Dinar Daily
Welcome to Dinar Daily Discussions.

Logging in with your USERNAME allows you to participate in discussions, see what has recently been posted, and other options. Guests can post but they do have limited abilities.

We are NOT a guru forum. We are a dinarian forum. The opinions expressed on the forum do not reflect the of opinion of Dinar Daily specifically, but rather reflect the views of the individual posters only.

Disclamer:

We are in compliance with, "Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use."


Get Daily Updates of the NEWS & GURUS in your EMAIL
CHECK YOUR EMAIL for VERIFICATION

Enter your email address:

THE ARAB MONETARY FUND, IN COOPERATION WITH THE ISLAMIC DEVELOPMENT BANK, IS ORGANIZING THE "SUKUK ISSUANCES AND STRUCTURE" SESSION IN ABU DHABI, UNITED ARAB EMIRATES DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

Key Words
Adam Montana, AdminBill, Benjamin Fulford, Currency Exchange, David Schmidt, Dinar, Dinar Guru, Dinar Recaps, Dinar Rv, Dinar Scam, Dr Clarke, Frank26, Gary Larrabee, Gurus, Guru Hunters, JerzyBabkowski, Kaperoni, Kenny, Monetary Reform, Mnt Goat, My Ladies, Okie, Poppy, RamblerNash, Ray Renfrow, Redenomination, Revaluation, Ssmith, TNTBS, Tnt Tony, WING IT, We Are The People, Willis Clark, WSOMN, Yosef, Zap

THE ARAB MONETARY FUND, IN COOPERATION WITH THE ISLAMIC DEVELOPMENT BANK, IS ORGANIZING THE "SUKUK ISSUANCES AND STRUCTURE" SESSION IN ABU DHABI, UNITED ARAB EMIRATES

Post new topic   Reply to topic

Go down

THE ARAB MONETARY FUND, IN COOPERATION WITH THE ISLAMIC DEVELOPMENT BANK, IS ORGANIZING THE "SUKUK ISSUANCES AND STRUCTURE" SESSION IN ABU DHABI, UNITED ARAB EMIRATES Empty THE ARAB MONETARY FUND, IN COOPERATION WITH THE ISLAMIC DEVELOPMENT BANK, IS ORGANIZING THE "SUKUK ISSUANCES AND STRUCTURE" SESSION IN ABU DHABI, UNITED ARAB EMIRATES

Post by claud39 on Sun Jan 06, 2019 7:16 am

https://www.amf.org.ae/ar/content/%D8%B5%D9%86%D8%AF%D9%88%D9%82-%D8%A7%D9%84%D9%86%D9%82%D8%AF-%D8%A7%D9%84%D8%B9%D8%B1%D8%A8%D9%8A-%D8%A8%D8%A7%D9%84%D8%AA%D8%B9%D8%A7%D9%88%D9%86-%D9%85%D8%B9-%D8%A7%D9%84%D8%A8%D9%86%D9%83-%D8%A7%D9%84%D8%A5%D8%B3%D9%84%D8%A7%D9%85%D9%8A-%D9%84%D9%84%D8%AA%D9%86%D9%85%D9%8A%D8%A9-%D9%8A%D9%86%D8%B8%D9%85-%D8%AF%D9%88%D8%B1%D8%A9-%D8%A5%D8%B5%D8%AF%D8%A7%D8%B1%D8%A7%D8%AA-%D8%A7%D9%84%D8%B5%D9%83%D9%88%D9%83-%D9%88%D9%87%D9%8A%D9%83%D9%84%D9%8A%D8%AA%D9%87%D8%A7



THE ARAB MONETARY FUND, IN COOPERATION WITH THE ISLAMIC DEVELOPMENT BANK, IS ORGANIZING THE "SUKUK ISSUANCES AND STRUCTURE" SESSION IN ABU DHABI, UNITED ARAB EMIRATES
2019-01-06





THE ARAB MONETARY FUND, IN COOPERATION WITH THE ISLAMIC DEVELOPMENT BANK, IS ORGANIZING THE "SUKUK ISSUANCES AND STRUCTURE" SESSION IN ABU DHABI, UNITED ARAB EMIRATES DSC_6494










The Sukuk Sukuk issued by the Institute for Economic Policy in the Arab Monetary Fund (AMF) in cooperation with the Islamic Development Bank (IDB) was opened today at the headquarters of the Fund in Abu Dhabi from 6 to 10 January 2019. 

The financial sector plays an important role in providing resources and transferring them at the least cost and more worthy to investments that support growth and increase welfare through mobilizing savings, financing investment and diversifying risks. This important role also extends to the Islamic financial sector, which includes several elements that are guided by the process of mobilizing and allocating funds to generate economic activity and comprehensive development. In this context, the most important feature of Islamic finance is the need for financial transactions to be linked to real economic activity, as well as to share in profit and loss, thus sharing risks, thus promoting financial stability because the feature of risk sharing limits excessive lending because financing is enhanced by assets. Islamic finance has increasingly become an integral part of the global financial system. The rapid expansion of Islamic finance as a form of financial intermediation clearly reflects its ability to cope with changing the pattern of demand by individuals and firms and their ability to grow in a more challenging environment. This has encouraged many international companies to increase their participation in the Islamic financial markets, especially with regard to Sukuk, which is one of the most prominent products of the Islamic financial industry. The size of this sector according to the latest statistics for 2017 amounted to about 2.5 trillion US dollars.

On this occasion, Dr. Abdulrahman bin Abdullah Al Humaidi, Director General and Chairman of the Fund, said:

 

Dear sisters and brothers

I am pleased to welcome you at the beginning of the training session on " Sukuk Issues and Structure " organized by the Institute for Economic Policy in the Arab Monetary Fund, in cooperation with the Islamic Development Bank. I hope that the course will enrich your information.

 

Dear sisters and brothers

The financial sector plays an important role in providing resources and transferring them at the least cost and more worthy to investments that support growth and increase welfare through mobilizing savings, financing investment and diversifying risks. This important role also extends to the Islamic financial sector, which includes several elements that are guided by the process of mobilizing and allocating funds to generate economic activity and comprehensive development. In this context, the most important feature of Islamic finance is the need for financial transactions to be linked to real economic activity, as well as to share in profit and loss, thus sharing risks, thus promoting financial stability because the feature of risk sharing limits excessive lending because financing is enhanced by assets. Islamic finance has increasingly become an integral part of the global financial system. The rapid expansion of Islamic finance as a form of financial intermediation clearly reflects its ability to cope with changing the pattern of demand by individuals and firms and their ability to grow in a more challenging environment. This has encouraged many international companies to increase their participation in the Islamic financial markets, especially with regard to Sukuk, which is one of the most prominent products of the Islamic financial industry. The size of this sector according to the latest statistics for 2017 amounted to about 2.5 trillion US dollars

 

Dear sisters and brothers

The Islamic stock market is witnessing widespread demand in the light of the desire of many parties to rely on it as a source of financing. There is also a growing demand from traditional investment institutions on Shariah compliant securities to increase returns and diversify investment. Sukuk is one of the most important Shariah-compliant financing instruments. Statistics show that the volume of issued Sukuk has averaged about $ 100 billion annually during the period 2011-2017. There are some challenges to the effective functioning of the Sukuk such as the need for more regular sovereign issuances with different maturities to help establish appropriate standards and establish secondary markets, Sukuk markets also need strong legal frameworks, helping to address uncertainty about investor rights.

In light of the importance that Shariah-compliant securities issuances enjoy as a source of finance, the session comes to shed light on the most important aspects of the Islamic financial markets. The course will focus on several main axes:


  • The concept and principles of Islamic instruments.

  • Instruments and their economic role.

  • Requirements for Islamic Sukuk success and challenges.

  • Sovereign instruments.

  • Disclosure and listing of sukuk in financial markets.



 

In conclusion, I would like to thank the Islamic Development Bank for its cooperation with the Arab Monetary Fund in organizing the session, looking forward to further cooperation in the future in order to contribute to capacity building for Arab cadres. I would also like to thank the distinguished experts who will be presenting the course materials.

I wish you a pleasant stay in the city of Abu Dhabi, United Arab Emirates.

 

Peace, mercy and blessings of God.







THE ARAB MONETARY FUND, IN COOPERATION WITH THE ISLAMIC DEVELOPMENT BANK, IS ORGANIZING THE "SUKUK ISSUANCES AND STRUCTURE" SESSION IN ABU DHABI, UNITED ARAB EMIRATES DSC_6560



THE ARAB MONETARY FUND, IN COOPERATION WITH THE ISLAMIC DEVELOPMENT BANK, IS ORGANIZING THE "SUKUK ISSUANCES AND STRUCTURE" SESSION IN ABU DHABI, UNITED ARAB EMIRATES DSC_6506
claud39
claud39
VIP Member
VIP Member

Posts : 6648
Join date : 2018-11-04

View user profile

Back to top Go down

THE ARAB MONETARY FUND, IN COOPERATION WITH THE ISLAMIC DEVELOPMENT BANK, IS ORGANIZING THE "SUKUK ISSUANCES AND STRUCTURE" SESSION IN ABU DHABI, UNITED ARAB EMIRATES Empty sukuk

Post by claud39 on Sun Jan 06, 2019 7:21 am

https://fr.wikipedia.org/wiki/Sukuk


sukuk

The sukuk (Arabic صكوك , plural of صك , sakk ) means in Islamic law a sharia- compliant investment certificate . It is, in a way, the equivalent, in the field of Islamic finance , of the obligations of classical finance.
A sukuk corresponds to a specific project. The profits paid annually correspond to the gains that these projects should generate. Legally, they are similar to the property title (share) of an asset generating cash flow.

[ltr]

Summary

[/ltr]



Operation of sukuk edit change the code ]

A sukuk is not, as for conventional bonds, based on a debt issue. The investor finances a tangible asset that will provide a stable income for a certain period of time.
The funds raised from investors are transferred to an entity ad hoc , a special purpose vehicle (SPV or Special Purpose Vehicle) in this case, who will be responsible to make the investments and collect the income from these investments for transfer then to investors.

Origin of the word sukuk change change the code ]

The word has the same Persian root as "check".

Broadcast edit change the code ]

In 2000 , the volume of sukuk issued was estimated at US $ 97.3 billion by Moody's 1 .
The main countries of issue are Malaysia , Bahrain , Qatar , the United Arab Emirates , Saudi Arabia and Pakistan . The State of Senegal has recently issued a Sukuk amounting to 100 billion CFA Francs in the WAEMU market.

The Sukuk in the West change change the code ]

In 2006, the United Kingdom was the first Western country to launch a sukuk 2 project . This initiative has been particularly well received by London's financial community. Indeed, big British banks have devoted entire branches of their activities in Islamic finance to take advantage of untapped financial resources within Muslim countries 2 .
The United Kingdom was also the first country to create a secondary market for sukuks (resale market for purchased securities). It was also the first Western country to host an Islamic bank in 2004: The Islamic Bank of Britain and it remains in 2011 the only Western country to have reached this stage.
This positioning of London within Islamic finance is part of a strong tradition of openness and financial innovation. Sukuks are also of enormous strategic interest in terms of liquidity: many pious Muslims are reluctant to save or invest because of the contradictions between the interest-based financial system and the prescriptions of the Qur'an. Islamic banks offer them products that meet their expectations. In the midst of the European debt crisis, Farmida Bi, of Norton Rose, explains it as follows: "It would surely help the UK market if the government decided to go ahead with an English sukuk. This could galvanize the market [...]. " 2 .
Nevertheless, the British government decided in 2011 to suspend the creation of an English sukuk, mainly because of turbulence in the European financial markets. The UK was concerned that, in times of macroeconomic instability, the response to this new financial product may not meet investors' expectations. A fear that most City financiers feel unreasonable, seeing an opportunity to raise funds at lower rates:"I think the government made a mistake in not maintaining its idea of ​​Islamic leap. They are worried about price and demand, but the English market is a refuge. We are confident in strong demand for this product both because it is Islamic and because it is denominated in the pound sterling, which investors are looking for when there are so many problems in the euro zone , " says a banker. of a great institution of the City 3 .
The United Kingdom is emerging as the next node of Islamic finance in the West, investing a financial market still undeveloped and finding an alternative to the saturation of conventional financial products.
Other European countries have not yet invested significantly in this market. If Germany has banks that have developed "windows" (Islamic windows) by offering services consistent with the Koran and this in particular Pakistan 4 no Islamic bank has been created or the idea of ​​sukuk touched. This explains why for many investors, the creation of an English sukuk would be the prerequisite for a real development of Islamic finance.
claud39
claud39
VIP Member
VIP Member

Posts : 6648
Join date : 2018-11-04

View user profile

Back to top Go down

THE ARAB MONETARY FUND, IN COOPERATION WITH THE ISLAMIC DEVELOPMENT BANK, IS ORGANIZING THE "SUKUK ISSUANCES AND STRUCTURE" SESSION IN ABU DHABI, UNITED ARAB EMIRATES Empty Sukuk to conquer the world

Post by claud39 on Sun Jan 06, 2019 7:25 am

http://www.labanqueislamique.fr/sukuk%20a%20la%20conquete%20du%20monde.htm



Sukuk to conquer the world




• The Sukuk are in full expansion and set out to conquer the world
 
 

What happens when financial markets are confronted with cultural values? Funding structures that conform to Islamic law are at the forefront of an evolution aimed at integrating cultural values ​​into the globalized economy. Currently, sukuk - Islamic capital market products - are at the heart of this trend.
 
In October 2011, a major bank announced the launch of a sukuk in order to raise capital in the Islamic financial market. In the world of finance, this sharia-compliant show (Islamic law) by a renowned western bank has caused a real earthquake. Two aspects attracted particular attention: the $ 2 billion volume and the launch date, in the midst of the financial crisis. This sukuk could represent the definitive breakthrough of Islamic finance at the international level and open up a welcome financing outlook for troubled financial institutions in the current market environment.
 
Sukuk are a kind of obligation that respects the precepts of Islamic Finance.
 
The prohibition of interest, a major principle
Islamic finance reconciles financial activities and sharia. Founded on different legal bases, especially on the Qur'an and the Sunnah, sharia serves as a guideline for all Muslims. A sacred book of Islam, the Koran transmits, according to the Muslim faith, the words revealed by God to the Prophet Muhammad. The sunna, meanwhile, describes the lifestyle of the prophet, considered the example to be followed by every Muslim. Muhammad having been a merchant at a certain period of his life, the Qur'an and the Sunnah contain many counsels and prescriptions concerning the behavior to be adopted in economic matters. The central principle of this code is the prohibition of riba, that is, interest or usury. Therefore, the prime condition of any Islamic financing operation is to give up the interest.
 
A characteristic of monotheistic religions
This prohibition, however, is not limited to Islamic finance. Most monotheistic religions have, at one time or another, been suspicious of transactions with interest. Thus, in ancient times, the collection of interest was considered a sin by Jews and Christians. Religious conventions then took several centuries to develop sufficiently for financial activities with interest to be socially accepted. In the history of Judaism, this process was especially simplified by the fact that loans with interests to non-Jews were allowed, and that Christians then entrusted the Jews with the management of their finances. For the Christians, on the other hand, the interests remained proscribed until the end of the Middle Ages. Afterwards, the change of mentality that took place in the Christian community was based mainly on fundamental reflections on the market value of money. The critical position with regard to interests remains nevertheless anchored to this day in certain national legislations. In the United States, for example, the maximum rate allowed for lending operations is defined in the "usury statutes", the laws on usury.
 
Speculation and games of chance
The prohibition of interest is not the only characteristic that distinguishes Islamic finance from the traditional financial sector. The requirements also apply to risk, speculation and games of chance, and distinguish between "good" and "bad" sectors of activity. The rules on risk and speculation aim to promote the sustainable growth of local economies. The origins of this ban on gambling-related businesses date back to pre-Islamic mecca, where these popular games focused on agricultural products. Some players grew rich, while others went into massive debt. The Prophet Muhammad, who was keen on social cohesion in Islamic society, set himself against such practices,
 
Dow Jones Islamic Market Index
Islamic finance is also known for its negative selection principle. Since the emergence of the sector, Muslim scholars have divided industries into compliant and non-Islamic branches. Today, the Dow Jones Islamic Market Index, the most famous benchmark for Islamic stocks, defines as incompatible with Islam the following sectors: the manufacture of alcohol, tobacco and pork products , traditional financial services, the entertainment industry as well as the arms industry. In addition, heavily indebted companies are excluded from the index, with religious scholars favoring equity over debt.
 
Progressive growth from the 1970s
In the middle of the twentieth century, Egyptian intellectuals spread the idea of ​​taking into account the principles of sharia to structure financial transactions. At the time, the Middle East is anything but a prosperous region. Consequently, the first experiments in Islamic finance do not attract much interest at the supraregional level. In the 1970s, when the concept of sharia-compliant financial transactions was resumed, the situation changed: the oil crisis gave this region of the world immense wealth.
 
Since then, a whole series of financial institutions in the Middle East and Southeast Asia have been studying the development of an Islamic form of economic action. The main precursors of this movement are the Gulf States' banks, supported to a large extent by the Islamic Development Bank founded in 1973. In the 1980s, Islamic financial services were increasingly successful in South-East Asia. In this region, financial institutions are moving more and more towards small investors, in contrast to the Middle East markets, which focus mainly on wealthy private banking clients and private equity businesses.
Sukuk: more and more popular
Yet until the end of the twentieth century, Islamic finance offers only relatively limited opportunities. Since direct interest remains prohibited, clients can only invest their money in equities and must forego a full range of banking services. This situation only changes after the year 2000, when Islamic financial institutions begin to invest more in research and development. In the wake of this reorientation, the Islamic capital market is growing, the demand for Islamic mortgage loans is increasing and sharia-compliant credit cards are being issued. At the end of the 2000s, Islamic market players finally benefited from a sector of Islamic financial services in their own right. During the first decade of the new millennium,
 
Net increase in Islamic borrowing
The term "sukuk" - often translated as "Islamic obligations" - is the plural of the Arabic word "sakk", which means "official document". Etymologically, it has the same origin as the English word "check" and refers to the old tradition of establishing an official document to certify debts. The word "sukuk", ie several "checks", is therefore used to designate the first attempts to create Islamic products on the capital markets. Gradually, sukuk are gaining popularity: from less than 50 between 2002 and 2005, their number increases to 398 in 2010.
 
Mobilization of capital in the Muslim world
This rise has several reasons. First of all, it is due to the improvement of transparency regarding the way in which sukuk are structured. In order to avoid the interest normally generated on traditional capital market products, sukuk are generally based on extremely complex legal and cash flow structures. After suffering some failures, the Islamic finance market put the sukuk framework conditions into a battery of tests and optimized them.
Stefan Leins , March 29, 2012 (Next-Finance)
claud39
claud39
VIP Member
VIP Member

Posts : 6648
Join date : 2018-11-04

View user profile

Back to top Go down

Back to top


 
Permissions in this forum:
You can reply to topics in this forum