Friday 17 December 2010

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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Tuesday 14 December 2010

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.
Read more about the certificate here
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:
Register your interest here
Contact us with any queries at cert.if@cimaglobal.com or call +44(0)20 8849 2251.

Read more>>>



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Thursday 2 December 2010

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)

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)