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Islamic banking & Finance

The Securities and Exchange Commission of Pakistan (SECP) has enforced the Shariah Governance Regulations 2018, in order to make full compliance in line with the spirit of the Article 38 (f) of the Constitution of Pakistan. Under the regulations, no business will claim as Shariah compliant or as an Islamic...
For the first time, Indians seeking vehicle financing have the option to do so in consonance with Sharia. In peer-to-peer (P2P) platform offered by Bengaluru-based fintech start-up ECW Consultants uses the ijara rent-to-own model. "Since our business model is Sharia-compliant, it works well for those who want to stay away...
An Islamic microfinance start-up has launched what is believed to be the world's first smart sukuk issued on a block chain platform, which it hopes can channel greater liquidity to small- and medium-sized enterprises (SMEs) and social impact projects by dramatically cutting the costs associated with issuing sukuk. Blossom Finance's...
Pakistan's capital market regulator has drafted governance rules that cover sharia-compliant companies and securities, the latest government initiative aimed at developing the country's Islamic finance industry. The move by the Securities and Exchange Commission of Pakistan (SECP) marks the first time a regulator has defined comprehensive requirements for companies that...
1. Islamic banking industry still use LIBOR/KIBOR linked financial contracts which are akin to debt financing than the more preferable participatory modes of Mudarabah and Musharakah. Hence, same state of affairs in this regard from past to present does not show a promising picture from the viewpoint of having...
Saudi Arabia's Debt Management Office has begun issuing $925 million government bonds through a new 'primary dealer' scheme designed to increase demand for the debt and widen the range of investors holding it. The Government selected five local banks Alinma Bank, Bank Aljazira, Samba Financial Group as well as National...
The World Bank Group and the Islamic Development Bank published the first Global Report on Islamic Finance, which details the prospects for the global Islamic finance industry and its potential to help reduce worldwide income inequality, enhance sharing prosperity, and achieve the Sustainable Development Goals. Subtitled "A Catalyst for Shared...
Pakistan a country dominated by Muslim population is considered to be a center for Islamic Banking and Finance with no Riba, no exploitation, no investment in unethical areas and no speculation but still we are far away from these objectives with Islamic banking still 13% of the whole market...
Caretaker Minister for Finance Dr Shamshad Akhtar has reiterated that to promote both industry as well as the regulators of Islamic Banking in the country. "When I was governor of State Bank of Pakistan (SBP) few years back, we were promoting the Islamic finance industry in very aggressive manner,...
Abu Dhabi Islamic Bank (ADIB) UK has arranged and structured a Sharia-compliant transaction to finance the acquisition of the UK based Lateral House for Dh118.2 million on behalf of an Abu Dhabi-based private banking client. Lateral House is a modern office building providing 95,317 square feet of net let table...
Relying on market-based instruments to conduct monetary policy in an economy with Islamic banks is preferable than relying on direct instruments of monetary control for both conventional and Islamic banks. Direct instruments are often associated to non-transparent discretionary interventions that may result in a liquidity misallocation. They can create...