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Sunday, 26 February 2012

Mega Islamic bank may be launched in 2012

Islamic banks to subscribe $600mn while $400mn will be publicly raised

A long-awaited mega Islamic bank to be headquartered in Bahrain may be launched this year and $600 million of its $one billion capital will be contributed by Islamic banks in the Arab region, a senior banker has said.

The remaining capital will be subscribed by local sovereign wealth funds and other financial institutions and investors, said Adnan Youssef, chairman of the Beirut-based Union of Arab Banks (UAB).

Touted to be the world's largest Shariah-compliant unit, the bank idea was first floated in 2009 but was delayed many times because of the repercussions of the 2008 global fiscal distress, Gulf debt default problems, the European Union debt crisis and the political unrest sweeping the Middle East.

Youssef, also CEO of the Manama-based Al Baraka Banking Group, had first said the bank would have a capital of $10 billion and would be a joint venture between regional Islamic banks and other investors.

"This bank will have a paid up capital of $one billion, of which $600 million will be subscribed by Islamic banks in the region and the rest by other financial institutions, including SWFs," he told the UAB's magazine.

"In order for us to enter the market with this project, we must first get the $600 subscription, which we expect before the end of 2012.....the remaining shares will also be floated before the end of the year."

Demand for Islamic banking soared after the 2008 crisis and default problems and this has prompted several banks to set up Shariah-compliant units. Some banks have expanded existing units while others plan to launch such services.

Islam bans interest, investing in prohibited sectors and stipulates that risk and reward be shared among all those in the business venture.

Saudi Arabian businessman Sheikh Saleh Kamel, who owns Al Baraka, is behind the plan to create a giant Islamic bank to be owned by many Shariah-compliant.

Saudi Arabia's Al-Rajhi group was the world's largest Islamic bank at the end of 2010, controlled $49.2 billion in assets, nearly a fifth of the combined assets of the Arab region's Islamic banks, according to UAB.

The Kuwait Finance House (KFH) came second by assets, which stood at $43.7 billion at the end of 2010 compared with $39 billion at the end of 2009.

Dubai Islamic Bank (DIB) was ranked third, with assets of about $24.5 billion, followed by Abu Dhabi Islamic Bank (ADIB), with around $20.5 billion.

Al-Baraka Group came fifth, with nearly $15.8 billion while Qatar Islamic Bank (QIB) controlled the sixth largest assets of $14.2 billion.

The report showed Al-Rajhi also had the largest capital of around $8.08 billion at the end of 2010. KFH came second with around $4.3 billion, followed by DIB with nearly $2.6 billion, QIB with $2.5 billion and ADIB with $2.2 billion.

(Emirates 24|7 2012)

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Qatar leads the Muslims world with per capita income of $79,000 followed by Brunei and UAE

Qatar leads the Muslims world with per capita income of $79,000 followed by Brunei at $51,600, said Bank Sarasin’s report titled “The path to corporate transformation – converting a company to Islam”.
The UAE residents are estimated to be third richest in the Muslim world with per capita income of $49,600 (Dh182, 000), according to the latest study on Islamic finance and wealth management.
According to International Monetary Fund’s estimate UAE’s per capita income was Dh178, 351 ($48,597) in 2011, making its residents the sixth-richest in the world.
“Personal income across the Muslim world varies substantially. With the Muslim world having as many disparate parts as a mosaic has tiles, market complexities present huge challenges. But many of these markets are simply too big to ignore. For example, there are an estimated 140 million Muslims in India, 40 million in China, 14-20 million in Russia, 10-13 million in the US and about 30 million in the European Union,” Bank Sarasin’s analysts said in the report.

Gulf Cooperation Council (GCC) countries dominate the top list with Kuwait, Bahrain, Oman and Saudi Arabia ranked fourth, fifth, sixth and seventh, respectively. Kuwait’s per capital stood at $48,900, Bahrain at $40,300, Oman at $25,600 and Saudi at $24,200, Bank Sarasin said.

According to the report, citizens of Bangladesh, Sudan and Pakistan have the lowest income among the Muslim countries. Per capital income in Bangladeshi was estimated at $1,700, Sudan at $2,300 and Pakistan at $2,500.

Calls for unified GCC regulations

The report also called for the GCC to take a leadership role by establishing standards for the registration of Islamic investment products with one regulator. This would allow asset managers to market products to clients across the Gulf without the lengthy and costly registration process now required since products must now comply with different regulations in Bahrain, Kuwait, Saudi Arabia, Qatar and the UAE.
The report also noted the leadership demonstrated by Malaysia, not only in terms of Islamic finance, but with regard to halal production.
(Emirates24HoursBusiness,24 Feb2012)

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Hadith : Muamalat


Narrated Abu Huraira: The Prophet s.a.w said, "A time will come when one will not care how one gains one's money, legally or illegally." [Sahih Bukhari]


Hadith: It is not just for a man to sell his merchandise without disclosing its defects. It is proper for the vendor to tell the buyer of any defects of which he is aware. [Hadith of Ahmad Ibn Hanbal, on the authority of Wathilah]

It was narrated that Hakeem ibn Hizaam (may Allah be pleased with him) said: I came to the Messenger of Allah (blessings and peace of Allah be upon him) and said: A man may come to me wanting to buy something that I do not possess; should I buy it for him from the marketplace then sell it to him? He said: “Do not sell that which you do not possess.”
[Narrated by at-Tirmidhi, 1232; an-Nasaa’i, 4613; Abu Dawood, 3503, Ibn Maajah, 2187, Ahmad, 14887. Classed as saheeh by al-Albaani in Irwa’ al-Ghaleel, 1292]

A’isha (Allah be pleased with her) reported that Allah’s Messenger (may peace be upon him) bought some grain from a Jew on credit and gave him a coat-of- mail of his as a pledge. [Sahih Muslim, Chapter 45, Book 10, Number 3902]

Narrated 'Aisha (r.a): The Prophet (s.a.w) purchased food grains from a Jew on credit and mortgaged his iron armor to him.  [Sahih Bukhari - Book 34, Sale & Trade, No. 282]

"Do not sell the fruits until their good condition becomes evident." (Muslim)


The 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 honor.” [Riyadh-us-Salaheen, Hadith 588]


The Apostle of Allah s.a.w cursed the one who accepted usury, the one who paid it, the witness to it, and the one who recorded it. [Hadith]

Narrated 'Aisha r.a: When the verses of Surah "Al-Baqarah" about the riba (usury) were revealed, the Prophet went to the mosque and recited them in front of the people and then banned the trade of alcohol. [Sahih Bukhari, Book 8, Hadith 449]


The Prophet Muhammad (peace be upon him) said: "Give charity without delay, for it stands in the way of calamity." [Tirmidhi, Hadith 589]
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Words of wisdom: Time

Wisdom is the power to put our time and our knowledge to the proper use.

Time = Life, Therefore, waste your time and waste of your life, or master your time and master your life.

Time is free, but it's priceless. You can't own it, but you can use it. You can't keep it , but you can spend it. Once you've lost it, you can never get it back.

If you want to make good use of your time, you’ve got to   know what’s most important and then give it all you’ve got. 

Lost wealth may be replaced by hard work, lost knowledge by study, lost health by medicine, but lost time is gone forever.

Make use of time, let not advantage slip.

By the time. 
Verily, man is in loss, 
Except those who believe and do righteous deeds, 
and recommend one another to the truth, 
and recommend one another to patience.
(Quran: Surah Al-Asr, 103)

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Words of wisdom: Concentration

Concentrate all your thoughts upon the work at hand. The sun's rays do not burn until brought to a focus.

Success in any endeavor requires single-minded attention to detail and total concentration.

Concentration and mental toughness are the margins of victory.

The concentration and dedication- the intangibles are the deciding factors between who won and who lost.”

“Concentration is the secret of strength” - - Ralph Waldo Emerson

"What do I mean by concentration? I mean focusing totally on the business at hand and commanding your body to do exactly what you want it to do." -- Arnold Palmer

“There can only be one state of mind as you approach any profound test; total concentration, a spirit of togetherness, and strength.” -- Pat Riley

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