Islamic International Exhibition

Submitted byMohammad Farooq

Roll # 208

Submitted To Prof: Usman saeed

BFD

Ms 7th Semester

The University Of LahoreCity Campus

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Table of ContentsTable of Contents .................................................................................................................... 2 Acknowledgment .................................................................................................................... 3 About AlHuda ......................................................................................................................... 4 SPEAKERS ............................................................................................................................ 6 Prof. YASSIN ANWAR ........................................................................................................ 7 MR. DR. NADEEM M. FEROZ ............................................................................................ 7 Islamic Banking In Pakistan ................................................................................................... 8 Role of Takaful in Islamic Finance ....................................................................................... 12 Islamic Industry Products and Services ................................................................................ 16 The Role of IT in Islamic Banking ....................................................................................... 19

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A cknowledgment

For whom who create us, fed us, brought us up and give us

knowledge. Who is the most merciful, most beneficial and most forgiver. "In

the name of Allah, the Merciful, the Compassionate. Say (O Muhammad

SAW) He is Allah the One God, the Everlasting Refuge, who has not

begotten, nor has been begotten, and equal to Him is not anyone." For whom

who is more loving and kinder than a mother to her dear child? For whom

who is the First and the Last?

I am very thankful to Professor Sir Usman saeed at UNIVERSITY OF

LAHORE who give us a assignment of Islamic banking and finance.

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About AlHuda

AlHuda-CIBE is a success icon in Islamic Banking and Finance sector which focuses on Education and Trainings, Advisory and Consultancy, Publications and Promotion, Islamic Financial Shariah Advisory, Islamic Microfinance Product Development in order to promote the industry worldwide. In continuation to the selfless efforts of searching the new horizons for the promotion of Islamic banking and finance globally, AlHuda CIBE is hopeful to add its integral part for the dignity of this noble cause and is much honored to announce the series of International conferences in various countries i.e. Afghanistan, South Africa, Kazakhstan, Mauritius, Sri Lanka, Kenya, Nigeria and Pakistan.

This high profile Conferences will provide you practical insights into:

• Recognizing the significant developments in Islamic financial infrastructure such as legal, regulatory and supervisory frameworks

• Global Efforts and Achievements in Islamic Banking and Takaful• Islamic Financial Services Industry Latest Developments & Future

Directions• Demonstrating the flexibility of Islamic financial markets during the financial

crisis utilizing this effective platform• Optimizing performance & ensuring spirit for Islamic banks & financial

institutions to tide over the current market crisis• Assessing innovations in Islamic financial markets through effective growth

of new products, development & research

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Mr. Hameed Rasool (Director Training Alhuda)

Mr. Hameed Rasool welcomes the entire participant who were attending the 4th

International Islamic Banking Conference and after that various scholars, researchers, directors, teachers all did the presentation on Islamic banking and Takaful.

SPEAKERS

Mr. Alberto Di Gennaro Chief Executive,Shirkah-Finance Ltd,Switzerland.

Mr. Nasre Nasser Eddien Business Development Manager,Path Solutions,Kuwait.

Mr. Nadeem M. Firoz (Ph.D)Professor,Montclair State University, USA.

Mr. Shaykh Yusuf Talal DeLorenzoGeneral Manager, Dubai Shariah Asset ManagementChief Shariah Officer and Board Member, Shairah Capital Inc.Dubai, UAE.

Mr. Zakariya Othman Head, Islamic Ratings,RAM Rating Services Berhad Kuala Lumpur, Malaysia.

Mr. Mamode Raffick Nabee Mohomed Founder/ Secretary, Al Barakah Multi-purpose Co-operative Society Limited, Mauritius.

Mr. Abdool Rajack Jugoo Chairman, Al Barakah Multi-purpose Co-operative Society Limited, Mauritius.

Mr. Ahmud Mustakeem Bhugaloo Director, Al Barakah Multi-purpose Co-operative Society Limited, Mauritius.

Mr.Mahesh Jayanarayan Founder and Chairman Umex Capital Markets Group Plc,London.

Mr. Mazhar Ali Bokhari Senior Islamic Banking Consultant Manchester – United Kingdom

Mr. Ahmud Mustakeem BhugalooDirector, Al Barakah Multi-purpose Co-operative Society Limited,Mauritius

Mr. Asim KhanExecutive Director, Head of Consultancy & StructuringDar Al Istithmar,UK.

Dr. Muhammad Zubair Usmani Shariah Advisor,Muslim Commercial Bank Ltd,Pakistan.

Mr. Faraaz UddinDeputy Director, Security and Exchange Commission of Pakistan,Islamabad.

Dr. Muhammad Amjad SaqibExecutive Director, Akhuwat-Pakistan.

Mr. Hamad Rasool Ex-Director, WAPDA Sukkuk.

Mr. Shafqaat AhmedCountry Head,Al Baraka Islamic Bank, Pakistan.

Mr. Muhammad AyubDirector Research & Training at Riphah Center of Islamic Business (RCIB),Riphah Int'l University, Ex-Director Islamic Banking, NIBAF, State Bank of Pakistan,

Mr. Mohammad Aslam Head-Islamic Banking,

Mr. Abdul Jabbar KarimiHead of Product Development,

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Habib Bank Limited,Pakistan.

Habib Metropolitan Bank Ltd,Karachi.

Dr Shabbir HussainManaging Director,Microfinance & Economic Empowerment,Helping Hand for Relief & Development,Islamabad.

Khawaja Amjad Saeed Principle, Hailey Collage of Banking and Finance, Punjab University, Lahore – Pakistan

Justice Khalil ur Rehman Chairman Shairah Board – Munich Re ReTakaful – Malaysia Chairman Shariah Board - Emirate Galobal Islamic Bank Limited - Pakistan

Mufti Ehsan Waqar Shariah Advisor UBL Ameen, Karachi - Pakistan

Mr. Abdul Samad Kazi Shariah Advisor, Bank of Khyber, Peshawar - Pakistan

Capt. Jamil Akhtar KhanManaging Director – Universal Insurance Pakistan.

Mr. Azeem Iqbal PiraniRegional ManagerFWU AG,Pakistan.

Mr. P. Ahmed Chief Executive Officer,Pak Qatar Family Takaful,Pakistan.

Dr. Shahzad AfzalDirector,Pakistan Standards & Quality Control Authority,Lahore-Pakistan.

Mr. Raheel IqbalPartnerHalal Industry Research Centre Pakistan

Mr. Hamid AhmadEx-Principal Scientific Officer,Biotech. and Food Research Centre,Pakistan Council of Scientific & Industrial Research (PCSIR), Lahore

Prof. Dr. Javaid A AwanCountry Director,Islamic Food & Nutrition Council of America.Pakistan.

Prof. Dr. Faqir Muhammad. AnjumDirector General,National Institute of Food Science and Technology, University of Agriculture, Faisalabad- Pakistan.

Prof. YASSIN ANWAR

Professor and also the member of IslamicBanking and finance.

Mr. Abdul BasitChairmanBig Bird Group- Pakistan

MR. DR. NADEEM M. FEROZ

Professor and also the member of IslamicBanking and finance. He is a guest. and giveus about the knowledge of technical sectorof about banking and finance.

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Islamic Banking In Pakistan

Prof. Dr. Khawaja Amjad SaeedProfessor Emeritus & Founder Principal, Hailey College of Banking & Finance, University of the Punjab, Lahore Pakistan (2003)Member Governing Council, International Federation of Accountants (IFAC), New York (1997-2000),

State Bank of Pakistan, in its role as central bank, has developed the following aspects: 1. Vision“To make Islamic Banking the baking of first choice for the providers and users of financial services”. 2. Mission “To promote and develop Islamic Banking industry in line with the best intersectional practices, ensuring Shariah compliance and transparency”.It is very important that the stakeholders to revisit the above aspects reflected as vision and mission. Motivated by the enlightened guidance provided by State Bank of Pakistan, all Islamic Banks must follow sunshine vision and driving mission. These aspects need to be indoctrinated in the minds of all stakeholders so that their efforts are reflected in real life situation as achievement motivation.

Dr. khawaja amjad also give the information of Growth of Islamic banks. Growth of Islamic bank during (2003-2009) and also 2010. The total asset in 2003 of Islamic bank is 13 Billion and in 2010(March) approximately 371billion. Means that during 2003 to 2010 the growth is 358billion in 8years. And Deposits during 2003 to 2010 is increase by (2003,8and 2010,289) 281billion.Financing investment during 2003 to 2010 is increase by 219billion (2003,10 and 2010,229).

Branches of Islamic banking in pakistan (Punjab ,Sindh ,Khyber pakhtoonkhan ,Baluchistan,federal capital, Azad Kashmir, northern Area).

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Prof. YASSIN ANWAR Professor and also the member of IslamicBanking and finance.

Technical’s explanation:

There are many side effects on Islamic Banking (religious etc). Malaysia has 25% shares of Islamic Banking. The financial statement of conventional and Islamic banking is very different. There are issues to Islamic Banking. But the Islamic Banking gives economic benefits , equitable distribution and growth of business. There is only 11% - 14% people use banking system.

How satisfy customer?Increasing competition (whether for-profit or nonprofit) is forcing businesses to pay much more attention to satisfying customers. (It may help the reader to notice the role of customer satisfaction in the overall context of product or service development and management . How a product is developed or managed is depends very much on the nature of the organization and its products, for example, retail, manufacturing, wholesale, etc. Note that different people might even have different categorizations for the activitie. So in this way customer don’t know about Islamic products and services. We must give awareness to the people about Islamic Banking. There are some problems of ISLAMIC BANKING. Shortage of seller markets of Islamic Banking. Non existing use of Islamic banking. Interest free loan. Create free marketing for Islamic banking. We should make SWOT analysis of Islamic banking. Every customer has needs like child education , house, car and endless needs. It all depends up on environment. People buy food, house through mass markrting. 4p’s of marketing place, product,price and promotion. In Islam good idea of partnership. But the cost of capital must. Market is the location where customer visit and buy things. We should provide information to people through media.

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MR. DR. NADEEM M. FEROZProfessor and also the member of IslamicBanking and finance. He is a guest. and giveus about the knowledge of technical sectorof about banking and finance.

Shariah audit, shariah certification and review

Objectives of Islamic banking1 main attraction of Islamic banking is ti safeguard the muslims for entering into a nonshariah compliance 2 to build the public confidence .3 activities of the organization 4 riba which is haram in shariah 5 To protect the confidence of stackholder

What has been done for Islamic banking ?Recoginizing the importance of shariah audit . rules and regulations of shariah audit.

Compliance of shariah audit and information to the customer.

Standardization of practices of Islamic bankingRegulation shall focus on standardization.Selection of one practice in different institutionsThe internal shariah audit shall be compulsory.The most Islamic banking use conventional framework due to non availability of shariah audit .Adopt AAOIF shariah review and guideness.Challenge to establish between monitoring and growth targets.

Main themeRead books on Islamic finance

Growth and focus on customizing Islamic banking. Taxation should support the shariah. Traing the Islamic bankers. Minimum requirement of Islamic banking. Why we need capital?The assets and liabilities side of Islamic banking is different from conventional banking. How shariah compliance in Pakistan. It has been clearly by shariah board and advisory.

Role of takafal in Islamic finance. Takaful is a Arabic word KAFALA means guarantee.It means to production mutual.It origins .from the madina first . the first was batualmal and second is takaful. The total insuarance of OIC for 2006 was US 75 MILLION DOLLARS. THERE ARE TWO companies of Islamic banking in china. One Islamic banking in RUSSIA. 97% muslims

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population in Pakistan but they are unaware of Islamic banking due to non availibilty of information.so we should developed the Islamic banking concept.

Islamic finance verses conventional banking

Convernational banking is money landing .Takaful is a means for hedging such explure .Takaful return every thing

Why we need takaful assurance

Tools risk mitigation

Risk mitigation covers efforts taken to reduce either probability concequences of the threts . thjese may range from physical measure to finance measures.

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Role of Takaful in Islamic Finance

Role of takaful define by

Capt. M. Jamil Akhtar Khan ACII, MCIT, Master MarinerManaging Director The Universal Insurance Company Ltd

Takaful Defined Historical Perspective Takaful today Islamic Finance Versus Conventional Banking Exposures in Islamic Finance Coverage of exposures ― BancaTakaful Cutting Edge…! The Universal Insurance Company Ltd. Conclusion

Meaning of Takaful

Takaful comes from the Arabic root-word ‘kafala’ — guarantee.

Reference — Al Quran:

“Help (ta’awan) one another in furthering virtue (birr) and Allah consciousness (taqwa) and do not help one another in furthering evil and enmity”. Al Maidah: verse 2 (5:2).

Takaful Today

There are now around 180+ Takaful companies in over 40 countries.

The total insurance premium of OIC countries for 2006 was USD 75 Billion; of this, Takaful contribution accounts for 5% (i.e. USD 3.5 Billion). This is expected to increase to USD 12 Billion by 2015.

Poor Insurance penetration in the Muslim countries (<1% of GDP).

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Average growth rate higher than conventional insurance companies (around 25%).

Non–Muslims increasingly opting for Takaful products for commercial benefits.

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ISLAMIC FINANCIAL CO-OPERATIVES TO MEET THE FINANCIAL NEEDS OF THE COMMUNITY

Mr. Mamode Raffick Nabee MohomedFounder/SecretaryAl Barakah MCSL

Agenda

Islamic Finance & Islamic Financial Institutions Concept of Co-operatives Islamic Financial Co-operatives Financing intruments of IFC Reserves & Funds Case Study of Al Barakah Multi-purpose Co-op Society Ltd.-Mauritius Geographical background & Muslims in Mauritius Islamic Banking & Finance & Muslims in Mauritius Integrating Islamic Finance in Cooperatives Organisation of Al Barakah Legal Framework Products & Services Other activities Challenges Conclusion Opportunities with Al Barakah for Islamic Banking & Finance in Mauritius

Islamic Finance & Islamic Institution

Islam is a practical way of life with its own system Inheritance in the economic sphere & scholars at work Initiatives-No working model & since 1960’s IBF started–Mit Ghamr 1963 Emergence of IFI & growth Satisfaction/Criticism Types of Islamic Financial Institutions (IFI)

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Dominance & neglected areas & Evolution

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Islamic Industry Products and Services

Khalid WaheedHUM SECURITIES

A world of individual achievement and personal accolades HUM Securities Ltd stands for ‘working together’.With our professionals working ‘together’ as a team to provide financial solutions to our clients working ‘together’ with our team to conduct their business to us working with our clients to achieve their financial goals.At HUM Securities Ltd we succeed with your success – together!

Client Focus being our guiding principle we work with them, we aim to educate our clients. It is our belief that an informed client is a satisfied client and client satisfaction is what we aim for.

HUM Securities Ltd demonstrates its commitments to clients and shareholders through the firm's emphasis on excellence, integrity and ethical behavior. Islamic banking refers to a system of banking or banking activity that is consistent with the principles of Islamic law and its practical application through the development of Islamic economics.

ISLAMIC INVESTMENT IDEOLOGY Islam provides us comprehensive and straight path of life, which covers all of its aspects, and guide us accordingly, through this we handle social and individual, material and moral, economic and political, legal and cultural, national and international aspects of life. In fact earning, saving and investment can become acts of ‘Ibadah’ if done according to Shariah.

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Is Islamic Banking Satisfying the Customer? Marketing Model: E-N-T- G-A-M-I-K-R

Nadeem M. FirozB.Com (Hons), M.Com (Univ of Peshawar); MBA, Ph.D (USA)School of Bus (AACSB)Montclair State University, New Jersey

How many expert in Islamic financing bank.what is easy way to understanding financing concept. Is interest is free? He give the importance about the marketing and also explain the marketing and non-marketing executies and model of marketing.

Conduct Market Research– Study consumer behavior to identify consumer’s wants and needs– Target and segment the Muslim market by demographics and geography.

Find communities with devout Muslims who are most likely to purchase Islamic financing products

– Align consumers’ wants and needs with the organizations objectives– Materialize wants and needs into differentiated Islamic financing products

Create Consumer Oriented Marketing Program– Engage in a grassroots marketing program where banks reach out directly to

local Muslim residents in the surrounding community.– Develop a comprehensive website which details all aspects of your bank’s

Islamic financing products, BUT focus on direct sales, as a Majority of mortgage products are purchased face-to-face

Offer Promotional Discounts– To encourage Word-of-Mouth advertising offer “refer a friend” discounts on

your next mortgage payments

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PROSPECTS OF ISLAMIC BANKING AND FINANCE INTERNATIONALLY

Mohammad AslamHead, Islamic BankingHabib Bank Limited

Despite believing in riba free financing, public in general is not clear about the concepts and products offered by Islamic BankingThere is lesser acceptance as it is generally considered as “Same thing with different packing” There are myths in the market, like “Islamic Banking is expensive for financing and gives less return on deposits products”

Currently more than 1100 institutions are offering Islamic Financial Services across the GlobeAssets of the top 500 banks worldwide expanded 28.6% to $822B at the end of 2009 compared to $639B in 2008.Standard & Poor’s estimates the Shariah Compliant assets currently total about 1 trillion worldwideDubai, Singapore , London and Kuala Lumpur are trying to become centers of global Islamic finance.The above facts reflects that Islamic finance has become a recognized and a specific segment of finance on its own with bright growth prospects.

Dubai Debt Crisis

Most of the Islamic banking industry was not impacted by the global financial crisis , but the rescheduling of Dubai World’s Sukuk led to speculation about the viability of Islamic banking solutions .

According to Reuters:

“Dubai's debt crisis has stifled sukuk issuance and unfairly put a damper on the Islamic finance industry, experts said, noting but an unstable credit environment and poor due diligence was to blame for the debacle”.

Hence, Islamic finance still provides better financial solutions as compared to conventional finance.

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The Role of IT in Islamic Banking

Nasre Nasser EddienBusiness Development Manager

THE GROWTH OF ISLAMIC FINANCING INSTITUTIONS

One of the fastest growing sectors in the global financial services. Global financing service started in 1963 in Mit Ghamr (Egypt). And more than 75 countries allow Islamic Financial Institutions. 626 Islamic Financial Institutions worldwide. (As of October 09) Including 435 IFIs, 191 conventional banks with Islamic windows.

Source:

The Banker third annual survey of the world’s Top 500 Islamic Financial Institutions)

More than 50 Islamic Financial Service Institutions have been launched within the past 2 to 3 years. More than 20% average growth of the Islamic Financial Institutions and the US$ 840 billion total volume of Sharia-Compliant assets. The volume of Islamic transactions globally reached a total value of US$ 8 billion .

Importance of IT for Islamic banking

Business is different with other banks and also product is different and also process is different and also mechanism is different. Ands also The financial and fiscal implications are different. If we compare to that another banks.

Modular architecture is the key –

Building Blocks approach is what suits most established as well as new banks. The ability to plug and play will surely emerge as the key. In this task, acquisition of ready-made modern pluggable components that can integrate smoothly will be an important consideration.

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