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Islamic banking & Finance

Most of the Islamic Banks operate on Bai- Murabaha, Bai Muazzal, Bai- Salam, Istisna, Hire Purchase/ Leasing mode of Investment i.e. Islamic Banks always prefer to run on markup/ guaranteed profit basis having Sharia coverage. For this reason some times the conventional Economists and General people fail to understand the...
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...
SME finance is beginning to take off in Pakistan. Net outstanding credit to the private sector in the country rose by Rs 559 billion in the eleven months ending May 2018. SME sector contributes around 40% to the national gross domestic product (GDP) in the country. According to the figures,...
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...
Islamic banking is thriving in Pakistan for the past 15 years. Credit goes to Meezan Bank Limited for opening the doors of a full-fledged Islamic banking in Pakistan since 2002. But the most pathetic aspect of this Islamic banking is that it is flourishing on 'Haraam' (us-Islamic) formula of...
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,...
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...
The main challenge for Islamic finance is to evolve products that prefer innovation over imitation'. Late-2007 saw the FIrst run on a British bank in living memory with various scandals severely damaging the trust and reputation of banks. Subsequently stakeholders across society started demanding a more socially responsible, ethical and...
The fact that Islamic finance functions within a paradigm of transition does lead to some difficulty in assessing its legitimacy and its potential for achieving what it claims it can achieve. However, Islamic finance does not function outside the spatial and temporal modes of modernity. There is not an Islamic...