend one morning or evening in the cause of God is better than the world and whatever is in the world."
("Lagadwatun fi sabilillahi, au rauhatun, khairum minad dunya wa ma fiha.")

Reporter: Hadhrat Anas bin Malik, Source: Sahih al-Bukhari, Vol. 4, 50

DUA (Supplication)

"Indeed, Supplication is the worship." (Ad-dua, huwal ibadah.)
Reporter: Hadhrat Nu'man bin Bashir (r), Source: Sunan at-Tirmizi, Vol. 4, 2980

Young man! Be mindful of Allah and Allah will protect you. Be mindful of Allah and you will find Him in front of you. If you ask, ask of Allah Most High and if you seek help, seek of Allah, to whom belongs all might and majesty.  [Related by at-Tirmithi]

The Prophet s.a.w said: "A faithful believer while in prayer is speaking in private to his Lord..." (Sahih Bukhari, Vol 1, Book 8, No. 405)

FAMILY

“The best among you is the best to his family” [Reported by At-Tirmidhi and authenticated by Al-Albani]

FRIDAY

OBSERVANCE OF SILENCE WHILE THE SERMON ON FRIDAY IS DELIVERED
Abu Hurairah, may Allah be pleased with him, reported: Allah's Messenger (may peace be upon him) said: If you (even) ask your companion to be quiet on Friday while the Imam is delivering the sermon, you have in fact talked irrelevance. (Hadith)

HALAL / HARAM

Prophet Muhammad (peace be upon him) said “That which is lawful is clear, and that which is unlawful is also quite clear. Between these two is that which is ambiguous, which most people do not know. One who avoids the doubtful safeguards his faith and his honour.” [Riyadh-us-Salaheen, Hadith 588]


HEART

Prophet Muhamamd (s.a.w) said: Truly in the body there is a morsel of flesh which, if it be whole, all the body is whole and which, if it be diseased, all of it is diseased. Truly it is the heart.” [Sahih Bukhari and Muslim]

Rasul Allah (sal Allahu alaihi wasallam) said: “Richness does not lie in the abundance of (worldly) goods, but richness is the richness of the soul (heart, self).” [Muslim] 

HEREAFTER

"O God! There is no comfort, but the comfort of the Hereafter."
("Allahumma la aisha illa aishul aakhirah.")

Reporter: Hadhrat Anas bin Malik, Source: Riyadus Saleheen, 460; Musnad Ahmad, Vol. 3, 12763

"You will definitely see your Rabb with your own eyes."

("Inna satarauna rabbakum yiana.")

Reporter: Hadhrat Jarir bin Abdullah (r), Source: Sahih al-Bukhari, Vol. 9, 530

IHSAN

Rasulullah s.a.w said: "That you worship Allah as if you are seeing Him, for though you don't see Him, He, verily, sees you." (Sahih Muslim)

IMAN

The Messenger of Allah (sallAllaahu 'alaihi wa sallam) said: "Iman has over 70 branches or over 60 branches. And the highest of al-Iman is the statement "la illaha illallah" (It is the most sublime, the most magnificent and the most superior of all Iman). The lowest of the Iman is to remove some harmful thing from the street. And modesty is a part of al-Iman." [Muslim: Book 1 Hadith 56]

ISTIQOMAH (consistence)

"Allah likes the deeds best which a worshipper can carry out consistently." (Hadith: Bukhari & Muslim)

JANNAH (paradise)

Sahl bin Sad As-Saidi said: “I was present with the Messenger of Allah (sal Allahu alaihi wa sallam) in a gathering where he described Jannah, and at the end of his talk he said, ‘There is in it that which no eye has seen, no ear has heard, nor has it ever crossed the heart of man.’” [Hadith - Muslim]

JIHAD

"The most excellent Jihad is that for the conquest of self." -- Prophet Muhammad s.a.w (Hadith, Bukhari)


JUMU'AH (FRIDAY)

Rasulullah (Allah bless him & give him peace) said: "Friday is the best of days. It was on this day that Hadrat Aadam alayhis salaam was created, it was on this day that he was granted entry into jannah, it was on this day that he was removed from jannah (which became the cause for man's existence in this universe, and which is a great blessing), and the day of resurrection will also take place on this day. " (Sahih Muslim)



KINDNESS

Narrated By Jarir bin 'Abdullah: Allah's Apostle (peace be upon him) said, "Allah will not be merciful to those who are not merciful to mankind." [Bukhari Vol 9 Book 93 No. 473]



Prophet Muhammad (peace be upon him) said:

"Innallaha rafiq; yuhibbur rifqu fil amri kullihi." "Allah is Kind and likes kindness in all things."

Reporter: Hadhrat Ayeshah (r), Source: Bukhari/Muslim (reported in Riyadhus Saleheen,633); Sunan Ibn Majah, 3684


KNOWLEDGE

"A person who goes in search of knowledge, he is in the path of God and he remains so till he returns." 
("Man kharaja fi talabil ilmi, fahuwa fi sabilillahi hatta yafjiyu.")
Reporter: Hadhrat Anas (r), Source: Sunan at-Tirmizi, Vol. 4, 2656

"Who are the learned? Those who practice what they know." -- Prophet Muhammad s.a.w (Hadith-Bukhari)

"If Allah wants to favour someone, He grants him comprehension (understanding) of this religion." 
[Sahih Bukhari; vol.1, no. 71]


PATIENCE

The Prophet (peace be upon him) said: "When Allah desires good for someone, He tries him with hardships." [Bukhari] 


Whoever remains patient, Allah will make him patient. Nobody can be given a blessing better and greater than patience. (Bukhari)

PARENTS


Abu Hurairah (May Allah be pleased with him) reported: A person came to Messenger of Allah (PBUH) and asked, "Who among people is most deserving of my fine treatment?'' He (PBUH) said, "Your mother". He again asked, ``Who next?'' "Your mother", the Prophet (PBUH) replied again. He asked, "Who next?'' He (the Prophet (PBUH)) said again, "Your mother.'' He again asked, "Then who?'' Thereupon he (PBUH) said,'' Then your father.'' [Muslim]

In another narration: "O Messenger of Allah! Who is most deserving of my fine treatment?'' He (PBUH) said, "Your mother, then your mother, then your mother, then your father, then your nearest, then nearest". [Al-Bukhari and Muslim]

Abu Huraira r.a reported that a person said: Allah's Messenger (peace be upon him), who amongst the people is most deserving of my good treatment? He said: Your mother, again your mother, again your mother, then your father, then your nearest relatives according to the order (of nearness). [Muslim 6181]

Prophet Muhammad (sal Allahu alaihi wa sallam) said: “The curse of Allah is on the one who causes difficulty to his mother. The curse of the angels and the curse of mankind are on him. Allah neither accepts his fardh nor his nafl worship as long as he does not repent and obey his mother. He has to gain her pleasure as best he can. Allah’s pleasure depends on the mother’s pleasure and His wrath is concealed in her wrath.” [Ahmad]

Allah's Apostle (pbuh) said, "Shall I inform you of the biggest of the great sins?" They said, "Yes, O Allah's Apostle!" He said, "To join partners in worship with Allah, and to be undutiful to one's parents. " (Bukhari :: Book 8 :: Volume 74 :: Hadith 290)

QURAN

"The most superior among you (Muslims) are those who learn the Qur'an and teach it."  ("Inna afdalkum man ta'allamal Qur'ana wa allamahu.")
Reporter: Hadhrat Uthman bin Affan (r), Source: Sahih al-Bukhari, Vol. 6: 546

"Study (read) Qur'an (regularly) for it will act as an intercessor and entreat for its readers on the Day of Judgment." 
("Iqra-ul Qur'an; fa innahu ya'ti yawmal qiyamati shafiyan li ashabihi.")


Reporter: Hadhrat Abu Umamah (r), Source: Riyadus Saleheen, 991; Sahih Muslim, Vol. 2, 1757

Hadith: Allah will grant whoever recites this (verse 129, surah At Taubah, Ch.9) seven times in the morning or evening whatever he desires from this world or the next. (Abu Dawud)

Abu Hurairah (radiAllahu anhu) narrated that the messenger of Allah (salAllahu alayhi wasalam) said, ‘Whosoever recites Surah ad-Dhukhan every night, seventy thousand angels will ask forgiveness for him." [at-Tirmidhi]

Umar (radiAllahu anhu) narrated that the Prophet (salAllahu alayhi wasalam) said, ‘A Surah of the Qur’an was revealed to me tonight, indeed it is the dearest Surah to my heart, than anything under the sun’. Then the Prophet recited Surah al Fath verses 1-5. [Sahih al-Bukhari 6:61, no. 532]

REPENTANCE

Rasulullah (SAW) said: “O people! Sincerely repent to Allah. I repent to Allah one hundred times daily” - Sahih Muslim

RIZK (Livelihood / Provision)

Prophet Muhammad s.a.w said: “If you depend on Allah with due reliance, He would certainly give you provision as He gives it the birds who go forth hungry in the morning and return with a full belly at dusk.” [Hadith: Tirmidhi]

SADAQAH (DONATION)

When a man dies no further reward is recorded for his actions, with three exceptions: Sadaqah jariah (donation with which continues to be benefitted), or knowledge from which benefit continues to be reaped, or the prayers of a good son to his dead father. (Muslim)

TAQWA

"Fear Allah WHEREVER you are," said the Prophet (peace be upon him) [Tirmidhi]

TIME

The Prophet (peace and blessings of Allah be upon him) said: “Two blessings which many people do not make the most of: good health and spare time.” [Narrated by al-Bukhari, 6412]

The Prophet (pbuh) said:
“Take benefit of five before five:
your youth before your old age,
your health before your sickness,

your wealth before your poverty,
your free-time before your preoccupation,
and your life before your death.”
(Hadith: Tirmidhi)

WEALTH

"Every Ummah (people) has a test to undergo, my Ummah will be tried through the wealth." ("Inna likulli ummatin fitnah, wa fitnatu ummatil mal.")
Reporter: Kab bin Eyadh (r), Source: Sunan at-Tirmizi, Vol. 4, 2343



Ibn 'Abbas and Anas bin Malik (May Allah be pleased with them) reported: Messenger of Allah (PBUH) said, "If a son of Adam were to own a valley full of gold, he would desire to have two. Nothing can fill his mouth except the earth (of the grave). Allah turns with mercy to him who turns to Him in repentance".

[Al-Bukhari and Muslim].


ZIKR

"There is a polish for everything that takes away rust; and the polish for the heart is the remembrance of Allah." (Bukhari)

"The best remembrance of God is 'La ilaha illallahu." 
("Afdaluz zikri: La ilaha Illallahu")

Reporter: Hadhrat Jabir (r), Source: Sunan Ibn Majah, Vol. 2, 3800


Prophet Muhammad s.a.w said: "He who remembers his Lord and he who does not are like the living and dead." (Bukhari, Muslim)

Prophet Muhammad s.a.w said: "The first to be summoned to Paradise on the Day of Resurrection will be those who praise God in prosperity and adversity." (Al-Tirmidhi, Hadith 730)

---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

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