Islamic banking gains ground in Pakistan: Dawn

LAHORE: Islamic banking is fast gaining ground in Pakistan because it is risk free as compared to conventional modes of banking.

This was stated by chief executive officer AlBaraka Islamic Bank Mohamed Isa Al Mutaweh while talking to Lahore Chamber of Commerce and Industry president Mian Muzaffar Ali here on Thursday.

He said that Islamic financing products such as Murabaha, Ijara, Musharaka and Islamic Export Refinance were catering to a diverse cross-section of the economy, including the corporate, SMEs and consumer sectors.

Speaking on the occasion the LCCI president said that more than two hundred and fifty Islamic financial institutions were operating worldwide from China to US. Western banks through their Islamic units in UK Germany, Switzerland, and Luxembourg were also practicing Islamic banking.

For more on this article, please click on the following link: Islamic banking gains ground in Pakistan: Dawn

'Pak-Qatar' to provide Takaful to Meezan customers: The Nation

KARACHI - Meezan Bank Ltd and Pak-Qatar Family Takaful Ltd have signed an agreement whereby all customers of Meezan Bank’s Housing Finance (Easy Home) will be provided with Shari’ah-Compliant Life Takaful Coverage. Irfan Siddiqui President and CEO Meezan Bank Ltd and P. Ahmed CEO Pak-Qatar Family Takaful Ltd. signed the Takaful (Islamic insurance) Agreement at a ceremony on Tuesday.
According to the agreement, all housing finance customers of Meezan Bank will be provided comprehensive Takaful that will cover not only life but also accidental and natural disability. Moreover, the premium for the first year will be paid by the bank which is to be adjusted later.
The insurance penetration in Pakistan is only 0.3 per cent of its total GDP, which means just 10 to 15pc families are opting out this facility, while in developing countries 60 to 70pc families go for this.
Speaking on the occasion, President and CEO Meezan Bank Ltd. Irfan Siddiqui said that Meezan Bank has always focused on coming up with Halal Riba-free products and innovative facilities for its customers and the Takaful arrangement with PQFTL is another step in the direction of making Islamic Banking the banking of first choice.

For more on this article, please click on the following link: 'Pak-Qatar' to provide Takaful to Meezan customers: The Nation

Unicorn Bank to make further investment of $12.9m in Dawood Islamic Bank: Online News

KARACHI: Dawood Islamic Bank Limited has received Rs. 1 billion (US$ 12.9 Million) investment from Unicorn Investment Bank Limited, based in Bahrain , this was stated in a statement issued from Bank’s headoffice in Karachi on Tuesday.

Unicorn already had a 22.2% equity stake in Dawood Islamic Bank prior to the current investment. With the new investment the equity of Unicorn Investment Bank, in Dawood Islamic Bank has increased to 37% percent

Aamir Khan Managing Director and Head Global Private Equity of Unicorn Investment Bank and a founder Director of Dawood Islamic Bank said that the decision to invest in Dawood Islamic Bank, at a time when the global confidence in financial institutions is at its lowest ebb in Pakistan, is based on excellent opportunities that are available in the Islamic banking sector of Pakistan. The stake in Dawood Islamic Bank provides Unicorn with access to the Pakistan market with its 160 million inhabitants, 97 percent of whom are Muslims, he added.

The investment by Unicorn Investment Bank, would further boost the ability of the Dawood Islamic Bank to provide support to trade and industry through its various Riba free banking products Said Rafique Dawood, Chairman Dawood Islamic Bank.

For more on this article, please click on the following link: Unicorn Bank to make further investment of $12.9m in Dawood Islamic Bank: Online News

Progress of Islamic banking highlighted: The News

KARACHI: State Bank of Pakistan in collaboration with the Islamic Financial Services Board (IFSB) has organised a three-day workshop (from Feb 23 to Feb 25, 2009), as a part of its capacity building initiative for the Islamic banking industry.

Speaking at the inaugural session of the workshop held at the Learning Resource Centre of SBP here on Monday, Khawla Al-Nobani, Assistant Secretary General of the IFSB, said that she felt encouraged at the healthy growth of the Islamic banking industry of Pakistan.

She appreciated SBP’s role in providing an enabling environment to the industry through the provision of suitable regulatory and supervisory framework. She expressed confidence that the workshop would prove to be very beneficial for the industry players and the supervisory agency in adoption/adaptation of the standards in the country, said an SBP release here.

While inaugurating the workshop, Pervez Said, Director Islamic Banking Department of the State Bank, appreciated the significant role that the IFSB is playing as an international standard setting body thereby helping the Islamic financial services industry to grow worldwide on a sound and stable footing.

He also praised IFSB for the hard work being put in for preparing various standards wherein best international practices are followed through an exhaustive process involving thorough research, discussions, public hearings, workshops/seminars etc. In Pakistan, he pointed out, SBP’s five-year strategy for the development of Islamic banking industry, envisaged rolling out of various international prudential standards developed by IFSB as an important pillar.

SBP has accordingly seized the opportunity by capitalising on IFSB’s expertise through holding such workshops at this juncture, he added. Participants from the local Islamic banking industry and various regulatory and supervisory departments of the State Bank are attending the workshop which is focusing on issues like risk management, corporate governance and supervisory review process.

For more on this article, please click on the following link: Progress of Islamic banking highlighted: The News