uk-british-group-creates-intl-halal-certification-programme

By Geraldine Chahine, Radio Lite RM

A group of scholars in the UK has created what they say is a halal certification program that has the potential to become the international standard for the global food industry and make life easier for the world’s 1.6 billion Muslim consumers.

The Halal Authority Board (HAB) in the UK has designed what they say is a “realistic and practical” certification scheme that regulates the production of halal products in accordance with Islamic law and modern food processing.

The hope is that a worldwide, uniform standard would streamline the process for halal food production and end the confusion among consumers who are confronted with a patchwork of different standards in the market, says HAB.

The main pillars of the certification program will include the production, processing and preparation of halal foods, particularly meat.

The HAB’s certification program has the backing of 950 of the UK’s 1,400 mosques. The Shariah board itself is made up of 13 Islamic scholars who represent a wide cross-section of the Muslim community.

The system will also be overseen by third-party certification group Cert ID Europe.

Article 2

Partnership promotes a global halal certification www.canadianmanufacturing.com

Nuneaton, U.K. – Certification groups have formed a partnership to offer a new worldwide standard for Halal certification for the food industry.

Cert ID Europe, a U.K.-based certification business, and the Hijaz Group of Saudi Arabia recently formed the Halal Authority Board (HAB) to offer this new standard for food and beverage producers.

A story on FoodNavigator.com reports that currently Halal certification standards are not all the same. In addition, there is no one type of Muslim consumer – even among that community there are different opinions on what constitutes Halal.

On top of that, Halal requirements are based on the Koran and Sharia laws that date back more than 1,500 years. So producing Halal foods in today’s world is not as simple as it seems.

Clear guidelines

HAB’s new standard offers the industry realistic and clear guidelines, which it says is especially useful for a market that is estimated to be worth more than US$600 billion and includes more than 1.6 billion consumers worldwide.

The standard was created with 13 well-known Islamic scholars to represent a wide cross-section of the Muslim community, reports FoodNavigator.com.

HAB says the new standard also brings together different Halal standards from around the world, “giving full assurance to Muslim consumers that the products are Halal wherever they are in the world.”

The standard sets out guidelines on all aspects of production, including food health and safety regulations, storage, delivery, cleaning and cleansing, which takes into account scientific developments to prevent contamination from pork and other unacceptable derivatives.

Currently, there are five modules covering:

1. Primary Production of Livestock;
2. Primary Processing of Livestock, which includes guidelines on cleaning and cleansing; slaughter of livestock, packaging and labelling.
3. Further Processing;
4. Logistics;
5. Foodservice, which covers the preparation of Halal foods.

The American Halal Association reports as a matter of due diligence to inform consumers.

The Food Safety and Inspection Services (FSIS) is an agency of the United States Department of Agriculture (USDA) that ensures the nation’s meat and poultry supplies are correctly labeled and packaged. Temporary approvals can be granted by the Labeling and Program Delivery Division (LPDD) for up to 180 days to a company that has a need to correct a deficient label. It gives time for the company to take corrective action, but unfortunately the consumers may be misled by the faulty packaging distributed in that time frame.

In August 2011, an on site USDA inspector for Park Farms questioned the usage of a label on Halal Pride brand chicken marked “Hand Slaughtered” that was actually initially machine killed. By September 2011, Halal Pride obtained a temporary approval to use 125,000 labels from the LPDD in Washington. Again, the on-site USDA inspector was uncomfortable and felt it was “misleading to the consumer” and questioned FSIS about using the label. He received his answer in Nov, 2011 and the deficient labels were approved for use until Jan 2012.

It is ambiguity like this that can mislead Halal consumers about the process by which their food is packaged and labeled. Read the attached Freedom of Information Act letter. FOIA 12-42 Responsive records Applied

From Business Islamica by Kashif Hasan Khan

Understanding the Current Debate on Tawarruq and Sukuk: A Study of the Juristic Opinions of Indian and Arab Scholars

Introduction

Tawarruq and sukuk are the two most controversial Islamic financing tools currently prevailing in the market. Since Islamic finance has its major expansion in the Arab World and its potential market is now seen in India, which is the worlds second largest Muslim Populated country, we find that religious scholars are showing greater interest in it from an Islamic perspective. But, how do the Arab and Indian Muftis (jurists) interpret it, considering its applicability in a financial market dominated by the interest based financial system?
This paper basically aims to examine these points in order to understand whether the current practices of Tawarruq and sukuk are permissible or not in the views of Indian and Arab Shari’ah scholars.

A Paradigm Shift

Islamic banking came into existence in the beginning of the 1960s but only started receiving attention and gaining high popularity in the last two decades. Now, Muslim and non-Muslim countries are giving a warm welcome to the industry, with a number of scholars over that period concentrating on the various aspects of Islamic banking and considering it to be in its infancy because of its small size compared to the gigantic conventional industry. Therefore, despite exemplary advancements and achievements, there remain a number of controversies over various underlying concepts and practices. There are also many issues that were raised in the early 1980s, such as -do Islamic banks operate according to the principle of profit and loss sharing? -Who are the benefactors and who stands to lose from such banks? Currently, there is a paradigm shift. We hardly find questions related to the principle of profit and loss sharing; rather there are some more complicated issues like risk management, transparency and Shari’ah supervision.

Here it would be relevant to answer such questions. But there are others. What is the importance of Shari’ah opinions in financial matters and what needs do these experts have to formulate consensus? And where do the opinions of both the Arab and Indian Shari’ah scholars differ in understanding the permissibility of Sukuk and Tawarruk?

Fatwa on financial Transactions

In order to understand the opinion of Shari’ah scholars it would be pertinent to start a discourse on the fatwas issued on financial transactions in India and the Arab world. The fatwa on finance is a most attractive term for both Muslims and non-Muslims, mainly because most of the Muslims are not aware of the terminology. It should be kept in mind that India is the country where fully fledged Islamic financial institutions are not yet in existence, therefore, the Fatwa issued by Indian scholars would provoke more questions such as how can Shari’ah scholars know and formulate opinions on financial matters without having first accepted the system of interest-free banking in India. Indian fatwas are mostly based on the assumptions that whatever form of Islamic finance is in practice, it will also be applicable in the Indian scenario. Arab Shari’ah scholars arent much concerned with the perceived structures of the Indian scholar in a country where most of the financial rules are governed by RBI (the Reserve Bank of India) without taking into consideration the religious sentiments of the people. That is why, when the Indian Muftis (Jurists) deliver any fatwa concerning the Islamic finance it generates debates on its viability in India. The only platform gathering Shari’ah scholars in India is the Islamic fiqh Academy (IFA).

As far as the fatwas in the Arab region, the first of these on the said issues was in 1904, and they addressed the legitimacy of interest banking. But serious attention was only given after the 1970s when Islamic banking started serious operations and some innovations sprung up. During the early seventies, Shari’ah academies also emerged into the scene.

Fatwa Shoppings

Shari’ah Supervision is essential in the Islamic banking Industry because the purpose is to ensure that the financial institutions operate in conformity with Shari’ah. It is usually made up of a number of jurists who provide clarification in regards to any questions that the financial institutions may have (Usmani, 1998). Presently, it has become an impediment to the entire Islamic banking Industry. Fatwa shopping a procedure that enables the financial institutions to seek a fatwa on financial products or contracts from the scholars who, they assume, will consider such products or contracts as Shari’ah-compliant and later grant a fatwa is a threat to the Islamic finance industry because the process works against the harmonization of fatwa.

Malaysian scholars might be considered too liberal for the Gulf Cooperation Council (GCC) investors whereas Pakistani or Indian Scholars follow different Shari’ah guidelines to those defined by GCC Shari’ah scholars. There is additionally the issue of differing interpretation of existing Shari’ah rulings. The existence of various sects in Islam and the fact that each sect has its own authority or body which provides guidance and interpretation on Shari’ah issues makes the process complicated. Differences do arise and exist between the countries and regions. For instance, Islamic financial restrictions are more liberal in Malaysia compared to the Middle East where the financial regulations have been applied more strictly.

Opinions on Sukuk and Tawarruq

Tawarruq is a transaction whereby a needy person buys something on credit and then immediately, in a separate transaction with another party, sells it for cash. It has become increasingly popular in Saudi Arabia, UAE, and other GCC (Gulf Cooperation Council) countries in recent years. However, more recently, two prominent jurists, both housed in Saudi Arabia, tackled the issues of Tawarruq and Fiqh. The Academy of OIC in Jeddah has already forbidden Tawarruq. The Fiqh Academy of the Muslim World League in Mecca issued two rulings on the transactions. The first opinion was issued during the 15th session of the Academy in 1988. It permitted the contract subject to the condition that the customer does sell the commodity to its original seller, to avoid direct interest evidence of Inah as a legal stratagem to circumvent the prohibition of Riba. The second took place in the 17th session of the academy held in December 2003; they tackled the issues of Tawarruq as practiced by Islamic banks today and forbade it. Many Muslim jurists frowned upon the practice of Tawarruq because of its similarity to bai al inah, and its propensity to incur Riba in the transactions. Whereas some of the scholars hold opinion that it is extremely suspicious from the point of Shari’ah compliance.

The well known Indian Scholar M.N. Siddiqui, who is perhaps the most influential writer of the first generation of modern Islamic Economists, says that the Tawarruq practice must be of limited use only for meeting unavoidable liquidity whereas Sheikh Mohammed Mukhtar Al Salami, head of the Shari’ah (Islamic) panel in the Jeddah based IDB, said the present practices of Tawarruq deal as -concealed usury which is prohibited in Islam. Prominent scholar Sheikh Nizam Yaqubi, disagrees with the Saudi Arabian ruling and this has triggered a fierce debate.

AAOIFI (Accounting and Auditing Organization of Islamic Financial Institutions) issued its Shari’ah standard 30, indicating the correct way of doing Tawarruq. In reality, of course, Shari’ah standard 30 is never implemented. In recognition of the need for expert, independent advice, and supervision on Shari’ah related matters, the AAOIFI established standards requiring every provider of Islamic financial services to have its own Shari’ah Supervisory Board (SSB) thus, in its auditing standard for IFI no. 4 AAOIFI stated in paragraph three that every Islamic Financial Institutions should have a SSB.

Sukuk

Sukuk has been derived from the term -sak in classical Arabic. The term -Sukuk (the plural of sak) as used today is synonymous with -Islamic bonds. But, in fact, it is different from it. It is a new dimension of this very industry that came into existence only two decades ago; it was an attempt by the modern scholars to confront the conventional debt market, because in the present era one can find that the debt based market has been rooted much deeper than the equity based market. Sukuk is the subject of an ongoing discussion, weighing the balance of halaal and Haram in the context of a gradual approach.

Sheikh Taqi Usmani, a leading Shari’ah scholar and chairman of the AAOIFI board of Shari’ah, said that 80% of sukuk are not Shari’ah-compliant. According to him it violates the principle of risk and profit sharing on which it should be based, and as a result, the AAOIFI brought together its board of Shari’ah scholars to clarify the issues raised by him and to form a consensus among Shari’ah scholars. They published a six point paper in 2008 outlining their position on sukuk, which included a ruling that purchase undertaking at face value for Musharaka and Mudarabah sukuk structures are no longer permissible. The Fiqh Academy of Jeddah is also in favor of the six point paper by AAOIFI.

According to Siddiqui, distancing sukuk from debt is necessary to make them free of Riba and the element of Maysir (gambling). The thing which makes the sukuk a debt instrument in the view of Siddiqui is inclusion of Murabaha receivables into the package of assets against which sukuk are issued and the commitment to redeem them at their face value at some future date, with regular periodical returns being paid in between. There is no difference, in effect, between this and some of the money lent for an interval being serviced by periodical payment covering the interval.

CONCLUSION

While going through these two important modes of finance, considering the opinions of scholars both from India and the Arab world, it emerges that Sukuk is getting approval from a number of scholars and is also found to be a viable option for a long-term project financing. However, Tawarruq is still found to be a more controversial and ambiguous financing nature, where most of the Islamic banks seek legal roots to justify lending.

About the author

Writer is a research fellow at the centre for West Asian Studies, Jamia Millia Islamia University, New Delhi, India. He can be reached at Kashif_islamicfinance@yahoo.com

Book Download  Click on the Meezan Bank logo!

Guide to Islamic Banking, by Dr. Imran Usmani, is a comprehensive publication which enables the reader to understand what Islamic Banking is and how it works. The publication covers all Islamic Banking modes, methods, related Islamic Shariah concepts and includes a complete Glossary on Islamic Banking terminology.

This humble effort by Dr. Imran Usmani will surely help the students, practitioners, bankers, customers and anyone interested in Islamic Banking to have a better understanding on all the major areas under the umbrella of Islamic Banking.

ISBN:
969-428-006-0
Publisher:
Darul – Ishaat Urdu Bazar Karachi – I Pakistan

Edition:
FIRST (2002)

2012 LSE-Harvard public lecture on Islamic Finance

Date: Wednesday 22 February 2012
Time: 6.30-8pm
Venue: Hong Kong Theatre, Clement House
Speakers: Mukhtar Hussain, Professor Volker Nienhaus
Chair: Justice Cranston

It is felt that conventional financial systems have failed and should be replaced, or supplemented, by more ethical banking and socially responsible finance. Can Islamic Finance, as a system with a strong religious background and moral framework, satisfy this hope?

Mukhtar Hussain is chief executive officer at HSBC Malaysia.

Volker Nienhaus is visiting professor, University of Reading.

Suggested hashtag for this event for Twitter users: #lseislamfin

This event is free and open to all with no ticket required. Entry is on a first come, first served basis. For any queries email events@lse.ac.uk or call 020 7955 6043.

Media queries: please contact the Press Office if you would like to reserve a press seat or have a media query about this event, email pressoffice@lse.ac.uk

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Kuala Lumpur, Malaysia January 16th, 2012 – OSK-UOB Islamic Fund Management, a joint-venture company formed between the OSK Group, one of Malaysia’s leading investment bank and Singapore’s UOB Group, one of Asia’s leading financial institutions, announced today that it has signed a strategic agreement with IdealRatings, Inc. a global Shariah compliant fund management service provider to utilize IdealRatings’ unique research based screening for their global growth strategy of equity funds.

According to Mohamed Noor, CEO, OSK-UOB Islamic Fund Management, OSK-UOB Islamic Fund Management was looking to find a partner who could provide detailed analysis of the revenue breakdown for the global stock market specifically for food companies involved in any non-halal elements. “IdealRatings, did an outstanding job screening companies with their one of a kind research methodology along with their comprehensive Shariah fund management solution. We feel confident relying on IdealRatings to provide us with top quality Shariah screening data for our Global Halal Food Fund and also for the other unique funds we will be offering as part of our portfolio in the future” said Mohamed Noor.

“The team at OSK-UOB Islamic Fund Management has great plans for much needed products in the market. We are proud to help such team with our service to develop successful products to meet the market demands in a high growth market” said Mohamed Donia, CEO of IdealRatings.

Historically speaking the institution of waqf, which is a non-governmental organization (NGO), has played a significant role throughout Islamic history, from the time of the Prophet (pbuh) to the beginning of the 19th century. Although this institution existed before the coming of Islam, yet, Islam was the first religion to develop its legal framework and regulate it. Thus, it became one of the devices created by Muslims to fulfill many services that are financed by the state or the government today, such as education, healthcare, national security, transportation facilities, basic infrastructure, food, shelter, and jobs for many. It acted like a network, penetrating many service sectors whenever it found a need to promote a particular sector. We cannot deny the role of this institution in the development of Islamic civilization before its destruction towards the end of the 19th century. With the recent revival of some of the Islamic institutions in the 21st century, the waqf found its way back with a new dimension focusing mainly on the creation of movable waqf in different countries. Waqf-share is one of the movable waqf which has been practiced in many Muslim and Muslim minority countries today. With the current financial crisis and the urgent need for capital to continue providing services needed by the different societies, the introduction of waqf-shares as a fundraising effort was totally accepted. The main objective for introducing waqf-shares is not only for capital accumulation but also to facilitate the process of creating waqf by the different sects of people in any society, regardless of whether they are rich or not, with the minimum amount of money they can afford in order to participate in developing their societies. This paper will address the current practice of waqf-shares in four different countries.

Definition of Waqf-Shares

There is a consensus among the fuqaha (Muslim jurists) regarding the definition of waqf. According to them waqf means the appropriation of the ayn (property) from private ownership and the dedication of its usufruct to charitable purposes. Hence, waqf-share is a movable waqf that is established with liquid money to promote services to mankind in the name of Allah (s.w.t). For the creation of waqf-shares the founder has to purchase the waqf-shares which were issued by the trustee of the waqf in order to generate income in perpetuity for the beneficiaries. The beneficiaries can be projects that promote the well-being of Muslim society such as building schools, hospitals, clinics, providing water supply, electricity, etc. In return the founder will receive a waqf certificate showing that he has contributed to the development of such a project.

Key Restrictions on Waqf-Shares

Muslim scholars agree that once a property, movable or immovable, is created as waqf it should be placed under three key restrictions. The first one is the irrevocability, where the founder cannot revoke the dedicated waqf once he declared it as a waqf. The second is its perpetually, i.e. once the property has been declared as waqf it must be perpetual to ensure the regular and the continual support to the beneficiaries. The last one is its inalienability; once the property has been created as awaqf it becomes like a frozen asset that cannot be gifted, inherited, sold or subject to any alienation whatsoever. All these conditions and restrictions are very important to be observed while creating the immovable and the movable waqfs including waqf-shares. The main objectives of these restrictions are to secure a continual benefit for present and future generations, besides ensuring continual rewards to the founders until the Day of Judgment as mentioned in the following hadith when the The Prophet (pbuh) said:

When a man dies his acts come to an end, except three things, recurring charity, knowledge (by which people benefit), and pious offspring, who pray for him.

Waqf-Shares Structure

The main objective of creating waqf-shares is the accumulation of capital through fundraising from the different categories of people and in different amounts in order to provide them with services needed in their society. Recently this type of waqf-shares has been practiced in Malaysia, Indonesia, Kuwait and the UK. The process started as follows;
•A founder buys waqf-shares from a specified institution for any project specified by the issuer institution for the beneficiaries such as; building mosques, schools, hospitals, providing the basic infrastructure, expenses for the different sectors, etc.
•The founder then receives a waqf-certificate as evidence that he had purchased waqf-shares with a specified amount of money for a specific project.
•These waqf-shares will then be endowed to the issuers institution that acts as a trustee to manage and invest the collected funds to that specified project.
•To ensure the perpetuity of such waqf. The accumulated funds have two different ways to be channeled to the beneficiaries;
•In case the selected project will be established on waqf land, then the accumulated funds will be channeled directly to the specified project, such as building schools on waqf land or building hospitals on waqf land; here istibdal had been practiced.
•In case the projects will be established on private land, then the accumulated funds must be invested and the revenue generated must be distributed in a proportion which varies from one project to another e.g. 70% to the specified project, 10% to the trustee for their management and 20% to be added to the capital as highlighted in the following structure.

Current Practice of Waqf-Shares in Malaysia

In Malaysia the waqf shares model has been supported by seven State Islamic Councils in order for Muslims to contribute through movable waqf for the betterment of their society. Their main objectives in supporting such schemes are: to inculcate the culture of creating waqf; to provide an alternative platform for Muslims to be involved in waqf; to encourage the Muslim society to recognize waqf as a viable tool to enhance the economic position of the ummah; and to encourage Muslims to cooperate under the concept of cooperation. Since its implementation in the early 1990s, the waqf-shares scheme has been able to play its role in gathering the needed funds to develop projects that benefit the Malaysian societies, such as developing the existing waqf lands; building mosques, religious schools, providing physical amenities for the Muslim community and maintenance of religious infrastructure; the establishment of education funds, human capital development and financing medical facilities; real estate development and the purchase of land parcels with the potential to be used for agricultural or residential projects; and financing the operations of tahfiz schools (schools for memorizing the Holy Quran).

Current Practice of Waqf-Shares in Indonesia

The establishment of cash waqf in Indonesia was lead by a non-profit organization, Dompet Dhuafa Republika. This organization, which was established in 1993 by a group of journalists, is driven by a mission to help the needy through zakat, infaq, sadaqah and waqf. Dompet Dhuafa Republika established a dedicated body to participate in waqf programs and to ensure the efficiency and the effectiveness in the implementation of its waqf known as the Indonesia Waqf Board. Recognizing that cash waqf has the potential to provide the necessary funds for charitable projects, including poverty alleviation, the Indonesia Waqf Board launched a cash waqf scheme known as Tabung Wakaf Indonesia or the Indonesian Waqf-shares. The main objective of these waqf-shares is to accumulate capital that can be used for purposes benefiting the Muslim community in Indonesia, such as financing; poverty alleviation programs; the provision of free medical services; the implementation of educational programs; and entrepreneur development programs. In this scheme, the founder can make contributions once or regularly, depending on his financial abilities. To ensure regular contributions, the Indonesia Waqf Board encourages the founders to give standing instruction to their banks for regular transfers from their accounts to the designated bank account of the Indonesia Waqf Board waqf-share scheme.

Current Practice of Waqf-Shares in Kuwait

In Kuwait the non-governmental organizations (NGOs) play an important role in promoting the growth and development of cash waqf schemes. The International Islamic Charitable Organization IICO, which is one of them, was established in 1986 in Kuwait under the law No. 64. The main objective of this charitable organization is to provide global and humanitarian aid, aiming at assisting the poor communities and helping them in developing their resources in the most efficient way. Prior to the schemes adopted by the State Islamic Councils in Malaysia, IICO implemented a model based on waqf-shares. Through this model, it has established nine waqf-share schemes; and each has been given a motto to motivate people to contribute to any of their preferable schemes. These schemes are; waqf-share scheme for the poor and the needy, waqf-share scheme for mosques, waqf-share scheme for printing al-Quran, orphans waqf-share scheme, empowerment waqf-share scheme, sacrifices waqf-share scheme, supplying water waqf-share scheme, breaking the fast waqf-share scheme and waqf-share for the needy families. The waqf-share scheme in Kuwait covered many needy areas and not only for the poor but also for the majority of people in Muslim societies living in different countries.

Current Practice of Waqf-Shares in the United Kingdom
In a country where Muslims are a minority, waqf plays an even more important role for the advancement of Muslims in various social and economic sectors. In the United Kingdom, charitable organizations and solidarity groups are an important element within the Muslim community. One such institution is the Islamic Relief which is a non-governmental organization founded in 1984, as an international relief and development charity organization, with the aim of alleviating the suffering of the worlds poorest people, responding to disasters and emergencies, and promoting sustainable economic and social development by working with local communities. Similar to Kuwait, seven waqf-share schemes have been developed to provide global and humanitarian aids in the different Muslim and Muslim minority countries such as; Chechnya, Afghanistan, Palestine, Bangladesh, Bosnia, Ethiopia, Salvador, Albania, Mali, Kosovo and Sudan. These waqf-share schemes are; education waqf-share scheme, water & sanitation waqf-share scheme, orphans waqf-share scheme, qurbani waqf-share scheme, healthcare waqf-share scheme, emergency & relief waqf-share scheme and income generation waqf-share scheme.

Conclusion: The current practice of waqf-shares in the different Muslim and Muslim minority countries is good evidence of the continuation of the remarkable role of the institution of waqf from the time of the Prophet (pbuh) until today. We hope that by adapting such schemes more non-profit institutions in Muslim and Muslim minority countries will emerge not only to provide the services needed in their societies but also to assist in solving the current financial crisis.

About the Author

Dr. Magda Ismail is a Lecturer at the Economic and Governance Department at INCEIF, the Global University of Islamic Finance in Kuala Lumpur, Malaysia.

Worst Performing MENA Stocks

Published by Zawya.com

Gulf markets alone lost USD52-billion, despite significant revenues generated by high crude prices during 2011, which kept the economies in great shape.

The Gulf states also benefited from economic packages unveiled by virtually all the six GCC states, but investors were more concerned about Arab Spring, geopolitical tensions, slow growth in the U.S. and a sovereign debt crisis in Europe to pay to much attention to domestic stimulus.

Egypt Stock Exchange lost a whopping USD34-billion, or 42.5%, as the country suffered from political tensions between the army and pro-democracy forces after the departure of president Hosni Mubarak, who was ousted in a wave of popular uprising.

Lebanon also lost 20.3% in the year, or USD1.5 billion in the year, emerging as the second worst MENA market during the year.

Bahrain, the most troubled Gulf state, was not far behind.

“The Bahrain bourse posted the steepest decline amongst its GCC peers, down by 20.1% for the year,” said Kuwait-based Markaz in a report. “The kingdom’s economy is estimated to have lost up to USD2bn due to political unrest that hit Bahrain in 1Q2011. All sectoral indices ended the year 2011 on a negative note, with only a handful of stocks ending the year with gains.”

But it was Kuwait stock exchange index which saw more than US20-billion, or 16.4% during the year. While the country escaped the worst of the Arab Spring, it suffered from political deadlock, which resulted in the storming of parliament and dissolving of the Cabinet. Kuwaiti authorities spent much of the year bickering and failed to proceed with an ambitious programme to diversify away from oil revenues.

Investors responded by exiting the index, as real estate and financial services continued to weigh in on the economy. Problems with key companies such as MTC also did not help investor sentiment.

Saudi Tadawul, the region’s largest market lost USD14-billion in the year, or 3% during 2011. High oil revenues and a generous stimulus package was offset by regional troubles, and the market came out fair-to-middling given the global investment climate.

“Despite its negative performance, which was mainly due to external factors such as worries over international markets and the economic situation around the world, the Saudi market managed to end the year with marginal loss, compared large declines of other GCC stock exchanges,” notes Global Investment House in a report.

Abu Dhabi and Dubai lost 11.7% and 17% respectively through 2011. Combined with Nasdaq Dubai, the UAE markets lost around USD13-billion in the year. Abu Dhabi now has the lowest price-to-earnings ration among MENA markets at 8.14, even lower than Egypt’s 8.19. Dubai, at 9.56, is not far behind making UAE markets one of the cheapest in the region. Combined with excellent infrastructure and stable oil revenues, UAE markets appear ripe for a boost in the near future.

Qatar, which has a 12.84 price-to-earning ratio is the most expensive in the region. Doha Stock Market was the investor darling last year as the country appeared to ignore global and regional slide and chart its own path to prosperity on the strength of gas revenues.

Despite the global financial crisis, Qatar has prospered in the last several years. IMF figures showed that Qatar’s real GDP, which has recorded one of the world’s highest growth rates over the past decade, leaped by nearly 175 in 2010 and is forecast to pick up by about 19% in 2011, says Markaz.

The Qatari exchange rose 1.1% during the year and was easily the best performing market in the region and the only one that rose during the 12 tumultuous months.

Saudi Arabia’s Qassim Agriculture was the best performing stock, according to EFG-Hermes, based on its coverage universe.

Six Saudi stocks made it into the top ten, as Saudi companies benefited from the domestic stimulus.

At the other end of the spectrum, not surprisingly, Egyptian companies dominated the top worst performing stocks in 2011. Seven Egyptian companies found themselves as the region’s worst performers, with SODIC leading the way with 30.5%, according to EFG-Hermes estimates.

Bahrain’s InvestCorp., once the darling of investors fell 30.5% as global investor sentiment deteriorated.

Sabic was by far the most traded stock in the region, clocking in 143.6 million on average per day in 2011.

© alifarabia.com 2012

Saaf Pure Skincare expanding with wider range of products

Saaf pure skincare has always been synonymous with natural ingredients that refine and restore your skin’s balance. Founded 15 years ago by Dr Mah  Hussain-Gambles, Saaf has developed into an effective and ethical face and body care range that utilizes organic botanicals and essential oils with added natural vitamin E. The Saaf product range is Halal certified.

The company is now undergoing a considerable expansion that will result in a wider range of products, reaching new and previously untapped markets.

Having recognized the huge potential of the pure skincare brand, a group of experience entrepreneurial investors has now committed the funds required to take Saaf to the next level.

A small but experienced team has thus been crafted comprised of individuals with expertise in specialist sectors such as sales & marketing, intellectual property, finance, and global channels distribution. This team will now work alongside Dr Mah to complement her in-depth homeopathic and pharmacological knowledge and ability to formulate natural botanicals.

This astute combination of skills will aim to fully exploit consumer interest in Saaf as a premium, niche skincare brand. The Saaf investment programme and subsequent expansion is being led by Peter Whitehurst and Colin Wright. Peter is drawing upon his experience and contact network developed through his role as Director of Innovation and Technology at British healthcare manufacturer, SSL International. As a serial entrepreneur, Colin is already Chair and Investor in a number of small companies.

Joining Peter and Colin is Carla Smith as Head of Sales & Marketing. Carla is experienced in leading brand development within the healthcare sector, having previously handled SSL International’s product range within its export markets.

Dr Mah remains at the forefront of the company’s future product development in her capacity as Technical Director.

For enquiries please contact Carla Smith – carla@saafinternational.com

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INCEIF awarded “Best Islamic Finance Education Service Provider

INCEIF was recognised as the “Best Islamic Finance education service provider in 2011″ at the Global Islamic Finance Awards (GIFA), initiated by Oman Islamic Economic Forum (OEIF) on 17 Dec. Associate Prof Dr Asyraf Wajdi Dusuki– Head of Research-for ISRA (International Shari’ah Research Academy) was awarded the “Most promising talent in Islamic finance”.

The former Malaysian Prime Minister, Tun Abdullah Ahmad Badawi, was the guest-of-honour at the two-day event held in Muscat on 17 and 18 Dec 2011. INCEIF President and Chief Executive Officer Mr. Daud Vicary Abdullah received the award on behalf of INCEIF while Dr Asyraf Wajdi was on hand to receive his award.

The awards were part of OIEF’s initiatives to give recognition and celebrate the success and contributions of individuals and institutions in the Islamic financial services industry. While new, OIEF aims to be one of the prominent Islamic finance forums in the Gulf region.

Mr Daud Vicary Abdullah receiving the award from H.E. Tun Abdullah Ahmad Badawi.

Since its set-up in 2005, INCEIF has chalked up a number of accomplishments including a total of 289 graduates from more than 50 countries, providing Islamic finance talents around the world including in the Gulf, Australasia, North America and Europe. From one flagship programme-the Chartered Islamic Finance Professional– INCEIF has added two programmes, namely Masters in Islamic Finance- and PhD in Islamic Finance. At the third convocation in October 2011, INCEIF welcomed its first batch of PhD graduates.

In line with INCEIF’s strategic focus to bridge the gap between academia and industry practitioners, the PhD theses of the graduates touched on current key industry issues such as ‘Performance/commodity-linked Sukuk for private and public sector funding’, and ‘Cost, profit and technical efficiency: A Data Employment Analysis-based comparative analysis of Malaysian Takaful and insurance providers.’

Its faculty members have also been strengthened with luminaries in the Islamic finance industry including former Islamic Finance Services Board secretary-general Prof Datuk Rifaat Ahmed who is INCEIF’s Adjunct Research Professor and former International Monetary Fund Executive Director Prof Abbas Mirakhor who is the First Holder– INCEIF Islamic Finance Chair. In total, 14 of INCEIF’s 29 faculty members are fulltime professors in Islamic Finance, enabling INCEIF to have one of the highest concentrations of Islamic finance educators in the world.

On the first day of the OIEF, Mr. Daud Vicary was one of the panelists at the session on ‘Islamic banking as practiced by full-fledged Islamic banks: Differences and similarities’. Having been in the finance and consulting industry across Asia, Europe, Latin America and the Middle East for more than 38 years of which the past 9 years have, specifically, been in the Islamic finance industry, Mr. Daud Vicary shared his experiences to date including as the first managing director of one of the Islamic banks in Malaysia. Other panellists at the session were Professor Rodney Wilson of Durham University, and Islamic finance expert Mohammed Amin.

On the second day, Mr Daud Vicary was one of the panellists at the session on “Islamic banking as a tool for economic reforms”. He was joined by Prof Rodney Wilson and Recipco of UK Chairman, Mr James Fierro.

The forum, organised by Amjad Group, was attended by Omani ministers, members of the State Council and Shura Council, heads of banks operating in Oman neighbouring countries. The forum aimed to highlight significant issues in relation to organisational challenges faced by Islamic finance and the effective model of Islamic banking for Oman. Apart from the current issues in Islamic law covering finance, economic development, role of Zakat and the corporate social responsibility were also discussed. Six working sessions were conducted on topics which included ‘Competing Islamic banking regulatory models: Which one is the best for Oman’; and ‘Shariah issues in Islamic banking and finance.’