Latest news with #Sharia
Sharjah 24
an hour ago
- General
- Sharjah 24
Sharjah Islamic Affairs launches its summer program
One of the main offerings is a summer course for boys that focuses on Islamic studies and literature. It will be held in various mosques around the emirate from July 7 to July 24. During this course, experienced speakers will share important lessons about Islamic teachings and literature, helping young people deepen their understanding of these subjects. Registration opens on July 1. The course will cover key topics like the rules for cleanliness and prayer, explanations of certain chapters from the Holy Quran, stories from the life of the Prophet Muhammad (peace be upon him), the importance of seeking knowledge, and basic Islamic values and ethics. Besides the lessons, there will also be fun activities to help students learn and engage. Another notable program is the second round of the Sharia course called "Hearts Attached to Mosques," running from August 1 to August 22 in various mosques. This course focuses on memorizing and understanding parts of the Holy Quran, discussing teachings from the Prophet's Sunnah, and exploring important topics relevant to young people, which will help strengthen their knowledge of Islamic principles and enhance their sense of belonging to the community. Additionally, the department will host a series of public lectures and lessons across all mosques in the emirate. These sessions will cover various important subjects, such as how to behave while traveling, making the most of summer vacations, strengthening family relationships, and keeping kids safe during their free time. These lectures highlight the role of mosques as places for guidance and personal growth in society. Moreover, there is an awareness initiative focused on social media. This will involve creating and sharing engaging content on family, education, behavior, and religious topics, aiming to reach a broad audience. The goal is to extend the reach of these important messages and improve the department's presence in the community across different platforms. Abdullah Khalifa Yarouf Al Sebousi, the Chairman of the Sharjah Islamic Affairs Department, underlined that these summer programs align with the vision of the Sharjah government to develop people's skills and provide a supportive environment that highlights values and identity. The department aims to encourage people to use their time wisely, investing in personal growth that benefits both individuals and society. He stated, "We want to make sure that vacation time is used in ways that are productive for everyone. Our programs are designed to be inclusive and to combine religious guidance, educational activities, and social media engagement. This supports our leadership's goals to promote human development and utilize modern technology to share useful information." The department encourages everyone to follow their official social media accounts to get the latest updates on program details and locations, as well as to engage with timely awareness content throughout the summer.
Daily Tribune
12 hours ago
- Business
- Daily Tribune
Al Baraka integrates faith and fintech
TDT | Manama Al Baraka Islamic Bank is demonstrating that Islamic finance can deliver cutting-edge performance, earning global praise for its seamless USD payment processing while staying true to Sharia principles. The Bahrain-based bank has received the Straight-Through-Processing (STP) Award from The Bank of New York Mellon (BNY), a leading global financial services firm. The award recognises institutions with highly automated and accurate cross-border payment systems, validating Al Baraka's ability to blend ethical banking with digital sophistication. Global validation BNY grants the STP Award to financial institutions that meet the highest benchmarks in straight-through-processing of payments, meaning transactions completed without manual intervention. The award was presented by Salman Alhashimi, Head of MEA NBFIs and Deputy Head of the GCC Region at BNY, to Dr. Adel Abdullah Salem, CEO of Al Baraka Islamic Bank, in the presence of Hussain Yousif Atiya, Chief Corporate and Institutional Banking Officer. 'We are proud to receive this recognition from BNY, which reflects our continued focus on operational excellence and innovation in financial services,' said Dr. Salem. 'It is the result of our ongoing investment in digital infrastructure and our commitment to delivering efficient and reliable banking experiences to our clients.' Ethical meets efficient Atiya added, 'This award underscores the competence of our teams and their dedication to providing solutions that meet the highest standards for international banking and executing global payments. We're well poised to expand our offering of digital banking services to corporate and financial institution clients.' Al Baraka's achievement challenges assumptions that Islamic banks may lag in technological adoption due to Sharia governance frameworks. On the contrary, the bank's systems are not only compliant but also competitive, proving that religious values and world-class fintech can coexist.
The Hindu
a day ago
- Business
- The Hindu
Pakistan signs five-year syndicate financing facility for $1 billion
Pakistan signed a five-year long-term syndicated financing facility for $1 billion, indicating strong support from leading financiers amid the country's ongoing economic crisis. 'The Dubai Islamic Bank acted as the Sole Islamic Global Coordinator while Standard Chartered Bank is the Mandated Lead Arranger and Book-runners,' a Finance Ministry statement said on Wednesday (June 18, 2025.) IMF supports Pakistan PM's decisive actions for betterment of economy 'Other financiers include Abu Dhabi Islamic Bank as the Mandated Lead Arranger and Sharjah Islamic Bank, Ajman Bank and HBL as Arrangers,' it said. 'The Ministry of Finance has signed a syndicated term finance facility of $1,000 million partially guaranteed by a policy-based guarantee of the Asian Development Bank (ADB) programme 'Improved Resource Mobilisation and Utilisation Reform',' said the statement. 'The facility is a landmark transaction for the Government of Pakistan that demonstrates strong support from leading financiers in the region. This is a five-year multi-tranche facility including both Islamic and conventional tranches,' it said. The Ministry said the Islamic facility was structured to be fully compliant with AAOIFI standards, accounting for 89% of the total financing amount, with the remaining 11% from conventional financing. AAOIFI standards are a set of guidelines developed by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and aim to ensure that Islamic finance practices adhere to Sharia principles and provide a framework for consistent and reliable financial reporting. 'The transaction was also the first facility supported by ADB's policy-based guarantee linked to policy reform measures undertaken by an ADB member country, i.e Pakistan,' it read. It further said the ADB programme was designed to support Pakistan in building long-term fiscal resilience and stability and encouraged Pakistan's re-entry into international commercial markets, with significant interest from Middle Eastern banks. The Ministry said the government successfully entered the Middle Eastern financial market after nearly two and a half years, indicating 'the renewed trust of the market in the fiscal stability and the overall improvement in the macroeconomic indicators of Pakistan.' Pakistan shuts border with Iran as Tehran trades strikes with Israel 'This transaction also marks the beginning of a new partnership of the Government of Pakistan with Middle Eastern banks,' it added. Meanwhile, Khurram Schehzad, advisor to the Finance Minister, said on X: 'Pakistan secures $1 billion landmark financing with ADB-backed guarantee and strong Middle Eastern banks' support.' Earlier this month, the Philippines-based bank approved a $800 million programme to strengthen fiscal sustainability and improve public financial management in Pakistan. Pakistan narrowly avoided default in 2023-24 with the help of the International Monetary Fund, but worked to stabilise its economy with good results during the last year. In the first 11 months of the current fiscal year ending on June 30, it showed a $1.8 billion current account surplus, which has won the confidence of the lenders.
Middle East Eye
3 days ago
- Business
- Middle East Eye
Egypt's Sisi accused of 'giving away' strategic Red Sea land of Ras Shukeir after decree
In a move sparking shockwaves in Egypt, President Abdel Fattah el-Sisi has approved the transfer of a massive area of coastal land in the Red Sea province for sovereign sukuk (Islamic bonds) issuances in a bid to ease the country's soaring debt. The decision to allocate 174 sq km of land in the oil-rich Ras Shukeir area to the Ministry of Finance to use as sukuk has not been preceded by public parliamentary debates or discussions within civil society. Neither has the decree - published in the official gazette on 10 June - provided further details. The announcement only detailed the coordinates of the parts of the land. Sukuk are Islamic financial certificates similar to bonds, but structured to comply with Sharia law by involving shared ownership in tangible assets or investment ventures rather than interest-based debt. The announcement comes as Egypt intensifies its search for means of alternative financing to ease pressure on foreign reserves and contain mounting external debt amid a challenging economic crisis that has hit the country hard over the past years. New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters Regime critics were quick to condemn Sisi's call, viewing it as part of a broader state asset sell-off and an attempt to attract Gulf investors through Islamic Sharia-compliant financial deals. Last year, Egypt signed a $35bn deal with Abu Dhabi's ADQ sovereign fund to develop Ras el-Hekma on the Mediterranean coast. The agreement provided an injection of hard currency and temporarily eased pressure on the Egyptian pound. 'They are fooling Egyptians by saying this is not a debt-settling purchase. Sukuk is partial ownership of an asset that can be traded on financial markets' - Egypt opposition group Despite technical differences between the two arrangements, economists believe the government is trying to replicate that model: using land assets to generate liquidity. 'The move reflects a broader government policy of converting government-held assets into cash to finance debt issuance or meet ongoing financial obligations,' financial analyst Ahmed Abdel-Thaher told Middle East Eye. 'In this case, land - traditionally a non-liquid asset - is being leveraged to generate instant revenue. This way, returns are tied to the projected development or rental income of the land,' he explained. Egypt's external debt stands at nearly $155bn. Before the current fiscal year ends on 30 June, the country is committed to repaying around $60.8bn of that total. 'The Egyptian regime adopts a policy of hegemony of decision-making… and the external support [of Gulf nations]… when the Saudis or the Emiratis come to the rescue,' said political sociologist Dr Said Sadek. Tiran and Sanafir: Red Sea islands are now a chokehold over Egypt's security Read More » 'Economic dependency leads to political dependency and the loss of independence. The current economic policy is, inevitably, leading towards this direction,' Sadek told MEE. In response to the growing debate, the Ministry of Finance said in an official statement on Wednesday that the land would not be sold but used as collateral to issue sukuk to 'secure financing under favourable terms for covering the needs of the state's general budget'. The ministry further insisted the land remains state-owned. Ras Shukeir (also spelt Ras Shokeir) is located along the Red Sea coastline on the western coast of the Gulf of Suez, about 350km from the capital, Cairo. The area is also strategically significant due to its maritime activities and its role as a hub for green hydrogen and ammonia projects. 'Partial ownership' Opposition in Egypt and abroad, nonetheless, argues that Ras Shukeir holds too much strategic and economic value to be collateralised. 'We opposed the government's policy of taking further external borrowing, crying out again and again in warning of its terrible aftermath. But no one was hearing. All voices of opposition were criticised and rejected,' former presidential candidate Khaled Ali wrote in a Facebook post. 'Ramifications have been serious. We have borne the brunt of this policy through the collapse of the Egyptian pound's purchasing power and its continued decline against foreign currencies,' added Ali, also a prominent human rights lawyer. How Egypt lost its regional power – and became complicit in Gaza's siege: One on One with Hossam el-Hamalawy Read More » A darker scenario looms: that the sukuk issuances may not, eventually, yield sufficient revenue. 'Even if such deals bring in foreign currency, the government is giving away the country's assets and lands for temporary relief,' said a renowned economics professor, who asked to be unnamed for security reasons. 'What is going to happen when bonds mature and the revenues fall short?' he rhetorically asked. The exiled Egyptian Revolutionary Council voiced similar concerns. 'They are fooling Egyptians by saying this is not a debt-settling purchase. Sukuk is partial ownership of an asset that can be traded on financial markets. It might be a means of land acquisition, especially if Egypt cannot pay its sukuk due… considering the regime's indecisive economic policies and ongoing corruption over the past decade,' the Istanbul-based group argued in a post on X. National security concerns Although the presidential decree dictates that the military will oversee strategic areas in Ras Shukeir, national security concerns remain. 'The Red Sea coast - namely around Bab el-Mandeb and the Suez Canal entry points - is of huge strategic significance, crossing military, economic and geopolitical domains,' said a retired high-ranking army officer, asking to remain anonymous for not being authorised to talk to the media. 'With rising regional tensions, especially the Houthi attacks on Red Sea shipping lanes, control over Ras Shukeir and nearby areas has become more crucial,' the retired officer told MEE. Ras Shukeir is a key transit hub for crude oil exports and domestic energy infrastructure, linking Gulf oil flows to the Suez Canal and Mediterranean markets. 'Any disruption or foreign control in this area could jeopardise Egypt's energy security and further involve the country in the broader regional struggle over trade routes, resource flows, and political dominance,' the army veteran concluded.
Mada
6 days ago
- Business
- Mada
‘Accounting games:' The sukukification of Ras Shokeir
The wording of a presidential decree published in the Official Gazette on Tuesday has stirred considerable debate over its potential implications. The decree allocates more than 41,000 feddans in the Ras Shokeir area along the Red Sea to the Finance Ministry, with the stated purpose of helping to reduce Egypt's public debt and facilitate the issuance of sovereign sukuk. The phrasing has caused confusion. How can the goal be to 'reduce public debt' while simultaneously issuing sukuk, a form of debt instrument? Beyond the ambiguity, the land allocation has also raised concerns over its implications for the strategically sensitive border zone. Could the move open the door to future land sales? Mada Masr spoke with legal and economic experts to help unpack the implications of the decree. According to the sources, the issuance of sukuk may nominally reduce the size of public debt through what one source described as an 'accounting game,' reclassifying certain items to create the appearance of a lower debt burden. Sovereign sukuk are one of several borrowing tools available to governments, alongside more familiar instruments such as treasury bills and bonds. What sets sovereign sukuk apart is that they are asset-backed: each issuance is linked to an asset that serves as collateral. The design — material asset as collateral in exchange for liquidity — allows sukuk to be framed as something other than a loan, which is prohibited under Sharia. Sukuk are therefore built around the idea that an asset is being acquired in some form, with the purchase price standing in for the loan value. By holding sukuk in a profit-generating asset, the holder earns returns that function like interest, without being labeled as such. This financial engineering is what allows sukuk to sidestep the prohibition on interest under Sharia. Without the need for this workaround, there would be no reason for assets to be part of the sukuk structure in the first place, sources said. This was a key driver behind the 2021 law that introduced sovereign sukuk. According to Senator Mahmoud Samy — who helped draft the legislation — as well as two other sources, one a member of Parliament and the other a World Bank official, the Egyptian government has long sought access to funding from sources that require Sharia-compliant financial instruments, particularly in Gulf countries and parts of Asia. Sovereign sukuk, they said, provide a gateway to these funds. Under the law, the state established the Egyptian Financial Company for Sovereign Taskeek (EFCST), a joint-stock entity owned by the Finance Ministry. The EFCST acquires usufruct rights to the sukuk-tied assets and acts as the agent on behalf of sukuk holders. The law sets out a series of regulations and conditions. The assets used to back sovereign sukuk can be fixed or moveable state-owned properties, but natural resources cannot be turned into sukuk. Sukuk may be issued for a maximum term of 30 years, during which usufruct rights are granted to investors — meaning they gain the right to use and benefit from the asset without any transfer of actual ownership from the state. These usufruct arrangements can be understood as akin to forming a company. In the case of the Ras Shokeir land, for instance, a company is expected to be established to manage investment in the area, with sukuk holders participating in the arrangement. However, this does not mean that sukuk holders become shareholders — sukuk do not confer ownership stakes in the company. Sukuk are similar to shares in that 'both represent a common stake in the ownership or usufruct right from a profit-generating asset, or in the capital of a profitable project,' as explained on the EFCST's website. The key difference, however, is that 'sukuk are a financing tool recorded outside the issuing company's budget, whereas shares represent a common stake in the company's capital, making shareholders part-owners in the issuing company.' Sukuk also have a fixed term specified as part of the deal unlike shares, which remain valid as long as the company exists. Upon the end of the term, the sukuk holder is entitled to their full capital amount 'regardless of the value of the issuer's assets or their ability to repay debts to others,' unlike shareholders. This renders sukuk a 'low-risk' investment, according to the EFCST's website. Since the law came into effect nearly five years ago, the Finance Ministry has issued sovereign sukuk only once in February 2023. The underlying assets were made up of a portfolio of government-owned properties under lease. The three-year issuance, worth US$1.5 billion, was met with strong demand. The anticipated issuance referenced in the latest presidential decree would mark Egypt's second sukuk offering. In April, Finance Minister Ahmed Kouchouk announced the government's intention to issue $2 billion in sovereign sukuk. This aligns with the ministry's statement on Thursday, which noted that part of the Ras Shokeir land will be used as collateral for the new issuance. Sources said the mechanism is intended to differ from the Ras al-Hikma deal, in which land ownership was directly sold to a strategic investor via a company in which the Egyptian government holds a stake. By contrast, in the Ras Shokeir case, the sukuk are expected to be offered to a broad range of potential investors — including Egyptian and foreign individuals, as well as banks and investment institutions. The offering would not transfer ownership of the land itself. Instead, sukuk holders would be entitled to a 'common right' to the project's profits or a share of its financial returns, without holding any direct ownership of the land. At the end of a sukuk term, holders are repaid the full value of their initial investment, at which point their relationship with the asset ends. Sources unanimously emphasized that, throughout the sukuk's duration, ownership does not get transferred under any circumstances. This, they stressed, is very clear. Even in the event that the government defaults on repayment, the asset cannot be seized or transferred. Senator Samy noted that the Senate was particularly keen to prevent any possibility of ownership transfer related to sukuk issuances — a departure from the earlier sukuk law passed in 2013, which did not address the issue of asset ownership and failed to explicitly prohibit agreement clauses that might entitle holders to a stake in the asset in the event of non-payment. Under the new framework, responsibility for repayment lies entirely with the issuer — in this case, the state — rather than with the asset itself. 'The public treasury is the guarantor,' an official at the Planning Ministry told Mada Masr. 'The investor doesn't need the asset itself, but instead relies on the state's ability to pay.' A judicial source, who is a deputy to the State Council president, told Mada Masr that the details of the underwriting terms will ultimately be defined in the sukuk's issuance prospectuses. The government could include clauses allowing for the sukuk's term to be extended or other conditions to be introduced. Still, 'if the state is unable to repay the sukuk and its profits, it may be forced to swap debt for assets once again,' the source added. This, however, would reflect the government's broader debt management strategy — not the legal nature of the sukuk itself. In its Thursday statement, the Finance Ministry reiterated that the land was transferred under its authority to issue sovereign sukuk and 'reduce the government's debt burdens' — a 'favorable' alternative to selling the land, according to the ministry, as it can 'partner with financial and economic entities to replace existing debt with joint investment projects […] and spur the development of the land to generate sustainable income and create new job opportunities.' The most ambiguous aspect of the presidential decree lies in its reference to debt reduction. After all, sukuk are a form of debt. According to the International Monetary Fund's Government Finance Statistics Manual — and as reiterated in the IMF report on its third review of Egypt's Extended Facility Fund — sukuk are classified as part of public debt in the state budget, just like bonds, treasury bills, and other forms of borrowing. If these sukuk constitute new debt, how can the decree possibly contribute to reducing Egypt's mounting debt burden? One straightforward scenario can be found in the Finance Ministry's statement following the decree: only a portion of the allocated land will be used to back the sukuk, while revenues generated from future economic activity on the remaining land could be channeled toward repaying debt and covering interest payments. The World Bank official, speaking to Mada Masr on condition of anonymity, explained that the government could use its share of project revenues to cover periodic dues to sukuk holders — a strategy they described as a form of 'debt recycling.' Economic researcher Mohamed Ramadan suggests another scenario: 'an accounting game' in which payments the government owes to sukuk holders are labeled as 'returns' rather than 'interest.' This classification would exclude them from debt servicing records, thereby reducing the nominal size of the country's total debt on paper. Ultimately, the decree appears to signal the start of a broader shift — one that is likely to be followed by a series of further decisions clarifying the specifics of this approach and its true implications for the public and for public finances.
