Islamic Project Financing - One Day Workshop in London

A one-day intensive workshop for bankers, corporate financiers, portfolio Managers, project developers, lawyers, accountants, consultants and regulators. 

Demand for Shari’ah-complaint financing for projects is increasingly an important area of activity in the world of finance. Led by a select group of well-known and highly regarded industry experts, the workshop will acquaint the participants with
  
• Key features of project financing
• How to do risk analysis and evaluate the project cash flows
• The sale, investment and leasing structures used in Shari'ah-compliant deals
• How to address the Shari'ah, legal and regulatory concerns with the help of case studies
• Tranching and subordination, and related issues in Islamic project financing deals
• Use of Sukuk for Islamic project financing
• Certification process from Shari’ah scholars and potential issues


Date: Monday 24th January 2011

Venue: National Skill Academy Financial Services, George Green Building

155 East India Dock Road, London UK, E14 6DA 

Fee: Only £499.00 per participant; however, a reduced fee will apply for IIBI Members..


Read more details from here

To book a place, click here

Alternatively, please contact:
Mr Mohammad Shafique
T. +44 (0) 207 245 0404                                 F. +44 (0) 207 245 0404
Email: m.shafique@islamic-banking.com        Website: www.islamic-banking.com


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CIMA Certificate in Islamic Finance Study anywhere, anytime, at your own pace

We are offering you a special 30% discount off the Certificate in Islamic Finance price during December 2010; saving you £450. You can claim by simply quoting IFIFIS091 when enrolling online.



The CIMA Certificate in Islamic Finance is easy to fit in with your busy schedule. You can study through distance learning anywhere in the world and select any one of our 4,500 assessment centres available worldwide. There are no set study or assessment timetables. You can study and sit assessments at your own pace over your own timescale, whether it is two months, over a year or longer, that is your choice.
So why study for the CIMA Certificate in Islamic Finance?

• Globally recognised
• Employers and industry recognise and respect it
• Get qualified in the fastest growing area of finance
• Comprehensive syllabus
• Flexible distance learning
• It could be your first step towards becoming a chartered management accountant with CIMA, the world's largest professional body for management accountants.

Glossary of Islamic Finance Terms and Contracts
If you are looking for the definition of a particular term or contract that underpins an aspect of Islamic finance, visit our online A-Z glossary of Islamic finance terms and contracts to find the definition. Search the glossary
Register your interest to be kept up-to-date with CIMA's Islamic finance qualifications and resources:
Contact us with any queries at cert.if@cimaglobal.com or call +44(0)20 8849 2251.

Read more>>>



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Winter hikes in energy prices and profits increase plight of elderly

This weekend will see the first serious cold snap as winter approaches spreading across the country, with severe weather warnings being issued for many areas. The colder weather comes on the same day as it was announced that Ofgem, the UK’s energy regulator, will be investigating a number of energy companies for recent rises in the cost of electricity and gas.

With average household energy bills in excess of £1000 per year, energy company profits have risen from £65 to £90per household at a time of rising prices. According to Ofgem a 38% rise is unwarranted due to the fact the wholesale price of energy has not increased in the same period. The suspicion is, in the deregulated energy market, companies are price fixing and profiteering.

The rise in the cost of gas will hit the most vulnerable in society the hardest. Every year the elderly especially dread the onset of winter, as it means long, lonely and cold nights spent worrying about the cost of heating the house or even just the room they sleep in. Stories of old people sleeping in their living rooms with a small gas heater to keep them warm are numerous.

The previous Labour government responded to criticism of the elderly being abandoned by issuing a winter fuel allowance to all those over the age of 60. The £400 a year grant was supposed to help the aged, bridge the gap between their modest income and the cost the heating during the winter months. Despite the allowance the number of households in fuel poverty has been on the increase. In 2009 nearly 5 million UK households were estimated to in  fuel poverty, 1.7 million were household with older people.

However the vulnerability of the elderly goes beyond just paying the gas bill, and it is more about a feeling of social exclusion that is only exacerbated during winter.

Sadly there is more discussion about the availability of rock salt and the state of the local roads than about the plight of the elderly during winter. Peoples obsessions with getting to work on time, the punctuality or lack of it of public transport and the impending pre-Christmas sales will mask a failing system.

The very individualism and bottom line ethics that drive capitalism are also the cause for the breakdown in its society. Not only does capitalism allow corporations to hike the prices of gas and electricity at will, it also forgets it’s most vulnerable when they need someone the most. Surely there is no better right than for people be kept warm during the winter months, and that the last thing on their minds should be the cost of the heating.

Islam has guaranteed energy as a right of the people by making it a property that belongs to the people. While Islam allows private property and business for profit, energy resources are public properties administered by the state for the welfare of the people. The notion of price hiking during high demand is totally contradictory to the principles of Islam.

Mohammad (saw) said “Muslims are partners in three things: in water, pastures and fire,” reported by Abu Dawud. The fire in the hadith refers to fire based fuels.

Utilities such as gas and electricity are therefore not allowed to be owned by individuals or corporations whose motivation is profit as this could lead to exploitation in the basic necessities that people need to survive – as appears to be happening with the of privitisations of gas, electricity and water.

An Islamic society would also never abandon their elderly like Western society does. How can it be that an elderly man or women sacrifices and saves all year to afford heating during winter, whilst their children live miles away to pursue highly lucrative careers? The rat race has made mice of men who cower away from their responsibility towards their parents, a yearly Christmas card or a weekly phone call does little to mend a heart aching for love and care.

A hadith of the prophet (saw) beautifully details the responsibility of the children upon their parents, he (saw) said

“Let him be humbled into dust; let him be humbled into dust. It was said: Allah’s Messenger, who is he? He said: He  who sees either of his parents during their old age or he sees both of them, but he does not enter Paradise.” (Sahih Muslim) (Ends)

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Only the state can shield the ummah from the rise in food prices

A few days ago the UN warned that food prices could rise by 10% to 20% next year after poor harvests and an expected rundown of global reserves. More than 70 African and Asian countries will be the worst hit, said the Food and Agricultural Organization in its monthly report. In its gloomiest forecast since the 2007/08 food crisis, which saw food riots in more than 25 countries and 100 million extra hungry people, the report’s authors urged states to prepare for hardship. “Countries must remain vigilant against supply shocks,” the report warned. “Consumers may have little choice but to pay higher prices for their food. The size of next year’s harvest becomes increasingly critical. For stocks to be replenished and prices to return to more normal levels, large production expansions are needed in 2011.” Furthermore the UN warned that international food import bills could pass the $1 trillion mark, with prices in most commodities up sharply from 2009. Global food reserves, which currently stand at around 74 days, are now expected to decrease significantly in the next few months. “Cereal reserves may drop by around 7%, barley nearly 35%, maize 12% and wheat 10%. Only rice reserves are expected to increase, by 6% next year,” said the report. Much now hangs on next year’s harvests, it said. “International prices could rise even more if production next year does not increase significantly – especially in maize, soybean and wheat. Even the price of rice, the supply of which is more adequate than other cereals, may be affected if prices of other major food crops continue climbing.”

Whilst it is apparent that some of the food price hikes are due to a fall in production-Russia’s ban on wheat exports in the aftermath of the fires- the UN has again overlooked the main culprit, food speculation and the declining value of the dollar. Both are playing havoc with food prices worldwide. The debasement of the dollar reduces the purchasing power of the currency to buy goods and services. As most of the world’s staple foods are traded in dollars, the country purchasing staple foods has to pay more in order to secure the same amount of food supplies to feeds its hungry population. Often poorer countries do not have extra dollars to meet the rise in food prices. Hence some nations are forced to borrow dollars at high interest rates, which in turn makes them further indebted to the donor nations. Other countries are forced to make structural changes to their agricultural policies and grow cash crops instead of staple foods. Thus poorer countries find themselves engulfed in a vicious cycle i.e. they borrow more to pay off debtor nations and at the same time deprive their people of food. Still there are some poorer countries, which have abundance of staple foods, but are forced to sell their crops to earn foreign exchange to pay off debt owed to first world nations.

What makes the food equation even worse between the ‘haves and the have nots’ is rampant speculation by the haves. Speculation usually translates into huge food price spikes, especially when the value of the dollar plunges. This is exactly what happened a few years ago. And now after the recent announcement by the US Federal Reserve to spend an extra $600 billion to stimulate the US economy, speculation on the price of essential food commodities has increased and will continue do so for a considerable time to come. The net effect is that food prices will increase sharply and thereby deprive millions around the world of a basic right.

The Muslim world will be adversely impacted by rising food prices and this will leaves millions of Muslims deprived of food and vulnerable to the harsh economic conditions imposed by the West. The only way for the Muslim ummah to protect her from ever increasing food prices is to work for the re-establishment of the Caliphate. The Caliphate will protect its currency by basing it on the bimetallic standard. Hence food prices will stabilize and will not undergo extreme fluctuations as witnessed today. Moreover, the Caliphate will prohibit food speculation, hoarding and price fixing, thereby ensuring that all citizens of the state are able to afford food. For those unfortunate citizens, who are unable to fend for themselves, the Caliphate will buy foodstuffs from the open market and tend to their needs.

The messenger of Allah (SWT) said, “The Son of Adam has no better right than that he would have a house wherein he may live, a piece of clothing whereby he may hide his nakedness and a piece of bread and some water.” [Tirmidhi](HTB)

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Picture Description: Poverty ...Where is the Solution..?

01/15: They are not aware about the advanced world. Sitting on the grass mat, living an isolated life….

02/15: All day he has to pick garbage for his survival…..

03/15: Care for child safety during play!!! 

04/15: No home to protect them from the winter….

05/15: All that belongs to me is my body. Can’t afford a pair of shoes….

06/15:  Nido milk is good for children’s health, but….

07/15: Study, play and work all in one…..

08/15: Time to buy a new bedroom set??? How do the orphans sleep....

09/15: How do you see his future…..

10/15: Living on the garbage pile….

11/15: Do you see hope in these eyes!!!! 

12/15:   Looking for food… 

13/15: Not happy with your 2 Bedroom Apartment??? This is my home, my world, my universe…. 

14/15: Where is my lunch??

15/15:   Don’t waste water, some people desperately need it…

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Global Economic Crisis - The Quest for Growth

The IMF's annual gathering in Washington had one message, that the worlds economies need to work together to achieve sustainable economic growth. "The most important policy question we confront together is how to strengthen the pace of growth and repair," US Treasury Secretary Timothy Geithner reiterated the same remarks at a Brookings Institute speech.

At the G-20 summit in June, world leaders pledged to coordinate their economic policies, putting particular emphasis on the need to refrain from currency actions that could endanger global economic health. But a sluggish global economic recovery set the stage for fractious talks on currencies and growth-rebalancing as financial leaders from the world's largest economies gathered at the G-20 conference in South Korea. Charles Dallara, head of the Institute for International Finance, which represents many of the world's largest private banks, said the lack of collaboration threatening the recovery extends beyond currency issues. "Sustaining growth and restoring confidence will require not only astute domestic policymaking, but an unprecedented level of multilateral coordination," Dallara said. "It will also require action that transcends purely domestic short-term concerns." 

Economic Growth: Mission Impossible

Over the past year, world output and trade have expanded and financial conditions have improved, but policymakers have still had to deal with the strains of sovereign debt crises and the start of public sector austerity. Ben Bernanke, chairman of the Federal Reserve, summed up the global economy in 2010 at the annual get-together of central bankers in October 2010: "Notwithstanding some important steps forward ... I think we would all agree that, for much of the world, the task of economic recovery and repair remains far from complete."

The global economy in 2010 has been unable to achieve sustainable economic growth. In some ways the global economy today is in the same position it was in 2009. Whilst the worlds largest economies attempted to kick start growth with stimulus plans, any stimulus was always a high-octane boost and a temporary measure. They are designed to kick-start stalled economies, not to fuel sustained economic growth. The growth figures achieved in 2010 are the inflated results of stimulus measures achieving their intended effect to be temporary. Brian Bethune, economist at IHS Global Insight highlighted this: "It's good to have the economy growing again, but we don't think that rate of growth is sustainable because it is distorted by all the government stimulus. The challenge here is to get organic growth - growth that isn't helped by fiscal steroids." This is why over 15 million people remain unemployed in the US. 

The stimulus packages have driven artificial growth, whilst Western nations have not provided such a leg up for their economies for some time the free market has been unable to grow on its own in any sustainable way and has brought the spectre of double dip recession ever closer.

The US Economy and Unemployment

The US economy the largest in the world has seen its recovery stalled. US policymakers in October were considering how much ammunition they had left to throw at the economy as global economic co-operation, so strong at the start of the global financial crisis descended into quarrels over currencies and economic nationalism. The global financial crisis has left an unprecedented degree of unemployed in the US and underused factories in its wake. The possibility of the recovery faltering has pressured the Federal Reserve, America's central bank, to unleash a new round of Quantitative Easing (QE) - the electronic equivalent of printing money. The various stimulus measures may have prevented economic collapse, but the spending programs that were financed by them are winding down, and cash-strapped local governments, have resorted to layoffs and other cost-cutting measures.

Economic nationalism 

The consensus driven response to the financial crisis has started to crumble. This was most apparent at the G20 summit in June 2010. Whilst the US called for a continuation of stimulus which would encourage consumer spending and stimulate the economy with new jobs and allow the recovery to take hold. Europe however was calling for austerity, as the various fiscal stimulus plans and Quantitative easing was creating even more debt in Europe - the Greek debt crisis also caused Europe to focus on individual strategies for economic recovery rather than a global approach. These differences have sharpened over the year due to the different effects the global financial crisis has had on the premier economies of the world. Mohamed El-Erian, chief executive of Pimco, the world's largest bond investor, said: "A once promising global response has now been replaced by inadequately co-ordinated national economic policies and growing frictions among countries."

US-China currency war 

The weak recovery has led to many nations to resort to protective measures for their own economies which have led to currency wars. The sharpened differences between China and the US recently has led to some senators to consider the support China provides to its currency a subsidy which has an adverse impact on the US economy. Various senators attempted in September 2010 to mark up the ‘Currency and Reform Fair Trade Act,' the new bill would force the US commerce department to treat China's undervalued currency as a subsidy for its exports and retaliate accordingly.

The value of the Yuan plays an important role in China's rapid economic development. China is an export driven economy, its economy is built to produce goods which are exported around the world. This is why most consumer goods have a ‘made in China' label. To make Chinese goods more attractive then Japanese and German goods, the Chinese government controls the value of the exchange rate of its currency, rather then let it float freely. This is in order to achieve certainty - certainty in a number of areas. China keeps the value if its currency low, which makes it cheaper to purchase consumer goods - far cheaper for the world than anyone else. By China undercutting the world, aside from keeping Chinese factories open, this also means most Chinese citizens have a job. When Chinese citizens have jobs this deals with domestic social unrest which has long plagued China. Chinese factories make little profits on the goods they export, as due to the low exchange rate the potential profit is lost. However for China - profit is not the real concern but territorial cohesion is what drives its currency policy.

The impact this has on the wider world - especially the US is that its companies are unable to complete with Chinese craftsmanship as China is under cutting the market. This has led to most of the world to turn to China for consumer goods rather then domestic suppliers. This causes unemployment across the world as such industries lose business to China. It is those senators who have seen many businesses collapse in their states, due to China, that have led the campaign to have the US pass legislation to counter it.

As China is an export driven economy, it has to ensure it can sell goods globally cheaper than anyone else, its currency policy is central to this. This has the impact of those industries closing in the West - where most of Chinese exports go, as they are unable to complete with china on such a low price. It results in China selling more goods to the world than what China buys from the world. This is why China has a trade surplus with the world, whilst the world has a trade deficit with China. Commerce Minister Chen Deming told the BBC in 2009 that when economic growth slowed ‘the chances of possible social unrest increase as well.' I don't worry a lot about the GDP growth, however the biggest challenge to China is unemployment.' We need to create sufficient jobs for university graduates and the redundant workforce from the countryside.'

Conclusions

As the West struggles in its quest for economic growth, unemployment is now at the top of the agenda. The breakdown in the multilateral approach that characterized the early response to the financial crisis will lead to more and more economic protection by the world's economies which will compound the recovery. The currency war is just the beginning. The conditions in the world economy have stopped worsening, however unemployment remains high and consumer spending is still low to sustain any economic recovery. At best the current growth rates seen in some of the world's major economies is premature, the underlying economic fundamentals remain absent.

The spectre of double dip recession has not subsided and as the US implements another round of stimulus, the economic crisis the engulfed the world in 2008 is far from over (Islamic Revival)

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World Bank to help Islamic finance evolve binding rules

The World Bank plans to support standard-setting bodies of the Islamic finance industry in turning their voluntary standards into binding banking regulations, a bank official said. 


The fledgling Islamic finance industry is governed by a patchwork of national banking regulators, its own standard-setting bodies and rulings of scholars interpreting Shariah, or Islamic law. 

Bodies such as AAOIFI - the Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions - are providing standards to Islamic banks but they have been adopted by only few national regulators.  

James Adams, World Bank vice president for East Asia and Pacific, told Reuters on the sidelines of an Islamic finance conference that the World Bank was in talks with several standard-setting bodies on how to help them turn their rules into national regulations. 

“Clearly, in today’s world standardisation would be an asset both in terms of the ability to regulate with consistent standards, but also for the businesses it’s an enormous asset if they’re able to rely on consistent standards and not be subjected to different standards, “he said on Monday. 

“What we can provide is access to the governments ... particularly through the central banks and ministries of finance, so I think our role is very much to work with the standardisation organisations to facilitate a dialogue (with governments),” Adams said. 

Bankers have said that the lack of universal standards in Shariah interpretation and product regulation is a key obstacle for the industry to realise its growth potential. 

Acceptance of products can differ substantially between its main regions, the Gulf Arab region, South East Asia and Europe. (AL-Huda)


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Islamic Finance Still Profitable - aside from the Dubai debt debacle, Islamic finance continues to thrive

Prior to the current financial crisis in Dubai, sukuk issuance had started to revive following two difficult years since the August 2007 peak. New issuance for the year to November 2009 exceeded $17.5 billion with 69 separate offerings. Confidence was demonstrated by the announcement on November 19 by General Electric that it was to raise $500 million through a five-year sukuk--the first Western industrial company to raise such financing. 

Liquidity. There are many varieties of sukuk, some--such as the short-term sukuk issued by the Government of Bahrain--being a substitute for treasury bills with a three-month maturity. Such sukuk are attractive for Islamic banks to hold, as they cannot hold conventional treasury bills paying interest, and the alternative of holding cash means they receive no return. Bahrain's regular sukuk bill issuance continued throughout the credit crisis, but the amounts raised are modest--$40 million on average.

Still profitable. Although Islamic capital market activity was negatively affected by the global financial crisis, the impact on Islamic banks has been limited, largely because most are focused on retail business: 

--Dubai Islamic Bank, for example, has reported a decline in third quarter earnings for 2009 of 33% compared to the same quarter of 2008, but this was 8% above market expectations. 

--Trade financing through murabaha--in which a bank buys a good on behalf of a buyer, and sells it on to them in installments at a marked-up cost--has remained buoyant, as has personal financing for vehicles and household goods. 

Real estate has been the most troublesome, with mortgage lending reduced. In many instances, the value of property has fallen below the amount of credit outstanding. This only becomes an issue in the case of defaults and the bank acquiring the property, which has rarely arisen in the case of Dubai Islamic Bank, or indeed Al Rajhi Bank in Saudi Arabia or Kuwait Finance House. As Islamic banks in the GCC had more conservative housing finance policies than their conventional competitors, they have been less affected by the fall in real estate prices.

Takaful insurance. One sector which has continued to expand throughout the crisis is takaful insurance based on the principle of mutual risk sharing rather than risk transfer: 

--Dubai Islamic Bank has developed Al Islami Takaful products, which it has cross-sold to its clients since May. 

--Savings plans are offered with either regular or lump sum contributions made to an endowment fund from which family members can receive compensation in the event of the death of the policyholder. 

--If the policyholder lives to the maturity of the policy, they receive a substantial lump sum plus a terminal bonus. 

Outlook. Most sukuk issuance is concentrated in Malaysia, which is not likely to be directly affected by the Dubai crisis. Moreover, if the Dubai case is tested in the courts, this could clarify the legal position of sukuk investors with regard to their rights to the underlying assets backing the issuance. Although this may be painful for Dubai World subsidiary Nakheel in the short run, a court ruling in favor of investors would increase confidence in sukuk in the longer term. Overall, the global Islamic finance industry seems well positioned for recovery in the longer term with further sukuk issuance, a widening of products to include takaful and the continuing buoyancy of Islamic retail banking. (AL-Huda)


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World Bank head calls for monetary system linked to gold

The new system, he writes, “should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values. Although text books may view gold as the old money, markets are using gold as an alternative money asset today.” Read more>>>

Khilafah (Islamic State): A wealth of Possibilities

In the month of Rajab 2010 it will be the 86th anniversary of the destruction of the Khilafah. After tasting the bitter fruits of socialism in the 1950’s and then the mirage of independence throughout the 1960’s and 1970’s, the situation of the Ummah across the world remains the same if not worse. As a result, the problems the Ummah faces have ballooned into many other issues.


The Ummah faces a number of challenges since the destruction of the Khilafah that would need to be overcome for change. Challenges such as poverty, development, healthcare as well as sustainable economic growth, distribution of wealth and industrial development. Unfortunately such a debate has skewed the discussion of change, and whilst many material obstacles need to be overcome by the Ummah, change from some perspectives remains a physiological barrier rather than material i.e. do the Ummah believe change is possible?


Political Will


The birth of any nation would require those who espoused change and those that participated in its emergence to ascertain the nation’s strengths and advantages. Those elements considered necessary but absent would need the development of policies so they can be overcome.

Otto Van Bismarck (in photo) oversaw German unification which set the nation on the path to industrial supremacy. Beginning in 1884, Germany established several colonies outside of Europe in order to overcome its shortage of mineral resources. Bismarck managed to achieve unification of the German lands which many had attempted for nearly a thousand years. Such unification meant German resources and minerals could all follow one unified policy and for once Germany could be domestically developed without facing any secessionist calls.


Similarly Japan by the turn of the 20th century had managed to develop its industries, however the rapid growth of the economy had made Japan painfully aware of its limited natural resources. Japan overcome such disadvantages through a programme of aggressive territorial expansion through conquering the Korean peninsula and surging deep into China in order to exploit labour and resources. In a similar manner the British Empire conquered foreign territories for export markets and utilised slave labour to overcome small workforce.


These examples show that all nations need some very basic ingredients to emerge as a powerful states and ones that can very quickly establish a prosperous standard of living for its people with secure borders. The development of infrastructure, defence industries and energy are fundamental for any nation, the possession of mineral resources would therefore be a strategic strength and a huge advantage for the emergence of a nation. The examples of Germany and Japan are examples of societies – rightly or wrongly, who overcame shortages of the key building blocks for a new nation.


The Ummah’s potential


When one looks at the potential of the Muslim Ummah, the Muslim lands do not just posses the key building blocks for a new nation, but over and beyond this reality the Khilafah would emerge a very powerful state due to the many strengths it will inherit that are present in the Muslim lands.


The Muslim lands posses 74% of the Worlds oil reserves, more than the rest of the world combined. It possesses 54% of the worlds Gas reserves, has $1 trillion in Gold reserves and a 4.7 million standing army. All of this makes it possible for the Khilafah to field an advanced military and have a strong manufacturing base.


The Muslim Ummah collectively possesses over 700 billion barrels of oil and half of the world’s gas. Both the worlds key energy sources. It is for this reason the Muslim countries produce half of the world’s daily oil requirement and 30% of the world’s gas needs. Alongside this Saudi Arabia posses the worlds largest oil field, whilst Qatar and Iran posses the worlds largest gas field.


The Ummah globally number 1.6 billion, more importantly over 60% of the Ummah is below the age of 28. The importance of a large population is critical for domestic economic development and defence. This large pool of labour means the nation can be constructed at a faster pace rather than taking decades before it was able to become self sufficient.


Alongside this the Ummah will inherit many advantages. The geographical distribution of the Ummah and the Muslim lands means some of the world’s key strategic waterways and airspace will be in the hands of the Muslims. 40% of the world’s oil passes through the Straits of Hormuz waterway that straddles between the Gulf of Oman in the southeast and the Persian Gulf in the southwest. This fact alone makes it the most important waterway in the world. The Suez Canal that passes through Egypt is considered one of the world’s most important waterways as it links Asian markets to the Mediterranean and Europe. 7.5% of global sea trade transits the canal. Similarly Muhammad (saw) ensured that key trade routes in the Hijaz were under Islamic control, which severely weakened the enemies of Islam to manoeuvre and weaken the Ummah.


Whilst many in the Ummah live in severe poverty, this by no means is due to the absence of agriculture in the Muslim lands. In fact, with the right polices the Khilafah can become the world’s bread basket. Egyptian agriculture takes place in some 6 million acres of fertile soil in the Nile Valley and Delta, It has made Egypt amongst the worlds largest agricultural producers and is the worlds largest producer of dates, second largest producer of geese meat and the worlds third largest producer of buffalo and camel meat. Pakistan not only irrigates more land than the whole of Europe combined, but Pakistan is also the 2nd largest producer of chickpeas, buffalo meat and milk, the 4th largest producer of apricot, cotton, goat’s milk and mangos and the 5th largest producer of onion and sugar cane. At the same time Turkey is the world’s largest producer of hazelnut, fig, apricot, cherry and pomegranate. The Ummah should be the worlds bread basket. But due to short term policy making and corruption, even with such strengths the Ummah languishes in poverty.


The Muslim lands also posses the world’s largest aluminium smelter in Bahrain, critical for industrialisation, the worlds largest open pit Gold Mine in Uzbekistan’s Qizilqum Desert, the worlds largest aluminium plant in Tajikistan, the world largest coal field in the Thar dessert in Pakistan and the worlds largest producer of tin in Indonesia.


The real problem

The real question that needs to be asked is how is it possible for a people so rich and so plentiful in resources, to be so poor in reality? There is only one reason for this and that is the rulers over the Muslim lands have never had any intention of making the right use of such huge wealth for their people. Our lands are run by tyrants held in place by the colonial powers, who on their departure ensured a small land owning gentry or family remained in place. Their primary purpose is to control the countries they rule over, bringing in their tribesman, family members and loyalists to keep a tight grip on the nation. Due to this, development, economic and technological progress is secondary to them, as their primary concern is keeping the reigns of power.


In contrast the resources of this ummah will be utilised by the Khilafah to advance this ummah to the leading state in all the fields of life, as we once were when our lands were governed by the divine system of Allah (swt).


The Muslim lands posses all the necessary ingredients to take its own destiny into its own hands, it now just needs a ruler who fulfils the potential of this Ummah. The Ummah has no need to colonise other peoples or engage in territorial expansion as Germany and Japan and the British empire did, as it has all the necessary ingredients are within its own borders. (HTB)


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