CAIRO – Realizing its importance and potentials, the international financial services information company Thompson Reuters is planning to launch a news portal covering information about the Islamic financial industry in early 2010.
"At present there is no global connectivity for the industry and this platform will be able to connect up players from across the globe," Rushdi Siddiqui, Thomson Reuters global head of Islamic finance, told Gulf Daily News on Wednesday, December 16.
"It will help to increase work flow in the industry with real time news across developments in all asset classes as well as provide data and analytical tools."
Siddiqui says the portal has been developed to address three major issues facing the Islamic finance industry.
"Firstly it will reduce information search costs by posting data and indices in real time for a variety of product and developments."
He also expects it will draw more players from the Far East and Western countries who will enjoy the authenticated access to information offered by Reuters Thompson.
"At present the western financial system tends to be a bit wary of Islamic finance which it sees as lacking openness in reporting.
"The Islamic Finance Gateway will overcome this problem by robust, clear and crisp information about the global industry," Siddiqui contends.
Reuters believes this would help bring about a sharp rise in the Islamic finance market, already one of the fastest growing sectors in the global financial industry.
Starting almost three decades ago, the Islamic banking industry has made substantial growth and attracted the attention of investors and bankers across the world.
Currently, there are nearly 300 Islamic banks and financial institutions worldwide whose assets are predicted to grow to $1 trillion by 2013.
New Borders
Gaining new grounds, the southwestern Indian state of Kerala is planning to issue the secular country's first sukuk by early next year.
"We need long-gestation funds to build airports, high-speed trains and expressways," Finance Minister Thomas Isaac said in an interview in Trivandrum, the southern state’s main city.
"Islamic finance promises unexplored potential in that context."
The rubee-dominated Islamic bonds would be issued by the new Al-Barakah Financial Services Ltd., launched by the Indian government with 10 billion rupees ($214 million) of capital.
Sukuks, which conform to Islam's prohibition of receiving or paying interest, typically work as profit-sharing vehicles.
Companies that issue Islamic bonds make payments to investors using profits from the underlying business, instead of paying interest.
But money can not be invested in alcohol, gambling, pornography, tobacco, weapons or pork.
With Muslims making up around 13.1 percent of India’s 1.1 billion people and approximately quarter of Kerala populace, the Sukuks are expected to be a hot sell.
"India, if opened up for Islamic banking, is the big prize," Afaq Khan, Dubai-based Chief Executive Officer of Standard Chartered Plc’s Islamic banking unit, told Bloomberg Wednesday.
"Its large Muslim population and strong growth promise excellent opportunities for releasing a lot of funds into the documented economy."
The Sukuk market has reached $111.9 billion in the eight years to 2008 and a further $69 billion is expected to be issued in 2008/2009, according to the International Islamic Financial Market.
IslamOnline
"At present there is no global connectivity for the industry and this platform will be able to connect up players from across the globe," Rushdi Siddiqui, Thomson Reuters global head of Islamic finance, told Gulf Daily News on Wednesday, December 16.
"It will help to increase work flow in the industry with real time news across developments in all asset classes as well as provide data and analytical tools."
Siddiqui says the portal has been developed to address three major issues facing the Islamic finance industry.
"Firstly it will reduce information search costs by posting data and indices in real time for a variety of product and developments."
He also expects it will draw more players from the Far East and Western countries who will enjoy the authenticated access to information offered by Reuters Thompson.
"At present the western financial system tends to be a bit wary of Islamic finance which it sees as lacking openness in reporting.
"The Islamic Finance Gateway will overcome this problem by robust, clear and crisp information about the global industry," Siddiqui contends.
Reuters believes this would help bring about a sharp rise in the Islamic finance market, already one of the fastest growing sectors in the global financial industry.
Starting almost three decades ago, the Islamic banking industry has made substantial growth and attracted the attention of investors and bankers across the world.
Currently, there are nearly 300 Islamic banks and financial institutions worldwide whose assets are predicted to grow to $1 trillion by 2013.
New Borders
Gaining new grounds, the southwestern Indian state of Kerala is planning to issue the secular country's first sukuk by early next year.
"We need long-gestation funds to build airports, high-speed trains and expressways," Finance Minister Thomas Isaac said in an interview in Trivandrum, the southern state’s main city.
"Islamic finance promises unexplored potential in that context."
The rubee-dominated Islamic bonds would be issued by the new Al-Barakah Financial Services Ltd., launched by the Indian government with 10 billion rupees ($214 million) of capital.
Sukuks, which conform to Islam's prohibition of receiving or paying interest, typically work as profit-sharing vehicles.
Companies that issue Islamic bonds make payments to investors using profits from the underlying business, instead of paying interest.
But money can not be invested in alcohol, gambling, pornography, tobacco, weapons or pork.
With Muslims making up around 13.1 percent of India’s 1.1 billion people and approximately quarter of Kerala populace, the Sukuks are expected to be a hot sell.
"India, if opened up for Islamic banking, is the big prize," Afaq Khan, Dubai-based Chief Executive Officer of Standard Chartered Plc’s Islamic banking unit, told Bloomberg Wednesday.
"Its large Muslim population and strong growth promise excellent opportunities for releasing a lot of funds into the documented economy."
The Sukuk market has reached $111.9 billion in the eight years to 2008 and a further $69 billion is expected to be issued in 2008/2009, according to the International Islamic Financial Market.
IslamOnline
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