» News Gathering for Islamic Finance

Istanbul University Is Opening a Department for Granting PHD in Islamic Economy

Professor Mohammed Bolot, rector of Istanbul Sabahattin Zaim Turkish University, declared that they are about to open a Department for PHD in Islamic Economy. “The university signed on all protocols required with the Supreme Council of Universities during the general assembly held by the council last Friday.”, said Mr Bolot in the “first Islamic Financial and Economic Conference” organized by Istanbul University in cooperation with the union of participated banks, Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC), and Istanbul Stock Exchange.

In addition, Mr Bolot stated that the global economy has been suffering from several crises since 2008. Hence, Islamic Economy represents the real solution of financial crises which destroy many countries, and clarified that the Turkish universities have been so late in moving to this field.

The University Rector stated: “The Islamic Economy became a major field for Turkey, especially during the changes and the Turkish Government insistence on making Istanbul a large global financial centre. So,we desire to present an academic support to this field through opening the Department of Islamic Economy in the university.”

On his part, Mr Mohammed Asutay, the director of the Centre for Islamic Economics and Finance of the British Durham University, stated that “England is seeking to be a prominent center in the field of Islamic Economy and working on attracting Gulf funds to the country.”

It is worth noting that this new specialty, which is added to enhance the total diversified specialties of Istanbul University, would represent an attraction to the foreign students especially from the Arab Islamic countries who desire to follow it in order to cope with the current global wave which is characterized by the return of the major economic powers to be inspired by the concepts and principles of Islamic Economy.

Istanbul University is the oldest, hugest and grandest university in Turkey. It was established in 1953 with Istanbul conquer by the Ottoman Army under the leadership of Sultan Mohammed II. The university graduates were always engaged in principal positions in the country, the Turkish educational institutions, Economy, and the governmental sector. It has a variety of faculties spread through many areas in Istanbul, despite that its campus is located in Beyazıt Square. It is noted that Abdullah Gul, the Turkish president, and Orhan Pamuk, the author that received Nobel Prize were ones of the prominent graduates of the university.

Quoted from Al-Arab London Newspaper- dated 24/6/2014 A.D.

The Jurisprudence seminar Organized by Abu Dhabi Islamic Bank (ADIB) During October 2014

Abu Dhabi Islamic Bank (ADIB) has organized this seminar to discuss the state of Islamic Finance Industry and promote its competition in the Banking Sector in general.

The seminar was sponsored by the Central Bank of the UAE. It gathered a large number of workers and researchers specialized in Islamic Finance.

The participants most importantly called for unifying the standards in the Islamic Banking Sector so that the Islamic banks could be a powerful competitor with the traditional banks. Thus, It would be easy for the Islamic banks to acquire a larger quota in the Banking Services Sector.

The participated experts recommended for forming a specialized working team with the contribution of the active parties in Islamic Finance Industry to evaluate the state and propose the solutions required for development on the regional and global level.

The most Developed Islamic Finance Market in the Region During 2014

Mr Mostafa Adel, the director of Research, Development and Leadership, stated to the Islamic Finance Development Index (IFDI) issued from Thomson Reuters that Bahrain is the most developed Islamic Finance market in the region and the second one after Malaysia on the global level.

Mr Adel added that Bahrain has one of the strongest, environment-friendly Islamic Finance systems in the world due to its powerful performance in all fields included in the Islamic Finance Development Index (IFDI). In a more specific way, Bahrain was on the top of the global performance in the field of governance, had the second position in relation to knowledge and social liabilities of corporations, and the third in awareness.

This environment-friendly system enhanced Bahrain in building Islamic Finance assets whose value exceeds 60 milliard dollars and issuing Sukuk with total value of more than four milliard dollars. All these factors contribute to enhance Bahrain's entitlement as one of the largest Islamic Finance centers in the world.

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Issues a New Accounting Standard about Investment Accounts

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) issued a new accounting standard: financial accounting standard No. 27- Investment Accounts”. This new standard replaces two previous accounting standards related to investment accounts: financial accounting standard No. 5 (Disclosure of Dividend Fundamentals among Equity Owners and Investment Accounts Owners) and financial accounting standard No. 6 (Rights of Investment Accounts Owners and the Like).

This standard applies to ultimate and restricted investment accounts managed by Islamic financial corporations either were within or out the balance sheet. It includes investment accounts managed on the basis of Muadarabah contract either they represent the rights of investment accounts owners or short-term deposits (daily-weekly-monthly) by other financial institutions (Interbank Deposits) for the purpose of liquidity management. This standard does not apply to the tools of private equity and Wakala contracts, Reverse Murabaha, Musharaka, and Sukuk.

Dr Hamed Hassan Merah, the general secretary of the AAOIFI has declared that the new standard was issued after extended deliberations with the International Islamic Financial Industry. Thus, the issuance passed through various technical stages that reach thirteen stages since from ordering a study to issuing and printing the standard in its final form. One of the most important stages is the listening session that was held to take the opinions of experts and operators in the Islamic Financial Industry. He added: “The authority is currently working on revising a number of existing standards and developing new standards to provide a bigger support to this industry.”

The new standard will be published in the coming edition of the standards that the authority intends to issue during the first quarter of