1 Million Poor Have Benefited From AGFUND Microfinance

Surpassed the number of beneficiaries of the Arab Gulf Programme for Development "AGFUND" for lending to small and medium- 1.3 million people .

The WFP Executive Director Nasser Al-Qahtani said the initiative of Prince Talal bin Abdul Aziz, head of the program aimed to combat poverty in the region, and establish banks for the poor , progressing steadily, expanding horizontally creates more banks , and perpendicular to upgrade the performance of banks .

He said during a post "AGFUND" at the campaign Microcredit Summit to be held in the Philippines during the period from 9 to 11 October / November first , entitled " partnerships to fight poverty " that " team AGFUND to the summit holds success stories impressive for his project , which pursues the principle of social business , within the framework of the initiative of Prince Talal . "

The Qahtani paper at the summit AGFUND 's experience in the fight against poverty and the establishment of microfinance banks in 8 countries, namely Jordan , Yemen, Bahrain, Syria, Sierra Leone , Lebanon , Sudan, and Palestine.

AGFUND organized a seminar on the sidelines of the Philippines to expand the definition of the initiative Prince Talal , and revenue target segments dealing with procedures for the establishment of banks for the poor , and steps to establish a microfinance bank within 6 months from the date of completion of the requirements .


He stressed that the program is moving forward in the implementation of its strategy to combat poverty through two approaches essential first is vertical , a concentration of the ingredients for success in the banks, microfinance institutions established by , and the other horizontal established Binary Prestige banks in the countries where it is satisfied the usefulness of microfinance, and has a willingness to cooperate with the requirements of AGFUND , improve their environments legislative favor this mechanism of development actors.

He is scheduled to meet AGFUND team to the top of the Philippines Filipino businessmen , in a move that paves the way for the launch of Bank of the Poor in Manila, where it is expected that the Prince Talal NARC early 2014 .

The current summit to be hosted by the Philippines is the sixteenth of microfinance that are organized around the world since 1997 , led by " Microcredit Campaign " , based in New York.

The Binary Prestige program of cooperation with lending campaign in 2004 in the establishment of the Regional Conference of micro- lending in the Middle East and North Africa in Jordan , which was opened by Prince Talal Bin Abdul Aziz , and was one of the most successful conference that specializes in microcredit at the level of the Arab countries.

And participate in the summit of the Philippines thousand international expert viewing the most successful Same Day Profits models and progress of partnerships between the public and private sectors in the field of microfinance.

According to the current rate of progress , almost a billion people remain in extreme poverty by 2015, and today there are approximately 2.6 billion people in the world do not have access to formal financial services .

15% Of The World's Population Living Below The Poverty Line

15% Of The World's Population Living Below The Poverty Line Although the world's production of food enough for all human beings average of 2720 calories per person per day , but there are 842 million people suffering from hunger every day !


Says Dr. Magdy Badran , Ain Shams University , said that recent studies show that one out of every four children under five suffer stunted because of malnutrition ! ! There are also 2 million people lack the vitamins and minerals necessary for good health.

In celebrations of the world International Day of feed must be stressed that there is what is known as " hungry world ," a lack of adequate food for active and healthy life and during the twentieth century , died about 70 million people from starvation all over the world , especially in China and the Soviet Union , India and Africa.

There are currently nearly 1 billion people , or 15 % of the estimated world population of 6.8 billion live under the mantle of chronic hunger.

Dr. Magdy shows that the majority of people suffering from malnutrition live in developing countries , and more than 70 % of children who suffer from malnutrition live in Asia , 26 % in Africa and 4 % in Latin America and the Caribbean .

It is strange that in the United States is a rich country , there is a 13 % live within the confines of the permanent hunger and nearly 25% of American children there do not have any food in dinner , or about 17 million children .

Command Global Growth Move To Outside of Europe By 2017

This year will be pivotal for the Global Economy. For the first time since that push the switch to the machine in the UK to the path of industrialization in the nineteenth century, the emerging economies will produce the majority of goods and services in the world. The population of the rich developed economies representing long ago a large proportion of world output, but the proportion come from a small group of the world's population. They are now less important than the economic side of the group of people who live in the poor countries of the world and middle-income countries.

china economy

This shift in the balance of Global economic power deep, a shift that economists expect to continue. The International Monetary Fund expects to increase the share of the emerging economies of global output to 55 per cent by the year 2018, what makes the description of "emerging" misplaced increasingly.

Although the standards of living in developed countries remains five times higher, but the gap is rapidly narrowing since 1990. In countries where the income which goes hand in hand with the growth, the title now is catching. In addition to the half stake owned by the emerging countries of the world output, is expected to adopt three-quarters of economic growth on the big vitality during the next five years.

Jim O'Neill, who retired some time ago from the post of chief economist at Goldman Sachs, likes to use compared blatant expression of transformation. He says that the annual growth rate of 8 per cent in China now equivalent in importance a growth rate of 4 per cent in the United States Wall Street Exposed. This is a sharp contrast compared to 1980, when China was recorded faster growth rates even now, but it was like a relatively small fish. In 1980 the growth rate was 10 per cent less important than 1 per cent in the United States.

The long haul to prominence for the Group of Seven economies outside the United States, Japan, Germany, Britain, France, Italy and Canada is not a surprise. Growth was strongest in emerging countries for more than 30 years, and per capita levels were incurred in developed countries during the past 20 years.

This superior performance becomes a striking stronger when seen over a longer time frame. The monitoring of the McKinsey Global Institute shift in the center of gravity for the global economy to the world economy, noting that it was in the north of Iceland in the middle of the North Atlantic in 1950. And then, when Japan began to take off, taking in the spacing of the United States heading towards the east. He is now moving quickly toward the southeast, where moved during the past decade, a distance of more than on any other contract. By 2025 it will be close to Novosibirsk in southwest Siberia.

Says Richard Dobz, a member of the Board of Directors McKinsey: "development and economic transition of China towards the cities is happening at a greater rate one hundred times the size of the shift in Britain, the first country turns to the direction of urban and industrial, and ten times faster than almost, and thus the industrial revolution the Chinese possess momentum stronger a thousand times of the British Industrial Revolution. "

This shift in Global economic marched at specific stages during the past 30 years. In the mid-eighties, the big developed countries still dominate global growth. The United States accounted for almost one-third, and the European Union about 20 per cent, and the six countries of the Group of Seven in the list of top ten countries with the largest contribution to global growth (only France was off the menu). There was a common expression says if the United States sneezed, the rest of global economy will infect the cold.

These figures were calculated using data from the International Monetary Fund (IMF), which is based on the purchasing power of the dollar for the local currency, and thus there was a similar weight equivalent to the rise in the amount of goods and services produced in different countries.

By the mid-nineties, the former giants of the Global economy out of the "Premier League". No longer Germany and Italy have conferred rank to be among the top ten countries in economic growth, and the importance of Japan fell by more than half. Existing and entered Mexico and Indonesia, a sign that the fact that a developing country and The high population density puts it on the road certainly lead to the ups and enter the adult league.

In the years prior to the 2008-2009 crisis, China has emerged to be so far the largest source of growth, and swept the charts to reach the fourth place against the backdrop of the rise in the production of goods and prices.

Britain was present in the list of the top ten countries, having enjoyed the same 30 years to catch up with the growth in the wake of recovery from being the sick man of Europe, but it looks on track to get out of the Premier League between 2012 and 2017. And will be a list of the top ten countries in terms of the country's share in global growth has completely moved out of Europe, are expected to form the entire European Union accounted for only 5.7 per cent of global growth. And will be India and China together almost half of global economic expansion.

This amounted to a shift in economic power limit makes any company concentrating its efforts in established economies, are actually living in the past.
Wall Street Exposed

World Conference Of Islamic Banks Looking Cross-Border Opportunities

Meet more than 480 personal of the most prominent leaders of the banking sector and thought leaders in the Global Islamic finance industry in the period from the third to the fifth of June 2013 at the Hotel Pan Pacific Singapore, as part of the activities of the World Conference Fourth Annual Islamic Banking: Summit Asian Conference (World Islamic Banking Asia 2013), which held the official support of the Monetary Authority of Singapore.
islamic finance

It is scheduled to be launched the activities of the World Conference of Islamic banks which will be held over three days under the slogan «build bridges between the global Islamic finance sectors: promotion of international linkages and cross-border opportunities. As a special symposium will be opened in the Islamic financial market with a focus on international Islamic liquidity management, hedging and Islamic capital market instruments, an opening session with President Khalid Hamad Abdul-Rahman Hamad, Chairman of the International Islamic Financial Market.

And Executive Director of Banking Supervision at the CBB; Long Nam Sin, Assistant Managing Director, Group D Monetary Authority of Singapore. The opening session will be followed by Summit to be held in pre-conference special word of the President by Dr. Halim Cah, Deputy Governor of Bank Indonesia.

Furthermore, the president will be the opening of the conference, scheduled to be launched in the fourth of June, private speech delivered by Lim Heng Kiang, Minister of Trade and Industry of the Republic of Singapore and Deputy Chairman of the Monetary Authority of Singapore. The opening speech will be followed by a direct throw two keywords special Alekayama Dr. Mohammed Yousef Al-Hashel, Governor of the Central Bank of Kuwait; Ranjit Ajit Singh, Chairman of the Securities Commission of Malaysia.

Industries vital

Commenting on the support of the Monetary Authority of Singapore for the World Conference of Islamic Banking Asia 2013, commented Ravi Menon, Governor of the Monetary Authority of Singapore said, "We have the evolution of the World Conference of Islamic Banking Asia in terms of its size and stature since its inception in 2010, which is in the recent current platform an important link between Islamic finance vital industries in Asia and the Middle East. also enhances the conference also display the value of funding for the Islamic finance industry more broadly in the region. "

It should be noted that it is scheduled to present the exhibition The World Islamic Banking Asia 2013, which will be held on the sidelines of the conference as well, the next generation of Islamic financial products, and innovative solutions, as well as the latest developments in the Islamic banking sector and international financial industry.

Improvements to the legal and regulatory frameworks

Said Dato Sri Abdul Hamidi bin Abdul Hafiz, CEO of Kuwait Finance House (Malaysia) : "showed the Islamic finance industry a tremendous growth in terms of volume of business, product innovation, and the geographical spread, as well as achieving significant improvements at the level of legal and regulatory frameworks. Attracts these Current industry in recent customers from all different segments and sectors of the economy.

It is moving forward towards achieving further progress and success. However, the Islamic financial system is still very small compared with the traditional economic system that currently exists. However, it is through the development of lessons learned from the recent Global financial crisis, we have become well aware of the risks inherent in the capital is produced, and what we should do in the recent current is to collect surplus funds viable investment to promote economic prosperity to more efficiency and effectiveness and that of through the financing of real economic activity, which is completely in line with the objectives of Islamic finance.

Is Islamic Finance Has Achieved Development For Society?

Islamic finance in theory began with Islamic law, which came as part of an integrated system comprehensive life dealing with worship and transactions and ethics, in a balanced manner make legislation relating to worship the words from the teachings of detailed addresses of worship with respect to provisions in all its details minute, as in prayer, fasting and Zakat The pilgrimage, though the tendency to worship God is innate, but the details, you can not rely on human nature to learn the proper way to practice; legislation so it was dealt with in detail.
With regard to transactions, the origin of Islamic law that deals with many of them in its entirety, and gives an outline of its provisions, because the legislation with regard to the provisions of the transaction is based mostly on the wisdom of the phenomenon, as it is not a destination "Sharaa" often in such transactions to highlight the commitment and discipline orders "Sharaa" - but at the end of the case, but the destination is the real achievement of justice and the public interest of the community, and the balance between the individual's right hand that gets it is the product of diligence, on the other hand the right of society on the one hand that in general to achieve the public interest and not harm the structure of community economic .
Therefore, most provisions relating to financial transactions, a reflection of the wisdom of the phenomenon of the legislator, as it seeks to achieve interest and balance the pros and cons, so most of the issues related to these transactions, we find that the interests of the evils and interest requires giving priority to whichever is greater impact, if GLBT interest in the transaction, the legislation tends even, in some cases, to cram them, but if overcome corrupting the legislation tends to leave and prevention of them, this is of course a general rule can not drop its image outlined the details of the provisions always, but when what appeared judgment on the issue of it with certainty that the public interest so requires .
Through the evaluation process of Islamic finance, and because Islamic law in transactions in the interest of the phenomenon can be felt by the human, the question on the impact of applications of Islamic finance in the development and treatment of economic problems in society is a project, especially when we see that some Muslim communities suffer economic problems, chronic , in addition to the weakness in productivity compared to many countries in the world, whether developed or emerging, as well as high rates of poverty and unemployment, poor nutrition, and health and educational problems in some countries, a reflection of the poor economic situation. 8020 fat loss
We know that the Islamic finance began since the start of the message, but the perception of the modern Islamic finance began in the seventh decade of the last century when it began to experience Ahmad al-Najjar in 1963, followed by a series of experiments, where she focused these experiments on the banking business, especially after the experience of Bank of Dubai Islamic in 1975, and today we are 50 years after the establishment of the first experience of contemporary Islamic finance, we do not find a major development of the economies of Islamic countries, equivalent to the developments of many countries in the world, and to reflect what their natural wealth and human resources, and including also reflects the legacy great historical , and its strategic location between nations.
There is no doubt that the experience of banks and the subsequent subsequent developments did not achieve real development even though in itself is not a draft negative impact on society, but it can be described as the experience is incomplete because it did not exist integration of the components of Islamic economics, as the experience to complete not must be a strategy to build the potential of human resources, and optimum utilization of natural resources, and build a productive industrial, agricultural and service makes the productivity of the individual outweigh the needs, and this is the simple equation of the economy productive, then the banks and the financial sector in general, a tributary of the productive sectors and enhanced their growth, as that banks today are still far somewhat from real participation in the productive sectors, as the practice of contracts, such as contracts for the company or speculation that will enhance the role of financial institutions, positive, and lays the foundation for building development projects in the community, and fills the gap in Islamic societies is the absence of capital which enhances the potential of human resources, and the optimum exploitation of natural resources, but the role of Islamic finance will remain weak in promoting the progress of the development of Islamic societies. im john chow
Conclusion .. Islamic finance, although it has achieved significant growth during the last period, but that its impact on development in Muslim societies weak for lack of integration in the components of the Islamic economy, and the weakness of the role of Islamic financial institutions, which depends on positive contracts, such as contracts Posts and speculation.

Salah Bin Fahad Al-Shalhoub
Option Bot 2

The First Small Business Conference in Yemen Calls For Change

Participants in the first conference of small and medium-sized enterprises in Yemen Called to create a public financial institution help banks and microfinance institutions to grant loans to the sectors of small and medium-sized enterprises guarantees easy, accessible and simple interest rate.

microfinance in YemenThe conference was held the first Yemeni small and medium-sized enterprises in the 26-27 / May in Sana'a organized by the Yemeni Association for Business Development and in cooperation with the Ministry of Trade and Industry.

Said Dr. Abdullah Al-Mikhlafi, Undersecretary of the Ministry of Finance and professor of banking at the University of Taiz, in an interview with balcony "will not list for economic development only if there is interest in SMEs via its support in the planning stage and provide technical support her and to expand and facilitate the process of funding them."

He admitted Al-Mikhlafi not sharing the government enough to support small and medium enterprises, calling for the establishment of a governmental body working to secure the necessary funding for these projects and allocate part of the capital of commercial banks and Islamic countries, between 10 and 15 per cent, to finance small and medium enterprises.

The participants recommended that the central bank required a certain percentage of the loan portfolio mandatory in Islamic and conventional banks in Yemen of not less than 15 per cent went to the small and medium-sized enterprises.

As well as to avoid activating the insurance for bankruptcy protection and activating the role of compulsory insurance affordable for entrepreneurs, as well as enable, support and encourage women in the implementation of small and medium-sized enterprises and to provide financial and technical support to them.

He said Munawar Essanoui, Executive Director in Yemen Society for Business Development, for the balcony "The small projects are of great importance in the economies of developing countries and account for about 90 per cent of the total national income because it is fast in generating jobs at a high rate as it provides job opportunities free to a large number of members of the community . "

"If we want to promote sector small and medium enterprises we establish a joint body including private and government sectors concerned with SMEs and working to develop this sector from three directions: the first regards the legislative structure provided that they are accessible and supportive of the sector, and the second for funding and soft loans, and the third terms of providing opportunities for training and advisory services, feasibility studies and technical support. "

'Column the economy'
In turn, he said certified Abdo Srora, the director of human resources at the Small Industries Development Fund, said that small and medium-sized enterprises are the "pillar of the economy" in Yemen and developing countries in general.

He continued, saying, "If the government wants to achieve sustainable development and the recovery of real economic interest in this sector in kind and financially and in terms of infrastructure."

And the constraints faced by small enterprises, summed up by failing to provide legal protection, as well as funding for banks to production processes only instead of starting from scratch funding.

And the Central Bank's role in supporting small and medium enterprises, explained Balkis Ahmad, Director of the Department of Islamic banks and specialized in the Central Bank, saying he was "focused on control over the institutions and banks lending small and medium enterprises in addition to passing legislation encouraging the work of the private banking microfinance."

She stated that the law gave incentives for the establishment of microfinance banks, including reducing the required capital to 600 million riyals (2.8 million U.S. dollars), compared to six billion riyals ($ 27.9 million) to other banks, and shorten the establishment procedures to enable the granting of a license in a period of two months from the date of submission demand. KD Suite

Ahmed added that making the central bank rate-setting open to microfinance banks, unlike other banks.

Her "The microfinance banks made good strides in the provision of services to beneficiaries," and this is what encouraged other institutions to provide microfinance services and small as she put it.

She explained, "We now have new applications to provide these services from one of the exchange companies and offshore bank, as there is a proposal under consideration to integrate some financial institutions and converted to a smaller bank financing." Forex Indicator Predictor
Learn More about Microfinance in Yemen

Microfinance in Yemen

Microfinance in Yemen - Afrah Ahmed (23 years) Her small project in the Yemeni capital Sanaa, which is accustomed to micro-loans; and is now poised to request her third loan, but when asked whether she previous loans have helped to improve her life, came a lukewarm response.

She added in an interview with Network (IRIN), "benefited from only somewhat, because life is very difficult, and I do not have money in the house, and no one works.'m Looking for a solution to improve life."

The question whether the micro loans "succeed" in lifting people out of poverty is still under discussion not only in Yemen but in all parts of the world.
Microfinance in Yemen

Said David Rodman, a senior fellow at the Center for Global Development in Washington, and author of a recent book on microfinance entitled "due diligence": "I would not call it a great way to address the problem of poverty, it achieved modest results at modest cost."

"I think it's something that enriches the economic fabric of society and contribute to the economic transformation process in a way that a modest but useful, and this is one of the meanings of development."

Microfinance includes financial services such as microcredit and micro-savings (which makes it easy to save small amounts of money).

It seems that five randomized control studies conducted in Morocco, the Philippines, Mongolia, India and Bosnia and Herzegovina have shown that micro-credit can improve business profitability, but does not seem to improve poverty indicators such as household spending and the number of children in schools.

Due to having 15 years of experience and the necessary legal framework, Yemen is (the poorest country in the Middle East) of the leading countries at the regional level in terms of the granting of microcredit, and microfinance sector wider (which also includes, in addition to microcredit products, such as accounts savings for people who are normally excluded from mainstream banks).

Although large-scale unrest that swept across the country over the past two years, the expansion of this sector to a large extent, although it is still far from achieving all of its possibilities.

According to Adel Mansour, author of the report of the Social Fund for Development in 2011, the MFI has been able to reach 439 thousand people between 1998 and the end of 2011 in a country with a population of 25 million people suffer from poverty rates exceeding 40 percent.

The success of the Mujahid, executive director of network Yemen Microfinance "We estimate (we need) million customers in order to achieve the microfinance industry what we aim to it, which is to help the poor. But under current figures, we are not satisfied with the achievements of the industry."


The roots of microfinance in Yemen to 1997 when it was the establishment of the Social Fund for Development with the support of donors and government department. In 2009, the Bank was inaugurated hope, which is the first bank dedicated to microfinance in the Middle East and North Africa.

The Bank of Hope since its inception 60 A with an average loan size of approximately $ 200, which is now the largest source of microfinance in Yemen.

Mohammed said Lai, the founder of the bank and its chief executive, "We see ourselves as a bank for the majority of Yemenis."

He added that the loans are used in a variety of ways, particularly as a way to secure funding for small and medium enterprises, although the Bank of hope gives some consumer loans to qualified borrowers as well.

Although these consumer loans not exceeding a quarter of the loans provided by the Bank of hope, but there is concern at the global level of conversion of micro-credit sometimes to cover short-term needs such as bills of health and food, instead of providing capital for micro.

In order to adapt to the Yemeni market, the majority of customers choose microcredit loans are compatible with the principles of Islamic finance.

Shooting a cause for concern

Regardless of the model used, the repayment rates of microfinance in Yemen is very high, and more than 99 percent in many cases.

According to the report by the Social Fund for Development, the proportion of risky loans (which are defined as total accounts in arrears for more than 30 days) 1.6 percent in 2010, and was the rate of defaults final less than that in that year.

Lai pointed out that "our lending have a reciprocal relationship with the health of our customers. If the client's son's disease, for example, may not repay the loan."

I would call it a great way to address the problem of poverty, it achieved modest results at modest cost and over the past two years, became repayment more cause for concern, and industry microcredit is not immune from instability prevailing in the country resulting from the uprising "Arab Spring" in Yemen.

In 2011, risky loans increased more than five-fold, and offer loans to very slow, as the office of at least one, in the troubled southern province of Abyan, looted and forced to close.

Financial literacy

While the industry is trying to recover from the turmoil, there are still many challenges impeding lending to the poor, including the ability of persons who did not receive formal education to understand how these services work.

And can understand the mechanism of action becomes problematic loans for people with limited knowledge of financial matters, as reported by Mujahid.

And trying to donors and institutions to address this problem through institutions such as the promotion of service SMEs (SMEPS), which provides subsidized management training for entrepreneurs.

But small business owners who use microcredit are a minority in these courses.

The broader question that you ask Mujahid for the microfinance in Yemen - as others have done in other places - is whether truly serve the poor.

"It did not happen a real assessment of the impact of the microfinance industry since it began in 1997."

The report concludes the Social Fund for Development, which uses very few measurements of the economic impact, that people are extremely poor - often in rural areas - have not benefited from the financial services in Yemen, despite efforts to reach them.

Experiments were lending very poor people in Yemen relatively unsuccessful, the report says, because "the basic needs of survival is more important than managing a small activity requires constant effort and dedication to work."

As interest rates - or the equivalent in the Islamic system - which starts from 18 percent make borrowing difficult for the very poor people and those who wish to establish a new business.

The high interest rates in part to inflation in Yemen, with a lot more than 10 percent, and the national currency relatively volatile.

And banking services via mobile phone, and marketing campaigns roaming, and push for increasing the number of savings accounts and borrowers very poor through partnership Social Fund for Development with the Yemen Post and Social Welfare Fund are factors that can help society in greater use of financial institutions.

But Ali Abdul Wafi, an economist and former member of parliament, it is believed that the greatest responsibility for the growing financial sector rests with the government.

And despite the fact that the Yemeni government has adopted a strategy the granting of micro-credit in 2005, and issued a law microcredit in 2009, but Abdul Abdul Wafi did not think they played an active role enough.

"The government may be busy with other issues, but they must pay attention to the financial sector it is extremely vital for the economic situation in Yemen."

And believes that Yemen needs to "further advocacy and interest microcredit industry, because it is a tool to combat poverty, and not just for charity."
IM John Chow 
IM John Chow

Islamic finance boom after the global financial crisis

Said Head of finance at Syracuse University U.S., Dr. Yildirim chances booming Islamic finance large after the global financial crisis, it has become the Islamic banking alternative for banking services traditional after the recent crisis, where the conventional finance lenders to excessive loans, which led to the financial crisis , came during a seminar held yesterday in Economic Society titled economic crisis and Islamic financing opportunities.
He noted that the Islamic finance industry is facing liquidity requirements instruments compliant with Islamic law, as Islamic banking, which shall be strong assets owned and operated a successful take less dangerous fiscal policies.

He added that after the onset of the financial crisis, the current time is the best time for the growth of the Islamic finance market, especially since the development of Islamic banks already good and is compatible with the requirement (Basel 3) with respect to capital adequacy requirements.
He explained that the Islamic finance industry is facing liquidity requirements instruments compliant with Islamic law.
basel 3

He Dr. Yildirim durability Islamic banks due to its reservation to go into high risk investments when funding for traditional banks that characterized its activities with excessive lending and borrowing, without much consideration to risk management.

He pointed out that Islamic banking instruments issued about $ 700 billion, while still focusing on the financing of the real estate sector in the developing countries and the Gulf and which achieves very good returns for these banks due to the recovery of this sector continuously.

And between Yildirim of the most important challenges faced by Islamic banks apply Sharia in the securitization process and the renewal of funding despite its success in attracting new investors, pointing out that most of these banks retail banks offer their services to clients legal «There are no Islamic banks investment could face investment banks traditional.

He explained that Islamic banks are still suffering from a lack of financial experts to develop risk management for new products, most Islamic banks operate within the retail banks as well as the shortage suffered by the hand Sharia scholars who specialize economy and finance, and thus become difficult to verify the match some financial products provided those banks with Islamic law, limits the expansion of the work of these banks, as well as its lack of a regulatory framework unified globally between countries that produce these Islamic financial instruments, as some products that are illegal in Islamic bank may be illegal in another bank as a result to deepen the first bank in the development of its products and find legitimate exits, while not available to the other this factor.

Yildirim stressed the need to re-establish securitization applications for Islamic banks in the event of those banks wanted to work in a healthy economic environment, stressing the lack of a major development in this regard by most banks.

He pointed out that there is a need to establish indicators private real estate Islamic banks with exposure to the real estate market to see trends of this sector in the future and avoid any financial disaster for those banks as a result of lack of understanding of market conditions, and refer the main cause of crises in failure to market securitization bad design, especially if no uncertainty regarding the 'real value' of the securitized assets that exacerbated the impact of asymmetric information, what caused the collapse of the market.

He called Yildirim to re-establish the securitization market to reach a healthy economy, with the credit crisis rendered market confidence, however, considered that there is an opportunity to increase the new versions of the asset-backed securities Islamic for all investors all over the world seeking to invest Islamic means of economic diversification.

And opportunities in Islamic finance, Yildirim said that the property is one of the basic needs associated with a lot of sectors of the economy, and strengthen this sector, thereby enhancing employment, consumption and investment in the economy.

And demand in the market for real estate, said Yildirim that member countries of the Islamic Development Bank need about 8.2 million homes annually to accommodate low-income urban and poor, noting that the world's population will grow by 2 billion people by 2030, which means nearly 40 A home in time, in the areas of seismic activity, such as Turkey, for example, you need to finance the huge housing projects, nearly a trillion dollars.

He said that expanding housing benefit requires an appropriate means to deliver new funds from alternative sources of capital, this capital is likely to come from programs securitization or instruments, pointing out that in order to provide additional funding, you need rules of capital markets, as well as entities key investment to be placed in the right places.

Qatar and Turkey closer regional models of Islamic finance systems

Turkey has the QFC more tax systems in line with the financial systems of Islamic finance among the eight countries in the Middle East and North Africa.

Those results came in the wake of a study by three economists pioneers are Messrs: Mohammed Amin, and Salah Kaidi, Hafiz Chowdhury, under the auspices of the Qatar Financial Centre and the participation of the International Center for taxes and investment firm with headquarters in Washington, DC.

And under the name of preparing tax system agreed with systems of Islamic finance among countries of the Middle East and North Africa - the first phase, the study shows that during a financial transfers easy system of Islamic finance among States, Turkey and the QFC two bodies only two possess tax system can be public conduct dealings instruments without high tax costs.
islamic finance

Courses will be offered in the search command, and considering how any state modernize its tax to become consistent with Islamic financing, where test study two ways alternatives, (in reference to the typical United Kingdom and Malaysia), and conclude researched recommendation to adopt the system Malaysian fastest and easier systems that can be applied to Muslim-majority countries.

8 States

The revised study dealing tax practice in the Middle East and North Africa eight Egypt, Jordan, Kuwait, Libya, Oman, Qatar, Saudi Arabia and Turkey, and the QFC through four structures are common in Islamic finance a commodity at the head Murabaha and instruments.

He led the search process detailed adviser Mohammed Amin, an expert in Islamic finance and former president of the Department of Islamic finance branch company Price water house Coopers in the UK, in conjunction with Mr. Saleh Kaidi, tax consultant first at the Ministry of Economy and Finance of Qatar and Mr. Hafiz Chowdhury management consultant and policy tax International Center for taxes and investment.

The format branch Ernst & Young distribution of questionnaires on the offices of company branches in the Middle East and North Africa to be completed and reviewed by the tax authorities in the country, while completed Price water house Coopers Malaysia questionnaire special Malaysia to provide a comparison between systems area and another system outside.

The UK model is compared to a second study based on the experience of Mr. Mohammed Amin as a tax adviser in the United Kingdom.

The first version

The report is the first of a series planned for, where intends team continue to provide prospective studies covering the impact of taxes consumables such as value-added tax imposed on the Islamic financing, and financial systems Islamic within international treaties to agreements on preventing double taxation, which aims primarily to compatibility with traditional ways of financing, as well as to Zakat transactions in Islamic finance and framework followed by the Government of the Emirate of Sharjah in its financial transactions. The are other countries in the region to review their systems in subsequent reports.

Mr. Ian Anderson, Chief Financial Officer and tax Authority QFC, in his comment: «The body of the QFC welcomes the results of research and recommendations provided by us this pioneering study in the field of trade tax financial transactions among Muslim countries in the Middle East and North Africa, where Islamic finance has a growing importance in the region, but their tax systems to almost all countries in the region have been developed in the framework of traditional ways of funding. This means often that Islamic finance suffers from an additional tax burden and unfair by those traditional ways. Because this report refers to the best ways to help settle competition in the region, we are delighted sponsored research such as this study the first of its kind, and support the development of Islamic finance and development organized by the world.

Get rid of the barriers

In this regard, Mr. Daniel A.. Witt, President of the International Center for taxes and investment: «proud International Center for taxes and investment to participating in this study, where we consider countries' support and support within the framework of its efforts to get rid of barriers to trade and international investment an integral part of our mission. In a world of increasing globalization attributes, and grow the welfare and prosperity rates in many Muslim-majority countries, occupies Islamic finance institutions a very important place in the establishment of infrastructure for the world's financial international trade and finance. And to emphasize that this study is the first study of its kind delve into the analysis of tax issues between states. We place high hopes on what emerge from this study of the language of dialogue we hope to be involved when states to discuss their internal systems and systems dealing with markets Islamic finance active in efforts to reach a way of dealing best with the reality of the physical barriers that hinder the growth of those markets because of tax laws . We hope to continue this important work under the umbrella of the active support funding centers such as the Qatar Financial Centre and other parties have influence in the markets.


Following Mr. Mohammed Amin, head of the team preparing the report, on the matter, saying: «The study shows quite clearly the additional risk of financial transactions required to act in accordance with Islamic finance systems to achieve economic achievements are similar to those achieved by traditional financial systems. These risks are subject to tax transactions to move or taxes on income or profits, which could raise the cost of Islamic financing to high costs.

He adds: «Malaysian based approach, mentioned in the report's recommendations, the application of the legislatures of the process of determining prior to any financial transaction regarding its approval of Islamic finance or not. Can then modify the tax law with relative ease for this segment to give the same result tax governing traditional transactions. Since the intermediate transactions are an essential part in the structure of Islamic finance, can easily exempt such transactions from the tax argument. As for the approach of the United Kingdom, and requires a more complex formulation of tax law because it could not find a reference to external sources of Islamic finance as a result of approach based on the principle of separation of religious matters financial. And conclude in the end that the Malaysian approach is the fastest and simplest to implement in the Muslim-majority countries.
top 10 food to build muscle fast