Islamic Finance

Made Relevant To You

Islamic Banking and Finance in Singapore or rather Asia has taken the spotlight in the recent past. The unprecedented global financial crisis has created enough compelling reasons for the conventional financial markets looking to raise new liquidity or capital in a challenging environment, from the Middle-East and Gulf Region. Muslim investors are also actively looking for Shari’ah (also spelt as Sharia, Shariah or Syariah) principled investments. This climate presents an immense opportunity for the proponents of Islamic financial markets to help the conventional financial market players understand and appreciate the merits, benefits and salient features of the Shari’ah compliant products.

But What or Why Islamic Finance or Islamic Banking?
Apart from reasons stated above, there are only a small sector such as conventional financial products, alcoholic and gaming sectors that are prohibited in Islamic Finance. Short-selling or convoluted structured products that are ambigous or unfair treatement of any parties to the contract are also not allowed.

As global markets open up many Central Banks are already tweaking their financial regulation to facilitate and accomodate Islamic Finance, the climate is very conducive for conventional markets to participate and benefit from the growing sector.

If you intend to structure a Shari’ah compliant equity funds, bond like structure (known as Sukuk or Sukuks), structured products or even hedge funds, you can consider Islamic Finance as an option to offer such products and benefit from the best of both worlds. Is is also a common misnomer that one needs to know the Arabic language for you to benefit from Islamic Finance.