Islamic banking escapes fallout from the global financial crisis

October 20th, 2008

KUALA LUMPUR - ISLAMIC banking has largely escaped the fallout from the global financial crisis, thanks to rules that forbid the sort of risky business that is felling mainstream institutions. But experts say that because of its heavy reliance on property investments and private equity, the booming 1.0 trillion dollar global industry could be hit if the turmoil worsens and real assets start to crumble.

‘In the current financial turmoil, it is interesting to note that Islamic financing may have prevented a majority of the mess created by the conventional banking and financial institutions,’ Kuwait Finance House said in a report.

‘The outlook for Islamic financing is bright and will likely take the lead in terms of providing funding for major projects as the conventional banking system reevaluates its business model.’

The rules of Islamic banking and finance - which incorporate principles of sharia or Islamic law - read like a how-to guide on avoiding the kind of disaster that is currently gripping world markets.

Islamic law prohibits the payment and collection of interest, which is seen as a form of gambling, so highly complex instruments such as derivatives and other creative accounting practices are banned.

Transactions must be backed by real assets - not shady repackaged subprime mortgages - and because risk is shared between the bank and the depositor there is an incentive for the institutions to ensure the deal is sound.

Investors have a right to know how their funds are being used, and the sector is overseen by dedicated supervisory boards as well as the usual national regulatory authorities.

‘Islamic banking has, thus far, remained positive, despite the current challenging global financial environment,’ said Mr Zeti Akhtar Aziz, the central bank governor of Malaysia, which is Southeast Asia’s leader in Islamic banking.

Mr Zeti said this month that because of the slowing global economy, plans for Islamic ’sukuk’ bonds had been postponed or scrapped by companies including Kuwait’s Abyaar Real Estate Development and Malaysia’s Perisai Petroleum.

And Ms Jennifer Chang, a partner at Pricewaterhouse Coopers in the Malaysian capital Kuala Lumpur, said that given the extent of the global crisis, Islamic banks may suffer damage despite their strong position.

‘Islamic banks, especially in the Middle East, got heavily into private equity and real estate investments, and a lot of loans may be backed by properties. So if the property market goes down, there will be an impact,’ she said.

‘If a borrower is not able to pay then the bank will foreclose and the question is - can you sell the property in the market and at what value? These are issues which all banks can face.’

There have been calls for the conventional banking industry to take a leaf out of the book of Islamic finance, which also shuns investments in gaming, alcohol and pornography in favour of ethical investments.

Influential Sunni cleric Sheikh Yusuf al-Qaradawi earlier this month called on Muslims to take advantage of the turmoil to build an economic system compatible with Islamic principles.

‘The collapse of the capitalist system based on usury and paper and not on goods traded on the market is proof that it is in crisis and shows that Islamic economic philosophy is holding up,’ said the Egyptian-born, Qatar-based cleric.

In recent years the sector has broken out of its niche and been embraced by mainstream banks. As well as basic bank deposits and investment accounts, it has expanded into areas including equity funds, bonds and Islamic hedge funds.

Mr Abhishek Kumar, a senior research analyst at Financial Insights, a company under market research and analysis firm International Data Corp (IDC), said recent events may further boost the sector.

‘More and more institutions will be interested in providing Islamic services to diversify their risk portfolio,’ he said, while warning that in the current financial storm there were no absolutely safe harbours.

Source:

http://www.straitstimes.com/Breaking%2BNews/Money/Story/STIStory_292658.html

Seven people will be shaded by Allah under His shade

October 19th, 2008

Seven people will be shaded by Allah under His shade - 2 min Video

Canada is No.1 Source for US Oil Import

October 16th, 2008

Source: US Government web site

http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html

August 2008 Import Highlights: October 14, 2008
Preliminary monthly data on the origins of crude oil imports in August 2008 has been released and it shows that two countries exported more than 1.40 million barrels per day to the United States. Including those countries, five countries exported over 1.00 million barrels per day of crude oil to the United State s (see table below). The top five exporting countries accounted for 66 percent of United States crude oil imports in August while the top ten sources accounted for approximately 86 percent of all U.S. crude oil imports. The top sources of US crude oil imports for August were Canada (1.833 million barrels per day), Saudi Arabia (1.533 million barrels per day), Mexico (1.292 million barrels per day), Venezuela (1.146 million barrels per day), and Nigeria (1.035 million barrels per day). The rest of the top ten sources, in order, were Iraq (0.663 million barrels per day), Angola (0.483 million barrels per day), Algeria (0.348 million barrels per day), Ecuador (0.291 million barrels per day), and Colombia (0.247 million barrels per day). Total crude oil imports averaged 10.284 million barrels per day in August, which is an increase of (0.183) million barrels per day from July 2008.

Canada remained the largest exporter of total petroleum in August, exporting 2.198 million barrels per day to the United States, which is a decrease from last month (2.390 thousand barrels per day). The second largest exporter of total petroleum was Saudi Arabia with 1.573 million barrels per day.

Source: US Government web site

http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html

What is the actual purpose of life

October 7th, 2008

What is the actual purpose of life ? - 8 min video
http://www.youtube.com/watch?v=RjtapHYb3O0

PALESTINE CHILDREN’S RELIEF FUND Fundraising Dinner - Saturday, October 25th

October 6th, 2008

PLEASE JOIN US

PALESTINE CHILDREN’S RELIEF FUND

Boston Chapter Fundraising Dinner

A non-political, non-profit, humanitarian relief organization

providing urgent world-class medical care to children from war-torn areas of the Arab World

Saturday, October 25th 2008 • 6 pm

Palestinian Cultural Center for Peace • 41 Quint Ave, Allston

Dr. Stephen Walt, The Israel Lobby and U.S. Foreign Policy

Join us for a beautiful evening with distinguished guest speaker Dr. Stephen Walt, first hand accounts of the PCRF’s work by founder and CEO Steve Sosebee, Arabic dinner and entertainment. 

Dr. Stephen Walt is a Harvard Kennedy School Professor and the New York Times best-selling author of The Israel Lobby and U.S. Foreign Policy. 

Tickets:  $50 regular, $125 dinner & pre-reception with honored guests, $175 sit w/ Dr. Stephen Walt at dinner & pre-reception, $30 students with valid picture student ID  e-mail: lailakassis@gmail.com for tickets.  www.pcrf.net

Good news - Mandella no longer on US Terrorist list

October 4th, 2008

Good news - Nelson Mandella has been removed from the US Terrorist watch list.

In 1990, Mandela was freed after 27 years in prison for crimes committed during the struggle against Apartheid, a repressive regime that subjugated black South Africans. In 1994, he was elected South Africa’s first black president.

Homeland Security Secretary Michael Chertoff says “common sense” suggests Mandela should be removed. He says the issue “raises a troubling and difficult debate about what groups are considered terrorists and which are not.”

When ANC members apply for visas to the USA, they are flagged for questioning and need a waiver to be allowed in the country. In 2002, former ANC chairman Tokyo Sexwale was denied a visa. In 2007, Barbara Masekela, South Africa’s ambassador to the United States from 2002 to 2006, was denied a visa to visit her ailing cousin and didn’t get a waiver until after the cousin had died, Berman’s legislation says.

Read Article rest of article here …

http://www.usatoday.com/news/world/2008-04-30-watchlist_N.htm

Event - Challenges to Peace - Tuesday Oct 7th

October 4th, 2008

Challenges to Peace

The Situation in Palestine, and the Prospects for a Negotiated Solution to the Israeli-Palestinian Conflict

                     Featuring:

Wassim Khazmo

Communications Advisor for the PLO Negotiations Support Unit (NSU)

He joined the NSU in 2005 having previously worked at the Orient House’s International Affairs Department as a Political Officer and Youth Projects Manager. He holds a B.A. in Business Administration from Birzeit University and MA in International Studies and Diplomacy from the School of Oriental and African Studies, University of London.

The Negotiations Support Unit (NSU) was established in 1999 as a project of PLO’s Negotiations Affairs Department (NAD). The purpose of the Negotiations Support Project is to provide highly professional legal, policy and communications advice to the NAD and Palestinian negotiators in preparation for, and during, Permanent Status negotiations with Israel. Following the collapse of formal negotiations at the outset of 2001, an additional purpose of the project is to encourage the resumption of Permanent Status negotiations by contributing to a variety of diplomatic initiatives aimed at bringing the two sides back together.

Tuesday, October 7^th • 7:30pm

Palestinian Cultural Center for Peace

41 Quint Avenue, Allston, MA 02134

Co-Sponsored by the American Arab Anti-Discrimination Committee of Massachusetts (ADCMA), and the Palestinian Cultural Center for Peace.