Tag Archives: Islamic

  Takaful is Islamic insurance and is relatively a new concept in the financial markets. Takaful is based on pooling of funds where gains and losses are shared equally. Prime markets for Takaful include GCC and Malaysia. Earlier this decade when Islamic banking was picking up pace and Islamic banks was actively penetrating the market, estimates were circulated that Islamic banking in terms of deposits would be 10 percent of …

  First priority of the government is to develop a true Islamic financial system ‘ senator Ishaq Dar A true Islamic financial system is close to my heart and we are endeavoring to transform the financial system into a system truly based on justice and equity. In order to give a big push to the movement of Islamic financial system, the Federal Finance Minister Ishaq Dar has also issued directives …

  Dr. Ishrat Husain announced the establishment of the Centre for Excellence in Islamic Finance at IBA, with the objective of bridging the gap between trained human resource and industry’s growing requirement. The Centre will broadly perform in the areas such as offering degree programs in Islamic Finance, Conduct Research and case studies for enhancing and disseminating knowledge in Islamic Finance; offer short term open and customized executive courses for …

  In today’s world, no country, irrespective of ideological differences, stands isolated today. Foreign Direct Investment (FDI) is a strong and vibrant instrument for an accelerated socio-economic development but conducive atmosphere in this regard is a must. There are two sources of FDI namely, Direct Investment and Portfolio. Direct Investment refers to investment in various industries. This represents fixed investment and is generally expected to be on long run basis …

  ‘Business and commercial activities need to be coherent with the Shariah Corridor and Islamic financial laws’ Despite tremendous growth of the Islamic banking industry it is yet to go a long way to achieve the much desired objectives of socio-economic justice by raising awareness and taking benefits of interest free financial system, free from exploitation. Though more and more people are preferring Islamic banking but financial institutions offering these …

  Islamic banking industry in Pakistan has been growing at a fast pace ever since its re-launch in 2002 and now represents over 12-percent of overall banking industry with as many as 19 Islamic banking institutions offering Islamic banking products and services through a network of over 1,400 branches across the country. Almost all the conventional banks are also introducing Shariah-based banking upon which the central bank is reviewing their …

  While investors have been increasingly fishing for Shariah-compliant investment options, conventional banks and asset management companies, in order to cater to the growing demand for Islamic products, were seen jumping into bandwagon. Ijarah Sukuks are Shariah-compliant medium term investment instruments with 6-monthly (floating) profit payments guaranteed by the Government of Pakistan (GoP). SBP announces profits for Sukuk every 6 months. Facilities of further investment and premature encashment through reselling …

  Deposit mobilization had been much easier in Islamic banking in Pakistan About 40 years ago, Islamic Finance was started to cater the needs of faith-based Muslims. Once looked at in the Arabian Gulf and Malaysia, the Islamic Finance market is evolving into a global one now. In the last decade, the Islamic Financial Sector has registered a growth of 20% per year, indicating it as one of the fastest …

  Islamic finance – A market brief: Islamic finance based on principals of Shariah provides an alternate to conventional banking. Islamic banking industry size is estimated to be USD 400 billion with potential to grow at minimum 15 per cent to 20 per cent globally per year, much faster than conventional financial institutions. This has been the same trend over the last 5 years since 2008. Islamic Banking assets globally …

  Presently, the Takaful industry has boosted considerably as a viable Islamic alternative to conventional insurance. Though the worldwide Takaful industry has registered healthy growth, the progress of related regulatory and supervisory frameworks has not kept pace and varies significantly between main Takaful markets. In several main states, the Takaful market is becoming increasingly over-crowded with a number of local and foreign firms competing for a small pool of risks …