INCEIF Inks MoU With UEL To Offer Islamic Finance Executive Programmes

KUALA LUMPUR, Nov 12 (Bernama) —

The Global University of Islamic Finance (INCEIF) has signed a memorandum of understanding with University of East London (UEL) to develop and deliver Executive Programmes (EPs) in Islamic finance in London city.

INCEIF Inks MoU With UEL To Offer Islamic Finance Executive Programmes

INCEIF Inks MoU With UEL To Offer Islamic Finance Executive Programmes

Under the agreement, both universities will collaborate on offering specific EPs in the first quarter next year, primarily to market players in the City and the European Union.

President and Chief Executive Officer Daud Vicary Abdullah said the collaboration was initiated at the 9th World Islamic Economic Forum held in London recently.

“Both INCEIF and UEL are ready to train the talent needed to ensure that the City not only has the right professionals to be part of vibrant industry, but also develop London to become an important Islamic finance centre,” he said in a statement Tuesday.

Topics identified for the EPs are reimagining Islamic finance, capital market & sukuk as the new global financial energy, Islamic wealth management, financial derivatives & international finance, shariah aspects in business & finance, risk management and takaful.

INCEIF, set up by Bank Negara Malaysia, is the only university in the world dedicated to Islamic finance.

It has conducted similar EPs in Kuala Lumpur, Dublin, Tokyo and Washington DC with renowned partners such as the World Bank, Islamic Development Bank, Islamic Financial Services Board, Capital Markets Licensing & Training Agency of Turkey, University Luxembourg and Waseda University.

— BERNAMA

http://www.bernama.com.my/bernama/v7/bu/newsbusiness.php?id=992560

Islamic finance urged to broaden the scope of Islamic microfinance

Raja Nazrin speaking at the summit. With him are Bank Negara deputy governor Datuk Muhammad Ibrahim (centre) and IFIS chairman Brian Caplen.

Islamic finance urged to broaden the scope of Islamic microfinance

Islamic finance urged to broaden the scope of Islamic microfinance

Raja Nazrin speaking at the summit. With him are Bank Negara deputy governor Datuk Muhammad Ibrahim (centre) and IFIS chairman Brian Caplen.

KUALA LUMPUR: The Islamic finance industry should look into opportunities to broaden the scope of Islamic microfinance that currently only represents 1% of the global microfinance outreach, said Raja Nazrin Shah, the Regent of Perak.

In his opening speech at the Islamic Financial Intelligence Summit (IFIS) 2013, he said that Islamic finance had a crucial role to play in bringing the financially underserved Muslims into the economic mainstream.

“This is a path that can help alleviate poverty and create employment, thereby contributing towards a more equitable economic growth and sustainable development,” he said.

He said that contemporary Islamic finance today had been largely disengaged from its socio-economic aspects – similar to how conventional finance is said to have moved from “main street” to “Wall Street” in the developed markets.

“It can also be then said that Islamic finance is gradually moving from the realm of retail finance into the world of high finance.

“I believe that Islamic finance, whose core pillar is the promotion of social justice, can and should do more to meet the needs of the poor and the marginalised,” Raja Nazrin said.

He noted that in the uncertain global economic environment today, the restoration of trust and confidence was key for the sustainability and continued growth of the international financial system.

“Trust and confidence will only return when financial transactions are based on sound and mutually beneficial principles.

“The disillusionment and disenchantment with the world of finance in the aftermath of the global financial crisis offers Islamic finance a unique opportunity to present itself as a financial system that is more resilient,” he said.

He said Asian countries were taking the lead in terms of leveraging on the sukuk market for financing large-scale projects and had accounted for 73% or US$212bil of the total global sukuk outstanding last year.

He also noted in his speech that despite Islamic finance having escaped relatively unscathed from the global financial crisis, the industry was by no means insulated from the risks of excesses that wreaked havoc in the global financial system.

He added that as the Islamic industry became more integrated into the global financial system, there would be risks arising from an economic slowdown that could impede growth and diminish liquidity.

http://www.thestar.com.my/Business/Business-News/2013/11/12/New-focus-for-Islamic-finance-It-should-look-into-opportunities-to-broaden-the-scope-of-Islamic-micr.aspx

Waqf Can Be Financing Source For Wealth Distribution: Perak Regent

KUALA LUMPUR, Nov 11 (Bernama) — Waqf, as an Islamic public instrument, has the potential to be both a source of financing and a mechanism for wealth distribution, said the Regent of Perak Raja Dr Nazrin Shah.

Waqf Can Be Financing Source For Wealth Distribution: Perak Regent

Waqf Can Be Financing Source For Wealth Distribution: Perak Regent

He said waqf, or Islamic endowments, creates greater engagement between the Islamic finance industry and its socio-economic obligations, and could be seen as a savings investment mechanism where funds are diverted from consumption and invested in productive assets.

“The principle of perpetuity embedded in the waqf structure sets it apart from Western-style foundations and charities.

“Such innovative uses have assisted in unlocking its economic potential, as well as its philanthropic objectives. With all these obvious benefits, waqf should be given a more prominent position in the industry,” he said in his keynote address at the Islamic Financial Intelligence Summit 2013 here.

Raja Nazrin, who is also the Financial Ambassador for the Malaysia International Islamic Financial Centre, said in Bahrain, the Central Bank of Bahrain and financial institutions with Islamic finance operations established a waqf fund in 2006, returns from which have been used to finance training, education and research at various levels in the Islamic finance industry.

“In Malaysia, Johor Corporation or JCorp is an example of a corporate entity that has developed extensive social responsibilty programmes through its arm, the Waqaf An-Nur Corporation,” he added.

He also said many commentators have highlighted the natural attractions of Islamic finance, as the conventional financial system has many times shown a tendency to be unstable and dramatically so in recent years.

He added that the Islamic financial system has demonstrated itself to be less vulnerable to instability and less prone to crises.

“The disillusionment and disechantment with the world of finance in the aftermath of the global financial crisis offers Islamic finance a unique opportunity to present itself as a financial system which is more resilient to the very forces that brought about the crisis in the first place,” he said.

Raja Nazrin added that in Islamic economics, as in Islamic finance, the distribution of resources has a clear objective, which is to promote social justice.

The lack of secondary trading in the global sukuk market is one of the many challenges faced by the Islamic financial industry, he said.

“Sukuk issuances have been successful, and, oftentimes, oversubscribed, but the lack of trading has led to investors holding on to the buy and hold attitude of the instruments until maturity.

“Moreover, there remains a stark imbalance in sukuk infrastructure development between jurisdictions, thus curtailing cross-border transactions,” he said.

Raja Nazrin added that as a result, sukuk trading has taken place largely at the country and regional levels, limiting the ability of sukuk to be at par with conventional fixed income securities, which are traded extensively on a global scale.

“To allow sukuk to grow as an important liquidity management tool, its secondary market needs to develop more depth and breath.

“A dynamic cross-border framework in liquidity management would enable the expansion of markets and allow Shariah-compliant financial products to reach communities that currently have limited access to them.

“To realise this, however, there needs to be greater integration ampng the various Islamic financial jurisdictions — a global community of investors and issuers that will make up a vibrant secondary market,” Raja Nazrin said.

— BERNAMA

http://www.bernama.com.my/bernama/v7/newsindex.php?id=992230