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Archive for November 5th, 2008

Sharia shares ‘will be hit by slowdown’ – S&P

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Points of Essence:

  • S&P opined that Shariah stocks will not be spared from the economic crisis due to larger exposures to  the material and energy companies especially in the 3rd quarter of the year. They were saved in the first half of the year by a minimal exposure to the financial sector.
Shariah-compliant shares are just as likely to be hit by the global downturn as other types of shares. (Getty Images)

Shariah-compliant shares are just as likely to be hit by the global downturn as other types of shares

By Soren Billing

Sharia-compliant stocks are just as likely to be hit by a global economic slowdown as other shares are, the vice president of Global Equities at Standard & Poor’s Index Services has said.

“Sharia is not intended to be an outperformance strategy, it’s supposed to be a strategy as per religious beliefs and also as per good corporate governance,” Alka Banerjee said. “But that doesn’t necessarily translate into outperformance.”

Sharia compliant stocks were largely spared from the financial turmoil in the first half of the year due to their low exposure to the Read the rest of this entry »

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Written by Suapi Shaffaii

November 5, 2008 at 11:11 pm

StanChart Malaysia appoints Islamic subsidiary CEO

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Points of Essence:

  • Standard Chartered Saadiq Berhad of Malaysia has appointed Azrul Nizam Abdul Aziz as its new CEO. Saadiq Berhad is the Malaysian based Islamic subsidiary of Standard Chartered Bank. Saadiq is the StanChart’s global brand of Islamic banking.

KUALA LUMPUR, Nov 5 (Reuters) – The Malaysian unit of Standard Chartered has appointed Azrulnizam Abdul Aziz as chief executive of its Islamic subsidiary, the lender said on Wednesday.

Azrulnizam, who was previously head of the bank’s Islamic banking division, will now lead Standard Chartered Saadiq Berhad, the bank said in a statement. (Reporting by Liau Y-Sing; Editing by Alex Richardson)

Source: http://www.reuters.com

Note: See more of Stanchart Islamic here.

Written by Suapi Shaffaii

November 5, 2008 at 10:13 pm

Islamic approach key to ABG success

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Points of Essence:

  • Al Baraka Group of Bahrain attributed its strong growth to the Islamic banking business despite the global economic downturn.

Bahrain-based investment bank Albaraka Banking Group (ABG) has weathered the global financial turmoil owing to its Islamic banking model, its most senior executive said yesterday.

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Written by Suapi Shaffaii

November 5, 2008 at 9:51 pm

Unified standards for commodity Murabaha transactions introduced

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Points of Essence:
  • Aiming to standardize and unify the core of Murabaha practices for Shariah compliant institutions, the first Shariah-compliant master agreements for treasury placement (MATP) was launched recently. The MATP consists of master Murabaha agreement, master agency agreement for purchase of commodities and commodity purchase letter of understanding that will bring confidence to the growing sector of Islamic finance as it will bring into unity  the different versions of the Murabaha transactions practiced by the market players.
  • The response to the MATP was very encouraging as leading banks including  JPMorgan and Standard Chartered have been studying the initiative. The MATP was an initiative led by the IIFM, Central Bank of Bahrain and DIFC.

Nasser Al Shaali of the DIFC Authority

Standardisation and unification of rules for Islamic financial products has become a core factor in elevating the Islamic banking system into the next stage, according to market experts.

Introducing the first Shariah-compliant master agreements for treasury placement (MATP) in Dubai yesterday, several experts in Islamic finance said this move would support the expected high growth rates in Islamic banking and financial services around the world.

The initiative introduces unified standards for commodity Murabaha transactions, including master Murabaha agreement, master agency agreement for purchase of commodities and commodity purchase letter of understanding.

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Written by Suapi Shaffaii

November 5, 2008 at 3:04 pm