Opalesque Islamic Finance Intelligence - Sixteenth Issue

We have compiled a great mix of content for this edition of OIFI (download the PDF version), and we start with our Editorial's anecdotal perspective of the MENA region.  Having repeatedly received inquires regarding consumer appetite for Islamic finance products, our Featured Resource section compiles various country studies on consumer awareness, behaviour and perception.

Mudaraba applied in the context of microfinance is the theme for the Featured Structure segment, as scrutinized by practitioner Azhar Nadeem. Hdeel Abdelhady provides an operational perspective to Islamic finance in Lex Islamicus - with particular emphasis on governance and Shariah Board reports (SBRs).

Having spent time in Matsushima (one of the three famous "views" of Japan) in the north of Miyagi prefecture, it is a welcome coincidence that the Kulliyyah Korner features the research of Kyoto-based Nagaoka Shinsuke. Our best goes to him and everyone in Japan.

The Industry Snapshot offers a further analysis of Education based on the EPL concept (Education, Perception, Liquidity), as seen by strategist Joy Abdullah. This is followed by Douglas Clark Johnson who shares his perspective on Bahrain in our Opinion Column.

We hope you enjoy the sixteenth edition of OIFI and as always we are glad to hear from our readers and welcoming all comments & feedback. Remember that you can visit our online archive (see reference link) for access to our ever-growing databank of Opalesque Islamic Finance Briefing as well as all of the back issues of Opalesque Islamic Finance Intelligence.

Download the complete issue of Opalesque Islamic Finance Intelligence here.

Alternatively you can read each article separately in the OIFI Archive:
Editor’s Note: In the Name of Egypt
Featured Resource: The Islamic Finance Consumer
Featured Structure: Islamic Business Contracts and Microfinance A case of Mudaraba
Lex Islamicus: Operational Excellence is the Key to Unlocking Lasting Value in Islamic Finance
Kulliyyah Korner: On the Theoretical Dichotomy of Islamic Finance
Industry Snapshot: E.P.L. in Islamic Finance - Education (Extra Time)
Opinion Column: Bahrain: Time to be Truly Business-Friendly

Opalesque Islamic Finance Intelligence - Sixteenth Issue

Opalesque Islamic Finance Intelligence - Fifteenth Issue

The fifteenth edition of OIFI is here (download the PDF version) and you might notice our front cover is slightly different. Since inception we have avoided profiling any specific individual or personality, in part to differentiate OIFI with so many other finance publications and because our focus has always been poignant and relevant content (not to mention the fact that such portraits are cheesy too). This edition explores, among other things, the conscience of the industry as we ask ourselves: What is Islamic finance? What is the message being conveyed? Who can be part of this industry? How do we communicate the message more effectively? The front cover illustrates this puzzle (and hints to the answers).

Our Editorial tackles the approach we take not only to define Islamic finance but, increasingly, on how we communicate it to others. On the other end our Featured Resource is a short compilation of materials concerning Islamic Economics, an often distant topic to Islamic finance but one that is undergoing a similar revival and evolution.

The Featured Structure segment has Jhordy Kashoogie analyzing the debate behind the permissibility of trading sukuk, and this is further complemented by the Discussion Board which brings along feedback from practitioners on the same subject. Lex Islamicus welcomes back Hakimah Yacoob as she discusses financial criminology and financial victimology from the perspective of Islamic finance.

The Industry Snapshot introduces a recurring series of articles on EPL in Islamic finance (Education, Perception and Liquidity), which has been developed by Deloitte's Daud Vicary. Lastly the Opinion Column examines the growing concerns regarding career development and deployment of human capital in the industry, with Mohammed Khnifer highlighting some of the main obstacles faced by today's would-be Islamic bankers.

We encourage feedback from our readers and welcome comments & suggestions to make OIFI better. In addition, please remember that you can visit our historical archive (see reference link) for access to our ever-growing databank of Opalesque Islamic Finance Briefing as well as all of the back issues of Opalesque Islamic Finance Intelligence.

Download the complete issue of Opalesque Islamic Finance Intelligence here.

Alternatively you can read each article separately in the OIFI Archive:
Editor’s Note: Islamic Finance Incommunicado
Featured Resource: Islamic Economics
Featured Structure: Shari'a Polemics of Sukuk Trading
Discussion Board: Sukuk Trading - Deviation Between Theory and Practice?
Lex Islamicus: Financial Criminology v Financial Victimology in Islamic Practice
Industry Snapshot: E.P.L. in Islamic Finance - Education
Opinion Column: Voices of the Unheard - Salvaging the Next Generation of Islamic Bankers

Opalesque Islamic Finance Intelligence - Fifteenth Issue

Opalesque Islamic Finance Intelligence XIV

Welcome to the fourteenth edition of OIFI (download PDF version), our last edition for the year, and as we look back at 2010 we sincerely thank everyone that has supported us along the way. The industry itself has much to look forward to in the coming years and this is the recurring theme for this edition. Our Editorial Section tackles the evolving role of AAOIFI as it pertains to governance and regulation of Shariah scholars. Our Featured Resource is a compilation of some the most noteworthy discussions from our online forum.

Mohammed Khnifer takes on our Featured Structure section with an extensive analysis on the implementation of Islamic deposit insurance, with particular attention given to Malaysia's IDI framework. This is promptly followed by Lex Islamicus where ISRA'a Hakimah Yaacob provides a fresh approach to the standardisation debate, including novel references to international conventions for the harmonisation of private law and coordination of civil and commercial matters.

The Industry Snapshot welcomes back Mobasher Zein as he continues his analysis of an Islamic commodity-backed currency with further attention given to the monetary framework that would be required to make this happen. Last but certainly not least Toby Birch shares his views on our Opinion Column with regards to the underserved retail market in Islamic finance and what are some of the obstacles that need to be addressed in coming years.

Always glad to hear from our readers and welcoming all comments & suggestions and please remember that you can visit our online archive (see reference link) for access to our ever-growing databank of Opalesque Islamic Finance Briefing as well as all of the back issues of Opalesque Islamic Finance Intelligence.

Download the complete issue of Opalesque Islamic Finance Intelligence here.

Alternatively you can read each article separately in the OIFI Archive:
Editor’s Note: AAOIFI's Perestroika
Featured Resource: Linkedin Discussions - Highlights of 2010
Featured Structure: Towards a Universal Islamic Deposit Insurance System
Lex Islamicus: Standardisation v Harmonisation: Towards Recognition?
Industry Snapshot: Islamic Dinar Revisited
Opinion Column: Ready for Retail?

Opalesque Islamic Finance Intelligence XIV

Opalesque Islamic Finance Intelligence XIII

Welcome to the thirteenth edition of OIFI (download PDF version), we hear from various parts of the world and this reflects how the industry has been growing and evolving over time. So many efforts and initiatives might seem local or market-specific but they are all contributing their grain of sand to the dissemination of Isamic finance globally. The Editorial Section discusses Islamophobia and how it affects the Islamic finance industry. Our Featured Resource is a compilation of material relating to Islamic microfinance, this includes various industry reports, empirical studies and some discussions on possible models as well.

The Featured Structure section is a continuation of Nikan's previous discussion on Istijrar, as he focuses on the sale at market price which highlights the need to understand price uncertainty and how it is viewed by Scholars. We also welcome Monem Salam of Saturna Capital in our Fund Manager Interview as he shares some insights into the history of their Amana funds.

Furthermore, the Industry Snapshot contains an in-depth analysis of stock screening, as Mehdi Popotte explores the mechanisms behind it and some of the issues that arise when establishing an equity screening solution. Joy Abdullah shares his views on how Islamic finance can expand its appeal to a wider market in the Opinion Column, with some revealing insights and suggestions.

As always, we are keen to hear your comments & suggestions and remember that you can visit our online archive (see reference link) for access to our ever-growing databank of Opalesque Islamic Finance Briefing as well as all of the back issues of Opalesque Islamic Finance Intelligence.

Download the complete issue of Opalesque Islamic Finance Intelligence here.

Alternatively you can read each article separately in the OIFI Archive:
Editor’s Note: Islam Süss
Featured Resource: Islamic Microfinance
Featured Structure: Istijrar Revisited - Bay' bi Sir' al Suq
Fund Manager Interview: Monem A. Salam, Director of Islamic Investing, Saturna Capital
Industry Snapshot: Opening the Black Box of Shariah Stock Screening
Opinion Column: Islamic Finance - Niche or Ubiquitous

Opalesque Islamic Finance Intelligence XIII

Opalesque Islamic Finance Intelligence - Twelfth Issue

Welcome to the twelfth edition of OIFI (download PDF version), where we dig deep to uncover the hidden gems of Islamic finance. Sometimes it seems we might not be able to see the forest for the trees, and our editorial section takes a different angle with respects to Shariah supervision and its overall role within the corporate walls. Our Featured Resource compiles a large selection of research papers from the International Shari'ah Research Academy for Islamic Finance (ISRA), which might not be widely disseminated but prove to be excellent reading.

Istijrar is a financial instrument that is seldom talked about in Islamic finance but which contains some intriguing characteristics, Nikan dissects it in the Featured Structure segment. For our Allocator Interview we hear from Chaaban Omran of Crescent Investments Australasia, as we discuss the investment rationale for Australia (which could be regraded as a frontier market for Islamic finance).

Furthermore, Abdulkhaliq Elshayyal takes on Lex Islamicus where he delves into how Islamic financial institutions manage the risk of non-compliance with Shariah, with some very interesting insights. The Industry Snapshot section sees Mobasher Zein tackle the topic of an Islamic currency, both revisiting the historical background as well as analyzing the various pieces of the puzzle that needs to be put together to support an Islamic economy. In addition, Mohammed Amin shares with us his review of the book "Islamic Banking and Finance: What It Is and What It Could Be" and we hope to bring more book reviews in the future.

As always, we are keen to hear your comments & suggestions and remember that you can visit our online archive (see reference link) for access to our ever-growing databank of Opalesque Islamic Finance Briefing as well as all of the back issues of Opalesque Islamic Finance Intelligence.

Download the complete issue of Opalesque Islamic Finance Intelligence here.

Alternatively you can read each article separately in the OIFI Archive:
Editor’s Note: The Shariah Compliance of Teldar Paper
Featured Resource: ISRA Research Papers
Featured Structure: Istijrar - How does it really work?
Lex Islamicus: A Brief Look at Ikhtilaf - Diversity of Ijtihad in Islamic Finance
Allocator Interview: Crescent Investments Australasia
Industry Snapshot: Islamic Dinar Reloaded
Book Review: Islamic Banking and Finance: What It Is and What It Could Be

Opalesque Islamic Finance Intelligence - Twelfth Issue

Opalesque Islamic Finance Intelligence - Eleventh Issue

Welcome to the eleventh issue of Opalesque Islamic Finance Intelligence (download PDF version), we bring together a wide range of content that we hope you will find both timely and relevant. This month's edition explores a recurring theme, that of crossovers and frictions that are generated between the worlds of Islamic finance and traditional finance. Recent events have only reminded us of this delicate balance. We might be tempted to think that Islamic finance operates on a standalone basis, alien to the mechanics of mainstream finance (and media) and immune to the ebbs and flows of capital markets (and public perception). However, the reality is that every bank, product and service in the former exists (and co-exists) in the realm of the latter. We explore the implications across this issue.

Our editorial note discusses the interactions between Muslims and non-Muslims in the Islamic finance industry, an often taboo subject but a blatantly obvious one. We also showcase the various published standards from the Islamic Financial Services Board (IFSB) in the Featured Resource segment, arguably the most transparent and comprehensive set of prudential documentation available for the industry.

The Featured Structure section sees Nikan scrutinizing structured products as they make the journey from the turbulent waters of traditional finance to the shores of Islamic finance, with a specific focus on rolled Murabaha contracts. Lex Islamicus profiles the study by Mohammed Khnifer on the bankruptcy proceedings relating to the East Cameron Gas sukuk and the sukuk-holders priority claim on the underlying assets post-default. In addition, Toby Birch and Shahzad Siddiqui share their analysis of integrating Islamic private equity with a physical commodity component in our Allocator Interview.

The Opinion Column welcomes Rushdi Siddiqui as he shares his point of view on the proposed Muslim community center in lower Manhattan. Furthermore, the Industry Snapshot section hears from Mobasher Zein as he has explores Islamic mutual funds and recent trends as the industry awakens from the aftermath of the global financial crisis.

As always, we are keen to hear your comments & suggestions and remember that you can visit our online archive (see reference link) for access to our ever-growing databank of Opalesque Islamic Finance Briefing as well as all of the back issues of Opalesque Islamic Finance Intelligence.

Download the complete issue of Opalesque Islamic Finance Intelligence here.

Alternatively you can read each article separately in the OIFI Archive:
Editor’s Note: The Conquest of Kafiristan
Featured Resource: IFSB - Published Standards
Featured Structure: Shariah Compliant Structured Product: Consecutive or Rolled Murabaha
Lex Islamicus: When Sukuk Default - Asset Priority of Certificate-holders vis a vis Creditors
Allocator Interview: Gold Bullion and Islamic Private Equity: Protection and Production
Opinion Column: From a Mosque to a Museum
Industry Snapshot: A Study of Islamic Mutual Funds

Opalesque Islamic Finance Intelligence - Eleventh Issue

Opalesque Islamic Finance Intelligence - Tenth Issue

Islamic finance is riddled with dichotomies, it is almost natural to approach it in terms of good and bad, right and wrong, halal and haram. The reality however is sometimes not as clear cut, and we explore many of these dichotomies (and some of the ensuing gray areas) in this the tenth issue of Opalesque Islamic Finance Intelligence (download the PDF version). To start off our editorial note surveys a variety of research taken from the conventional finance world and how this relates to Islamic finance. This is promptly followed by our Featured Resource, which lists several of these academic studies.

We welcome Mohammed Amin in our Featured Structure section as he shares a descriptive analysis of takaful and how it differs with conventional insurance. Similarly, Lex Islamicus hears from Marjan Muhammad and Hakimah Yaacob, from the International Shari’ah Research Academy (ISRA), as they scrutinize the application of Ibra' and whether it should remain discretionary or mandatory in contractual agreements.

The Kulliyyah Korner profiles the work from Mobasher Zein as he has explored various areas of Islamic finance (from sukuk to hedge funds), whereas Joy Abdullah provides food for thought in the Islamic Window segment by looking into how Islamic values can be brought into the branding of Islamic banks and their products.

Blake Goud takes on our Opinion Column with his analysis of the recent publication by Zaid Ibrahim & Co entitled "Demystifying Islamic Finance" and the various issues that this publications tackles. Last but not least, our Industry Snapshot section has Omar Clark Fisher delving into corporate governance issues faced by the takaful industry.

As always, we are keen to hear your comments & suggestions and remember that you can visit our online archive (see reference link) for access to our ever-growing databank of Opalesque Islamic Finance Briefing as well as all of the back issues of Opalesque Islamic Finance Intelligence.

Download the complete issue of Opalesque Islamic Finance Intelligence here.

Alternatively you can read each article separately in the OIFI Archive:
Editor’s Note: Conventional Wisdom
Featured Resource: Conventional Wisdom - ESG/SRI Research
Featured Structure: How Conventional Insurance and Takaful Differ Numerically
Lex Islamicus: Ibra’: Should it be Discreationary?
Kulliyyah Korner: A Study of Islamic Finance: Searching for a New Path
The Islamic Window: Young but Disconnected
Industry Snapshot: Alignment of Corporate Governance and Company Performance: A Focus on Takaful
Opinion Column: Zaid Ibrahim Report on Islamic Finance

Opalesque Islamic Finance Intelligence - Tenth Issue

Opalesque Islamic Finance Intelligence - Ninth Issue

Welcome to the ninth issue of Opalesque Islamic Finance Intelligence (download the PDF version), it's a busy edition! We touch on equity screening in our editorial section, while the Featured Resource covers multimedia and interactive sources. The Featured Structure section has Nikan analyzing how successive parallel Murabahas can be used to construct a Profit Rate Swap.

Lex Islamicus hears from Hakimah Yaacob and Edib Smolo, both from the International Shari’ah Research Academy (ISRA), as they dissect the approach taken by Enlgish courts towards Islamic finance contracts. Furthermore, the Kulliyyah Korner hears from Ezry Fahmy, Jhordy Kashoogie and Asim Anwar Kamal who co-authored a study on the relationship between Shariah compliant structures and the Maqasid al-Shari'ah.

As part of our ongoing survey (The Islamic Window) Joy Abdullah delves into the perception of Islamic finance, particularly from outside of the industry. This is complemented in the Industry Snapshot by Deloitte's David Vicary who provides his views on the importance of education and financial literacy. Our Opinion Column shares the views of Nihad Awad from CAIR, on a topic that might not appear to be related to Islamic finance at the outset, although we argue the industry has an opportunity to contribute here in a positive way.

As always, we are keen to hear your comments & suggestions and remember that you can visit our online archive (see reference link) for access to our ever-growing databank of Opalesque Islamic Finance Briefing as well as all of the back issues of Opalesque Islamic Finance Intelligence.

Download the complete issue of Opalesque Islamic Finance Intelligence here.

Alternatively you can read each article separately in the OIFI Archive:
Editor’s Note: Equity Screening and the Golden Calf
Featured Resource: Islamic Finance Multimedia
Featured Structure: Shariah Compliant Profit Rate Swap
Lex Islamicus: It is not a murabaha contract; it is just an English law of contracts
Kulliyyah Korner: Debt versus Equity Financing in the Light of Maqasid al-Shari'ah
The Islamic Window: Industry Perception
Industry Snapshot: What Makes Sense?
Opinion Column: A Muslim Response to 'Draw Muhammad Day'

Opalesque Islamic Finance Intelligence - Ninth Issue

Opalesque Islamic Finance Intelligence - Eighth Issue

The eighth issue of Opalesque Islamic Finance Intelligence is here (download the pdf version), the underlying thread uniting all the content for this month is looking at Islamic finance from a fresh and open perspective. This month's editorial outlines how Islamic finance is being developed/introduced in new markets - and whether the industry's long term future is being mortgaged for some short term gains. This is complemented in the Featured Resource (with a list of studies that look at Islamic finance from a global or macroeconomic point of view) as well as the Industry Snapshot (with an analysis of the recent report by the IFSB, IRTI and the IDB).

The Featured Structure section welcomes Mohammed Khnifer as he takes a novel approach as to the permissibility of organized tawarruq. Lex Islamicus takes on Islamic commercial contracts as Khalil explores the issues of good faith and fair dealing. The Kulliyyah Korner hears from Ahmed Mohamed Badr-Eldin and profiles his research on adapting conventional ratios to measure the performance of Islamic banks.

Furthermore, the Opinion Column hears from Edib Smolo, from the International Shari’ah Research Academy (ISRA), and his take on the future prospects of the industry. As part of our ongoing industry survey (The Islamic Window), Joy Abdullah provides an overview of the initial findings and some of the most striking signals from consumers.

Welcoming your comments & suggestions and a reminder that you can check the ever-growing archive of Opalesque Islamic Finance Briefing and Opalesque Islamic Finance Intelligence, all available free. In addition, we continue to expand the reach of our industry survey (see reference link) and appreciate it if you can help us disseminate it further.

Download the complete issue of Opalesque Islamic Finance Intelligence here.

Alternatively you can read each section separately:
Editor’s Note: Disclosure, Due Diligence & Death Spirals
Featured Resource: The Macro Perspective
Featured Structure: Maslaha and the Permissibility of Organized Tawarruq
Lex Islamicus: In Good Faith
Kulliyyah Korner: Measuring the Performance of Islamic Banks by Adapting Conventional Ratios
Opinion Column: Islamic Finance Practices at the Crossroads
The Islamic Window: Preliminary Findings
Industry Snapshot: IFSB-IRTI-IDB Islamic Finance and Global Stability Report

Opalesque Islamic Finance Intelligence - Eighth Issue

Market Survey: The Islamic Window

The goal of this market survey is to help measure the level of awareness, perception, misconception and overall understanding of consumers towards the Islamic finance industry (and its various products and services). The survey results will enable us to open a window into the mind of current (as well as prospective) consumers.

The rationale behind the survey is further developed by Joy Abdullah in an article that was featured in the March issue of Opalesque Islamic Finance Intelligence: "The Islamic Window: Consumer Perception and Market Research in Islamic Finance" (refer to pages 24-25).

It is not meant to be a scientific survey but it certainly aims to be as representative as possible. In that sense we need the largest possible sample size for it to succeed - and for this we need your help by sharing the survey with your friends, family, colleagues, classmates, etc. You can use the below link to access the survey:

http://www.kwiksurveys.com/online-survey.php?surveyID=KKNOKO_e9d1d68

We will share the findings in a dedicated section of Opalesque Islamic Finance Intelligence (free subscription) where we will identify consumer segments, market trends, as well as any country-specific issues.

Jointly developed and supported by:
Opalesque Islamic Finance Intelligence
Daily Baraka
Islamic Finance Resources Blog

Market Survey: The Islamic Window

Opalesque Islamic Finance Intelligence - Seventh Issue

Welcome to the seventh issue of Opalesque Islamic Finance Intelligence (download the pdf version), once again we bring together a wide array of content that is as diverse as the industry itself. Each of our editions has always delivered a wide range of topics (as this allows us to present relevant material for everyone), but it is increasingly clear that inquisitive research, relevant empirical evidence and timely academic studies are in dire need. This is not only true of their origination but also of their dissemination, thus we gravitate around this particular theme for OIFI VII.

To begin with, our editorial section delves into the realm of data and information providers and how this space is evolving. In addition, we introduce a new academic-oriented section which we affectionately term the 'Kulliyyah Korner'. Its aims is to provide a glimpse into the latest topics that are being discussed and analyzed across the industry - whether this is within the context of a faculty (or kulliyyah), think tank, etc. Above all, the Korner aims to highlight the rich material available from academic institutions (usually available through industry periodicals and journals) while presenting them to a wider audience.

Hence the first installment of Kulliyyah profiles the research of Anne-Sophie Gintzburger, who has developed an extensive study on the regional variations of Islamic financial instruments as part of her thesis at the Australian National University. We complement this with our Featured Resource which outlines a variety of past & present case studies at the country-specific level. Furthermore, Lex Islamicus sees Khalil exploring the Universality and Codification of Islamic Contracts, as it pertains to their enforceability of these in a court of law and the relationship with Lex Mercatoria.

Nikan provides further insights into Shariah compliant principal protected notes as part of the Featured Structure section. This allows for an interesting contrast to our Fund Manager Interview which talks to Nick Barisheff, President & CEO of Bullion Management Group (BMG), and their recent entry into the field with their Shariah compliant BMG Bullion Fund. Taking a look forward, our Opinion Column hears from Professor Mahmood Faruqui, who inquires on where can Islamic Finance contribute as part of repair initiatives in the aftermath of the global financial crisis. Finally, Joy Abdullah makes inquiries in our Industry Snapshot section regarding the need for consumer data and market statistics - with a particular focus on investor awareness and their perceptions of the Islamic finance industry.

We welcome your comments & suggestions and a reminder that you can check the ever-growing archive of Opalesque Islamic Finance Briefing and Opalesque Islamic Finance Intelligence, all available free (see reference link).

Download the complete issue of Opalesque Islamic Finance Intelligence here.

Alternatively you can read each section separately:

Editor's Note: Learning Rushdi-Speak
Featured Resource: Country-Specific Case Studies
Featured Structure: Shariah Compliant Principal Protected Notes
Fund Manager Interview: Nick Barisheff, President & CEO, Bullion Management Group Inc
Lex Islamicus: Universality and Codification of Islamic Contracts
Kulliyyah Korner: Regional Variations on the Permissibility of Islamic Financial Instruments
Opinion Column: Repair Initiatives Post Banking Crises - Can Islamic Finance contribute?
Industry Snapshot: The Islamic Window: Consumer Perception and Market Research in Islamic Finance

Opalesque Islamic Finance Intelligence - Seventh Issue

Opalesque Islamic Finance Intelligence - Sixth Issue

Welcome to the sixth edition of Opalesque Islamic Finance Intelligence (download the pdf version), for this issue we aim to look further into various aspects of Islamic finance that might have been overlooked elsewhere. We begin with an editorial note that explores the linkage between the past and the present constituencies of Islamic finance (be that consumers, investors, or practitioners) or to put it in other words the generational change that is underway and the validity of applying a sustainability label to the industry.

This is promptly followed by our Featured Resource which highlights a survey of various training programs and certifications available in the marketplace, this is a far more detailed version of our earlier attempt (much credit goes to one of our readers). Similarly, the concept of brand identity (within the realm of Islamic finance) has been rarely discussed, hence we turn to the Industry Snapshot section where Joy Abdullah delves into the linkage between corporate culture and brand identity - as these relate to Islamic financial institutions.

Muqaddasah (call option using set-off) is dissected by Nikan in the Featured Structure section, a combination of murabaha and salam which might not be widely used in the market but presents a valuable illustration of how various instruments can be combined to create new permutations. Islamic Venture Capital has also been under-reported and our Allocator Interview profiles Jordan-based Ahmed Muhammed Almanasreh from Sanad Islamic Investments, who shares his views on Islamic VC in the MENA region.

Khalil once again provides food for thought in Lex Islamicus by discussing the debate over the commercialization of fatwas, whereas our Opinion Column hears from Furqan Ahmad who scrutinizes some of the core challenges being faced by the industry today. Always welcoming your comments & suggestions and a reminder that you can check the ever-growing Opalesque Islamic Finance Briefing and Opalesque Islamic Finance Intelligence, all available free in our Online Archive.

Download the complete issue of Opalesque Islamic Finance Intelligence here (registration required).

Alternatively you can read each section separately:

Editor's Note: Insufficient Funds
Featured Resource: Islamic Finance Training Programs & Certifications 2.0
Featured Structure: Call Option using Set-Off
Allocator Interview: Ahmed Muhammed Almanasreh, CEO, Sanad Islamic Investments
Lex Islamicus: Fatwa Incorporated
Opinion Column: The Future of Islamic Banking and Finance in the GCC and the World
Industry Snapshot: Importance of Corporate Culture in Brand Identity

Opalesque Islamic Finance Intelligence - Sixth Issue

Opalesque Islamic Finance Intelligence - Fifth Issue

It has been quite impossible to escape the recent headlines emanating out of Dubai and specifically relating to Nakheel - to the point that one would have been tempted to avoid the topic altogether. We emphasize the need to take a forward-looking perspective for this the fifth edition of OIFI. We explore the broader implications of Nakheel as it relates to the future of sukuk specifically and to the Islamic financial marketplace as a whole within our editorial section.

Fortunately OIFI does not coordinate content with irrational exhuberance (or market 'standstills' for that matter), we remain focused on providing coverage of a wide range of topics - all very timely and relevant in their own right. Our Featured Resource section revisits various opinion pieces on ethics and Islamic finance, with a further segway into social responsibility and responsible investing.

In our Featured Structure section, Nikan explores various Shariah compliant short-selling solutions that have been developed over the past few years (and complemented by further analysis of each one). This review is further complemented by our Fund Manager Interview as we converse with Tocqueville's John Hathaway, who oversees one of the very first Islamic hedge funds.

Khalil continues his Lex Islamicus column with a specific look at contractual complexity and this is further complemented by our Industry Snapshot, where Hdeel Abdelhady from DLA Piper provides a critical analysis of some of the most noteworthy court cases involving Islamic law in recent years. Just as legal precedent is relevant and necessary, so is the need for developing the future talent in the industry as we hear from Fuwad Beg, of Yasaar Human Capital, exploring this theme in detail in our Opinion Column.

Once again we welcome your comments & suggestions, and a reminder that you can check the free online archive of Opalesque Islamic Finance Briefing (our daily news summary) which provides a historical data bank of industry news and articles, as well as the back issues of OIFI.

Download Opalesque Islamic Finance Intelligence here

Opalesque Islamic Finance Intelligence - Fifth Issue

LinkedIn Discussions - Highlights of 2009

Looking back at 2009 we thought useful to highlight some of the most heated discussions and lengthy debates which we have had over the year within our Linkedin group.

Here we have picked some of the most extensive and interesting discussions which are worth a review:

Shariah Compliant Structures:

- Murabaha Contracts - Shariah Compliance Revisited

- The use of LIBOR as a Benchmark by Islamic Banks

- Should you be able to pay for a promise (Wa'd)?

- Islamic Alternatives to LIBOR

- The Malaysian Islamic Bonds Model

Industry-related Issues:

- Why Islamic Finance Prohibits Short-selling...

- Islamic Finance, English Law and UK Courts

- The Employment of Shariah Scholars by Businessmen

- The role of Derivatives in Creating the Financial Crisis

- Does Islamic Finance Need a Voice?

LinkedIn Discussions - Highlights of 2009

Opalesque Islamic Finance Intelligence - Fourth Issue

We are back after a month filled with journey (the OIFI team has been travelling of late: Malaysia, Jordan, UK, UAE and more to come) and correspondingly our fourth installment incorporates content from all corners of the globe. We begin by exploring the potential synergies available across the industry (and whether it is in need of a catalyst to spur further growth and collaboration) in our editorial piece.

Complementing this is our Featured Resource section which outlines a variety of country and regulatory perspectives on Islamic finance, exhibiting how approaches can differ widely from one country to another. While some of it is positioning, they are testament to the importance being placed on Islamic banking and how regulators are hard at work trying to address and incorporate it into their existing financial architecture.

Nevertheless this is not just a case of mere talk--what is transpiring beyond the boardrooms of IFIs is in fact very energetic discourse that is gradually developing into a tangible initiative. There is great expectation that this can take the shape of an industry-wide effort (resilient to commercial interests) and one which we look forward to reporting in the near future. Indeed we explore the roots of this initiative in our Discussion Board as we borrow the topic from our online forum: 'Does Islamic Finance Need a Voice'.

In this edition OIFI dives deep into multiple asset classes: The Featured Structure section tackles Islamic REITs and the apparent underutilization of liquid real estate products. Khalil Khoury of KIPCO Asset Management Co. provides his perspective on the investable universe of Shariah compliant products in the Allocator Interview section. We further investigate what might be in store for indexation products in our Fund Manager Interview, as we converse with Saeid Hamedanchi of Florentez Investment Management. To round it out, our Industry Snapshot profiles the latest research undertaken on Islamic equity funds, as we hear from the team of Andreas Hoepner, Hussain Rammal and Michael Rezec.

Further expanding on his Lex Islamicus column, Khalil tackles arbitration and enforcement in Islamic contracts - with particular relevance on the revitalized sukuk market. On the other hand, Nikan surveys the various currents of thought on existentialism in Islamic finance under the Opinion Column - with a compendium of views that are not only contrary to the mainstream but possibly test the resolve of Islamic Bankers. But what doesn't kill us makes us stronger.

As always, we welcome your comments & suggestions (you can also feedback directly to the authors), and we remind our registered readers that you have free access to the entire archive of Opalesque Islamic Finance Intelligence (including back issues) and Opalesque Islamic Finance Briefing (our daily news summary), an ever-growing historical data bank of industry news and articles.

Download Opalesque Islamic Finance Intelligence here

Opalesque Islamic Finance Intelligence - Fourth Issue

Opalesque Islamic Finance Intelligence - Third Issue

First of all we would like to extend to all a blessed Ramadan Mubarak. As Muslims around the globe observe the holy month we take this opportunity to pause and reflect on where Islamic finance stands today and what’s in store for the industry’s future. As millions of Muslims reflect, so does the industry ponder on its very own direction, principles and ultimate purpose.

This is barely our third edition, but the feedback can be summarized by one of our readers (a director of an Asian-based investment bank) who put it plainly: “there is some really good stuff in this thing”. We push forward and for this edition of OIFI we begin by addressing what we term the 'Two Schools of Islamic Finance' as we delve into a rather unassuming - although significant - division in opinion on how the practice of Shariah compliance should be approached. Interpretation can have far reaching implications, take for instance the Majallah (the civil code of the Ottoman caliphate) which is regarded as the first attempt to codify Islamic law and remains an important source of reference to the present day.

We follow with one of our most requested items – and a good indicator of industry renaissance – a compilation of Islamic finance training programs and certifications. Thereafter, Nikan tackles a more specific discussion on Wa’d in our Featured Structure section, whereas Khalil delves into a forward looking analysis of Islamic financial instruments and arbitration channels in his Lex Islamicus column. Their perspectives are complemented by additional opinions on the role of the Islamic finance framework in our Discussion Board.

This month’s edition includes a Manager Interview with Dieter Küffer, of Sustainable Asset Management, regarding their Islamic water strategy. Their SRI background is by no means accidental, as our Opinion Column further profiles views on social responsibility and corporate governance from Sayd Farook and Usama DeLorenzo respectively. To round it all out, the spirit of transparency is alive and well in our final piece which explores the rather unusual: products from the graveyard (liquidated, obsolete, dare we say unsuccessful).

Once again we welcome your comments & suggestions, and a reminder that you can check the free online archive of Opalesque Islamic Finance Briefing (our daily news summary) which provides a historical data bank of industry news and articles, as well as the back issues of OIFI. It’s all there, it’s all free.

New subscribers can set up their Opalesque subscriptions here.

Download Opalesque Islamic Finance Intelligence here

Opalesque Islamic Finance Intelligence - Third Issue

Opalesque Islamic Finance Intelligence - Second Issue

Dear All,

First of all we would like to extend our sincere gratitude for the warm reception and the extensive feedback received following the first edition of Opalesque Islamic Finance Intelligence (OIFI).

Our maiden issue (available here) saw OIFI building a readership of well over 2,000 and this only solidifies our commitment to explore industry-specific content, encourage critical discussions and lively interaction. All of which we resume in this our second installment, where we explore the specifics of Shariah scholars and Shariah boards.

It is the most essential question for practitioners and non-practitioners alike: how do you achieve Shariah compliance? While there is no clear cut answer we run through a Shariah Compliance Toolkit that delves into the mechanics of engaging Shariah advisors, the existing business models, procedures & timelines, agency & monetary costs, as well as some recent developments.

Our Featured Resource section sheds further light on various Fatwa databases and search engines that are useful in specific areas of research.

In this issue, we explore how the manufacturing process has fared in this regard in the Featured Structure section, highlighting some of the recent entries into the landscape of Islamic products (such as CPPI vehicles and other structured notes).

We further focus the attention on the perspective of the boutique (or more specifically the perspective of a non-Islamic financial institution) as it pertains to creating and developing solutions. Our Allocator Interview examines the experience of Amiri Capital in putting together a Shariah compliant platform and the challenges faced in bringing products to market.

While we have dissected exotics, even the most vanilla of contracts isn’t exempt from scrutiny, as we look at the intricacies of modern murabaha contracts in the Lexicus Islamicus column. Moreover, differing opinions on this and other instruments have reignited the debate of whether Shariah boards (and their approval process) should rest within financial institutions or at the country level, with the Discussion Board opening the floor to industry voices.

Finally, from these various inputs we probe the outputs as well - surveying the bad habits of Islamic fund managers in our Industry Snapshot section.

Once again we welcome your comments & suggestions, and please check the archive of Opalesque Islamic Finance Briefing which is now available online here providing a free historical data bank of industry news (over 3,300 articles) as well as back issues of OIFI. It's all there, it's all free.

New subscribers can set up their Opalesque subscriptions here.

Download Opalesque Islamic Finance Intelligence here

Opalesque Islamic Finance Intelligence - Second Issue

Opalesque Islamic Finance Intelligence - Free Archive

Reminder to sign up here for Opalesque Islamic Finance Intelligence (OIFI).

OIFI is produced by leading alternatives publisher Opalesque Ltd. and Amsar Partners LLP (select "Opalesque Islamic Finance Intelligence" for our FREE monthly premium subscription, and "Islamic Finance Briefing" for FREE daily news updates).

For more information on Opalesque Islamic Finance Intelligence visit the Opalesque site, and also please feel free to check their online archive from Opalesque Islamic Finance Breifing for a historical data bank of industry news as well as back issues, testimonials page and other useful information.

Opalesque Islamic Finance Intelligence - Free Archive

Opalesque Islamic Finance Intelligence

Opalesque launches Islamic Finance Intelligence as industry faces great debates in a number of fronts

Setting a new standard: 19 pages of intelligence.

Welcome to the first issue of Opalesque Islamic Finance Intelligence (OIFI), designed with a practitioner approach – focused on precise and relevant content for investors, product manufacturers, and fund managers of this truly global community. This free, monthly publication complements Opalesque Islamic Finance Briefing (our daily industry news briefing) and leverages on the success of the Opalesque family of specialized publications (Alternative Market Briefing, A Square, Roundtable Series, etc).

The industry faces great debates in a number of fronts – from market gaps, distribution networks, standardisation initiatives, risk & compliance concerns, to structural question marks. These issues are faced by both current industry players as well as new entrants. A case in point is the recent debate over Tawarruq, with Nikan scrutinizing the matter in our Featured Structure section.

The range of topics is vast - Islamic finance products now extend to all asset classes (from exchange traded funds to private equity vehicles), the industry is ever-evolving in its core markets (the GCC and Southeast Asia) and product cross-pollination with conventional fund houses is an emerging trend. Our maiden edition further provides an overview of Islamic contract law - detailed by Khalil in our Editorial Column. We also debate over the outputs of the transaction: practitioners share their thoughts in our Discussion Forum on the use of conventional benchmarks (i.e. LIBOR) by Islamic banks, whilst Toby Birch of Birch Assets Ltd scrutinizes the industry pitfalls in our Allocator Interview.

Market awareness has skyrocketed in recent years - experts once touted the existence of 60 Islamic equity funds whereas the industry now boasts a universe of well over 700 Shariah compliant investment products. Growth projections usually land between 15 to 20 percent per annum, yet some of the largest Muslim countries (i.e. Indonesia, Egypt and India) remain untapped. A comprehensive product range is unheard of (in stark contrast to the conventional world), yet this bestows the industry with endless prospects. Bernardo sheds light on these by analyzing Islamic fund of funds in our Industry Tables section.

Opalesque Islamic Finance Intelligence is a free subscription- new readers can register here and make your choice from our menue of eleven specialized publications. (Note that while most of our publications are free, we also offer three premium/paid publications).

Download the first Opalesque Islamic Finance Intelligence issue here!


(Sorry for the Marketing Spiel, but we wrote it and its free).

Comments, as always, are welcome! JAK!

Opalesque Islamic Finance Intelligence