Showing posts with label Sharia-compliant finance. Show all posts
Showing posts with label Sharia-compliant finance. Show all posts

Thursday, February 26, 2015

Britain to Lead the World in Islamic Finance


THE DAILY TELEGRAPH : London is bidding to become a leading centre for sharia-compliant finance, according to the UK's foreign minister for the Middle East

London has set its sights on becoming the world centre for the Islamic finance industry according to the UK's foreign office minister for Middle East.

Speaking at The Telegraph's Middle East Congress on Wednesday, Tobias Ellwood, under secretary of state at the Foreign Office, said the capital had ambitions to stand alongside Dubai and Kuala Lumpur as a global hub for Islamic finance.

Britain became the first country outside the Muslim world to issue an Islamic bond, known as Sukuk, last year.

The £200m bond attracted healthy investor interest and was the first step in encouraging wider investment from the region to the City of London.

Britain was also committed to promoting a "peaceful and prosperous" Middle East and expanding trade ties with the region, which topped £35bn last year, said Mr Ellwood. Read on and comment » | Manu Mair, and Mehreen Khan | Thursday, February 28, 2015

Sunday, November 03, 2013

Bishop Fears Sharia Bonds Pave Way for More Islamic Law

Dr. Michael Nazir-Ali, former bishop of Rochester
THE DAILY TELEGRAPH: Dr Michael Nazir-Ali, the former bishop of Rochester, warns plans by David Cameron to issue a sharia-compliant bond could have "unforeseen consequences"

David Cameron’s plans to issue sharia-compliant bonds open the way to Islamic law being enforced at the heart of government, a senior clergyman has warned.

Dr Michael Nazir-Ali, the former bishop of Rochester, said proposals to make Britain the first non-Muslim country to sell a bond that complies with sharia could trigger a series of “unforeseen consequences”.

He also voiced broader fears that Christianity was being increasingly excluded from the administration of law, after one of Britain’s most senior judges said members of the judiciary were “secular” figures serving a “multicultural community”.

Last week the Prime Minister set out plans for Britain to issue a sukuk, a form of debt that is in line with Islamic law, because it avoids the prohibited use of “riba”, or interest.

The bonds, which will be worth around £200 million, would pay a fixed return based on the profit generated by an underlying asset, such as government buildings. » | Edward Malnick, and John Bingham | Saturday, November 02, 2013

My comment:

Cameron is a traitor who is selling the UK down the river for financial gain. Dr. Michael Nazir Ali is about the only sane voice in the wilderness. I have great respect for him. If anyone should understand the potential problems with sharia-compliant finance, he should.

Cameron is a fool. An abject fool at that! He has no right whatsoever to follow this erroneous path down the road of sharia. He has no mandate for that. Only a clown would take this once truly great country down that road, that suicidal path.

I object in the strongest possible terms to my so-called prime minister taking such steps to destroy this great nation, especially without debate, and especially without a mandate.

Only an abject fool could sell the United Kingdom out for such short-term rewards.

The little respect I might have had for David Cameron evaporated the very moment I heard him utter such rubbish at the WIEF. He certainly did not speak for me; and I am fairly sure that he didn't speak for the majority of the British people either. – © Mark


This comment appears here too.

Thursday, October 31, 2013

London wird zum Mekka


Großbritannien will als erstes westliches Land eine Staatsanleihe nach geltendem islamischen Recht ausgeben. Das hat Premierminister Cameron auf dem Londoner World Islamic Economic Forum angekündigt. Cameron will dadurch islamische Investoren anlocken und den Finanzplatz London weiter ausbauen.

Tuesday, October 29, 2013

David Cameron Unveils Plans to Make London a Mecca for Middle East Wealth

THE INDEPENDENT: Prime Minister hopes London can tap into the rapidly expanding global market in Islamic investments

David Cameron has announced plans to encourage investment in the UK by Muslim countries, saying he wants to make London “one of the greatest centres for Islamic finance anywhere in the world”.

Politicians and business leaders gathered in the capital for the ninth annual World Islamic Economic Forum – the first time the major event has not been held in a Muslim country.

The Prime Minister appeared on stage alongside a number of world leaders, including King Abdullah of Jordan and the Sultan of Brunei.

Among the measures unveiled was a plan from the Treasury to issue an Islamic bond - or sukuk - worth around £200 million. It would issue fixed returns based on the profit made by a named asset, allowing for Muslims to invest without breaking Islamic laws forbidding interest-bearing bonds.

A “world first” set of indices at the London Stock Exchange to help investors identify faith-compliant firms and projects was also announced as well as a £4.5 million boost to a small business growth fund.

The global market in Islamic investments is rapidly expanding, rising by 150 per cent since 2006 and expected to be worth £1.3 trillion next year.

Mr Cameron said Britain had already taken steps to ensure Muslims were not discriminated against - such as ending “double tax” on Islamic mortgages and introducing alternative forms of student and start-up loans to comply with a ban on interest payments.

It already had more Islam-compliant banks than any other Western country and many law firms and university courses centred on the subject, he said.

But he said that his ambition was for the country to compete with finance centres such as Dubai and Kuala Lumpur - not just other non-Islamic capitals. Read on and comment » | Adam Withnall | Additional reporting by PA | Tuesday, October 28, 2013

Islamic Investment: David Cameron Moves to Make London a Mecca for Middle East Wealth

The Shard, the tallest building in Europe
THE INDEPENDENT: Moves to turn London into a leading centre of Islamic finance will be announced by David Cameron today amid soaring Middle East investment in Britain and around the world.

The Prime Minister will signal his determination to tap into the rapidly growing global market for Islamic investments, which are forecast to reach £1.3 trillion next year as oil-rich states fund major building projects.

He will set out plans to establish a new Islamic index on the London Stock Exchange, which will help investors comply with Islamic finance principles, such as bans on investing in alcohol, tobacco and gambling. He will also detail proposals for Britain to become the first country outside the Muslim world to issue its own Islamic bonds, known as sukuk. » | Nigel Morris | Tuesday, October 29, 2013

Britain to Become First Non-Muslim Country to Launch Sharia Bond

THE DAILY TELEGRAPH: David Cameron to unveil £200m Sukuk at the World Islamic Economic Forum in London on Tuesday

Britain is set to become the first non-Muslim country to sell a bond that can be bought by Islamic investors in a bid to encourage massive new investment into the City.

David Cameron will say in a speech on Tuesday at the World Islamic Economic Forum in London that the Treasury is drawing up plans to issue a £200m Sukuk, a form of debt that complies with Islamic financial law.

The new sharia-compliant gilt will enable Britain to become the first non-Muslim country to tap the growing pool of Islamic investments that is forecast to top £1.3 trillion by next year.

The Prime Minister will say that it would be a “mistake” to miss the opportunity to encourage more Islamic investment in the UK and that the City of London should rival Dubai as a centre for sharia-compliant finance.

“When Islamic finance is growing 50pc faster than traditional banking and when global Islamic investments are set to grow to £1.3 trillion by 2014, we want to make sure a big proportion of that new investment is made here in Britain,” Mr Cameron will tell an audience of senior officials from Islamic countries.

Among those at the meeting are Sultan Hassanal Bolkiah of Brunei, King Abdullah of Jordan, Afghan president Hamid Karzai and Prince Salman bin Hamad Al Khalifa, Crown Prince of Bahrain.

The World Islamic Economic Forum has never been held before in a non-Muslim country and highlights the growing role London is playing in the Islamic finance industry. » | Harry Wilson | Tuesday, October 29, 2013

Tuesday, February 23, 2010

Aston School to Step Up Research on Islamic Finance

FINANCIAL TIMES: Dubai-based trading company Surgi-Tech has awarded Aston Business School £1.5m to set up an Islamic Finance and Business Centre at its campus in Birmingham.

The centre will allow Aston to increase teaching and research into Islamic finance, which has been expanding as Muslims seek alternatives to Western finance that are compliant with sharia law. >>> Jonathan Guthrie | Monday, February 15, 2010

Friday, September 18, 2009

France Adopts Law Facilitating Islamic Bonds


REUTERS – INDIA: PARIS - The French parliament passed a law on Thursday which will facilitate the issuance of Islamic bonds despite opposition from leftist parties.

The adoption of the law, which was voted in by the Senate, or upper house of parliament, on June 9 modifies the legal framework for what is known as "fiducie", the French equivalent of trust in the United Kingdom.

In theory, this should facilitate the issuance of Islamic bonds, also known as "sukuk", although the government has been working on an alternative tool for issuing such debt, which could involve further legal measures.

The move is part of France's two-year drive to create a new European hub for Islamic finance, whose value globally is estimated at $1 trillion.

The ruling UMP party and the New Centre voted for the law while opposition came from the Socialist Party and other left-leaning groups, highlighting resistance from some quarters in France to altering the law in a way that could be seen to affect secular traditions.

"We are introducing Islamic law into the French legal framework," said Henri Emmanuelli from the Socialist Party. "This deeply shocks us, it is unacceptable," he said. Some experts hope that France… >>> Additional reporting by Cecilia Valente in London; Reporting by Emile Picy; Editing by Ruth Pitchford | Thursday, September 17, 2009

Thursday, March 12, 2009

Westerners Help Financial Jihad Along

TIMES ONLINE: Sharia-compliant finance is prospering in Britain. But how can it stay insulated from the credit crunch?

As the credit crunch has mutated inexorably into a recession, with bankers having eclipsed politicians, lawyers and even journalists as public enemy number one, the growing number of Islamic finance institutions in Britain might just be sitting pretty.

The UK now has five fully Sharia-compliant banks and another 17 financial institutions have set up special branches or firms. They include the Qatar Islamic Bank (QIB), with its London-based European Finance House in Berkeley Square, and the Islamic Bank of Britain, which has headquarters in Birmingham.

Both have answered Gordon Brown’s call of two years ago for Britain to become the global centre for international Islamic banking; a report by the International Financial Services London even says that Britain’s Islamic banking sector is now bigger than that of Pakistan.

Islamic banks, says Steven Amos, the Islamic Bank of Britain’s head of marketing, are prospering. “Our core business will always be Muslims but the numbers of non-Muslims are really picking up. We’ve had massive interest — and that’s down to a number of reasons, all of which have kept us insulated from the credit crunch.”

He alludes to the nuances of Islamic banking — specifically that Islamic finance has to be Sharia, or Islamic law, compliant. Sharia is taken from the Koran, one of whose central tenets — that money has no intrinsic value — might sound alien to the denizens of the City.

One British businessman believes that adopting Sharia principles might be just what the West needs. Roger Smee, a former professional footballer and now businessman, says the West has “lost the plot. All we have as a success guide is a number of rich lists. Instead of looking down on what we are quick to reject as cumbersome legal restrictions, we should take a page out of the Middle East’s book and use the principles of Sharia to begin building real and sustainable economies.” Crossing Over to Islamic Banking >>> Alex Wade | Thursday March 12, 2009

The Dawning of a New Dark Age (Paperback & Hardback) – Free delivery >>>

Friday, March 06, 2009

Britain Warned over Sharia-compliant Finance Arrangements

RELIGIOUS INTELLIGENCE: A British campaigning group has hit out at plans that would allow current financial arrangements to be altered to allow Sharia-compliant bonds to be issued.

The warning comes from two bodies, the Christian Legal Centre and Christian Concern for Our Nation (CCFON). They spoke out after changes were recommended to the Legislative Framework for the Regulation of Alternative Finance Investment Bonds (Sukuk). They say that if the changes are accommodated, the British Government would be ‘capitulating’ to Islamic religious law.



The subject of Sharia law has been hotly debated in the UK following comments by the Archbishop of Canterbury when he said that it "seems inevitable" that some parts of sharia would be enshrined in this country's legal code. Earlier this week the former Prime Minister Tony Blair backed the Archbishop. He commented in The Church of England Newspaper: "I thought at the time all this was a lot of fuss over nothing."



But in a written submission to the Treasury, the Christian Legal Centre and CCFON said that any change could radically change the fundamental basis of British society through its financial regulation. >>> By Judy West | Friday, March 6, 2009

NATIONAL SECULAR SOCIETY: Raise Your Voice against Sharia Law

The demonstration and meeting to protest at the introduction of sharia law into Britain will take place Saturday 7 March in Central London. We urge you to be there.

The One Law for All Campaign is calling on members and supporters of the NSS to come along to the demo and raise their voice against the rising clamour for official recognition of the pernicious sharia system of injustice. We will also be objecting to all religious-based tribunals that operate here of any religion. >>> | Friday, March 6, 2009

The Dawning of a New Dark Age (Paperback & Hardback) – Free delivery >>>

Tuesday, November 18, 2008

Government Seen Helping Islamic Finance

INTERNATIONAL HERALD TRIBUNE: KUALA LUMPUR: Islamic banking is set to rise from its modest 2 percent share of bank assets as the government encourages growth and Muslims overcome their suspicion, sharia lender Gatehouse Bank said on Tuesday.

Islamic finance, which rejects interest-based lending and speculation in favour of profit and loss sharing between venture partners, has been in Britain since the 1970s, but only a small number of Muslims have embraced it.

In recent years, Britain has been viewed as the European leader in providing Islamic financial services, aiming to serve both domestic Muslim markets as well as tapping into the vast wealth of Gulf investors.

"The government is very keen on social inclusion and economic inclusion and it feels that still there are areas of the UK where there's not enough economic inclusion," Gatehouse Chairman Richard Thomas told reporters on the sidelines of an Islamic finance forum in Malaysia.

"So they feel that if they open up alternative finance such as Islamic finance then that will allow people to be included in the British economy in a way they weren't before."

He did not give estimates for the Islamic finance industry's growth.

Britain intends to issue its own sovereign sharia-compliant sukuk debt in a rolling programme worth around 2 billion pounds, although it has said legal barriers still remain and it will make a final decision later. >>> Reuters (Reporting by Liau Y-Sing) | Novemebr 18, 2008

THE GUARDIAN: Standardisation Moves to Help Sharia Finance-scholar

KUALA LUMPUR, Nov 18 (Reuters) - Efforts to standardise the reading of the sharia will not stifle the Islamic finance sector, a leading sharia scholar said on Tuesday, dismissing concerns that the industry risks being smothered by too much regulation.

A lack of standardisation in Islamic finance contracts is one of the biggest complaints among bankers in the $1 trillion industry, but there are also worries that a growing effort to harmonise across the globe could create a one-size-fits all approach in structuring deals.

"In Islamic law we encourage debate, research, scholarship and it is an ongoing process which cannot be stopped by anybody," Sheikh Nizam Yaquby, a highly regarded scholar, told reporters on the sidelines of an Islamic finance forum.

"However, for the purpose of standardisation, it is important to have certain prudential rules and basic contracts especially repetitive ones to be accepted among a group."

Sharia scholars are experts in Islamic law and international finance. They are seen as the industry's gatekeepers as they sit on the Islamic boards of institutions and rule on whether or not proposed products are sharia compliant.

Islamic law is open to diverse interpretations, resulting in some financing structures that aren't accepted by all Islamic markets.

An Islamic finance structure called bai bithaman ajil that is popular in Malaysia, for example, is not accepted by Middle East markets as Islamic.

Under bai bithaman ajil, a bank purchases an asset for its customer and sells it to him at a profit, with the sum to be repaid in instalments.

Recent attempts to harmonise industry standards include a plan by the International Swaps and Derivatives Association to launch standards next year for over-the-counter sharia-compliant derivative contracts. >>> Reuters, Tuesday November 18 2008

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The Dawning of a New Dark Age – Hardcover (US) Barnes & Noble >>>

Thursday, June 05, 2008

Putting Profit above Principle

It has been announced that Tony Blair wants to ’devote his life to faith’. By ‘faith’ I suppose we are to understand ‘interfaith dialogue’, so as to try and ensure that we all live together in harmony.

This is a noble ambition indeed; unfortunately, however, there is one stumbling block: The nature of Islam!

For ‘interfaith dialogue’ to be meaningful, there has to be a readiness by all parties, in this case especially Jews, Christians, and Muslims, to compromise, for without compromise, interfaith dialogue becomes a meaningless exercise.

In Islam we find an implacable faith, an unyielding belief system founded on totally different principles than both Judaism and Christianity.

Christianity is based on love: The love of God, the love for God, the love of humanity. Islam, by contrast, is not a religion based on love; rather, it is based on total submission to Allah, and where there is no total submission to Him, we find the sword used to rein in the people. Indeed, Muhammad himself announced the sword to be an instrument of faith. Who, then, are we to argue with Muhammad’s declaration? How can we put a positive spin on that?

It is interesting to note that there is a maxim used by Muslims which states the following: ‘To convince stubborn unbelievers, there is no argument like the sword.’ [Source: Washington Irving: Mohammed]

For this reason, if for no other, it is difficult to see what Tony Blair hopes to achieve with his devotion to interfaith dialogue. How does he hope to change the nature of the faith of Islam? It is impossible to change nature. Indeed, can we change the nature of anything? And if this is so, then what hope have we of changing the nature of Islam, especially after more than fourteen hundred years?

The only man who could have changed its nature was the Prophet Muhammad himself. But as he is no longer around to make any changes, it is not going to be possible for mere mortals to change anything in that religion. You see, Islam is not a religion like Christianity anyway. Christianity has evolved, and has undergone a reformation. This reformation was made possible partly because Christianity, being based on the Bible, especially the New Testament, is to all but fundamentalist Christians, considered to be a book that is inspired by God. The words contained therein are not generally considered to be God’s actual words.

In this respect, Islam is very different. Islam, as we all know, is based on the Qur’an, and that book is not considered be inspired by Allah; rather, Muslims consider the book to comprise the actual words of Allah as dictated to Muhammad by the Angel Gabriel in the form of a recitation. In fact, the very meaning of ‘Al Qur’an’ is ‘The Recitation’.

The result of this difference between the holy books has led to two quite different civilizations and cultures. Muslims are very defensive of Islamic culture and civilization in a way that Westerners are not defensive of theirs.

Take our leaders. They are reluctant to face up to the fact that we have a huge problem on our hands with Islam in general, and with the rapid growth of Islam in the West in particular. In this reluctance, they are doing us no favours. On the contrary, they are remiss in their duties as guardians of our way of life, as guardians of our Judeo-Christian civilization.

What, for example, are our leaders doing to protect our values and our way of life? Interfaithing will offer no protection; actually, on the contrary, it will probably lead to compromise – the compromise of Westerners. To me it seems like a cop out. It is a smokescreen to enable the top echelons to put profit above principle.

The jihad which is being waged against the West threatens us all. It is not something we can afford to ignore; yet people are ignoring it, largely in the hope that it will go away. It won’t. If anything, it will get worse.

The jihad has many guises. One of the latest is the economic jihad being waged against capitalism. Only this morning, it was reported that there have been calls for >Ireland to introduce Shari’ah-compliant finance as a matter of urgency. As a matter of urgency, no less! Why? So that Muslims living and working in Ireland can live their lives according to their faith, without feeling conflicted by the terms and conditions of living in the ‘evil’ capitalist system.

One can but ask oneself one question here: If living under capitalism is so onerous for these Muslims, then why did they come here to live in the first place?

The leaders of finance houses who are working so hard to introduce Shari’ah-compliant financial services and products seem to be oblivious to the fact that Islamic economics is competing in every respect with capitalism. Isn’t it true to say that the interest rate is the keystone of a capitalist economy? Take that keystone away and the whole system will start to fall apart.

In Islam, riba is frowned upon. But let’s get one thing straight: Riba is generally translated as usury, not as the interest rate per se. There is a world of difference between usury, which is the charging of extortionate rates of interest for loans, and the general interest rate which is not to be equated with such extortion. Yet nobody seems to be making any difference between them. The financiers appear to have been hoodwinked into believing that the interest rate is itself frowned upon in Islamic economics. It must be said that one’s definitions in this matter depend on the Islamic scholars one reads: Some scholars frown upon the interest rate altogether, calling it all usury, whilst others take a more liberal approach and make a distinction between a reasonable rate of interest and an extortionate rate.

Whichever is the case, the fact remains that Islamic economics is not compatible with the long-term interests of a capitalist economy. One can but worry about the tentacles of Islam tightening their grip on Western economies. Lest we forget, the old adage, He who pays the piper calls the tune comes to mind. We need not wait to learn that this is indeed true. We can discern the verity of the adage already when we look around us. Take the power of the petrodollar as a case in point. Its power is profound, and it can be felt around the globe.

It is one reason why our leaders and business people are reluctant to speak out. They are overcome by greed and fear: They are greedy to earn back the petrodollars, and they are fearful that if they speak out they will incur the wrath of the Muslims living in the West, and cut off our oil supplies into the bargain.

You see, they do not have the stomach for any form of confrontation. The sad reality is, however, that the West will not survive this onslaught without a confrontation of some kind or other. It’s just not possible. Muslims are to determined too replace our Judeo-Christian civilization with an Islamic one, too determined to replace capitalism with an Islamic economic system.

But by confrontation, I do not necessarily think that we need to go to war (though that cannot, of course, be ruled out in the long-run). But we do need to protect our own values and our own way of life. Alas, this is not happening. Our leaders are giving in at every turn. Appeasement of Muslims both at home and abroad is the norm of the day. It will do nothing for the West except accelarate the demise of our civilization, and accelerate the demise of capitalism, too.

Can’t the people in power see what they are doing? Are bankers and financiers so greedy that they are willing to bring down the West for their own short-term gain? Do they not realize that they are playing with fire? Do they really believe that capitalism and Islamic economics can co-exist? Can they really be that ignorant?

Personally, I think they are not; rather, I think these people are out to get all they can before the house of cards is brought down. Remember the fall of communism? Capitalism will fall equally easily if we do not pay more attention. It’s hard to believe, I know. But the introduction of Shari’ah-compliant finance and other Shari’ah-compliant products is just the start. It is the introduction of Shari’ah law by the back the door. Today it’s banking; tomorrow it will be Shari’ah enshrined in the laws of the land, enshrined in the constitutions of Western countries. How foolish our leaders, bankers and financiers are!

Before 9/11, it would have been hard to imagine that the West could have been so weak and unwilling to fight for a way of life we have come to expect and love. But it all started going wrong after those attacks, because we were too reluctant to state the case against Islam, clearly and unequivocally. The politicians have busied themselves making excuses for Islam and have deceived the public in so doing; the business people and bankers have busied themselves making money from the countries awash with petrodollars. And in so doing they have chosen to turn a blind eye to the financing, by Saudi Arabia, of the propagation of Wahhabi Islam in the West.

So what exactly is Tony Blair going to achieve with his lifetime spent interfaithing? Is he merely going to sell the West farther down the river? And in any case, what are his qualifications for doing this job? What does he know about Islam? And where has he learnt that which he does know?

One thing is for certain: People like Tony Blair are not going to learn the true nature of Islam by sitting in five star hotels in Bethlehem, talking to fabulously rich Muslims from oil-rich countries. To learn about the true nature of Islam, one has to mix and talk with people at the grassroots level. The rich are generally Western-educated, indulge in alcohol, spend enormous amounts of money in casinos, live in the lap of luxury, and generally do not adhere strictly to their faith. They are also generally well-travelled; so they are not representative of the ordinary man in the Arab street. Ergo, little can be learnt from them when it comes to the faith of Islam.

Isn’t it high time that we all started taking stock? Isn’t it high time that we woke up to the reality which confronts us? Isn’t it high time that we started to put principle before profit?

©Mark Alexander

All Rights Reserved

Friday, May 30, 2008

Putting Profit above Principle

It has been announced that Tony Blair wants to ’devote his life to faith’. By ‘faith’ I suppose we are to understand ‘interfaith dialogue’, so as to try and ensure that we all live together in harmony.

This is a noble ambition indeed; unfortunately, however, there is one stumbling block: The nature of Islam!

For ‘interfaith dialogue’ to be meaningful, there has to be a readiness by all parties, in this case especially Jews, Christians, and Muslims, to compromise, for without compromise, interfaith dialogue becomes a meaningless exercise.

In Islam we find an implacable faith, an unyielding belief system founded on totally different principles than both Judaism and Christianity.

Christianity is based on love: The love of God, the love for God, the love of humanity. Islam, by contrast, is not a religion based on love; rather, it is based on total submission to Allah, and where there is no total submission to Him, we find the sword used to rein in the people. Indeed, Muhammad himself announced the sword to be an instrument of faith. Who, then, are we to argue with Muhammad’s declaration? How can we put a positive spin on that?

It is interesting to note that there is a maxim used by Muslims which states the following: ‘To convince stubborn unbelievers, there is no argument like the sword.’ [Source: Washington Irving: Mohammed]

For this reason, if for no other, it is difficult to see what Tony Blair hopes to achieve with his devotion to interfaith dialogue. How does he hope to change the nature of the faith of Islam? It is impossible to change nature. Indeed, can we change the nature of anything? And if this is so, then what hope have we of changing the nature of Islam, especially after more than fourteen hundred years?

The only man who could have changed its nature was the Prophet Muhammad himself. But as he is no longer around to make any changes, it is not going to be possible for mere mortals to change anything in that religion. You see, Islam is not a religion like Christianity anyway. Christianity has evolved, and has undergone a reformation. This reformation was made possible partly because Christianity, being based on the Bible, especially the New Testament, is to all but fundamentalist Christians considered to be a book that is inspired by God. The words contained therein are not generally considered to be God’s actual words.

In this respect, Islam is very different. Islam, as we all know, is based on the Qur’an, and that book is not considered be inspired by Allah; rather, Muslims consider the book to comprise the actual words of Allah as dictated to Muhammad by the Angel Gabriel in the form of a recitation. In fact, the very meaning of ‘Al Qur’an’ is ‘The Recitation’.

The result of this difference between the holy books has led to two quite different civilizations and cultures. Muslims are very defensive of Islamic culture and civilization in a way that Westerners are not defensive of theirs.

Take our leaders. They are reluctant to face up to the fact that we have a huge problem on our hands with Islam in general, and with the rapid growth of Islam in the West in particular. In this reluctance, they are doing us no favours. On the contrary, they are remiss in their duties as guardians of our way of life, as guardians of our Judeo-Christian civilization.

What, for example, are our leaders doing to protect our values and our way of life? Interfaithing will offer no protection; actually, on the contrary, it will probably lead to compromise – the compromise of Westerners. To me it seems like a cop out. It is a smokescreen to enable the top echelons to put profit above principle.

The jihad which is being waged against the West threatens us all. It is not something we can afford to ignore; yet people are ignoring it, largely in the hope that it will go away. It won’t. If anything, it will get worse.

The jihad has many guises. One of the latest is the economic jihad being waged against capitalism. Only this morning, it was reported that there have been calls for Ireland to introduce Shari’ah-compliant finance as a matter of urgency. As a matter of urgency, no less! Why? So that Muslims living and working in Ireland can live their lives according to their faith, without feeling conflicted by the terms and conditions of living in the ‘evil’ capitalist system.

One can but ask oneself one question here: If living under capitalism is so onerous for these Muslims, then why did they come here to live in the first place?

The leaders of finance houses who are working so hard to introduce Shari’ah-compliant financial services and products seem to be oblivious to the fact that Islamic economics is competing in every respect with capitalism. Isn’t it true to say that the interest rate is the keystone of a capitalist economy? Take that keystone away and the whole system will start to fall apart.

In Islam, riba is frowned upon. But let’s get one thing straight: Riba is generally translated as usury, not as the interest rate per se. There is a world of difference between usury, which is the charging of extortionate rates of interest for loans, and the general interest rate which is not to be equated with such extortion. Yet nobody seems to be making any difference between them. The financiers appear to have been hoodwinked into believing that the interest rate is itself frowned upon in Islamic economics. It must be said that one’s definitions in this matter depend on the Islamic scholars one reads: Some scholars frown upon the interest rate altogether, calling it all usury, whilst others take a more liberal approach and make a distinction between a reasonable rate of interest and an extortionate rate.

Whichever is the case, the fact remains that Islamic economics is not compatible with the long-term interests of a capitalist economy. One can but worry about the tentacles of Islam tightening their grip on Western economies. Lest we forget, the old adage, He who pays the piper calls the tune comes to mind. We need not wait to learn that this is indeed true. We can discern the verity of the adage already when we look around us. Take the power of the petrodollar as a case in point. Its power is profound, and it can be felt around the globe.

It is one reason why our leaders and business people are reluctant to speak out. They are overcome by greed and fear: They are greedy to earn back the petrodollars, and they are fearful that if they speak out they will incur the wrath of the Muslims living in the West, and cut off our oil supplies into the bargain.

You see, they do not have the stomach for any form of confrontation. The sad reality is, however, that the West will not survive this onslaught without a confrontation of some kind or other. It’s just not possible. Muslims are too determined to replace our Judeo-Christian civilization with an Islamic one, too determined to replace capitalism with an Islamic economic system.

But by confrontation, I do not necessarily think that we need to go to war (though that cannot, of course, be ruled out in the long-run). But we do need to protect our own values and our own way of life. Alas, this is not happening. Our leaders are giving in at every turn. Appeasement of Muslims both at home and abroad is the norm of the day. It will do nothing for the West except accelarate the demise of our civilization, and accelerate the demise of capitalism, too.

Can’t the people in power see what they are doing? Are bankers and financiers so greedy that they are willing to bring down the West for their own short-term gain? Do they not realize that they are playing with fire? Do they really believe that capitalism and Islamic economics can co-exist? Can they really be that ignorant?

Personally, I think they are not; rather, I think these people are out to get all they can before the house of cards is brought down. Remember the fall of communism? Capitalism will fall equally easily if we do not pay more attention. It’s hard to believe, I know. But the introduction of Shari’ah-compliant finance and other Shari’ah-compliant products is just the start. It is the introduction of Shari’ah law by the back the door. Today it’s banking; tomorrow it will be Shari’ah enshrined in the laws of the land, enshrined in the constitutions of Western countries. How foolish our leaders, bankers and financiers are!

Before 9/11, it would have been hard to imagine that the West could have been so weak and unwilling to fight for a way of life we have come to expect and love. But it all started going wrong after those attacks, because we were too reluctant to state the case against Islam, clearly and unequivocally. The politicians have busied themselves making excuses for Islam and have deceived the public in so doing; the business people and bankers have busied themselves making money from the countries awash with petrodollars. And in so doing they have chosen to turn a blind eye to the financing, by Saudi Arabia, of the propagation of Wahhabi Islam in the West.

So what exactly is Tony Blair going to achieve with his lifetime spent interfaithing? Is he merely going to sell the West farther down the river? And in any case, what are his qualifications for doing this job? What does he know about Islam? And where has he learnt that which he does know?

One thing is for certain: People like Tony Blair are not going to learn the true nature of Islam by sitting in five star hotels in Bethlehem, talking to fabulously rich Muslims from oil-rich countries. To learn about the true nature of Islam one has to mix and talk with people at the grassroots level. The rich are generally Western-educated, indulge in alcohol, spend enormous amounts of money in casinos, live in the lap of luxury, and generally do not adhere strictly to their faith. They are also generally well-travelled; so they are not representative of the ordinary man in the Arab street. Ergo, little can be learnt from them when it comes to the faith of Islam.

Isn’t it high time that we all started taking stock? Isn’t it high time that we woke up to the reality which confronts us? Isn’t it high time that we started to put principle before profit?

©Mark Alexander

All Rights Reserved

Economic Jihad Spreads to Ireland; Shari’ah-Compliant Financial Services ‘Should’ Be Made Available to Muslims There as a Matter of Urgency

At this rate, capitalism will be dead in a short time. It took the West years to defeat communism. Western capitalism eventually won the day as it was seen to be superior. Indeed it was and still is superior. Islamic economics is now winning the day, though. And there has been no need of a Cold War, and no need for guns (or swords). All it has taken is intimidation of Westerners by an assertive Muslim population, a sense of subservience to the Gulf Arabs, especially the Saudis, ignorance of the true nature of Islam and its goals, a refusal to admit to the dangers of that faith, appeasement, meekness, and timidity on the part of Westerners who are afraid of confronting the ideology, a loss of belief in our own destiny, and a dogged determination on the part of our leaders and captains of industry NOT to call Islam what it actually is: A political system wrapped up in a deity.

The end of capitalism and liberty, dear readers, is nigh! - ©Mark


THE IRISH TIMES: THERE IS an “urgent need” for sharia-compliant financial services to be made available in Ireland so that Muslims living here do not contravene religious teachings, representatives from Irish financial institutions were told at a seminar on Islamic banking yesterday.

The seminar was held at the Islamic Cultural Centre of Ireland (ICCI), which is based at Ireland’s largest Sunni mosque in Clonskeagh, Dublin.

“We organised this conference because there is an urgent need for the Muslim community here to have mortgages and other financial services that do not drive them to break their Islamic teachings,” said Ali Selim, a theologian and secretary to Imam Hussein Halawa of the ICCI.

During yesterday’s seminar Imam Halawa outlined the religious tenets of Islam that forbid the payment or receipt of interest, known as riba.

Representatives from the Arab Banking Corporation’s London subsidiary and the Islamic Bank of Britain gave presentations on how the market for Islamic finance has developed in the UK in recent years.

Several high street banks in Britain now offer a variety of sharia-compliant services, including mortgages.

One of the most common types is based on the Islamic principles of “diminishing musharaka” or diminishing ownership. Under this scheme, the customer and bank jointly acquire a property, with the customer’s share usually similar to the normal deposit, but the property is bought in the bank’s name only.

The customer makes monthly payments made up of rent and contributions towards the purchase price over an agreed period of time.

The amount of rent decreases as the customer’s share in the property increases. Ownership is transferred when the customer eventually buys out the bank.

Similar partnerships are available so Muslim business people in the UK can avoid interest repayments.

Mr Selim told the seminar that as Ireland’s Muslim population increased there would be more demand for such services here. Call for Sharia-Compliant Finance Services to Be Available in Ireland >>> By Mary Fitzgerald | May 30, 2008

The Dawning of a New Dark Age (Paperback - UK)
The Dawning of a New Dark Age (Hardback - UK)

Monday, May 12, 2008

Islamic Economics: اقتساد الاسلامي

I should like to remind my visitors that all things relating to Islamic economics, Shari’ah-compliant finance, riba, etc, are not posted on this website; rather, they are posted on its sister website, The Shrewd Economist.

Do drop by when time permits. And why not bookmark the blogspot? All are welcome. (For newer posts, please scroll down the page.)

Mark Alexander

Monday, February 18, 2008

Shari’ah Now Official in Britain

ANGLO-AUSTRALIAN NATIONAL COMMUNITY COUNCIL: new sharia law controversy erupted last night over Government plans to issue special "Islamic bonds" to pay for Gordon Brown's public-spending programme by raising money from the Middle East.



Britain is to become the first Western nation to issue bonds approved by Muslim clerics in line with sharia law, which bans conventional loans involving interest payments as "sinful".



The scheme would mark one of the most significant economic advances of sharia law in the non-Muslim world.



It will lead to the ownership of Government buildings and other assets currently belonging to British taxpayers being switched wholesale to wealthy Middle-Eastern businessmen and banks.



The Government sees sharia-compliant bonds as a way of tapping Middle-East money and building bridges with the Muslim community.



But critics say the scheme would waste money and could undermine Britain's financial and legal systems.



Senior Conservative MP Edward Leigh, chairman of the Commons Public Accounts Committee, said: "I am concerned about the signal this would send – it could be the thin end of the wedge.



"British Common Law must be supreme and should apply to everyone."



A spokesman for the National Secular Society said: "There are lots of different ways to arrange financing.



"Constructing financial instruments to be sharia-compliant seems to me to involve a lot of unnecessary complication, which will serve only to make a lot of lawyers very rich."



The attempt to embrace Islamic financing would also appear to be at odds with Mr Brown's promise to promote Britishness and British values and institutions.



The Treasury has already faced heavy criticism for removing Britannia from 50p coins.



Other Western nations have been reluctant to issue Islamic bonds. Shari’a now official in Britain >>>

Mark Alexander (Paperback)
Mark Alexander (Hardback)

Thursday, July 05, 2007

Shari’ah-Compliant Finance

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Photo of HSBC (Dubai) courtesy of Council on Foreign Relations
COUNCIL ON FOREIGN RELATIONS: There are few principles more central to modern economics than interest, the fee charged for the opportunity of borrowing money. Interest spurs economic efficiency and creates wealth by helping borrowers and lenders make exchanges to their mutual advantage. Islamic law, or sharia, forbids either paying or charging interest. For decades this theological ban has had limited effect on international economics, given the feathery relative weight of Middle Eastern investors and businesses in global markets. But now, an influx of oil money is bulking up Middle Eastern financial influence and giving rise to a new boom industry: sharia-compliant financial services.

In order to win the “sharia compliant” seal of approval, businesses must adhere to all theological requirements of the Quran. Jawad Ali, a partner at King & Spalding, a law firm that assists businesses in structuring sharia-compliant deals, explains in an interview that this means not only shunning interest but also adhering to a host of other requirements. A real estate firm, for instance, cannot rent property to banks, casinos, businesses that deal in pork or pork products, or any other business that itself doesn’t follow sharia.

Still, Ali says, the most complicated compliance standard is commonly the interest ban. Businesses work around this restriction by developing creative ways to substitute fees for interest. Say, for instance, a business is interested in purchasing a property. Instead of borrowing money to make the purchase, the business can structure a transaction such that a bank acquires the property and leases it out for a set fee. This primer by the Institute of Islamic Banking and Insurance outlines other similar sharia-compliant financial arrangements. Yet there is no absolute standard for sharia compliance beyond meeting the subjective demands of would-be investors, and there is no governing body overseeing Islamic banking, so standards vary region-to-region and firm-to-firm. Banking on Islam (more) Prepared by Lee Hudson Teslik

Mark Alexander