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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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 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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Islamic Finance

Before we talk about Islamic Finance in Morocco, Let's take a look in the way of understanding Islamic finance Concept

What is Islamic Finance?

Islamic finance Concept is a relationship between financial institutions in its comprehensive concept and the institutions or individuals, to save money for those who benefit from it either for the needs of personal or for investment, by providing financial tools compliant with Sharia, such as Murabaha, "Musharaka" mean share, Ijarra and Islamic loan.

If You Want understanding Islamic finance Industry Download understanding Islamic finance book By Muhammad Ayub Click Here

Islamic finance in Morocco

Expected that the Kingdom of Morocco issued a law regulating integrated Islamic financial transactions such as the end of this year, in light of the growing demand for these transactions and the need for Morocco to diversify its sources of funding has, in addition to the need to issue Islamic bonds to finance major projects have.

Where the Government and the Bank of Morocco to the finalization of the draft law allows the inclusion of Islamic financing in the Moroccan banking system and to identify possible amendments to the Moroccan banking system, it is expected that the current year will witness the maturation of perceptions of the Islamic financial transactions.

Morocco is betting heavily on Islamic finance to boost its economy and develop its financial system, especially after the global economic crisis, which was behind the conventional financial system to attract a large number of investments, especially coming from the Arab Gulf.
Islamic finance offers many opportunities and possibilities in front of the Moroccan economy in light of the international crisis and reduce the possibilities of European funding.

It should be noted that Islamic finance is likely to develop in the years ahead, as the volume of the activities of Islamic banks across the world more than 1000 billion dollars, but more importantly, here is the ratio of the development activities that are likely to range between 10 and 20% per annum reverse activities traditional bank.

Expects the agency "Standard & Poor's" that the volume of transactions of Islamic financing more than 4500 billion dollars. Where these data clearly illustrate the fact that Islamic finance remains the most sophisticated and fastest in the funding formulas are available, and safer as well as on the grounds that they were not affected by economic and financial crisis since 2008.


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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

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"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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Islamic Microfinance

Islamic banking is one of the fastest growing sectors of the financial industry. But in order for Islamic Financial Institutions (IFIs) to remain competitive with conventional banks, IFIs must be able to deliver specialized products and services to meet customer needs. Microfinance-a division of finance ideologically compatible with Islamic finance, capable of Shariah-compliancy, and possessing a sizeable potential market-is a perfect fit for inclusion in IFIs' new products and services.

Microfinance is comprised mainly of microcredit practices-the extension of very small loans, known as microloans, to those who do not have access to traditional financial services due to lack of collateral, employment and credit history.

Microfinance has a proven history as an economically viable credit program, as well as a proven history of serving customers in the Muslim world. In 1976, Muhammad Yunus, a Muslim Bangladeshi economist and economics professor, founded the Grameen Bank, the world's largest and most successful microfinance institution or MFI. Since its inception, Grameen has provided more than $5 billion in microloans to several million borrowers in the Islamic nation of Bangladesh and boasts a repayment rate as high as 98%. Last year, the institution made a profit of $20 million. Since its creation in 1987, Egypt's National Bank for Development's (NBD) microfinance program has been so successful that the Bank has implemented it in half of its branches. Unlike Grameen, which operates not for profit, Egypt's NBD has proven microfinance to be a profitable venture for private commercial banks in the Middle East.

Microfinance shares the same goals as Islamic finance. Islamic Banking began as an effort for Muslims to engage in financial services consistent with the principles of the Shariah, which promotes social and economic fairness. Likewise, the modern microfinance revolution began as an effort to combat poverty and social injustice in developing countries. Both the principles of Islamic finance and microfinance seek to prevent economic exploitation by prohibiting usury. In 2006, in recognition of the great humanitarian impact of microfinance, the Nobel Committee awarded Muhammad Yunnus and the Grameen Bank the Nobel Peace Prize.

Microfinance is a flexible tool capable of being tailored to satisfy the needs and conditions of various environments, including the Islamic financial sector which forbids riba, or the payment and receipt of interest. The use of interest found in conventional microfinance products and services can easily be avoided by creating microfinance hybrids delivered on the basis of the Islamic contracts of mudaraba, musharaka, and murabaha. For example, in a mudaraba-based transaction, the IFI and the customer may enter into a partnership in which the IFI invests capital in the customer's microenterprise while the customer invests labor. The profits are shared according to a mutually agreed ratio while losses are borne by the IFI. In a musharaka-based transaction, both the customer and the IFI invest capital and share profits according to a mutually agreed ratio; losses are borne in proportion to capital contribution. In a murabaha-based transaction, the IFI purchases a specific good which the customer will purchase from the IFI at a deferred mark-up that may be paid in installments.

Perhaps most alluring to IFIs is the large potential market for Islamic microfinance products and services. There are an estimated 1.3 billion Muslims worldwide, of which over 35% are living in poverty. In the North African and Middle Eastern region alone, there are approximately 4.5 million entrepreneurial poor who lack access to financial services. Of this number, only 112,000, or 2.4 %, of the potential demand are being served. There are only $95 million of outstanding microloans-a fraction of the $1.4 % demand. Egypt, the nation with the most borrowers, barely reaches 5 percent of its potential customer base. Three of the region's countries-Algeria, Iran, and Syria-lack any sort of microfinance program at all.

Islamic microfinance is the perfect opportunity for IFIs to promote the humanitarian principles of Islam, and to make a profit while doing so. Microfinance is a proven success. Shariah-compliant products are feasible. And a huge potential market is waiting to be seized.

Source:

Eagle, L. (2009, January 28). Microfinance and Islamic Finance - a Perfect Match. Retrieved December 22, 2009, from http://ezinearticles.com/?Microfinance-­and-­Islamic-­Finance-­-­-­a-­Perfect-­Match&id=1931908