The latest developments in Islamic finance are found in new areas which continue to acknowledge the increasing global interest in the industry and commitment towards developing workable solutions.
Investing in stocks is a Shariah-compliant activity, according to Ali M Shervani. He refers to the National Stock Exchange in India and concludes that Shariah compliant schemes like exchange traded funds (ETF’s) provide the opportunity for individuals and institutions to invest in the stock market based on Shariah.
India’s first Shariah compliant ETF, Shariah BeEs, was launched in 2009. Shariah BeEs is based on the S&P CNX Nifty Shariah Index and provides a solution for the individual or institutional investor who would normally find it difficult to ensure Shariah compliance of the listed companies.
The guidelines look to create a level playing field for Shariah compliant investors looking to invest in French real estate.
The French tax authorities will also be issuing additional guidelines in the coming months which will deal with other Islamic finance tools such as Istisna, Ijarah, and more.
The demand for Takaful ratings are increasing on a global scale and ratings agencies are rising to the occasion to develop the perfect ratings model. Read it in our IFN report as well this week’s Takaful report from AM Best.
Our IFN report also has the former president of the Netherlands Ruud Lubbers advocating the setting up an Islamic finance structure within each country as it serves as a contingency plan and inculcates the correct values for financial discipline.
Lubbers, being one of the architects of the Euro also feels that the European Central Bank could have done more to ensure the accountability of EU members with regards to their own budgets.
Following this, advertisers the world over are now acknowledging the potential of Islamic and Islamic finance products.
Cagamas’ five year Sukuk is featured in this week’s Termsheet and in our Meet-the-head section, we feature Dubai based Jawad I Ali, King & Spalding’s managing partner and deputy global head of the Islamic finance & investment practice group.