Singapore Middle East Insight Islamic Finance Special

2017 ◽  
Keyword(s):  
Middle East ◽  
Islamic Finance

Part II Islamic Law and Contracts in Practice, 12 Shari’a-Compliant Funds: Principles and Practical Considerations

2020 ◽  
Author(s):  
Ahmedani Zeeshan ◽  
Alam Safdar
Keyword(s):  
Middle East ◽  
Southeast Asia ◽  
Broad Spectrum ◽  
Islamic Law ◽  
Islamic Finance ◽  
Investment Management ◽  
Islamic World ◽  
East And Southeast Asia ◽  
Asset Classes

This concluding chapter explores Shari’a-compliant funds. The Shari’a-compliant funds sector is concentrated in three distinct ways, each of which exemplifies constraints on its ability to grow. First, the sector is still largely concentrated in two regions of the Islamic world: the Middle East and Southeast Asia. Second, the sector is also concentrated in a small number of asset classes. Thus, it does not as yet provide its investor base with the broad spectrum of exposure to geographies, asset classes, strategies, and return profiles that are the hallmark of a mature investment management industry. Third, the Shari’a-compliant funds sector lacks significant diversification across managers, with a handful of large managers still dominating the market. The chapter then looks at the basic tenets of Islamic finance and their application to Shari’a-compliant funds. It also considers the various types of Shari’a-compliant funds, as well as the process of establishing and operating a Shari’a-compliant fund.

scholarly journals Islamic Governance, Capital Structure, and Equity Finance: Examining the Possibilities of American Financial Sharī'ah Boards

2009 ◽  
Vol 37 (1) ◽  
pp. 29-58 ◽  
Author(s):  
Rafel Mahmood
Keyword(s):  
United States ◽  
Middle East ◽  
American Foreign Policy ◽  
Governance Structure ◽  
The United States ◽  
Islamic Finance ◽  
Advanced Economy ◽  
American Institution ◽  
Finance Industry ◽  
Gulf Countries

AbstractIn this world of misinformation and predatory ideologies, a basic economic connection may be the difference between the success and failure of American foreign policy in the Middle East. In times of conflict, establishing the commonality of shared financial values can be the best way to build trust. It is remarkable then that the world's largest and most advanced economy has failed to develop the simple financial mechanisms—using Islamic finance and Sharī'ah boards—to connect with Muslims across the globe. Even if the United States’ central focus remains combating terrorism, it is clear that the more financial information the United States can gather, the better equipped it will be to fight the war on terror. Along with the enhanced information capital made possible through Islamic finance and Sharī'ah boards are significant reputational advantages that the United States would not otherwise have. For instance, an Islamic-American humanitarian institution could be certified by multiple clerics in Iraq, thus offering new momentum to the organization's humanitarian mission by preventing numerous belligerent attacks that terrorists might subject upon a purely American institution that lacks the legitimacy conferred through such Islamic ties.Currently, The United States' continuing domestic failure to develop a compatible framework for Islamic finance verges on negligence. This failure is strongly contrary to broader American commercial interests. Consider that economists estimate the outflow of Sharī'ah capital from Gulf countries to be approximately $1 trillion, growing at 20% per annum. Additionally, Gulf countries are currently set to spend upwards of $10 trillion on new infrastructure over the next decade using Sharī'ah compliant financing vehicles. The world currently has roughly two billion Muslims, many of which will one day demand, or at least prefer, Sharī'ah compliant financial products. If the United States does not develop the administrative and legal framework to serve this market, other foreign financial institutions surely will. In fact, economists currently value the Islamic finance industry in the United Kingdom at $12 billion. In stark contrast, in the United States this same market comprises a mere $150 million in assets. This article will examine the necessary mechanics of establishing an Islamic-American corporation in Delaware for the purposes of conducting transactions with the Middle East, and analyze in detail the essential Islamic financial governance structure-the Shari'ah board.

Essential Factors Influencing Malaysia’s Relations with the United Arab Emirates

2021 ◽  
pp. 234779892110317
Author(s):  
Mohd Fauzi Abu-Hussin ◽  
Asmady Idris ◽  
Mohd Rizal Mohd Yaakop ◽  
Mohd Afandi Salleh
Keyword(s):  
Foreign Policy ◽  
Saudi Arabia ◽  
Middle East ◽  
Developing Country ◽  
United Arab Emirates ◽  
Middle Eastern ◽  
Islamic Finance ◽  
The Political ◽  
Policy Orientation ◽  
Factors Influencing

This study analyses Malaysia’s relations with the United Arab Emirates (UAE) as one of its important partners and the most rapidly developing country in the Middle East. It seeks to understand the bilateral relationship by identifying the essential factors that influence them. Apart from the systemic structure that presents no obstacle for the relations, the study has found two essential factors that play pivotal roles in solidifying Malaysia’s relations with the UAE. They are political–diplomatic engagements and socioeconomic opportunities. Hence, this study touches first on Malaysia’s early interactions with the UAE from an overview of foreign policy orientation and is followed by examining the political–diplomatic engagements and socioeconomic interactions, which shape the character of the relations. The findings show that besides significance of political–diplomatic engagements and socioeconomic interactions, the religious element is still germane. Though not in the manner of Malaysia’s traditional–religious interactions with some Middle Eastern countries, especially Saudi Arabia and Egypt, it visibly appears in the form of ‘Islamic commercial brands’ vis-à-vis the UAE that economically bind both countries to embrace more in Islamic finance and investment, halal industry, tourism, and education.

Sign in / Sign up

Export Citation Format

Share Document