Hey, Dubai, how’s that shariah compliant finance going? Dubai World restructures $23.5 billion in debt
The shell game that is shariah compliant finance is coming to an end, “Dubai World reaches $23.5b debt deal with banks“:
Government-owned conglomerate Dubai World said on Thursday “headline economic terms” have been agreed in principle with its financial creditors on the restructuring of $23.5 billion of liabilities.The agreement was reached between the Coordinating Committee (CoCom) representing 60 per cent of Dubai World’s creditors and the Government of Dubai.
Since Dubai World presented its restructuring proposal on March 24, the company has refined the proposal to “modestly enhance” one component of the repayment package, it said in a statement.
Dubai World is the group that tried toÂ take over six US ports in 2006 and is the developer of the Palm Islands project.
- Does anybody care what happens in Dubai?Â Islamic (Shariah) Law: 17 Young Sikhs on Death row in Dubai
Save us from our saviors:
Sharia finance & the ‘global worming’ scam are still breathing:
Pleased with KRudd: Â Aubrey Joachim, the “global” president
The Australian/Hat tip Mullah
“Australia has a chance to lead in Islamic finance”
Aubrey Joachim is (still) selling the snake oil that works so well for Arabia. But its not as if he doesn’t have a dog in this fight: scroll down to the bottom of this page to see what he really does.
IT is heartening to learn that the Rudd government is waking up to the benefits of developing the Islamic finance sector — and not before time. Australia is ideally positioned to challenge Malaysia and Indonesia as a financial hub for this burgeoning industry but it will have to act quickly.
Islamic finance is characterised by a system under which an overriding ethical fairness and a sharing of risk must be present. Profit is a vital element of Islamic business dealing but it must be derived from trading activity. Profits derived from uncertainty are off limits. Therefore, it could be argued, the toxic debt of the kind that triggered the global credit crunch simply could not occur within the Islamic system.
But there is currently a major drawback for both customers and providers. Few individuals have the skills necessary to understand the requirements for Shariah compliance, the complexities of Islamic commercial law or the technical Arabic terminology which is unique to this financial sector.
Establishing Islamic finance products also requires ratification from Muslim scholars at the highest level and the ultimate issuance of a fatwa to that effect.
Outside Kuala Lumpur, London is currently leading the way as an innovative global hub of Islamic financial expertise. A number of institutions including HSBC Amanah and Islamic Bank of Britain are involved and the British government has been offering substantial support. But demand for professional skills is almost certain to outstrip their availability as the market grows.
Products available include home loans, Takaful (insurance), current accounts and commercial investment structures, for example, investment loans for residential property. Soon, it is expected that the British government will be the first in the West to provide Sukuk (bonds).
As the market continues to grow, there is a real opportunity for Australia to position itself as the Islamic finance hub for the Asia Pacific region. The government should ensure that the right educational environment is put in place to create a pipeline of finance professionals with the necessary specialist skills to enable this new market to put down strong, sustainable roots.
Aubrey Joachim is global president of the Chartered Institute of Management Accountants (Cima). The institute is the first professional chartered accounting body to offer a certificate in Islamic finance.
- Ban Muslims from bank jobs – seminary Adelaide Now,Â 9 days ago
- Koran caution for Aussie tax laws Daily Telegraph,26 Apr 2010
- Canada launches first Muslim credit card The Australian,Â 13 Apr 2010
- Islamic finance a ‘trillion-dollar market’ Daily Telegraph,Â 7 Apr 2010
- Islamic finance gets the nod The Australian,Â 26 Mar 2010