al baraka 34 th symposium for islamic economics in different cities, including al-madinah...

Al Baraka 34th Symposium for Islamic EconomicsJeddah Hilton Hotel (Wednesday and Thursday) 9-10 Ramadan 1434 Hijri / 17-18 July 2013

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32 Al Baraka 34th Symposium for Islamic Economics

Sheikh Saleh Abdullah Kamel

ChairmanAl Baraka Banking Group

Mr. Adnan Ahmed Yousif

President & Chief ExecutiveAl Baraka Banking Group


Al Baraka Banking GroupAl Baraka Banking Group is a Bahrain Joint Stock Company Licensed as an Islamic Wholesale Bank by Central Bank of Bahrain, listed on Bahrain Bourse and Nasdaq Dubai stock exchanges. It is a leading international Islamic bank providing its unique services to around one billion people and with Standard and Poors investment grade long term counter party credit rating of BBB- / A-3 (Short Term). Al Baraka offers retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari’a. The authorized capital of Al Baraka is US$ 1.5 billion, while total equity amounts to about US$ 1.9 billion.

The Group has a wide geographical presence in the form of subsidiary banking Units and representative offices in fifteen countries, which in turn provide their services through more than 450 branches. Al Baraka is currently having a strong presence in Jordan, Tunisia, Sudan, Turkey, Bahrain, Egypt, Algeria, Pakistan, South Africa, Lebanon, Syria, Indonesia, Libya, Iraq and Saudi Arabia.


Al Baraka Islamic Economic SymposiaAl Baraka Islamic Economics Forum is a Shari’a, banking and economics think tank which represents a corner stone of developing the Islamic Economics and Islamic banking from both technical and figh perspectives.

This symposium is regularly held each Ramadan where renowned and famous Shari’a scholars, bankers and experts discuss some modern banking transactions and issue some Shari’a opinions(fatwas) and recommendations for the enhancement of Islamic banking and solving its problems.

The forum had been held since its first inception in Medinah 1981 and up-to-date in different cities, including Al-Madinah Al-Munawarah, Makkah Al-Mukarramah, and Jeddah in addition to Damascus, Cairo, Kuala Lumpur, Beirut, Istanbul, Tunis, Algeria and Jordan.

The resolutions and recommendations issued by Al Baraka Symposium for Islamic Economics represented a reference, and database which feed researches and fatwas of Shari’a boards of banks, financial institutions, figh academies, and different organizations and agencies around the globe. In addition, such recommendations and resolutions were a foundation base for the establishment of many Islamic enterprises.


The Symposium Objectives1. Finding out economic solutions for the difficulties and problems

faced by Muslim communities. Such solutions should be based on the economic theory and system, as well as encouraging scientific research in Islamic economics and upgrading awareness.

2. Knowledge of figh opinion with regard to recent and modern economic and financial transactions.

3. Presentation of problems faced by Islamic banks while applying different modes of Islamic finance and exchange views with scholars to solve them.

4. Linking figh to our modern economic issues and supporting the Islamic economic theory to enable it confront other theories.

5. Enrichment of banking figh and the Islamic economic library with profound discussions and new fatwas issued by renowned Muslim scholars.

6. Fulfillment of the requirements of ABG units and the Islamic financial institutions in the field of Islamic banking theory and its applications.

7. Provision of scientific reference for research, Shari’a committees, and Shari’a fatwas within the framework of Islamic banking.

8. Development of Islamic financial instruments which conform to technical & Shari’a standards.


Programme of Al Baraka 34th Symposium on the Islamic Economy

The 1st day Wednesday, 17 July 2013

Inaugural Session: 10:30 PM - 11:00 PM

• The Holy Quran

• Opening Address by Dr. Abdul Sattar Abu Ghudah Secretary General and President of the Unified Shari’a Panel

• A Speech by H.E. Mr. Adnan Ahmad Yousif P&CE of Al Baraka Banking Group

• Welcoming Remarks by H.E. Sheikh Saleh A. Kamel Chairman of Al Baraka Banking Group

The 1st Session: Zakat Issues

11:00 - 11:20 A Research By Dr. Yousef Al-Shubaily11:20 - 11:40 A Research By Dr. Hussain H. Hassan11:40 - 11:50 Comments By Dr. Esam Al-Enzi11:50 - 12:00 Comments By Mr. Hamad Eqab12:00 - 12:40 General Discussions12:40 - 01:00 Coffee Break

The 2nd Session: Dealing in Gold and Silver

01:00 - 01:20 A Research By Dr. Ali M. Alqara Daghi 01:20 - 01:40 Comments By Prof. Ahmed K. Babikir 01:40 - 01:50 Comments By Dr. Saleh Malaikah01:50 - 02:30 General Discussions2:30 Sohour


Programme of Al Baraka 34th Symposium on the Islamic Economy

The 2nd day:Thursday 18 July 2013

The 3rd Session: Partnerships

10:30 - 10:50 A Research By Prof. Dr. Ahmed Majdoub Ahmed Ali10:50 - 11:10 A Research By Dr. Saaduddin AlHelaly11:10 - 11:20 Comments By Mr. Abdul Basit Al-Shaiby11:20 - 11:30 Comments By Dr. Akram Laludin11:30 - 12:10 General Discussions12:10 - 12:30 Coffee Break

A Lecture on the Challenges Facing the Islamic Banks During the 21st Century.

12:30 - 01:00 Delivered By Dr. Yahia Abdulrahman

The 4th Session: Investment Agency

01:00 - 01:20 A Research By Dr. Abdul Sattar Abu Ghudah01:20 - 01:40 A Research By Mr. Talal S. Al Dosari 01:40 - 01:50 Comments By Sheikh Abdullah S. Al-Manei 01:50 - 02:00 Comments By Mr. Abdulrazzak M. Elkhraijy02:00 - 02:40 General Discussions2:40 Sohour


Zakat1. The difference between Zakat on the

share owned with the intention of capital gain, and that owned with the intention of trading, and the share owned for both purposes.

2. Measure and compare Zakat of shares to Zakat of crops and fruits, and to decide whether the expenses should be deducted before or after the calculation of the 10% percent.

3. The Shari’a opinion when the enterprise fails to realize profits while it has Zakatable funds.

4. The method of calculation of corporate Zakat, and whether it should be based on the net invested funds (shareholder’s equity) or on the net Zakatable assets?

5. Determining the body responsible for payment of Zakat. Are the shareholders relieved of responsibility of paying Zakat when the company takes such responsibility and how does the shareholder act if the company does not pay Zakat?

6. On what basis are commercial debts calculated?

7. How are the deferred profits treated?

8. Treatment of the shares which have deteriorated and reached the status of collapse, or stopped trading.

Dr. Hussain H. Hassan

Chairman of the Fatwa and Shari’a Board of IDB Group. He is a chairman of a number of Islamic banks, financial institutions and financial markets reg iona l ly and

internationally, and a member of several figh academies.

Dr. Esam Al-Enzi

A professor at the Faculty of Shari’a and Islamic studies, Kuwait University. A member of the Supervisory council of AAOIFI, and a member of Shari’a boards of several Islamic banks

and Financial Institutions. He has published many researches in the field of Islamic banks and financial institutions.

Mr. Hamad Eqab

Senior Vice President – Head of Financial Control, Al Baraka Banking Group, Vice president of AAOIFI Council. Over 29 years experience of financial control and auditing, and a board

member of many ABG units.

Dr. Yousef Al-Shubaily

A professor at the Comparative Jurisprudence department at the High Institute of Judiciary, Member of a number of figh academies and Islamic financial institutions. He took part in

many conferences, forums and symposiums inside KSA and abroad, he had many researches and publications.


The Lease of Molded Gold – JewelryMain Issues

1. Is it permissible to finance the gold molds operations on condition that they are manufactured through the method of (Ijara Muntahia bi Tamlekk) by pending donation (Hiba Mualagah) as analogy to plain land lease on condition of building?

2. Is it permissible to issue and trade Gold lease Sukuk (conditioned to be manufactured) as a substitute to international goods of Murabaha transactions?

3. The lease shall be made for manufactured gold and not gold bullions (bars).

4. The condition of manufacturing and the permissible usufruct in case lease is applied to bullions or small bullions suitable for wearing.

5. Focus will be made on the class of couples, women and gold traders in general.

Gold & Silver Transactions1. Possession and transfer of ownership of gold

through certificates representing particular quantities of it found in custody of certificate issuer to enable him get hold of gold and dispose it as he likes.

2. Trading in international gold markets through constructive possession.

3. Rules of purchase and sale of shares of a company operating in the exploration of gold and silver, or work in the fields of purchase and sale of gold in bourses.

4. Methods of paying Zakat of gold produced by miners.

5. Identification of the way or the period of the contract place (Majlis Al-aqd) termination (offer and acceptance) for the gold spot sale, and the permissibility of specifying a certain period for it by the two parties.

6. Dealing in gold processing transactions through the method of (Ijara ending in ownership).

Dr. Ali M. Alqara Daghi

Secretary-General of the International Union for Muslim Scholars and Vice-President of the European Council for Fatwa and Research. He is a member of several figh Academies and

various Shari’a and fatwa panels for Islamic banks and financial institutions.

Prof. Ahmed K. Babikir

Secretary General of the International figh Academy. He assumed many posts in universities and institutions. He was a member of many committees. He published many

researches.

Dr. Saleh Malaikah

Chairman of the board of Rusd International Holding Group, and chairman of boards of a number of Insurance and Reinsurance companies, as well as leasing companies. He had

been awarded a number of medals and prizes from a number of Islamic banks.


The Lease of Molded Gold – Jewelry1. The bank will purchase gold from the

trader (pay its price at purchasing) then leases it on the basis of Ijara ending with ownership to customers (under conditions of Restricted Hibah).

2. Guarantees:

- The gold itself (issuance of the invoice under the bank’s name).

- Life insurance of the beneficiary or insurance for the gold itself (in case the customer fails to pay or disposes gold without taking permission from the bank, or in case of theft).

3. Duration of finance: from one to 7 years, because the goods which are the subject of finance can not take longer period as this will constitute a risk for the bank.

4. The profit ratio does not exceed 3%.

5. The transaction management: The bank manages the purchase and delivery of the goods.

6. Risks:

- The gold price fluctuation.

- The possibility of theft.

- Selling the gold without obtaining the bank’s permission.

- Subject to damage.

- The failure to pay its rent.


Partnerships (Musharakah) 1. Inclination of partnerships over debt

contracts in the following areas: - Guarantees and risks reduction. - The possibility of reducing customer debt in comparison to reduction of the partnership capital. - Impact of Zakat.

2. Adoption of Shari’a methods in conformity with the prevailing laws to reduce partnership risks.

3. The issue of selling assets of fixed or diminishing Musharakah at the nominal value.

- The possibility of utilizing hedging mechanism to protect partnership capital.

4. The impact of the feasibility study on the customer to bear the responsibility of investment results.

5. The role of the central banks in using the partnership tools through specific technical recommendations.

Prof. Dr. Ahmed Majdoub Ahmed Ali

Professor of Islamic Economics with experience in financial and economic fields for more than 20 years in ministries and financial institutions. Former

Minister of State, Ministry of Finance, Sudan. Former Secretary General of the Zakat Chamber, Sudan. Former Director of Endowments, Sudan. He has eight books and more than fifteen research publications in the field of Islamic economics. Member of the Supreme Commission for Shari’a Supervisory of the banking system and financial institutions for more than 20 years and member and chairman of a number of Shari’a bodies.

Dr. Saaduddin AlHelaly

A professor and head of Comparative figh division – Faculty of Shari’a and law – Azhar University of Cairo, has assumed many leading posts in Egyptian universities, was awarded several prizes, and

supervised many Master and PH.D. theses.

Mr. Abdul Basit Al-Shaiby

CEO of Qatar International Islamic Bank, a long experience in management and development of Islamic banking, a board member of several institutions, ex- director

of investment and foreign exchange department of Qatar Central bank.

Dr. Akram Laludin

CEO of the International Islamic Research Academy, AAOIFI Shari’a council member, member of a number of Shari’a committees, member of board of Trustees IRTI IDB Group.

He had wider Participation in Islamic banking conferences, and had a number of research papers in Islamic banking.


Investment Agency1. Determine the expected profit, the failure

of the agent to achieve such profit, and the agency contract in which a profit of not less than ـ% is conditioned, and the explicit or implicit agreement to guarantee such profit.

2. The guarantee offered by the agent to collect its customer’s debts (the combination of both the agency and guarantee “Kafalah”). Does it make difference if the agency (Wakalah) and the guarantee (Kafalah) are combined in the contract, or in a separate agreement?

3. The agent has willingly decided to pay the principal amount and not the profit, or to pay the principal amount in addition to profit, and whether this action is included in the agency (Wakalah) agreement or in a separate agreement.

4. Is it permissible to enter into investment agency transactions in personal finance with people who do not have a commercial register? Is it necessary for the agent to have a commercial register?

5. Periodical Payment of investment profits (under account) up to the end of the period.

6. The agent takes both sides of the contract in the investment agency and the right to purchase from oneself, and to mix his funds with the agency (Wakalah) funds.

7. The relationship between the agency (Wakalah) in the deferred sale, Tawarroq, Einah and Mudharabah.

8. Rent rules in the investment agency.

Mr. Talal S. Al Dosari

A professor at the figh section, Faculty of Shari’a and Islamic studies – Qasim University, ex. secretary of post graduate studies committee of the faculty of Shari’a and Islamic

studies, He has a number of researches, publications and participations in many conferences, symposia and forums.

Sheikh Abdullah S. Al-Manei

He is currently working as an adviser for the Royal court, as a minister. He is a member in high commission for scholars and scientific research, member

in High council for Awqaf, member in institution of Fatwa and Shari’a supervision in many Islamic banks and corporations.

Mr. Abdulrazzak M. Elkhraijy

Vice CEO and the president of Islamic Banking Development Group of the National Commercial Bank (NCB). He assumed many leading posts

in NCB. He focused on the establishment and development of Islamic Banking.

Dr. Abdul Sattar Abu Ghudah

Secretary General and president of the unified Shari’a panel of Al Baraka Banking Group (ABG). A member of several figh academies and a member

of Shari’a boards of several domestic, regional and international Islamic banks and financial institutions.


Al Baraka 34th Symposium for The Islamic Economics

Dr. Abdul Sattar Abu GhudahUnified Shari’a Supervisory Board

Dr. Ahmed M. AhmedChairman of the Organizing Committe

Dr. Al-Tigani El-TayebCommittee Member

Mr. Omar M. Al-AmeenCommittee Member

Mr. Abdulaziz EbrahimCommittee Member

Mr. Hassan HassaniCommittee Member

Mr. Ahmed AbdulGhaffarCommittee Member

Mr. Faisal A. AbdullahGeneral Coordinator

Mr. Khalid M. Al-BaloushiReception and Transport

Dr. Abdullah Ali AgabnaHead of Research committee

Members of the Organizing Committee

About Islamic Banking“Islamic banks operate in the Middle East, Europe, Asia and Africa. At the threshold of the 21st century, Islamic banks had about US$ 700 billion in funds under their management”

A few decades ago, modern banking and financial institutions that encompass Islamic values within their principles and practices seemed to be merely a remote dream. Today, however, Islamic banking has become a viable financial approach that attracts an increasing amount of capital investment. As a concept Islamic Banking was developed as a result of the religious prohibition of the payment or receipt of interest. The fundamental principles of Islamic Banking go back over one thousand four hundred years. They are set out in Shari’a law and are enshrined in the Qur’an, the Hadith and the Sunna. Today, these principles form the basis of the contemporary Islamic Banking range of Islamic financial products & services.

al baraka 34 th symposium for islamic economics in different cities, including al-madinah...

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