posted by Christopher Holton The Islamic Financial Services Board (IFSB) is seeking to establish some clarity in the murky world of regulation of Shariah-compliant bonds, also known as sukuk. The bone of contention centers around whether sukuk are indeed compliant with shariah and what role national laws and regulations play. Such issues have gained prominence […]
posted by Christopher Holton The Persian Gulf island nation of Bahrain has decided to cancel a billion dollar conventional bond deal and settle for a Shariah-compliant bond (sukuk) deal. The reason for the cancelation sheds light on the hidden risks involved in Shariah-compliant bonds. Bahrain scrapped the conventional bonds because they would have been rated […]
posted by Christopher Holton The Islamic Development Bank, the financial arm of the Islamic imperialist Organization for Islamic Cooperation (OIC) has just listed a $1.25 billion sukuk–shariah-compliant bond–on the NASDAQ exchange in Dubai. This illustrates the degree that shariah supremecists exercise control in world financial markets and how incredibly well-financed they are. It also demonstrates […]
The Shariah Finance Trojan Horse Shows Up on CNBC.com
by Christopher W Holton One of the chief concerns from Shariah-compliant finance is that it can be, and has been, used to put people at ease about the true nature of shariah and the threat that is poses. Shariah-compliant finance is also a weapon that Islamists can use to force shariah upon non-Muslims. Both of […]
posted by Christopher W. Holton Readers who do business with Citi Group may be interested in their activities involving Shariah-compliant finance in Pakistan. According to annual report issued by Securities and Exchange Commission of Pakistan (SECP), Shariah-compliant assets now represent 34.6 per cent of the total assets of the Non-Banking Financial Institute (NBFI) industry in […]
Dana Gas rejects new Shariah bond restructuring proposal
posted by Christopher W. Holton Dana Gas dismissed a new proposal from bondholders for the restructuring of US$700 million worth of sukuk, in the latest twist of an acrimonious dispute closely watched by Islamic finance practitioners. Discussions between Dana Gas and its sukuk holders soured earlier this year, when the company claimed outstanding sukuk, due […]
posted by Christopher W. Holton In the wake of the Dana Gas sukuk debacle, the UAE has come up with a solution to fix the “complexities” of Shariah finance: centralized government control. Many proponents of Shariah finance in the West claim that free enterprise mandates that Shariah finance be allowed to flourish and expand in […]
Dana Gas: Shariah Finance’s self-licking ice cream cone
by Christopher W. Holton As we reported earlier this month, the market for Shariah bonds is entering a new crisis as a result of an apparent default by Dana Gas: https://shariahfinancewatch.org/2017/06/15/more-fallout-from-the-dana-gas-sukuk-debacle/ https://shariahfinancewatch.org/2017/06/13/possible-shariah-finance-crisis-brewing-dana-gas-shariah-bonds-declared-unlawful/ Dana Gas is refusing to pay its creditors based on a new decision that its bond offering is no longer Shariah-compliant. This is […]
More fallout from the Dana Gas sukuk debacle
posted by Christopher W. Holton A decision by Abu Dhabi-listed Dana Gas to declare $700 million of its sukuk invalid has sent shivers through the Islamic finance industry, raising concern about the safety of sharia-compliant debt instruments in general. Dana said on Tuesday it had received legal advice that its sukuk, or Islamic bonds, which […]
posted by Christopher W. Holton Here we see illustrated a real pitfall of Shariah compliant finance. Dana Gas of Abu Dhabi previously issues $700 million worth of Shariah bonds, also known as sukuk. Now, the firm is informing creditors that its sukuk are actually NOT shariah compliant and is proposing that they be traded for […]
by Christopher W. Holton Indonesia’s finance ministry sold 3.03 trillion rupiah ($227.97 million) of Islamic bonds at an auction, below the indicative target of 5 trillion rupiah, its financing and risk management office reports. http://timesofindia.indiatimes.com/business/international-business/indonesia-sells-3-03-trillion-rupiah-of-islamic-bonds-below-target/articleshow/59124027.cms
by Christopher W. Holton Increasingly, Shariah-compliant forms of financing are supplanting and replacing conventional financing in the Islamic world. For years, Pakistan has used conventional financing for infrastructure projects, such as bridges. Now the government is embarking on a plan to replace conventional methods with Shariah-compliant financing. While it is not a big surprise that […]
posted by Christopher W. Holton Here is a stark case of creeping shariah. As we have often mentioned here on SFW, the weapon of choice for the financial jihadists is the sukuk, also known as “Islamic” bonds. The reality is that sukuk are not bonds at all. They are a shariah-compliant concoction designed to create […]
posted by Christopher W. Holton Africa is expected to see a massive population boom, many of whom will grow up Islamic. As such, demand for Islamic products and services on the continent are expected to rise in the coming years. Financing projects through Islamic financial instruments has massive potential within the African region. One such […]
Today, enforcement of Shariah begins in the Pacific-Oceana nation of Brunei… The sultan of oil-rich Brunei has announced the introduction of tough Islamic criminal punishments, pushing ahead with plans that have sparked international condemnation and rare domestic criticism of the fabulously wealthy ruler. “With faith and gratitude to Allah the almighty, I declare that tomorrow, Thursday 1 […]
National Australia Bank is considering selling up to $US500 million ($482m) in Islamic bonds in what would be the country’s first issuance of sharia-compliant debt securities. http://sheikyermami.com/nab-set-to-join-rush-for-islamic-cash/comment-page-1/
Luxembourg on the Brink of Shariah-Compliance
The quest for petrodollar capital is prompting Luxembourg to issue a Shariah bond. There is still hope that Luxembourg might be brought back from the brink, however. The transaction is being scrutinized by the Council of State, a body which advises the national legislature and they’re exhibiting appropriate skepticism… “First, in the world of finance, […]
One of the chief concerns about Shariah-Compliant Finance is the lack of liquidity born of the ban on interest. The industry has sought to address this problem with convoluted instruments which are largely unproven. And they won’t be proven until they endure a financial crisis of some sort. In the last financial crisis the instrument […]
Indonesia Shariah Bond Offering Falls Short of Target
Indonesia’s finance ministry raised 1.273 trillion rupiah ($111.8 million) in a sale of its shariah bonds (sukuk) this week, below an indicative target of 1.5 trillion rupiah. Sukuk offerings have often fallen short of targets due to concerns about an historically high default rate and lack of liquidity. http://www.reuters.com/article/2014/03/11/indonesia-economy-debt-idUSL3N0M81P220140311
The central bank of Indonesia is searching for a bank to sign up as primary dealer for short-term sukuk, or Shariah-compliant bonds, issued by the International Islamic Liquidity Management Corp (IILM), a body it helped establish in 2010 to attempt to address the chronic lack of liquidity in shariah compliant money market instruments. Bank Indonesia is one of […]
Fawaz Abdulaziz Alhokair Co. , a Saudi retailer, is studying 3-5 acquisition targets in the United States and United Kingdom. The firm, the largest listed retailer on the Saudi stock market (which does not allow foreign investors), also aims to issue its debut Shariah-compliant bond (sukuk) in the next year. Alhokair acquired the Spanish clothing […]
Britain Moves Closer to First Western Issue of Shariah Bond
The UK government is a little closer to its widely anticipated issue of a sovereign sukuk, or Islamic bond. Last October in London during the World Islamic Economic Forum, British prime minister David Cameron announced the UK’s intentions of becoming the first Western country to issue a sukuk. Since then, Luxembourg and Hong Kong have […]
Over the past few years, Shariah-compliant, Islamic bonds, properly known as “sukuk,” have become the financial foil of choice by which Shariah has been infiltrated via the global financial system. Here is how that works: • As we know from historical records and contemporary statements from Islamic leaders, the purpose of Shariah Finance/Islamic economics is […]
South Africa will launch its first sukuk Islamic bond this year Finance Minister Pravin Gordhan said Wednesday. Complying with Islamic Shariah law, such a bond has been discussed in South Africa for some time as the nation tries to secure lenders in petro-wealthy Islamic nations. http://www.globalpost.com/dispatch/news/afp/140226/south-africa-launch-its-first-islamic-bond
Indonesia’s finance ministry raised 1 trillion rupiah ($85.86 million) at a sukuk auction on Tuesday, below an indicative target of 1.5 trillion rupiah, the ministry’s debt office said. Southeast Asia’s biggest economy only sold six-month sharia T-bills. There were no winning bids for the six-, 13- and 29-year project-based sukuk. http://in.reuters.com/article/2014/02/25/indonesia-economy-debt-idINJ9N0IR01Z20140225
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