 David Yerushalmi charts one aspect of "the baneful work of...Western imams and their infidel advisers in business suits." "Shariah finance: The deadly Jihadist weapon with a dollar sign," by David Yerushalmi in the Washington Examiner, December 30: News of the recent financial meltdown of Dubai World -- a quasi-sovereign global concern that owns 77 percent of the international port manager DP World and the single largest real estate developer in Dubai known for its palm-tree shaped luxury residential developments -- raced from the business pages to the headlines of the front pages in a matter of days. Since the first reports on Thanksgiving, the Wall Street Journal and just about every other major media outlet reported extensively on the worldwide implications of this latest financial shock wave. What makes this story more than simply one of a massive real estate investment company gone bad is the double-edged sword so prevalent in the chase for oil-based Middle East wealth: Sovereign wealth funds and Shariah-compliant finance. Beginning in the 1970s with the Carter-era oil embargo and accelerating during the post-9/11 $100+ oil price spikes, Persian Gulf countries like Saudi Arabia and the United Arab Emirates' wealthiest city-state of Abu Dhabi have been awash in liquidity. And, these trillion-dollar cash reserves are controlled in every case by the respective royal families, typically in sovereign or quasi-sovereign wealth funds. Another phenomenon that followed the great oil rush of the post-9/11 era was the promotion and aggressive exportation of the Muslim Brotherhood doctrine of SCF. The concept of SCF was articulated by men like Sayyid Qutb of Egypt and Abul Ala Maududi of Pakistan in the mid-20th century, both of whom argued for a Jihad against Westernization, and the creation of Islamic polities that would ultimately join in a hegemonic worldwide caliphate.
The goal was that of establishing Shariah not merely as the supreme law of the land, but as the supreme law of the world. In the post-9/11 era, Western imams and their infidel advisers in business suits speaking the queen's English have understood that given the global Jihad's reliance on the dictates of Shariah to murder apostates and to terrorize the infidels into submission, SCF must be attired in a kind of progressive Western garb to attract the attention of the financial centers in London, Hong Kong and New York. So it was that SCF became known as "ethical investing" and Western and Muslim financiers began lecturing the world that the fraud and abuse of the financial markets, such as the Enron debacle and more recently the subprime securitization meltdown, were all driven by the desire for forbidden gain through interest and gambling. They told us that SCF was based not on forbidden interest and speculative paper assets, but profits through equity participation and sound investing in real assets. Dubai World, a company wholly owned by the Dubai sovereign has funded itself through debt to the tune of $60 billion. The Dubai debt now in default just happens to be SCF bonds, or "sukuk." These bonds pay interest just like their forbidden cousins in the Western markets, but the interest is put into a black box of Shariah-created fictions and "special purpose vehicles" to keep the forbidden interest off the books. What we now see as a real estate bubble collapse in Dubai is no different and no more or less ethical than any other financial failure. But, what makes this collapse so problematic is precisely what makes SCF and sovereign wealth funds so dangerous.... Read it all. With thanks to JihadWatch 
 Germany's first Islamic bank, a unit of Kuveyt Turk Bank of Turkey, is to open its doors in early 2010 in the southern city of Mannheim, an executive confirmed Tuesday. Under Islamic banking principles, interest on loans is forbidden and money cannot be lent to enterprises that flout Sharia law. Instead, borrowers must offer collateral and lenders receive a share of business profits. The unit will open by March at the latest in Mannheim, a factory city with a large ethnic Turkish population, Istanbul-based Kuveyt Turk Bank said. It would seek a full local banking licence for Germany later. An area newspaper, Rhein Neckar Zeitung, broke the news. The bank executive, who asked not to be named, said Kuveyt Turk Bank intended to establish further branches in Germany, then in other European nations. 9...) The Central Council of Muslims, an Islamic group, says its data show three quarters of them feel a strong bond to Islamic tradition and at least one fifth are interested in Islamic-approved investing. The council said it was only a matter of time before German banks also realized there was a domestic retail market for Islamic banking investments, which are usually certified by Islamic scholars who review how they work to ensure they conform with Sharia.
( more) Source: EarthTimes (English)
 DUBAI (Reuters) – Abu Dhabi stepped in to help fellow United Arab Emirates member Dubai with a $10 billion injection, of which $4.1 billion was allocated to troubled state-owned conglomerate Dubai World to pay immediate obligations, Dubai said on Monday. The move was the least expected of all options Dubai had on the table after requesting a standstill on $26 billion in Dubai World debt on November 25, alarming markets and shaking the image of the emirate as a regional business hub. "The government of Abu Dhabi has agreed to fund $10 billion to the Dubai Financial Support Fund that will be used to satisfy a series of upcoming obligations on Dubai World," the chairman of the Dubai Supreme Fiscal Committee said in a statement. "As a first action for the new fund, the government of Dubai has authorized $4.1 billion to be used to pay the sukuk obligations that are due today." The yen fell sharply against other currencies on the news, while the dollar shot up to 88.90 yen and the euro also jumped to 130.43 yen. S&P futures jumped to be up 0.7 percent, reversing early losses and pushing Treasury futures to session lows. Hong Kong's Hang Seng index shot up 300 points in the last minutes of morning trade to finish in positive territory, while other markets across Asia also pushed higher. Abu Dhabi is the largest member of the United Arab Emirates federation and a big oil exporter. "We are here today to reassure investors, financial and trade creditors, employees, and our citizens that our government will act at all times in accordance with market principles and internationally accepted business practices," Sheikh Ahmed bin Saaed al-Maktoum said in the statement. "Dubai is, and will continue to be, a strong and vibrant global financial center. Our best days are yet to come." Excess funds would be used to cater to Dubai Worlds needs up until the end of April 2010, the statement said. Dubai has announced a bankruptcy law that it said could be used in case Dubai World and creditors failed to reach an agreement on debt maturing in the future. "Dubai will announce a comprehensive reorganization law, a framework that is based upon internationally accepted standards for transparency and creditor protection," Sheikh Ahmed said. "This law will be available should Dubai World and its subsidiaries be unable to achieve an acceptable restructuring of its remaining obligations." Yahoo News
 Robin Shepherd's Robust Defense of Israel. Why should a secular non-Jew support the Jewish State of Israel? Foreign policy expert, Robin Shepherd convincingly answers this and related questions in his important new book, A State Beyond the Pale: Europe's Problem With Israel. Shepherd is a non-Jew whose defense of Israel led to his dismissal from a prominent British policy institute. But despite this set back he continues to be a vigorous defender of the Jewish State. Shepherd is an effective advocate because he is not a knee-jerk Zionist ideologue.
In Beyond the Pale he explores why European elites have turned from advocates for Israel to vociferous critics. His analysis is based on facts, not emotions, and he counters their bias with rational reasoning. Shepherd understands that Europe's turn against Israel is part of Europe's turn against itself.
Europe no longer believes in its own values so why should we expect it to come to the defense of Israel, the West's outpost in the Middle East? Europe is allowing foreign cultures to profoundly change its own societies. Europe refuses to defend its own values as it bends over backward to accommodate the most outrageous demands of its Muslim immigrants. If, for example, Europe had any strong beliefs in its Western values would it have made excuses for the violent reactions to the Mohammad cartoons?
Would Europe be creating systems of Sharia finance that compete with its established financial systems? Would Europe be ostracizing Israel (the latest being the labeling of West Bank products being sold in the UK) while tolerating the inhuman actions of Iran's dictatorial regime? Why does Europe side with terrorists who attack innocent Israeli civilians? Europe's identity crisis (and a tinge of anti-Semitism) coupled with its belief that international institutions like the United Nations can solve all the world's conflicts are major influences on Europe's policy toward Israel. For the Europeans, negotiations are central to relations among adversaries. They are not shaken from this belief by adversaries (like Iran and North Korea) who use negotiations to buy time not to come to mutually beneficial agreements. Shepherd's reasoning is impeccable and his writing is wonderful. This is not a dull intellectual tome. It is a pleasurable and an important read. Every friend of Israel will benefit for buying and reading A State Beyond The Pale. One Jerusalem
 THE Treasury plans to rewrite Britain’s tax rules to usher in a new wave of Sharia law for the country’s financial system. The one-line revelation is buried in the 212-page pre-Budget report. It is among a string of startling details which barely merit a mention in Alistair Darling’s controversial mini-Budget – prompting fresh accusations that Labour is “burying bad news”. The Government wants to tap into the fast-growing Sharia finance market, set to top £205billion a year, and turn London into the “global gateway for Islamic finance”. Many conventional financial products are not Sharia compliant because Muslim clerics view conventional loans, which involve interest payments, as sinful. The UK Government was one of the first Western countries to issue a state-backed sukuk, an Islamic bond. It now wants to rewrite tax laws to stop Muslim businessmen being unfairly taxed when they try to raise money on their companies. Conventional loans allow them to take equity out of their business, using the property as collateral, but to be Sharia compliant a Muslim “sells” the business to the bank and then rents it back. That leaves the businessman facing a bill for capital gains tax and the Treasury wants to level the tax playing field. Mohammed Amin, head of Islamic finance at PricewaterhouseCoopers, said: “The UK has become the leading Western country in Islamic finance by taking a series of measures to ensure that Islamic finance is taxed no worse and no better than conventional finance. “The pre-Budget report continues this progress by including measures to equalise the tax treatment of property refinancing transactions.” Ministers are also considering issuing Government bonds to Islamic banks to help them comply with new financial regulations. Sharia-compliant mortgages, car insurance and even baby bonds are available for Muslims wanting to avoid “riba” – interest payments. Supporters say the Government is wisely getting in on the ground floor of a market which could net the City billions in the future. Critics warn Labour is rushing into a financial system it does not fully understand and question how far laws should be rewritten to accommodate Islamic practices.
The Financial Services Authority says its policy is one of “no obstacles, no special favours” for Islamic finance. Last week’s pre-Budget report includes the revelation that bankers will still net £4.5billion in bonuses this year despite the so-called super-tax on the City. Ministers also used the cover of the report to admit the Homeowner Mortgage Support Scheme, permitting deferment of interest payments, has been an abject failure. Shadow Housing Minister Grant Shapps said: “It’s gone the way of many other Brown initiatives. We’ve stumped up for the expensive consultancy bills but the actual scheme has failed to help more than a handful of hard-pressed families.” A Communities and Local Government spokeswoman said: “The Government has widely publicised that fortunately only 15 families have so far needed the backstop help of the Homeowner Mortgage Support Scheme.” Sunday Express H/T: WeaselZippers
 DUBAI World says it is in talks with banks to restructure about $US26 billion ($28bn) in debt, easing concerns that the government-owned investment arm will default on all of its $US60 billion in total liabilities. The restructuring will comprise several phases, and Dubai World says it is considering alternatives to its debt obligations. About $US6bn of the restructuring is related to its property unit, Nakheel World. Dubai World, a conglomerate spanning real estate, ports and leisure interests, was seeking a debt standstill, a move that weighed heavily on investor confidence worldwide. "Following a detailed review of the group's liquidity and capital structure, Dubai World has concluded that it should immediately consider alternatives in respect of the debt obligations of certain entities within the group," it said. "The proposed restructuring process will only relate to Dubai World and certain of its subsidiaries, including Nakheel World and Limitless World." Global jitters about a potential default caused stocks to plunge late last week on concerns about a potential new phase of the financial crisis. The announcement that banks are in talks about restructuring triggered a rally in US markets just ahead of the close. Investors were rattled earlier in the session after the Dubai government said it would not automatically rescue the investment vehicle. Moelis & Co has been appointed to advise on the restructuring, and Rothschild will remain a financial adviser. Dubai World says the restructuring will relate to only some of its subsidiaries, including Nakheel and Limitless World. The process will not include Infinity World Holding, Istithmar World, and Ports & Free Zone World, all of which are on "a stable financial footing," according to Dubai World. Separately, law firm Ashurst says it is representing a group of creditors, who account for about a quarter of the nominal value of a $US3.5bn Islamic bond due next month, issued by Dubai World's Nakheel property unit. The Australian
 Rupert Wright and Frank Kane Dubai World could still meet the December 14 deadline on the US$4 billion (Dh14.69bn) payment of a sukuk from Nakheel under one option being considered by advisers to the conglomerate.
Repayment on schedule is one of four alternatives being considered by Dubai World, which announced on Wednesday it would seek a freeze on billions of dollars in debt repayments to bondholders and creditors. The options are still being pondered by Aidan Birkett of Deloitte, the new chief restructuring officer of Dubai World. He was appointed to oversee its reorganisation, along with the investment bank Rothschild and the US corporate specialists AlixPartners.
If Dubai World pays back the sukuk, it would solve a problem for the company and its bondholders, and leave open the option of rescheduling bank debt and other liabilities, including bills owed to international contractors. Other options being considered include a scheme to offer bondholders 80 per cent redemption of the value of their holdings, with a similar offer made to bankers.
Alternatively, Dubai World may move forward with the plan to seek a general “debt holiday” under the terms of last week’s standstill proposal, by which payments would be frozen until May 30 next year with a view to negotiating a rescheduling of all its debts. In the most drastic scenario, Dubai World might embark on a general liquidation of assets in response to legal action by creditors. But this is thought to be a remote possibility, as it is likely to impair the value of Dubai World assets, leaving everyone worse off.
Legally speaking, creditors who lent to Dubai World during the boom years were fully aware that they were lending to government-related entities (GRE) and that the bonds were not guaranteed by the sovereign, advisers to Dubai believe. “The Dubai Government has no legal obligations in respect of GRE indebtedness,” according to the prospectus of Dubai Government bonds sold earlier this year. More at the National
 US stocks fell in a thinly traded and shortened session overnight, as fears over the potential impact of debt problems at Dubai World sent investors fleeing a broad range of stocks including Caterpillar, Bank of America and Alcoa. The Dow Jones Industrial Average closed down 154.48 points, or 1.48%, at 10309.92, retreating from the 13-month closing high it reached Wednesday and marking its biggest one-day drop since Oct. 30. For the week, the Dow ended down 0.08%, snapping a three-week winning streak and marking its worst week since that ending Oct. 30. But the measure is still up 6.15% for the month. Bank of America was the Dow's weakest component Friday, closing down 48 cents, or 3%, at 15.47, reflecting declines across the financial sector amid uncertainty over how much exposure U.S. banks could have to Dubai World. Caterpillar fell 1.59, or 2.7%, to 57.45. Alcoa tumbled 34 cents, or 2.6%, to 12.66, hurt by sharp declines across metals futures due to the worries over Dubai World. Crude-oil futures also fell, hurting energy companies including Exxon Mobil, which slid 1.60, or 2.1%, to 74.87. Still, a number of money managers considered Friday's decline an overreaction, noting that the U.S. doesn't appear to have a great deal of exposure to Dubai World. In addition, they noted that although the Dubai World news in itself was unexpected, the troubles in Dubai don't come as a surprise. "The fact that the Dubai real estate market right now is struggling is really no secret worldwide," said Jay Leupp, senior portfolio manager of the Grubb & Ellis AGA Realty funds. "You have a lot of empty office space over there and that's a well-known fact." Leupp said he sees Friday's declines as presenting good buying opportunities. "This is a good day to be looking for bargains," he said. "You would never want to ignore [the Dubai World news], but we don't view it as a material event to our funds or the U.S. equity market," he said. Nevertheless, the Nasdaq Composite closed down 37.61, or 1.73%, at 2138.44, while the Standard & Poor's 500 dropped 19.14, or 1.72%, to 1091.49. The financial sector led Friday's broad decline in stocks. Among the hardest-hit in the financial sector were American depositary shares of European banks. Lloyds dropped 49 cents, or 7.9%, to 5.71, while Royal Bank of Scotland fell 55 cents, or 4.6%, to 11.48, and HSBC Holdings slid 3.61, or 5.8%, to 58.46. More at the Australian
 NAKHEEL, Dubai's leading property company and owner of the Palm development, offshore of the Gulf city, is in talks with Dubai World, its heavily indebted parent, over the repayment of a $US3.5 billion ($3.76 billion) Islamic bond. Dubai World, which also owns DP World, the world's third biggest port operator, is guarantor of the Nakheel bond, which is being watched closely by Islamic investors as a bellwether for the shaky finances of the city-state and the health of Islamic finance, generally.
Dubai World is the investment holding company of a clutch of emirate-related businesses that have huge debts. Dubai has to refinance $US50 billion of maturing borrowings by 2013. Dubai World is believed to owe $US60 billion. In an effort to keep the State's business ventures afloat, the Dubai Government this year raised an emergency $US10billion loan from the central bank of the United Arab Emirates. Talks over Nakheel's sukuk, an Islamic financial bond, which matures next month, are taking place as Dubai's ruler castigates the Emirate's critics. They point to strained relations with Abu Dhabi, its richer, but more conservative, neighbour, which has been forced to step in, using its vast oil wealth to guarantee Dubai's huge property debts. Dubai's bubble economy of property and hotels came a cropper in last year's financial crash. Speculators and migrant workers fled the emirate, many abandoning cars, flats and credit card debts in a rush to escape punitive bankruptcy laws. In November last year, the United Arab Emirates Government, backed by the oil wealth of Abu Dhabi, stepped into the breach, promising to stand behind Dubai's borrowings that exceed the state's GDP.
In the wake of the financial crash, concern is now mounting over the region's trillion-dollar market in Islamic bonds. Troubled investments and a series of defaults, including Saad Group and Investment Dar, a Kuwaiti Islamic investment fund, in April, have focused attention on the obscure and untested legal structure of Islamic bonds. The Gulf's oil, property and finance boom helped to launch the market in sukuk, a form of bond that complies with Sharia (Islamic law) strictures that prohibit the payment of interest on money. Islamic financial institutions have devised a variety of structures using techniques, such as sale-and-leaseback, to get round the prohibition.
Typically, Islamic banking seeks to structure interest as a profit-sharing venture but, according to Neale Downes, a partner at Trowers & Hamlin, the law firm, in Bahrain, there is confusion over the legal protection offered to holders of sukuk.
In some cases where sukuk issuers have become insolvent, Mr Downes said that "investors have found themselves unexpectedly competing with the general body of creditors, rather than simply enforcing against or taking possession of assets supporting their sukuk". The outcome of negotiations over the Nakheel sukuk will be key to the future of the Islamic bond market, which has been rocked by a series of defaults. Investment Dar, which owns half of Aston Martin, the British luxury car company, failed to make an interest payment in April on a $US100million sukuk issue. Investment Dar's default followed one at Global Investment House, another Kuwaiti investor. In June, $US650million of Islamic bonds issued by Saad Group, the investment company controlled by Maan al-Sanea, which owns a stake in HSBC, were downgraded to default status. Source: The Australian
 Hamid Karzai, the Afghan president, has appealed for closer trade ties with fellow Muslim countries to help Afghanistan break its cycle of conflict. Karzai met representatives of eight governments, including Abdullah Gul, the Turkish president and Mahmoud Ahmadinejad, the Iranian president, on the sidelines of an economic summit held by the Organisation of the Islamic Conference (OIC) in Istanbul. Most trade with landlocked Afghanistan passes through the conflict-ridden border with Pakistan and through Iran. Karzai said: "Afghanistan's interest is primarily in having close brotherly relations with its neighbours, freedom of trade and transit, and an effective environment of co-operation." A Turkish foreign ministry official said there would be a follow-up conference on Afghanistan in the near future, which Turkey had offered to host.
Turkey has troops serving with Nato forces in Afghanistan and Gul said Afghanistan would need foreign military and economic support until Afghans were trained and equipped to look after their own security. "As stakeholders in the region, we cannot expect that the United States and other Western powers solve the problems by themselves. We should shoulder our responsibilities," Gul said. The widespread fraud reported during the Afghan election and the refusal of Karzai's chief rival to contest a run-off have damaged Karzai's credibility at the start of his second term. Karzai was seen as a guarantor of Western aid when he was first elected in 2004, but his relations with the US and other Western allies have become strained by allegations of corruption and poor governance. His popularity has dwindled as many ordinary Afghans believe they have not benefited from billions of dollars in aid. Also speaking at the summit, Ahmadinejad said the global economic order needs "radical change", calling for Islamic principles to replace capitalist values. "The present economic crisis is due to the capitalist system. The world needs radical change," the Iranian president said. Describing interest rates as the "biggest and most fundamental problem of the capitalist system," Ahmadinejad said economic programmes based on Islamic principles offered the way out. "The world is looking for fairer values that we cannot find in the capitalist system. The world system based on usury has collapsed, proving its failure," he said. "We have to draw up programmes based on Islamic economic thinkers. That way we can guide people to happiness, security, justice and honesty. This is the most correct way to salvation." The president urged member countries of the OIC to agree to carrying out trade in their national currencies and setting up a common market. "By announcing the type of money to be used between member countries, we will be saved from the adverse effects of global capitalism," he said. Source: Al Jazeera (English)
 LONDON, England With irresponsible banking practices taking the blame for bringing about the global economic crisis, there has been a surge of interest in Islamic finance. Islamic finance is estimated to be worth $700 billion and has been growing by 15 to 20 percent per year. Now, a slew of academic courses are springing up to meet the demand of those wanting to break into an expanding market. According to ratings agency Moody's, the global Islamic finance sector is worth $700 billion and has the potential to be worth $4 trillion.
What's more, the ethical principles underpinning Islamic finance are seen by some as offering a more sustainable alternative to profit-oriented conventional banking. The result is that academic institutions are lining up to offer formal training in the area.
"There is a huge demand for Islamic finance courses now, so large that it's difficult to cope with," Professor Habib Ahmed, Sharjarh chair in the school of government and international affairs at Durham University, England, told CNN. Durham will launch a Masters degree in Islamic finance from October, becoming one of a number of European institutions to offer Islamic finance programs. "Islamic finance has been growing by 15 to 20 percent per year for some time and there is a lot of interest at the moment. People are looking for alternatives after the economic crisis." "Islamic economists believe that if the principles of Islamic finance were followed the crisis wouldn't have happed. We are seeing a lot of non-Muslim countries, including the UK, France, Japan, Hong Kong and Singapore encouraging Islamic finance," he said. There are many differences between Islamic and conventional banking practices. One fundamental difference is that Islamic banks do not charge interest. Rather than borrowers and lenders, the system is based on buyers and sellers. "Conventional banking is biased to the seller. Islamic finance is trying to level the ethics between the two parties," Aly Khorshid, an Islamic finance scholar who writes for Islamic Banking and Finance magazine, told CNN. "People think the Islamic system is based on faith, but it's based on justice. Read more here ... Source: CNN
By Arthur Martin
Many Lloyds TSB customers are being hit with charges of up to £200 a month if they go into the red - while Muslims who use the bank are only being charged £15. The part-nationalised bank has been accused of religious discrimination over the disparity between overdraft charges on its standard current account and its Islamic account. The Islamic account was set up by the high street bank to attract Muslim customers by allowing them to keep faithful to their religion. Sharia law does not permit the payment of interest so the 'typical' Islamic account at Lloyds TSB has been set up without an overdraft facility. If a Muslim customer who has insufficient funds in the account tries to make a payment, it is blocked and a 'return item fee' is charged. However, on some Islamic accounts such a payment is authorised and an 'unplanned overdraft fee' of £15 is then levied. The bank says this is a management fee, not a payment of interest, so does not contradict Sharia law. Meanwhile, customers with standard current accounts who go into the red by at least £100 without authorisation are hit with an 'unplanned overdraft fee' of £20 a day for a maximum of ten days. This could mean a customer has to pay £200 in one month. The Islamic account is available to all customers at Lloyds TSB. In theory, anyone who does not need a permanent overdraft facility could switch to this account to avoid being hit by interest charges for going into the red. The disparity between the two accounts emerged after the bank sent its customers a booklet this month explaining its charges. Read more here ... Source: Mail Online
H/T WomenAgainstSharia
 Earlier today, we posted a link to an article which mentioned that Kuwait Islamic Bank had entered into a joint venture with Colorado-based real estate company UDR: http://www.shariahfinancewatch.org/blog/2009/08/17/shariah-compliant-sovereign-wealth-funds-resume-investing-in-west/ We were curious as to what, if any, restrictions were to be imposed on the real estate properties in which Kuwait Islamic Bank invested here in the United States, so we made an inquiry via UDR’s “contact us” form on the company’s web site. The company was quick to reply as, within minutes, we received a phone call from Dave Messenger, CFO of UDR. I asked Mr. Messenger two questions: 1. What, if any, special restrictions or qualifications relating to Shariah were required in the deal with Kuwait Islamic Bank? 2. Are zakat payments to be made as part of this venture? Mr. Messenger did not attempt to address question number 2, but referred me to Kuwait Finance House to get an answer to that question. Mr. Messenger was also quite insistent that UDR’s agreement was in fact with Kuwait Finance House and not with Kuwait Islamic Bank. We regard this as a distinction without a difference, since Kuwait Finance House is an arm of Kuwait Islamic Bank. In all the media being devoted to this new deal, the entity identified is in fact Kuwait Islamic Bank. Mr. Messenger was able to provide much more information in response to question number 1. His answer was troubling, right from the outset. First of all, he mispronounced “shariah.” Shariah is pronounced shu-ree-uh. Messenger pronounced it shu-rye-uh. It does not inspire a great deal of confidence in terms of due diligence when the CFO of the American entity which entered into the agreement with an Islamic bank cannot even correctly pronounce the name of the underlying doctrine which governs their joint venture partner. Messenger was not bashful at all about the issue of shariah-compliance. He declared that the entire agreement was written to be shariah-compliant to make sure that the joint venture properties fit in with their partners’ religion. When asked about specific provisions which he knew about to establish and maintain shariah compliance, Messenger named two: “cinematography and food served on the property.” I asked what he meant by cinematography and he explained that some of their properties include movie theaters. Evidently, Kuwait Finance House/Kuwait Islamic Bank wants to make sure that no offensive movies are shown on properties in which they invest. In terms of “food served on property” Messenger explained that no pork would be served on the property at functions put on by UDR. I asked him if any of the properties leased to sandwich shops or delis or such. He said that 8 of their 160 properties did have such tenants. Again, evidently, those businesses would be prohibited from serving pork to prevent any conflict with shariah or the religion of UDR’s venture partners. Messenger explained that potential conflicts with shariah were addressed up front with the JV partners and would continue to be addressed up front to prevent conflicts. What has clearly happened here is that Kuwait Islamic Bank has been able to impose shariah here in the United States by using its financial leverage over UDR. This is the essence of Shariah-Compliant Finance. Source: Sharia Finance Watch
By Alyssa A. Lappen When a pro-terrorist organization announces its intention to launch a financial jihad against the West, it is well worth learning their methods. More significant than the promotion of a religious pseudo-financial scheme is the possibility their largely unregulated practices could release a new wave of toxic assets into the wider economy and trigger a series of small-scale Enrons. The Muslim organization Hizb Ut Tahrir capitalizes on Muslim Brotherhood founder Hassan al-Banna's 20th century derivative, encouraging followers to build a parallel financial structure. Al-Banna envisioned the resultant Shari'a-compliant finance as a “back door” into Western financial markets and institutions through which to supplant liberty and prosperity with Islam. Muslim clerics including MB spiritual leader Yusuf al-Qaradawi promote Shari'a finance as generally safer than Western investments, a diversification method to steady personal assets -- and a stable economic system that should replace capitalism. Call it “financial replacement theology,” if you wish. In July, Hizb Ut Tahrir plans to launch its U.S. arm with a huge Chicago “Khalifah conference” heralding the coming Caliphate and global Islamic supremacism. After 9/11, Germany and Sweden outlawed Hizb Ut Tahrir. In July 2005, Pakistan's then-president Pervez Musharaf warned Britain not to tolerate its continued U.K. presence. But in the U.S., Hizb Ut Tahrir has proudly announced intentions to replace capitalism with Islam. Read more ...Source: FPM
As Shariah-compliant finance continues apace, professionals and policy specialists continue to ignore a fundamental danger: the lack of disclosure of all the material facts relevant to a post-9/11 investor. This presentation is intended as an in-depth analysis of this critical failure in the current regulatory framework. The Law Offices of David Yerushalmi, P.C., has prepared this online presentation to assist legal professionals, policy specialists, SEC regulators, Treasury officials, and investors to understand that the Black Box of Shariah compliant finance (SCF) presents a real and present danger not just to our Western financial institutions built on disclosure and transparency, but to our very system of governance and our way of life. This presentation is entitled: Shariah-compliant Finance: Benign? or Belligerent? It is timely and important for two reasons: first, the interest and investment in Shariah-compliant finance in the West continues to grow, and second, the fragile state of our financial system of late is due to the catastrophic impact of toxic financial products designed as highly sophisticated black box solutions to undisclosed market risk. The same black box phenomenon now permeates Shariah-compliant finance. Unfortunately, heretofore, none of the professional literature has examined the risks and problems associated with Shariah-compliant finance in any analytical or critical fashion. Instead, it appears more akin to a cheerleader chorus line singing the praises of this year’s new and improved profit center, much as we heard about sub-prime mortgage securitizations and credit default swaps in their heyday. This presentation is an effort to pry open this new and emerging Black Box This presentation is 60 minutes in length and has been organized to be accompanied by source materials available as downloadable PDF files linked below. Read more ...Source: Law Offices of David YerushalmiH/T: Atlas
This week, CNN and Money magazine ran an article focusing on the role of faith in the personal finances of certain families. In the article which they published which deals with a Muslim family, we have discovered a whole slew of questions with regard to matters outside of personal finance which, not surprisingly, the lapdogs at CNN and Money totally overlooked, or perhaps ignored. The article is about the Saroya family from Pakistan who have settled in Minneapolis and starts off with Kashif Saroya facing a dilemma since the Qu’ran forbids “paying or receiving riba, usually understood as interest.” This is an interesting point (no pun intended) because there are actually Muslim scholars who dispute this very point. They claim that the prohibition of riba actually refers to usury and not all interest. It has only been since the rise of Jihadists and the promotion of Shariah that this prohibition has been interpreted widely as forbidding all interest. So, right from the start, the article errs, or at least ignores the fact that there is indeed controversy over this fundamental matter. Once again, our media lapdogs have neglected to conduct proper research and demonstrate a lack of curiosity. Read more ...Source: Shariah Finance WatchH/T: Christopher Holton
 By Simon Roughneen SINGAPORE | Backers of Shariah-compliant finance see an opportunity for expansion amid the global economic downturn, and some Western banks are welcoming this growing source of new business. "Islamic bankers should do some missionary work in the Western world to promote the concept of Shariah banking, for which many in the West are more than ready now," Indonesian President Susilo Bambang Yudhoyono said at the World Islamic Economic Forum last month in Jakarta. Such statements have given rise to fears that Shariah finance is a stalking horse for hidden political or religious aims. Shariah finance is an extension of Islamic law, pushing a faith-based alternative to Western banking. Key Islamists who advise Shariah financial houses have called for full Shariah law to be adopted in Western countries and, in some cases, have made statements supporting terrorist groups. Shariah finance means institutions and norms that fit with Islamic law. Fully compliant Islamic financial institutions are prohibited from interest payments and require transactions to be backed by tangible assets. Read more ...Source: Washington TimesH/T: Jihad Watch
By Quin Hillyer It was treated as big news on Tuesday when Manhattan District Attorney Robert Morgenthau indicted Chinese executive Li Fang Wei and his company for using New York banks to finance the sale of tons of restricted, weapons-related material to Iran. But the truth is that some of these same banks and other major financial institutions, including those bailed out by American taxpayers, for years have deliberately been supporting "Shariah-compliant" financial policies that almost assuredly end up being used to support illicit Middle Eastern, terrorist interests with close ties to Iran. That's all the more reason why more and more American states are wisely divesting from companies that do business in Iran, Sudan, and perhaps Syria and other nations or entities that support terrorism. To date, 13 states, either legislatively or administratively, have divested pension funds, investment funds, or other holdings from businesses dealing with Iran or other terror-related nations. Any day now -- perhaps even today -- Indiana will become the 14th, with its "divest terror" measure already having passed both the House and a Senate committee unanimously. At least five other states are considering similar moves. This nationwide effort is being spearheaded by "Divest Terror," a project of the Center for Security Policy. Also under CSP auspices is "Shariah Finance Watch," which like "Divest Terror" is led by New Orleans native Christopher Holton, formerly head of the Blanchard and Company Economic Research Unit. Read more ...Source: The American SpectatorH/T: Shariah Finance Watch
 These photos of Barack Obama, with his friend and benefactor Salman Ibrahim, were taken in 2004 in the offices of the infamous Sunrise Equities, Chicago. ( Click photos to enlarge them) Ibrahim is the former CEO of Sunrise and is now wanted by the FBI in connection with the Sunrise Equities scam of late 2008 in Chicago. Sunrise Equities, a "shariah complaint" investment firm, shut down in August, 2008 when CEO Salman Ibrahim and other Sunrise officers vanished with approximately $80 million of investor money. In 2004, while Obama was running for US Senate in Illinois, Ibrahim and Sunrise Equities donated some of the own office space to Obama's campaign. Obama used the space as a fundraising hub.  In the top photo, Obama shakes hands with Chicago Alderman Bernard Stone (50th Ward), just prior to a ribbon cutting ceremony for donated office space. In the bottom photo we see the ribbon cutting. The money seems to have gone with them. The Illinois Secretary of State and the FBI are investigating the scandal. More than 100 investors, mostly Muslim, learned in August that they had lost all of their savings to the Sunrise Equities fraud. Many were completely wiped out financially. Sunrise Equities targeted investors who were mostly Pakistani Muslim immigrants. Many the victims had to take out home equity loans to make ends meet.
 |
|
|
Copyright Muslims Against Sharia 2008. All rights reserved.
E-mail: info AT ReformIslam.org
|
|
|
David Yerushalmi charts one aspect of "the baneful work of...Western imams and their infidel advisers in business suits."
Posts
