Islamic Banking Consultation

Islamic Bank is committed to the application of the provisions of Islamic law in all its banking dealings and investment, through the application of the concept of financial intermediation based on the principle of participation in profit or loss, and within the framework of the IAEA, both public and private.

 

The emergence of Islamic banks:

The emergence of Islamic banks came to meet the desire of the Islamic societies to find a formula to deal banking interest away from the use of usury; or falling into the transaction. The first attempt to establish an Islamic bank was established in 1963, where the so-called local saving banks, which was held in Meet Ghamar in Arab Republic of Egypt, which was founded by Dr. Ahmed Al-Najar, the former president of the International Union of Islamic banks. This experience continued around three years ; then ended. The beginning of the real interest is the establishment of operating banks in accordance with Islamic Sharia of the recommendations of the Conference of Foreign Ministers of Islamic states in Jeddah, Kingdom of Saudi Arabia in 1972, which stipulates the necessity of establishing an international Islamic Bank for Islamic states. This came after preparation of the Convention on the establishment of Islamic Development Bank, which was signed by the Financial Ministers of Islamic states in 1974 and then Islamic Development Bank started its activity in 1977 in the city of Jeddah, Saudi Arabia, The characteristics of this bank is that it is bank of governments that do not deal with individuals in banking aspects. Then came the establishment of the first integrated Islamic bank which deals in accordance with the provisions of Islamic Sharia law in 1975 which is the Dubai Islamic Bank, which offers all banking and investment services to individuals in accordance with Islamic Sharia. And then in succession after the establishment of Islamic banks to 450 banks spread in the countries of the world, the volume of the work of more than one trillion dollars according to the statistic of the Council of Islamic banks in 2010, other than branches of Islamic transactions of the traditional banks on the level of the world, which, if added to connect refrained to trillion and half dollars.

 

The characteristics of the Islamic banks:

The Islamic banks specialized with many characteristics in which most important are as follows:

  1. The application of the provisions of Islamic Sharia in all banking and investment transactions.
  2. The application of the method of participation in profit or loss in transactions.
  3. Commitment qualities (development, investment and positive) in investment and banking transactions.
  4. The application of the method of financial intermediation and participatory.
  5. The application of Islamic values and ethics in banking works.
  6. The Islamic banks characterized to provide a range of activities not provided by traditional banks, namely:
  • Loan Activity
  • Activity of Zakat Fund.
  • Banking Cultural Activities.

 

Banking services in the Islamic banks :

The banking services in banks, in general, the main interface for clients with the Bank means to attract new dealers, and maintaining existing customers, the Islamic Bank provides all banking services, except for traditional banking services that are incompatible with the provisions of Islamic law. The services provided by the Islamic bank are divided into two types:

  1. Banking services include credit operations.

    Banking services which include credit operations are subject to operations of credit studies, and Islamic banks are implemented as entrepreneurial investment.

     

  2. Banking services which do not include credit operations.

    The banking services that do not include credit operations are implemented as a banking service which is taking Banking Commission in return for providing the service.

     

Services include banking that does not include credit operations:

  1. First: documentary credits
  2. Secondly: letters of guarantee
  3. Thirdly: foreign exchange
  4. Fourthly: Leasing treasuries
  5. Fifthly: Visa cards
  6. Sixthly: remittances
  7. Seventhly: Sale and purchase of travellers checks
  8. Eighthly: Current accounts
  9. Ijtihad

 

The importance of Islamic banks

The importance of Islamic banks are due to the following:

  1. Meet the desire of Islamic societies to find channels for dealing banking far from the use of interest rates.
  2. Find room for the application of the jurisprudence of the transactions in banking activities.
  3. Show practical application of the bases of Islamic economy.

 

Letter (message) of Islamic banks

Based on the need for Islamic society and the individual Muslim to find a haven security to handle banking and investment away from the suspicion of usury, the letter of Islamic banks are:

(To provide banking and investment services in the light of the provisions of Islamic Sharia).

 

The objectives of the Islamic banks:

In the way of achieving letter of Islamic bank, there are many goals, which leads to the achievement of that letter:

First: financial goals which are:
  1. Attract deposits and its development.
  2. Investment of funds.
  3. Realization of profits.

 

Secondly: the objectives of the particular dealers, namely:
  1. Provide banking services.
  2. Provide funding for investors.
  3. Provide safety to depositors.

 

Thirdly: Internal objectives:- which have many internal objectives it seeks to achieve:
  1. Human resources development.
  2. Achieve Appropriate growth rate.
  3. Proliferation geographically and socially.

 

Fourthly: Creative objectives:- where it is necessary to keep up with the banking through the following:
  1. Innovation funding formulae
  2. Innovation and development banking services

 

Bank consultancy provided by our firm

Our firm’s objective is to attain the best possible performance of specialized Shari’a audit through:

  1. Auditing clients’ contracts, products and related work to ensure compliance with Shari’a controls.
  2. On-going follow-up of our clients’ work progress through qualified Shari’a controllers to ensure proper application of Shari’a controls as adopted by our firm and report any shortcoming to avoid the same.
  3. Prepare quarterly reports on work progress of our clients. Further, a final report is prepared as to explain our point of view together with the recommendations and the work done during the year.
  4. Training our client’s staff to ensure comprehension of our firm’s decisions and knowledge requirements and ensure their possession of proper concept of Islamic banking.
  5. Develop Islamic financial products with a view to correction non- compliant transactions and propose Shari’a alternative financial transaction.
  6. Incorporation / conversion of capital companies in compliance with Shari’a controls.
  7. Organize seminars and meetings of the parties interested in Islamic banking to discuss and exchange consultancy on area of common interests as to upgrade Islamic banking and remove obstacles.

 

Higher Islamic banking consulting commission:

The commission comprises an elite group of scholars, researchers of very good reputation as auditors of Islamic financial institutions. The list includes:

  • H.E. Sheikh Abdullah Bin Sulaiman Al Manei
  • Professor Hussein Hamed Hassan
  • Professor Nazih Kamal Hammad
  • Professor Abdullah Bin Abdulaziz AlMusleh
  • Professor Mohammad Ali Al Qari
  • Professor Aqeel Jasim Al Nashmy
  • Professor Abdulrahman Bin Saleh Al Atram
  • Professor Ali Mohyeddin Al Quradaghi
  • Dr. Awad Bin Mohammad Al Qarni
  • Dr. Yousif Bin Abdullah Al Shubaily
  • Dr. Jameel Ibn Habib Al weihiq Al Mutairy
  • Dr. Abdullah Bin Mohammad Al Omrany
  • Dr. Misfer Bin Ali Al Qahtany
  • Dr. Sami Ibn Ibrahim Al Sweilim

 

H.E. Sheikh Abdullah Bin Sulaiman Al Manei:
  • Member of the committee of Senior Scholars in Saudi Arabia
  • Head of many Shariah Supervisory committees in financial institutions
  • Member at many fiqh councils and boards of scientific and charitable committees
Professor Hussein Hamed Hassan:
  • PhD in jurisprudence and principles of jurisprudence) and Islamic law and Sharia (Al-Azhar University - Faculty of Sharia.
  • Diploma in Comparative Law from New York University - International Institute of Comparative Law.
  • Master of Civil Law, Cairo University - Faculty of Law
  • Master of Islamic law - Cairo University - Faculty of Law
  • Bachelor of Sharia - Al-Azhar University - Bachelor of Arts in Law and Economics - Cairo University
Professor Nazih Kamal Hammad:
  • Former Professor of Jurisprudence and its principles Umm Al Qura University
  • An expert in a number of Fiqh academies .
  • Consulting in Islamic Economics.
  • Member at many Shariah Supervisory Boards.
Professor Abdullah Bin Abdulaziz AlMusleh:
  • Former Professor of Islamic Jurisprudence and Economy at the Imam Muhammad bin Saud Islamic University
  • Secretary General of the Panel of Scientific Miracles in the Quran and Sunnah.
  • member at many Shariah Supervisory Boards at financial institutions.
  • Legal Profession and Consultations.
Professor Mohammad Ali Al Qari:
  • professor of Islamic economics at King Abdulaziz University.
  • Former director of the Islamic Economics Research Center at the same university.
  • Member at many of the specialized scientific committees.
  • Expert at a number of the figh academies.
  • member at many Shariah Supervisory Boards at financial institutions.
Professor Aqeel Jasim Al Nashmy:
  • Professor of Jurisprudence and its principles Kuwait University.
  • Member and head of many Shariah Supervisory committees at financial institutions.
  • The Supervisor of the Zakat House in Kuwait.
  • Member at a number of the figh academies.
Professor Abdulrahman Bin Saleh Al Atram:
  • Professor of Jurisprudence of Imam Muhammad bin Saud Islamic University.
  • Former Head of the Shariah Panel at Al Rajhi institution.
  • Member of the Saudi Shura Council.
  • Member and head of many Shariah Supervisory committees at financial institutions.
Professor Ali Mohyeddin Al Quradaghi:
  • Professor of Jurisprudence and its principles and Islamic Economics , Qatar University .
  • Member and an expert in many figh academies.
  • Member and head of many Shariah Supervisory committees at financial institutions.
  • Supervisor of religious fatwas in some online sites.
Dr. Awad Bin Mohammad Al Qarni:
  • Former Professor of Islamic Jurisprudence of the Imam Muhammad bin Saud Islamic University.
  • Supervisor General of the site of Shariah scholars .
  • Legal Profession and Consultations.
Dr. Yousif Bin Abdullah Al Shubaily:
  • Assistant Professor of Islamic Jurisprudence at the University of Imam Muhammad bin Saud Islamic University.
  • Member and head of many Shariah Supervisory committees at financial institutions.
  • Member of the Shariah scholars academy in North America.
  • Member of the Saudi Religious Institutions
Dr. Jameel Ibn Habib Al-luweihiq Al Mutairy:
  • Assistant Professor of Jurisprudence , University of Taif.
  • Member of the Saudi Religious Institutions.
  • The founder of the Al-luweihiq Cultural intellectual Forum.
Dr. Abdullah Bin Mohammad Al Omrany:
  • Assistant Professor of Islamic Jurisprudence at the University of Imam Muhammad bin Saud Islamic University.
  • member number of legal bodies
  • Member at a number of Shariah committees.
  • Member of the Saudi Religious Institutions
Dr. Misfer Bin Ali Al Qahtany:
  • Assistant Professor at King Fahd University of Petrol and Minerals.
  • Expert at Islamic Jurisprudence assembly at Islamic Congress Organization for many periods.
  • Expert in international Public Humanitarian law for one of the Islamic Congress Organization.
  • member at many Consultations committees and Shariah Boards.
Dr. Sami Ibn Ibrahim Al Sweilim:
  • Holding a bachelor's degree from the Faculty of Science, King Saud University in Riyadh in 1407, Corresponding 1987 .
  • Holding a master's degree from Southern Illinois University in 1990.
  • PhD in economy from Washington University in Saint Luis, USA, at 1995.
  • Joint Al Rajhi Bank at 1995, as Counselors Chief and manager of the of research and the development at the bank of Shariah Group .
  • Joint Islamic Institute for Research and Training of the Islamic Development Bank at last 1425 and Corresponding 2004.
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Opportunities:

Promising opportunities both locally and internationally are available in Islamic banking

Locally:
  1. Growing trend of international investment institutions to adopt Islamic investment pattern.
  2. Growing trend of international universities to include Islamic banking in their curriculum
  3. Investments in Islamic Shari’a compliant products have grown to 9 trillion.
  4. Islamic banking products are offered by leading international banks.
  5. The problems arising from the international financial crisis require Shari’a and legal solutions through litigation to remove, in addition of course to arbitration.

 

Local level:
  1. Steady increase in the number of banks offering Islamic banking products.
  2. The balances of Islamic banks and financial institutions are growing increasingly.
  3. Increasingly growing size of the entities and blocs engaged in Islamic banking.
  4. A number of conventional banks have converted into Islamic banks.
  5. New banks have been established to basically engage in Islamic banking.
  6. Recent trend of conventional banks to open Islamic banking outlets.
  7. Strong trend to develop Saudi Arabian judicial system.

 

Opportunity index:

  • The statistics published by the international institutions (International Monetary Fund and Mckenzi) indicate that Islamic banking industry is growing by 15-25% annually.
  • Global trend general to comply with relative standards in the aftermath of international financial crisis.
  • New judicial regulations have been enacted and SR 7 billion has been allocated for the development of judicial system.

 

Our staff have over twenty give experience in Islamic banking . During the above period our staff have been directly involved in Islamic banking and Islamic economy in general . They have acquired this experience through working with in Shri'a control boards of Islamic banks and direct involvement in amending the status of such banks and auditing the same According to shari'a controls . We will be pleased to provide our services to the entities wishing to adopt Islamic banking. We ,further will be please to draft contracts and /or incorporation / conversion of the same according to shari'a including the working of mechanism for such incorporation / conversion furthermore , we will be pleased to develop shari'a compliant banking products .