Interstate of Mind » Shari’ah http://www.interstateofmind.com Ideas from the heart. Creative minds for the driven and uncompromising. Interstate Creative Partners. Thu, 02 Jun 2016 08:22:03 +0000 en-US hourly 1 http://wordpress.org/?v=4.1.1 When is Shari’a not Shari’a? http://www.interstateofmind.com/when-is-sharia-not-sharia/ http://www.interstateofmind.com/when-is-sharia-not-sharia/#comments Fri, 29 Jan 2010 12:03:23 +0000 http://www.interstateofmind.com/?p=31 As a financial product offering needs to have a seal of approval or Fatwa from a Shari’a scholar, interesting anomalies can occur. In a recent BBC News article (read the full story here) whether a product gets approved or not depends on the individual scholar’s view on the matter. If a scholar refused a product, the bankers would practice ‘Fatwa Shopping’ by going to another, “If he doesn’t give it to us, we phone up another scholar, offer him a sum of money for his services and ask him for a Fatwa. We do this until we get Shari’a compliance. Then we are free to distribute the product as Islamic.”

]]>
As a financial product offering needs to have a seal of approval or Fatwa from a Shari’a scholar, interesting anomalies can occur. In a recent BBC News article (read the full story here) whether a product gets approved or not depends on the individual scholar’s view on the matter. If a scholar refused a product, the bankers would practice ‘Fatwa Shopping’ by going to another, “If he doesn’t give it to us, we phone up another scholar, offer him a sum of money for his services and ask him for a Fatwa. We do this until we get Shari’a compliance. Then we are free to distribute the product as Islamic.”

]]>
http://www.interstateofmind.com/when-is-sharia-not-sharia/feed/ 0
Retaining a Shari’a Stability http://www.interstateofmind.com/retaining-a-shari%e2%80%99a-stability/ http://www.interstateofmind.com/retaining-a-shari%e2%80%99a-stability/#comments Thu, 17 Dec 2009 17:14:05 +0000 http://www.interstateofmind.com/?p=335 Abu Dhabi stepping in to bail out Dubai is news in itself, but if they hadn’t, the repercussions for Shari’a Banking would be equally significant.
Defaulting on the Islamic bonds (Sukuk) could have destabilised the Islamic finance sector at a time when the world isn’t in the best financial health. This damage limitation exercise by Abu Dhabi means Islamic finance is still profitable ‘post Dubai’ (Forbes).

]]>
Abu Dhabi stepping in to bail out Dubai is news in itself, but if they hadn’t, the repercussions for Shari’a Banking would be equally significant.
Defaulting on the Islamic bonds (Sukuk) could have destabilised the Islamic finance sector at a time when the world isn’t in the best financial health. This damage limitation exercise by Abu Dhabi means Islamic finance is still profitable ‘post Dubai’ (Forbes).

The Middle East remains as a ‘one to watch’ financially although the Dubai case study may have taken a little luster off the perceived wealth and impervious perception of the region. Perhaps ironically, the ME is indebted to Dubai when it comes to ‘the Middle East Brand and the magnetism of ‘Brand Dubai’. All other countries in the region have arguably gained more than they stand to lose in the perception of Dubai and it’s neighbours being a land of opportunity and future thinking.

With a robust reputation and presence in the Middle East, Interstate have created and worked with new and existing brands (for example, Seera, VCBank & Arcapita Bank) that adhere to Shari’a Law.

]]>
http://www.interstateofmind.com/retaining-a-shari%e2%80%99a-stability/feed/ 0