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.

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.

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

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.

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.

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.

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.

Risks

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.
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The Gazette, in a report yesterday that the size of this sector in Egypt is estimated at about 100 billion Egyptian pounds, and is expected to grow by between 9% and 15% in the next three years. He said that he did not allow Islamic banks in the past only to provide personal finance products, mostly investment banks or traditional development offering Islamic services.

Before 2012, the magnitude of the economic fluctuations and financial and finished work the U.S. government to reach an agreement between the Obama administration and the Democratic Party on the one hand and the Republican Party on the other hand, to reach agreement avoids United States abyss financial Financial abyss, and by increasing taxes on the American citizen of both Pan and wealthy citizens, so as to enhance the chances of reducing the gap, which began widening between public debt and GDP of the United States, as the increasing gap lead to the growing problem of public debt.

This year also carry a lot of Islamic finance, has increased the pace of growth in Islamic finance assets, they even did not show these results are declared for last year, but the indicators for optimism continued growth in the past year, and still opportunities list to achieve the pace of balanced growth, especially with the economic improvement of the Gulf, and increase spending and development projects, representing Gulf bulk of Islamic finance in the world, and improve their economic status has implications for the improvement and growth of the Islamic finance industry.

Perhaps the most stimulating continued growth of Islamic finance large turnout on instruments that have experienced significant growth in the last period of sustained, unprecedented, every year since 2009 surprise this sector observers significant growth and diversity in its products, and the slide that interested in this sector, from an instrument to finance large companies, today has become the focus of states to finance development projects, especially the countries of the so-called Arab Spring, which is preparing to launch a range of versions to revive its economy, especially after the political upheavals taking place in these countries and the region in general.

This growth of the Islamic finance also reflected on the banking sector, which has become more expansive at the global level, in addition to the insurance sector, which is expanding in direct correlation with the amount of funding, and remains, it is expected that this growth comes from two important factors: first: the continuing pace of growth tools list, such as the banking sector and instruments, in addition to the Islamic financial market activity, and funds Shariah-compliant investment, which includes a variety of images of low investment and high risks.

Another factor: the expansion and openness to new financial instruments, are expected to be there investment funds like Balseadah or major or even endowment funds, which contain a variety of investments that some may be administered in a manner consistent with the law, and this tool be an opportunity for them better now , since they need to diversity in its investments.

These opportunities for growth there will be a range of challenges, especially as the Islamic finance today is active in an environment designed for conventional financing, With the expansion in the volume of assets and tools and a slice of beneficiaries and investors and geographic expansion increases the size of the challenges for Islamic finance, and the possibility of achieving sustainability in their investments, and what he needs this sector Today dramatically is to build a theoretical framework and rules and regulations are to be part of the system of standards that apply to international banks, especially banks today required to apply Basel III, which require banks to keep more of the reserve requirement, and such regulation may hinder the application of financial instruments depends on the asset, especially in the decades such as participation and leasing, as these assets is part of the Bank's ownership of fixed and invested like loans offered by traditional banks, and this is an example of a form of obstacles that can be encountered Islamic banks in the future, especially that Islamic banks are currently in some States are active without creating a regulatory framework independently take into account the nature of products and services compliant with Islamic law, and this year may be for Islamic banks an opportunity to work on an agreement on a regulatory framework for Islamic banks submit a proposal to form legislation and standards that are commensurate with the nature of the activity of Islamic banks, and take into account the mechanism and procedures Contemporary banks in modern financial systems.

In summary, the Islamic financial Today booming and growth sustained, and is expected to be the new year also years continue the case of growth, due to the expansion of some of the tools such as instruments, and the expected expansion also in new financial instruments, and it remains to be challenges that can face financial Islamic - particularly banks - to make financial systems at the level of international standards and internal countries where it is active compatible with the nature of the products and services that are compatible with the Sharia.

A report issued by "BAYTK", a research firm, a subsidiary of Kuwait Finance House (KFH) that the total sukuk issuance at the end of 2012 reached 131 billion dollars, up 54 percent from 2011. And record the Islamic Sukuk market grew in 2011 by 45% the size of $ 180 billion.

According to "Ernst & Young" Consulting that global demand for Islamic bonds (Sukuk) is currently estimated at $ 300 billion, but it is expected to rise by 2017 to $ 900 billion.

But the director of the Islamic financial services in the "Ernst & Young" pointed Nazem, asserts that "one of the major challenges facing the Sukuk market is supply constraints, while continuing high demand."

A report by Kuwait Finance House (KFH) that there is great potential for growth wealth management industry Islamic in the coming years in light of the increasing number of high net worth individuals Islamic and the continuing growth in the volume of Islamic assets and increasing demand for services and products compliant with Islamic law in the world markets.

And continued to dominate the Malaysian market and currency versions sovereign issues continued excellence, where versions governmental organizations and the bulk of the sovereign versions by 70 percent during the month of December to $ 5.7 billion. Malaysia dominated versions in terms of market size versions, where it formed the Malaysian versions of instruments during the month of December 90.2 percent of the market share, while there was a noticeable absence of Indonesian instruments and UAE.

And, consequently, the ranking of countries in terms of release: Malaysia - Saudi Arabia - United Arab Emirates - Indonesia, and most versions of instruments BSF amount $ 506 million, and instruments FWU Group, the largest issuance of a European ever Islamic Sukuk for companies and the first version of the instruments played by a German company $ 55 million.

For the primary market in 2012, the share of Malaysia where 74 percent of the total releases, followed by Saudi Arabia (8 percent) and the UAE (4.7 per cent) and Indonesia (4.6 percent).

The versions governmental organizations and the bulk of the sovereign versions with 70.1 percent during the month of December, while there was a large number of versions by the financial services sector.

The share of government institutions 61.8 percent of the initial versions of the sukuk market in 2012 with the versions of the services sector by 11.4 percent of the primary market, while the service sector accounted for 13 percent of total releases of the same year.

The analysis issued by "JP Morgan" to that next year will be a record in terms of sukuk issuance, at the level of the world, where it plans several institutions and international companies issuing more instruments.

While The World Conference of Islamic banks on the need for the Islamic finance sector to strengthen the global presence, due to strong demand for its products with an enormous liquidity in Islamic banks, with assets exceeding Islamic banks $ 1.3 trillion barrier end of last year.

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Indicated company KFH Research Ltd., a subsidiary of Kuwait Finance House (KFH), the study has been discussed in the International Islamic Finance Forum is being held in Malaysia, about market developments of global bonds in the past few years and the outlook on them, that the global sukuk market booming remarkable During the last six years, grew 28.3%, bringing the total versions of existing instruments in the world until the first half of 2012 to 210.8 billion dollars, is expected to witness this market for another year of development in 2013.

At first study highlighted the sector instruments, indicating that he has emerged as one of the key components of the Islamic finance. The Sukuk market has grown over the years at a compound annual growth rate of 28.3% in the period between 2006 and the first half of 2012 to reach existing instruments to $ 211 billion and contributed 13.4% of the global Islamic financial assets in 2011.

The study pointed out that Malaysia still maintains the first position in terms of size versions of the instruments of more than $ 234 billion issued in Malaysia until the end of the first half of 2012.

In the GCC countries has reached instruments 92.4 billion dollars, and for market instruments initial, Malaysia representing 71.6% of the versions of the new instruments in 2011, followed by Qatar (10.9%), then the United Arab Emirates (4.8%), and comes Saudi Arabia IV (3.2%).
As at the end of the first half of 2012, the study showed that the share of the Malaysian market accounted for 68.2%, and finally Saudi Arabia II (11.1%), and then the United Arab Emirates (6.4%), followed by Indonesia (5.9%).

The sectors that included regarded as a prime mover for sukuk issuance during the first half of 2012 the government sector increased by 54.7% and the transport sector increased by 22.1%, while came a large number of versions in the Gulf Cooperation Council (GCC) and Malaysia from the energy and utilities sectors.

And maintained sovereign sukuk issues on the bulk of the versions of the primary market over the past few years with governments to increase their local programs.
And played the new countries in the field of instruments role in increasing the number of sovereign issues, such as Saudi Arabia and Indonesia, which has grown two international instruments market to attract new investments.

Despite the increase in the volume of money that is pumped through sukuk issuance, but the amount that was released U.S. dollar is still small compared to growth in other currencies.

The main reason is that international instruments are agitated by sovereign issues, which tend to focus on domestic liquidity levels while requiring foreign currency transactions greater than setup, as well as increased exposure to foreign currency risk involved in foreign exchange transactions.

Malaysian Ringgit continued during the first half of 2012 being the most important currency, and accounted for 70% of total releases.

The existing global instruments reached $ 211 billion in the first half of 2012, an increase of 18.3% from the end of 2011 was $ 178.2 billion.

Noted study «KFH Research» progress and increase the total amount of instruments based on an ongoing basis, even during the financial crisis, and accelerated growth in recent years as a result of the large increase in the number of issuers of new and increasing amounts of the bodies sovereign and central banks. Has grown secondary sukuk market at a CAGR 28.1% in the period between 2006 and 2011.

In terms of performance Total revenue instruments, the total return on index HSBC / NASDAQ SK NBA, which measures the return of versions portfolio instruments emerging that consists of 33 currency-denominated U.S. dollar and the pound sterling and the Japanese yen and the euro, 5.12% during the first half first of 2012, a percentage slightly less than the 5.2% recorded during the first half of 2011 and also less than the figure recorded during the first half of 2010 and of 5.64%.

Prepared company KFH Research Ltd., a subsidiary of Kuwait Finance House "KFH", a series of financial reports dealt with the reality of the Islamic financial sector and the prospects for its development in the next phase, to be discussed during IIFF which starts its work today in Malaysia, organized by the Malaysian government and the Central Bank, and continue its four days. Forum discusses in the first day of the study of the company about the reality of the global Islamic finance sector and the Islamic banking sector in particular, is expected to reach total Islamic financial assets amounting to about $ 1.6 trillion this year, and that the financial sector continues its strong growth in 2013.

A study the company's forum, attended by a large number of officials and businessmen and interested development Islamic financial services industry in Asia and the world, that there are ample opportunities to internationalize Islamic finance and spread globally, because of the great flexibility he has shown during the global financial crisis, and universally recognized products and Islamic financial services , and the ability of the sector to enhance liquidity and risk management, pointing at the same time that the challenges facing the deployment process, including the limited tools .. The following is a summary of the most prominent and the most important points covered in the study.

The focus of Islamic finance in the early stages of its development focus on countries with large Muslim population, such as Egypt, Malaysia and the Arab Gulf states (especially Saudi Arabia, Kuwait and the United Arab Emirates). Over the past decade, the evolution of the Islamic finance industry as an increasingly important element in the global financial system. Islamic finance received broad acceptance in many countries as a result of the growing recognition of the high value achieved by the Islamic finance for the financial system, and between these countries, the United Kingdom, Singapore and Germany. In recognition of Islamic finance capabilities, many countries have shown interest in becoming a center for Islamic finance, and some countries have established financial centers such as London, Hong Kong and Singapore. It is expected that the total global Islamic finance assets to $ 1.6 trillion in 2012, based on the following:

Increase demand for assets compliant with Islamic law
The active role played by some countries around the world to support the growth and development of Islamic financial markets in their own countries
Islamic banks have shown great flexibility during the global financial crisis, in spite of the turmoil that spread across the global financial markets. While the equity markets suffered such as binary options and mortgage insurance and financial losses after the real estate market bubble burst in the United States, showed the balance sheets of Islamic banks were not affected by large compared with their counterparts from conventional banks due to the following factors:

Governor of domestic credit: credit portfolios were mainly local, rather than foreign, with limited pressure on asset quality
Focus on retail banking: where high limited loyalty programs for customers as well as the stability of deposits, from the rush and the big draw is unusual on deposits by customers.
Provide high capitalization and high liquidity to relatively higher confidence levels than conventional banks.
Over the years, grown a range of financial products and services Islamic significantly, through innovations that come as a result of dialogue and links continuing between decision-makers in the Islamic finance industry, supported by an increase in awareness and knowledge with respect to the basic elements in Islamic finance and affecting the provision of products and services funding Islamic namely:

Customers need: to stimulate financial institutions to provide products and services that meet customer requirements.
Regulatory and supervisory support: the fact that the instructions allow a variety of products and services compliant with Islamic law
Unique suggestions: emphasis on the value and impact of Islamic finance to the sector's shareholders
Education and awareness, help in the creation and production of innovative solutions that can improve the efficiency of the products offered
Profitability: develop funds that can be directed to provide more products and services
Financing gap: the need to create financial intermediation
Competitiveness: stimulate product innovation in order to stay ahead of the market
Islamic finance over the past 30 years is stimulated largely by domestic sectors, but in recent years it has become gradually the fastest growing sector in the global financial system. And the evolution of market instruments in particular as a major factor contributing to the leadership of Islamic finance, and instruments and became an important way to raise funds globally, as well as stimulate investment activities and generate substantial financial flows from abroad. And easy access of the internationalization of Islamic finance and make it rise globally these other developments that have occurred in the international financial infrastructure Islamic, prompting the Islamic financial institutions to take the initiative to work beyond their local boundaries. There are currently more than 600 Islamic financial institutions operating in more than 75 countries, offering a wide range of products and services. With the internationalization of this sector, it is expected to contribute to Islamic finance in a more efficient move and the distribution of funds to various regions. This will enhance the trend of financial and economic links between the various global countries, bringing and achieve mutual benefits for all shareholders and owners of capital.

Opportunities and challenges of internationalization of Islamic finance

First: Opportunities

Enhance liquidity and the ability to manage risks for traders in the Islamic finance sector
International cooperation between regulators
Mutual recognition of standards and financial products across different countries through building on expanding the size of the partnership between practitioners, regulators and scientists
Improving the business environment to promote activities across different countries
Further development of Islamic financial infrastructure in underdeveloped markets
An effective tax system to deal with large disparities between income and wealth on the one hand and government support on the other hand
Second: the challenges

Limited set of tools, focus on short-term benefits, lower the depth and breadth of market support for mediation funds in the Islamic financial system
Should the financial system will facilitate a clear system of governance and strengthen the system against external pressures or threats, so as to reduce any risks that could lead to misappropriation or embezzlement
Still provide a qualified workforce and talent management in different countries is a regular, and given that talent development programs have only recently begun to expand and increase their numbers, it may take the Islamic finance sector and longer to reach a uniform growth across countries.

By taking a quick look at the Islamic banking sector in different parts of the world, we find that it has grown at a strong rate of between 15% To 20% Annually over the past decade, from about $150 billion in the mid-nineties to about 1.1 trillion in 2011. Based on the compound annual growth rate of 21.1% Between 2007 and 2011, it is expected that Islamic banking assets up to $1.3 trillion in 2012, accounting for more than 80% of the market share of the global Islamic finance assets. Not only the Islamic banking sector on the Muslim-majority countries of the GCC and South East Asia, but also extended to penetrate new regions in Central Asia and Europe, and that is working, many of which are currently on the developent and implementation of regulatory reforms and appropriate legal that would facilitate the provision and delivery of products and Islamic financial services. By the end of 2011, there were 363 financial institution operating in accordance with the Islamic banking system fully in addition to the 108 from traditional financial institutions to open and operate Islamic windows have. And despite the fact that the Islamic banking sector is currently accounted for 1.6% Of the total assets of the 50 largest banks in the world (a total of 66.2 trillion dollars at the end of 2011), but it is still one of the fastest growing sectors in the global financial services industry.

It is expected that the Islamic banking sector other future developments, especially with regard to the development of new products and services as well as open up new markets in different countries, this sector has proven its flexibility during the global financial crisis. It was the growth of Islamic banking services many positive effects on the global economy. Given that this sector is linked to the financing of real assets through the purchase and sale of goods to ensure utilization of the funds in real economic activities, and to ensure this feature also restrict the size of anticipated funding and the continuation of financial sector balance with economic growth. And given the rapid growth of Islamic banking system in the worldwide value and weight of the commercial feasibility of this sector in terms of providing returns to business as well as its positive effects on shareholders and owners of capital. And derive the feasibility of Islamic financing of its ability to meet the changing requirements of the economy and also the cost competitiveness of products and services it provides. The support is also developed within the framework of the legal and regulatory framework and supervisory highly sophisticated and who has had an important role to play in ensuring the integrity and stability.

Islamic banking sector witnessed in 2011 strong growth. And contain the Middle East on 80% Almost of Islamic banking assets, and Asia is a huge market where Malaysia has the largest market share by 9.6?. In terms of growth rate, Indonesia has had the strongest annual growth rate of 48.6?, Followed by Pakistan with 34.4? On an annual basis. The importance of the GCC states in being the home to some of the largest banks in the Islamic world such as Kuwait Finance House in Kuwait and Al Rajhi Bank in Saudi Arabia. The increase in Islamic banking activities in the countries of the Gulf Cooperation Council to a number of factors including increased domestic demand for Islamic financial products like Islamic Loans, and comes on top of those factors significant growth of savings in the Gulf, which is linked to oil prices pace. It is expected to continue to Islamic banking sector growth in the countries of the Gulf Cooperation Council strongly supported the foundations and economic stimulus through infrastructure projects sponsored by the government, as well as due to the strengthening of Islamic banks in some countries (Bahrain) and increasing the number of (Saudi Arabia and the UAE) and changes in regulations and regulatory (Qatar) which will benefit the sector as a whole.

It is expected that the Islamic banking sector encouraging developments where emerging economies such as Turkey, Indonesia, India and China to promote and stimulate alternative formulations of financial intermediation, supported by growing demand for banking products and services alternative. It is expected to help create the Islamic banking sector in a number of countries to encourage and accelerate the pace of market instruments in order to meet liquidity requirements. Despite the positive developments that have been achieved in the light of the deteriorating global economic environment, but the lack of education and awareness about products and services in some countries and regions, as well as legal and tax matters are among the challenges that will be faced by the Islamic banking sector.

However, it is expected that this sector continues to show strong growth, supported by the following factors:

Sustained economic growth in 2013 across emerging markets ( Islamic finance in Morocco ), supported by economic stimulus packages
Abundant liquidity flows on the back of rising oil prices
The active role played by some countries in different parts of the world in order to stimulate the development of the Islamic financial markets in their own countries
A combination encouraging population and increase the level of awareness has contributed towards increasing demand for products compliant with Islamic law. The number of the Islamic world's population currently stands at 1.6 billion, including 62% Almost in Asia.
Is expected to be a growth sector global food'm positive effects on the Islamic banking and finance, as should be the source of funding for the Halal food sector is compatible with the principles of Islamic Sharia.

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A sign of experts in Islamic finance sector the growth of Islamic banks in the Arab world by rising market share of Islamic banks by 15%  in the year 2013 at the level of the Arab states because of the large and growing demand by customers to these banks.

The expert added, Fouad Muhaisin that the current figures for the growth of the size of the Islamic banking sector exceeded all expectations in previous years to grow to over 25 per cent.

The Muhaisin to "The global financial crisis that hit in the countries of the world, especially in the United States of America and Europe, which observed its implications in various Arab countries pushed dealers to the selection of Islamic banks is based on the foundations of banking which led to the collapse of a number of banks such as the sale of religion and others. "

Muhaisin noted that many Arab countries began to shift to a system of Islamic banking as a result of the Arab revolutions or what has become known as the Arab spring, such as the banking system, the Libyan, Egyptian and Tunisian is expected to occur Syria. "

And move for the Secretary General of the Union of Arab Banks, Wisam Fattouh forecast that the next phase is witnessing a dramatic rise in the Islamic banking system, the end of 2013 of up to 40 per cent of total banking assets Arabic.

The report forecasts that up Fattouh, the total assets of banks operating in the Arab countries to $ 2.6 trillion in value of the assets of Islamic banks, of which about $ 1.2 trillion.

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Family Bank Bahrain

Family Bank in Bahrain was accepted as a new member of Sanabel Microfinance, a regional network based on the membership of MFIs in the Arab countries. Where members of Sanabel serve more than 80% of microfinance clients activists (more than 750,000 smaller entrepreneur in the Arab world).

Sanabel Microfinance Network is access to the largest possible number of microentrepreneurs in the Arab countries by strengthening the capacity of MFIs through capacity building services such as training, translation and publication of sources and literature on microfinance and to encourage and facilitate the exchange and communication between workers in the microfinance industry through the conference annual Sanabel website and newsletter of their own, in addition to the Arab Grid for microfinance based in Arab Republic of Egypt-based and are Sanabel first network of its kind and the only one designed to serve microfinance institutions in the Arab world as a non-profit network includes ears 87 members of the 13 Arab countries are mainly Egypt, Iraq, Jordan, Lebanon, Mauritania, Morocco, Palestine, Saudi Arabia, Sudan, Syria, Tunisia and Yemen.

The Family Bank in Bahrain was established initiative of the partnership of the Ministry of Human rights and social development with a number of partners from the private sector has received the Bank's license in October 2009 as the first Islamic bank specialized in microfinance, in partnership between: the Ministry of Human Rights and Social Development , the charity's property, the Bank of Bahrain and Kuwait, Ithmaar Bank and Ahli United Bank, Kuwait Finance House, and according to the framework of cooperation with Grameen Foundation Trust.

Many people wrongly believe that Islamic banks will give them interest-free loans to finance their projects or their belongings. But they forget to ask themselves the following question: How can the Bank believes that the coverage of various expenses (salaries of staff and rental agencies) If the loan was granted without the Lord? And even how the investor in the bank's capital to reap illegal profits from his investment, work, risking his head? The Bank is not a charity, and thus should generate revenues of Islamic banking transactions to cover the expenses of the institution of banking profits for investors, but without resorting to usury and trade in the funds.

The prohibition Riba in my humble opinion, makes the loan an act of charity such as charity and not a means of funding. This treatment (ie, loan) benefit only to the borrower and the lender's exposure to risk, where they will recover in, best, but its capital, was exposed to the risk of non-recovery of the entire capital of the borrower. It is our religion loan is better than charity because the Messenger of Allah peace be upon him: "I saw the night of family me at the gate of Paradise written: charity ten-fold, and the loan eighteen. I said: O Gabriel, what about the loan is better than charity? Said, because the liquid is asking and has, and the borrower does not Istkarz only need "(Narrated by Ibn Majah).

Prohibition of usury makes the loan process, then a non-profit, so Islamic banks adopt different approaches in funding. Approaches based on participation or Murabaha trade in allowance money that banks exercised usury. The philosophy of Islamic finance in many of the features and advantages. Perhaps most importantly, they make of goods or the project, which will be financed by the main criterion for acceptance of the Islamic Bank for the financing. With riba-based bank focuses primarily on the ability of the borrower to repay the capital loan and interest: if he is rich and able to repay the amount you want to borrow (against the mortgage of property or goods, for example), the bank loans the interest-based and low-interest easily. On this fundamental difference between the philosophies have several consequences, Nfsalha as follows:

1 - not the possibility of financing products forbidden:

Islamic banks are dealing with traders Murabaha or Ijara or participate, making it good for traders to buy and then sell them at a profit, or share them in their trade against the sharing of profit and loss. In both treatments can not be for the trader to trade in taboos such as alcohol or pork or gambling because the financial sponsor (Islamic Bank) can not be traded in a commodity because Islam is haram prevents him from it. On the other hand, finds no objection to riba-based bank lending to a rich merchant, trading in the taboo. What matters is the ability of riba-based bank to pay the merchant, not what he would do with money.
2 - promote equality between the contractor and the contractor, the rich in poor access to finance:
Islamic banks funded projects and investments and contracting by speculation or participation, rather than loans. So then the Islamic Bank partner for student finance a specific project, shared with him the profit and loss. This can not be approved by the Islamic Bank to finance the project unless the project is uncertain ability to succeed and make profits. So Vischr competencies and capabilities to study the project also requires proficiency in student funding. In the case of interest-based financing bank what matters primarily is the ability of students to repay the finance capital of the loan and interest. If the latter was rich, the bank is not interested in economical efficiency of the project or its owner, because the borrower is essential to ensure the bank is essential not to lose.

Through this difference in standards, we can conclude that the Islamic Bank is equal to the contractors rich and poor in access to finance, because what matters is the bank's profitability of the project and not the physical condition of Dahbh. On the other hand facilitate the bank's interest-based Tax Office on the rich to get richer and the funding Vyazdadon richer. The difference between the two standards, this financing, the Islamic Bank makes deal with a wider segment of investors and contractors compared with riba-based bank, which focuses its dealings with the rich. This contributes to the Islamic Bank in the development of the economy, more than interest-based counterpart. Vtamoalat first distributed to a larger number of contractors and on smaller projects, which distributes wealth in a broader and larger, so the higher rates of development. Only economists, the SMEs usually produce greater economic growth of major companies. The distribution of wealth and lack of focus in the hands of a few people contribute effectively to increase the pace of growth.

3 - promoting transparency and reducing tax evasion:
Generally, all parties seeking economic - within the limits of reasonable and permissible - to achieve maximum profits and minimal losses. For example, when bank financing for a project, each seeks from the bank and the holder of the project is to maximize profits. Riba-based bank, interested in restoring its capital and interest, albeit at the expense of the bankruptcy of the project contractor. And contractor-funded care about interest-based loan repayment to be liberated from the control of the bank. If the objective of the contractor to achieve the greatest amount of wealth for himself, he resorted to permit profit less than the real profits of the project to evade tax. In the case of Islamic finance can not be of the Islamic Bank to reap a profit only if the project is profitable, so the bank's target to achieve the project the largest profit possible. To ensure a profit, watching the bank, during the entire period of the partnership, the contractor and the project. So go all the way through the Islamic Bank to the contractor to falsify profits (because that is not in favor of the banking institution), which contributes to the reduction of escape and evasion of taxation.
In the fight against corruption, Islamic finance can contribute to the reduction of endemic or epidemic in our country, namely the phenomenon of performance under the table in the trade of the property. In the case of asylum, for example declining to participate to the financing of the property, may be in the interest of acquiring the property that is not paid under the table to the seller.

Islamic finance contributing to automatically reduce corruption and tax evasion. They also contribute to the enhancement of transparency, since they are directly funded goods or projects to be funded, while it may lack transparency in the usury loans to persons or companies that do not know what to do Baltmwilat obtained.

By Maaz B. Kandil
Commission Inferno Review

"Dar Assafaa" is First Islamic financial Institution in Morocco, The Governor of Bank Al-Maghrib approved Dar Assafaa on 13 May 2010 as islamic finance company specialising in the marketing of islamic finance.

"Dar Assafaa" is a subsidiary of Attijariwafa Bank, capitalised at MAD 50 million ($5.7 million).
The Under the brand "Dar Assafaa" , the company will market a range of Shari'ah-compliant financing, referred to as ‘alternative’ . The first four products, available through a network of nine branches, are based on Murabaha contracts and include:

- Safaa Immo: to finance real estate projects
- Safaa Auto: vehicle finance
- Safaa Cons: for the purchase of products and services
- Safaa Tajhiz: to equip your home

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An International level conference conducted at Islamabad with the name and topic of "Present state and the Way forward Islamic" conference of international Level on Islamic Business and Finance which is ICIB 2011 and ICIB 2011 will be organized on February 8 to February 9, 2011.

With around eleven hundred institutions and assets of US $ one trillion, Islamic finance is now an important part of the global financial system. The scope and range of both Islamic finance and business remains to be further explored and scrutinized. Beyond the recurrent financial instabilities, the Islamic system is promising in tackling various other challenges related to government finances, deepening of financial markets, or narrowing the socio economic disparities. Central however to the sustenance and further success of Islamic finance is the need to gear it with Islamic business practices and to strictly observe its original contours of Equity, Justice, and Transparency. The Conference therefore aims at discussing the present state of Islamic business and finance and how and in what way the same can contribute to the stability of and provide opportunities to the national and global economies.

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 Bank of Algeria