Islamic Banking Gains Momentum: Malaysia is the leader in market share

Thursday - Islamic Finance News of the Week

Governments trying to set framework for establishing Islamic Banking. Conventional banks trying to extend their line of service by Islamic Banking. And Islamic banks are expanding their network globally. Islamic Banking is on the rise! But despite that impressive growth standards have to be set in order to not dilute the quality of Islamic Banking.

Recently there is a lot of talk about Islamic Banking as it seems to have proofed more resilient than conventional banking. However the total number of Islamic banks is still small and according to online-researches conducted by Shariah-Fortune estimated at around 350-400 institutions worldwide. Compared to around 9,500 banks located in the USA the Islamic Banking sector still seems pretty small.

But its relativ small numbers bear potential for extraordinary growth rates. According to estimates Islamic Banking is one of the world's fasted growing financial sectors, rising 15-20 % p.a. Asian Banker Research Group found out that growth rate is as high as 26.7 % among the 100 largest Islamic banks.

Basically Islamic Banking is not only restricted to about 1.5 bn Muslims; indeed even non-Muslims can profit from the advantages of Shariah-compliant banking. Most of the banks offer their services to non-Muslims as well.

Islamic banks are located in 50 countries worldwide and can be found in countries like Algeria, Azerbaijan,...Yemen. Major Islamic Banking hubs are Malaysia, Bahrain, UK and UAE.

With regards to the above mentioned many countries and banks now trying to establish or expand Shariah-compliant banking. A recent example is the mainly Muslim nation of Kazakhstan in which 3-4 Islamic banks are planning to set up operations soon. Special attention should be paid to China. The China Banking Regulatory Commission had given approval to a pilot project of Bank of Ningxia to undertake Islamic financial services in the People's Republic of China. Even African countries like Nigeria or Senegal trying now to expand their Islamic Finance systems. In March 2009, a framework for non-interest banking was released by the Central Bank of Nigeria. More examples could be named.However many of these countries are not yet ready to offer Shariah-compliant banking services as they either lack human resources, expertise or the economical and political framework to do so. According to Dr. Al Jarhi, President of the International Association for Islamic Economics, '...one of the most serious challenges is represented in the need for set standards and criteria for the governance of Shariah boards at Islamic banks'. Shariah-Fortune is a service provider in the Islamic Finance Intelligence. It provides informational content with regards to Islamic banking & financing, insurance/takaful, real estate, investment, asset and wealth management and other services related to Islamic finance. Shariah-Fortune provides the world´s biggest company online directory for Islamic Finance with more than 800 institutions in 50 countries worldwide. It covers nearly every geographic region and segment in the Shariah compliant products industry, sourced from the internet through a substantial secondary research effort coupled with a high quality data cleansing process.Periodically Shariah-Fortune issues a free market report about the size, market players and development of the Islamic Finance sector. Shariah-Fortune is headquartered in Dubai. For more information on Shariah-Fortune please email info@shariah-fortune.com.

The Definition of Halal and Haram

What is the definition of haram & halal?

Praise be to Allaah.

Haraam is that for which the one who does it will be punished and the one who abstains from it will be rewarded, if the reason for his abstinence is following the prohibition of Allaah. The halaal is that in which there is no sin in doing it and no sin in not doing it, but if a person intends to enhance his obedience to Allaah by doing it, then he will be rewarded for this intention.

Dictating what is halaal and what is haraam is the right of Allaah alone. There are people who make halaal some of that which Allaah has forbidden, and people who make haraam some of that which Allaah has permitted. Some people invent acts of worship which have not been prescribed by Allaah and which in fact He has forbidden. The asl al-deen or basic principle of religion is that the halaal is that which Allaah and His Messenger have permitted, and the haraam is that which Allaah and His Messenger have forbidden. The religion is that which Allaah and His Messenger have prescribed. No one has the right to go beyond the limits of the Straight Path with which Allaah sent His Messenger. Allaah says (interpretation of the meaning):

“And verily, this is My straight path, so follow it, and follow not (other) paths, for they will separate you away from His path. This He has ordained for you that you may become Al-Muttaqoon (the pious)”
[al-An’aam 6:153]

Allaah mentions in Soorat al-A’naam, Soorat al-A’raaf and elsewhere the things for which He condemns the mushrikeen (polytheists, those who associate others in worship with Allaah), which is that they made haraam things which Allaah had not forbidden, such as the baheerah and saa’ibah (camels to which certain taboos were attached for the sake of their idols), and they permitted things which Allaah had forbidden, such as killing their children, and they prescribed in their religion things that Allaah had not permitted. So Allaah says (interpretation of the meaning):

“Or have they partners with Allaah (false gods) who have instituted for them a religion which Allaah has not ordained?
[al-Shooraa 42:21]

These things included things that are haraam in and of themselves, which they made into acts of worship, such as shirk (associating others in worship with Allaah) and things which are obscene, such as performing Tawaaf around the Ka’bah naked, etc.

Sheikh Muhammed Salih Al-Munajjid

Silicon Valley Academy

Tuesday - Islamic Institution in USA series

http://www.svagroup.net/

General Social Boycott

Monday - Seerah of Prophet Muhammad (PBUH)


General Social Boycott

Four events of special significance occurred within less than four weeks — the conversion of Hamzah, the conversion of ‘Umar, Muhammad’s (Peace be upon him) refusal to negotiate any sort of compromise and then the pact drawn up between Banu Muttalib and Banu Hashim to immunize Muhammad (Peace be upon him) and shield him against any treacherous attempt to kill him. The polytheists were baffled and at a loss as to what course they would follow to rid themselves of this obstinate and relentless obstacle that had appeared to shatter to pieces their whole tradition of life. They had already been aware that if they killed Muhammad (Peace be upon him) theblood would surely flow profusely in the valleys of Makkah and they would certainly be exterminated. Taking this dreadful prospect into consideration, they grudgingly resorted to a different iniquitous course that would not imply murder.

A Pact of Injustice and Aggression

The pagans of Makkah held a meeting in a place called Wadi Al-Muhassab, and formed a confederation hostile to both Bani Hashim and Bani Al-Muttalib. They decided not to have any business dealings with them nor any sort of inter-marriage. Social relations, visits and even verbal contacts with Muhammad (Peace be upon him) and his supporters would discontinue until the Prophet (Peace be upon him) was given up to them to be killed. The articles of their proclamation, which had provided for merciless measures against Bani Hashim, were committed to writing by an idolater, Bagheed bin ‘Amir bin Hashim and then suspended in Al-Ka‘bah. The Prophet (Peace be upon him) invoked Allâh’s imprecations upon Bagheed, whose hand was later paralysed.

Abu Talib wisely and quietly took stock of the situation and decided to withdraw to a valley on the eastern outskirts of Makkah. Banu Hashim and Banu Al-Muttalib, who followed suit, were thus confined within a narrow pass (Shi‘b of Abu Talib), from the beginning of Muharram, the seventh year of Muhammad’s mission till the tenth year, viz., a period of three years. It was a stifling siege. The supply of food was almost stopped and the people in confinement faced great hardships. The idolaters used to buy whatever food commodities entered Makkah lest they should leak to the people in Ash-Shi‘b, who were so overstrained that they had to eat leaves of trees and skins of animals. Cries of little children suffering from hunger used to be heard clearly. Nothing to eat reached them except, on few occasions, some meagre quantities of food were smuggled by some compassionate Makkans. During ‘the prohibited months’ — when hostilities traditionally ceased, they would leave their confinement and buy food coming from outside Makkah. Even then, the food stuff was unjustly overpriced so that their financial situation would fall short of finding access to it.

Hakeem bin Hizam was once on his way to smuggle some wheat to his aunt Khadijah (May Allah be pleased with her) when Abu Jahl intercepted and wanted to debar him. Only when Al-Bukhtari intervened, did Hakeem manage to reach his destination. Abu Talib was so much concerned about the personal safety of his nephew. Whenever people retired to sleep, he would ask the Prophet (Peace be upon him) to lie in his place, but when all the others fell asleep, he would order him to change his place and take another, all of which in an attempt to trick a potential assassin.

Despite all odds, Muhammad (Peace be upon him) persisted in his line and his determination and courage never weakened. He continued to go to Al-Ka‘bah and to pray publicly. He used every opportunity to preach to outsiders who visited Makkah for business or on pilgrimage during the sacred months and special seasons of assemblies.

This situation ultimately created dissension amongst the various Makkan factions, who were tied with the besieged people by blood relations. After three years of blockade and in Muharram, the tenth year of Muhammad’s mission, the pact was broken. Hisham bin ‘Amr, who used to smuggle some food to Bani Hashim secretly at night, went to see Zuhair bin Abi Omaiyah Al-Makhzoumy and reproached him for resigning to that intolerable treatment meted out to his uncles in exile. The latter pleaded impotence, but agreed to work with Hisham and form a pressure group that would secure the extrication of the exiles. On the ground of motivation by uterine relations, there emerged a group of five people who set out to abrogate the pact and declare all relevant clauses null and void. They were Hisham bin ‘Amr, Zuhair bin Abi Omaiya, Al-Mut‘im bin ‘Adi, Abu Al-Bukhtari and Zam‘a bin Al-Aswad. They decided to meet in their assembly place and start their self-charged mission from the very precinct of the Sacred House. Zuhair, after circumambulating seven times, along with his colleagues approached the hosts of people there and rebuked them for indulging in the amenities of life whereas their kith and kin of Bani Hashim were perishing on account of starvation and economic boycott. They swore they would never relent until the parchment of boycott was torn to piece and the pact broken at once. Abu Jahl, standing nearby, retorted that it would never be torn. Zam‘a was infuriated and accused Abu Jahl of telling lies, adding that the pact was established and the parchment was written without seeking their approval. Al-Bukhtari intervened and backed Zam‘a. Al-Mut‘im bin ‘Adi and Hisham bin ‘Amr attested to the truthfulness of their two companions. Abu Jahl, with a cunning attempt to liquidate the hot argument that was running counter to his malicious goals, answered that the issue had already been resolved sometime and somewhere before.
Abu Talib meanwhile was sitting in a corner of the Mosque. He came to communicate to them that a Revelation had been sent to his nephew, the Prophet (Peace be upon him) to the effect that ants had eaten away all their proclamation that smacked of injustice and aggression except those parts that bore the Name of Allâh. He contended that he would be ready to give Muhammad (Peace be upon him) up to them if his words proved untrue, otherwise, they would have to recant and repeal their boycott. The Makkans agreed to the soundness of his proposition. Al-Mut‘im went to see the parchment and there he did discover that it was eaten away by ants and nothing was left save the part bearing (in the Name of Allâh).
The proclamation was thus abrogated, and Muhammad (Peace be upon him) and the other people were permitted to leave Ash-Sh‘ib and return home. In the context of this trial to which the Muslims were subjected, the polytheists had a golden opportunity to experience a striking sign of Muhammad’s Prophethood (the white ants eating away the parchment) but to their miserable lot they desisted and augmented in disbelief:

“But if they see a Sign, they turn away, and say ‘This is continuous magic.” [54:2]