Escolar Documentos
Profissional Documentos
Cultura Documentos
Presented by
Zubair Mughal
CEO – AlHuda : Centre of Islamic Banking & Economics
Regional Head – Takaful Pakistan Limited.
Industry Progress in Pakistan
Year 2001 2002 2003 2004 - 05 2006 - 07
2 3 4 10 18
Germany:4 UAE: 13
- Bank Sepah - Dubai Islamic Bank
.
- Commerz Bahrain: 26- Abu Dhabi Islamic
Kuwait:Bank 9
United States: 20 Bank - HSBC
BankAmanah
- Bahrain Islamic - Kuwait Finance
- Al Manzil Financial Services - Deutsche
UK: 26 - Al Baraka House
Qatar: 4
- American Finance House Bank
- HSBC Amanah
- ABC Islamic Bank
- Qatar Islamic Bank
- Failaka Investments Switzerlan - CitiIslamic Investment Bank
- HSBC
Finance - Qatar International Islamic
d: 6
- Al Baraka
- Ameen Housing
Iran: 8 Pakistan: 21
International Ltd
Cooperative - Takafol UK Ltd India: 3
- The Halal Mutual
Bangladesh:
Turkey: 7
Investment Company
Egypt:
- J Aron & Co 12 - Faisal Finance 9
Ltd
- Alwatany Bank of Egypt
(Goldman Sachs) Institution Malaysia: 49
- Egyptian Saudi Finance - Ihlas Finance2 - Pure Islamic Banks
Sudan: 9Saudi Arabia: 17
House (Bank Islam, Bank
- Al Rajhi
- SAMBA
Muamalat)
Rest - conventional
- Saudi Hollandi
- Riyadh Bank
Indonesia: 4
banks
Yemen: 5
International Overview
The size of Islamic Financial Industry has reached US$ 300 Bln.
and its growing annually @ 15% per anum.
51 countries have Islamic Banking Institutions
27 Muslim countries including Bahrain, UAE, Saudi Arabia,
Malaysia, Brunei and Pakistan
24 non-Muslim countries including USA, UK, Canada,
Switzerland, South Africa and Australia
International Overview
Leading foreign Banks have opened Islamic
Banking windows or subsidiaries such as:
• Standard Chartered Bank
• Citibank
• HSBC
• ABN AMRO
• UBS
International Overview
In Feb 1999, Dow Jones introduced the Dow Jones
Islamic Market Index (DJIM) of 600 companies world
wide whose business complies with Islamic Shariah
laws
At present there are more than 105 Islamic Funds
operational through out the world with a total fund
base of over USD 3.50 billion
International Overview
Governments of Bahrain ,Malaysia and now Pakistan
have issued Islamic Bonds (Sukuk) in order to
facilitate Islamic Banks in managing their liquidity.
Issuance of these bonds has also paved the way for
Shariah compliant Government borrowings
International Overview
Institutions like Accounting and Auditing Organization for
Islamic Financial Institutions (AAOIFI) and Islamic Finance
Services Board (IFSB) have been formed.
These institutions are playing a key role in setting up and
standardizing Shariah , Financial and Accounting standards for
Islamic Financial Institutions.
Due to these collective efforts Islamic banking is now
recognized by IMF, World Bank and Basel Committee.
PRODUCT TREE OF ISLAMIC AGRI FINANCE
Islamic Modes of
Agricultural Finance
Rs.1000 Rs.1000
PARTNER A VENTURE PARTNER B
Rs. 50 Rs. 50
LOSS
Rs.100
Must be according to
capital ratio
Mudarabah
One partner (Rab al Mal) contributes capital
and the other (Mudarib) contributes his skills
or services to the venture
Venture may for a fixed period or purpose
Both share profit in pre-agreed ratio
Loss is borne by Rab al Mal only, Mudarib
loses his services
MUDARABAH
PROFIT
60 % 40 %
CAPITAL SERVICES
LOSS
Bai (Buying & Selling)
Existence of Product/Commodity
Ownership of Product/Commodity
Possession of Product/Commodity
Unconditional basis
Risk Aversion
Assuring others
Risk sharing
From the Holly Quran
The need for insurance is shown in the
following verse of The Quran.
“ Those of you who die and leave widows
should bequeath for their widows a
year’s maintenance and residence”
(2.240)
From the Hadiths
By Anas-bin-Malik, One day Prophet
Muhammad(PBUH) notced a bedouin
leaving his Camel without tying it. He
asked the bedouin, “Why don’t you tie
down your camel”? The Bedouin
answered, “ I put my trust in Allah
(SWT)”. The Prophet (PBUH) then
said,” Tie your camel first, then put
your trust in Allah(SWT)” <Tirmidhi>
What wrong with practice ?
The contract between the insurer & the
insured is technically wrong from the
sharia perspective because of
Interest (Riba)
Gharar (Uncertainty))
Indirect Riba
The interest earned on interest based
investments
Gharar
Lexically it means uncertainty and
technically it means the uncertainty of
the counteract or the subject matter.
Wakala-Waqf Model
Mudarib’s Management
Wakalah Investmen Share of PTF’s Expense of Profit/Loss
Fee t Investment the
Income Income Company
Takaful
Operator
Investment by
the Company
P A R T I C I P A N T S’ T A K A F U L F U N D
(P.T.F.)
Participant
Different Models of Takaful
Pure Mudarabah Model : The participants
and operator enter into modarabah Contract.
Wakalah Model : An Agency Agreement is
made between participants and Operators on
the basis of Wakalah ( Agency agreements)
Wakalah Based on Waqf Model : The
participant's donate the fund and operator
charge an agency fee.
General Takaful Types
General Takaful – offers all kinds
of non-life risk coverage. It is
normally divided into following
classes:
Property Takaful
Marine Takaful
Motor Takaful
Miscellaneous Takaful
Types of Family Takaful
Term Life Takaful
Whole Life Takaful
Endowment Takaful
Universal Takaful
Marriage Plan
Education Plan
Takaful Operators
The number of Takaful operators worldwide is now
estimated at:
152 Takaful companies
9 Retakaful companies
In 39 Countries.
Average growth rate higher than conventional
insurance companies (around 25%).
Sitara Chemicals.