Centre for Shariah Reference in Islamic Finance - Pusat Rujukan Shariah Bagi Kewangan Islam

Centre For Shariah Reference in Islamic FinancePusat Rujukan Shariah Bagi Kewangan Islam

MEDIA

20 Years SAC Celebration

20 Years SAC Celebration

  The Bank Negara Malaysia Shariah Advisory Council (SAC) was established in May 1997 and held its first meeting on 8 July 1997. Over the years, it has played an instrumental role in shaping the development of Islamic finance in…

SAC at Karnival Kewangan Kuching

SAC at Karnival Kewangan Kuching

KUCHING: Bank Negara Malaysia (BNM) and the financial institutions in the country have provided sufficient advisors and experts to ensure the implementation of the Islamic financial system is in accordance with shariah rules. Federal Territories Mufti, Datuk Dr Zulkifli Mohamad…

Transfer of Assets & Performance Guarantees in Istiṣnā’ Contract

Transfer of Assets & Performance Guarantees in Istiṣnā’ Contract

] Istiṣnā’ refers to the contract of sale of assets that have not been constructed, developed or manufactured according to specifications agreed upon by the seller and the buyer. It is usually applied in financing products involving assets that do not yet exist. Istiṣnā’ has not been widely applied in the Islamic finance industry. The reason is that there are obscurity in some of the issues of istiṣnā’s such as property rights issue istiṣnā’ (maṣnū’) in construction as well as customer guarantee issues on contractor’s performance in the istiṣnā’ parallel arrangement (istiṣnā’ muwāzī). In this regard, this paper discusses past debate debates and contemporary scholars on these issues. Shariah-clarity on these raised issues is seen as opening up more space for Islamic financial institutions (IKI) to explore and develop istiṣnā’s based products. This can indirectly encourage the industry’s interest in expanding the application of istiṣnā’s based on the Islamic finance industry

By: Nur Muhammad Sesth Jemahat, Ahmad bin Khairuddin

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Attachment: Working Paper

SAC Member at the 72nd United Nations General Assembly Side-Event on Sustainable Development

SAC Member at the 72nd United Nations General Assembly Side-Event on Sustainable Development

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Successful implementation of the 2030 Agenda for Sustainable Development requires a significant amount of financial resources, beyond traditional development financing. Innovative approaches are required to unlock new sources of funding, including via Islamic finance.

With the objective to increase awareness and generate interest about the potential of Islamic finance and impact investing instruments, particularly by addressing the long-term investment needs of the Sustainable Development Goals (SDGs), the United Nations Development Program (UNDP) organised an event – ‘Realizing Agenda 2030: How Islamic Finance through Impact Investing can help achieve the SDGs,’ in New York in September 2017.

The event discussed how Islamic finance can be tapped as a strong and scalable funding source for global development. The event was co-organized by the Islamic Development Bank and UNDP, with support of the Organization of Islamic Cooperation (OIC) New York office.

Prof. Dr. Mohamad Akram Laldin, a member of the SAC, was a speaker at the event.  He spoke on “Islamic Finance and Sustainable Development Goals” which discussed on how to link the current practices of Islamic finance with each of 17 SDGs. As an example for “Goal 4: Ensure Inclusive and Quality Education for All and Promote Lifelong Learning”, he highlighted the role of Khazanah Nasional with issuance of Ihsan Sukuk (the first global sustainable and responsitble investment sukuk) in which the proceeds of the sukuk were channelled to finance several educational activities. Dr Akram also shared how SDGs are also in line with the value propositions of Islamic finance which include promoting justice and financial inclusion.

 

A highlight of his speech is on the Bank’s initiative on Value Based Intermediation (VBI). He shared the aim of VBI to create  an  enabling  environment  for  Islamic financial institutions in Malaysia to  adopt  practices,  offerings and  conduct  that  generate  positive  and  sustainable  impact  to  the  economy,  community and environment, without compromising the financial returns to shareholders. He also shared sstrategies adopted by the Bank to support VBI implementation and its potential to transform the landscape of the Islamic finance industry in Malaysia and internationally.

 

The following international leaders also speak at the event:

  • Sayed Aqa, Vice President of the Cooperation and Capacity Development, Islamic Development Bank Group
  • Magdy Martínez-Solimán, Assistant Secretary-General of the United Nations
  • Mahmoud Mohieldin – World Bank Group’s Senior Vice President for the 2030 Development Agenda, UN Relations, and Partnerships
  • Aamir Abdul Rehman – Consultant, World Bank Group
  • Hasan Al Jabri – Chief Executive Officer, SEDCO Capital
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