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Islamic Banking & Finance. In the West with Concentrated Focus on the The United Kingdom. Dr Mohammad Javad Gohari (PhD Law) Vice-President OIIL Senior Advisor OIIBF. Islamic Finance 101. US Official Position. Hosted by the. U.S. Department of Treasury. In association with the. - PowerPoint PPT Presentation

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The Financial Services Authority is the regulator of the financial services industry in the UK

Islamic Banking & FinanceIn the West with Concentrated Focus on the The United KingdomDr Mohammad Javad Gohari (PhD Law)Vice-President OIILSenior Advisor OIIBF1

Islamic Finance 101Hosted by theU.S. Department of TreasuryIn association with theIslamic Finance Project Harvard Law SchoolNovember 6, 20081:00 p.m. to 5:00 p.m.1500 Pennsylvania Avenue NW, Washington D.CUS Official Position2FINANCIALINSTITUTIONGEOGRAPHICPRESENCECOMPANYSTRUCTURE/FUNDINGSOURCEPRODUCTSOFFEREDSTRUCTURESUSEDBANKSUniversityBankHeadquarters:Detroit,MichiganShariah-compliantproductsofferedin:California,Connecticut,Idaho,Illinois,Maryland,Michigan,NewJersey,NewYork,Ohio,Pennsylvania,VirginiaStatecharteredbankFinancingproductsareofferedthroughitswhollyownedsubsidiary,UniversityIslamicFinancialResidentialrealestatefinancingDepositproductMoneymarketproductMutualfundsMurabahaandijaraProfitsharingdepositsMutualfundsofferedbyHSBCAmanahDevonBankHeadquarters:Chicago,IllinoisShariah-compliantproductsofferedin:Alaska,Alabama,Arizona,Arkansas,California,Colorado,Connecticut,Florida,Georgia,Idaho,Indiana,Kansas,Kentucky,Louisiana,Massachusetts,Michigan,Minnesota,Missouri,Nebraska,NorthCarolina,NorthDakota,NewHampshire,NewYork,Ohio,Oklahoma,Oregon,Pennsylvania,RhodeIsland,SouthCarolina,SouthDakota,Tennessee,Texas,Utah,Virginia,WashingtonDC,Wisconsin,WyomingStatecharteredbankFinancingproductsareofferedthroughitswhollyownedsubsidiaryResidentialrealestatefinancingCommercialrealestatefinancingRealestateconstructionfinancingLinesofcreditCashmanagementBusiness&tradefinancingInstitutionaldepositproductsInvestmentproductsTrustandadvisoryservicesMurabahaandijaraMusharakahProfitsharingdepositsMutualfundsofferedbythirdpartyproviders(Amana,Azzad,Iman,seebelow)BroadwayBankofChicagoHeadquarters:Chicago,IllinoisShariah-compliantproductsofferedinIllinoisonlyCommunitybankResidentialrealestatefinancingCommercialrealestatefinancingIjaraRomAsiaBankHeadquarters:MonmouthJunction,NewJerseyStatecharteredbankTobedeterminedTobedeterminedLincolnStateBankHeadquarters:Chicago,IllinoisShariah-compliantproductsofferedinIllinoisonlyStatecharteredbankResidentialrealestatefinancingIjaraMutualBankHeadquarters:Chicago,IllinoisShariah-compliantproductsofferedinIllinoisonlyStatecharteredbankCommercialrealestatefinancingMurabahaColeTaylorBankHeadquarters:Chicago,IllinoisShariah-compliantproductsofferedinIllinoisonlyStatecharteredbankCommercialrealestatefinancingMurabahaandijaraMORTGAGECOMPANIESZayanFinanceHeadquarters:Chicago,IllinoisShariah-compliantproductsofferednationwideNon-bankmortgagecompanyFundingprovidedbyforeigninvestorsCommercialrealestatefinancingDiminishingmusharakahandijaraGuidanceResidentialHeadquarters:WestFallsChurch,VirginiaShariah-compliantproductsofferedin:California,Connecticut,WashingtonDC,Florida,Georgia,Illinois,Indiana,Massachusetts,Maryland,Michigan,Minnesota,Missouri,NorthCarolina,NewJersey,NewYork,Ohio,Oregon,Pennsylvania,SouthCarolina,Tennessee,Texas,WashingtonNon-bankmortgagecompanyFundingprovidedbyFreddieMacand/orforeigninvestorsResidentialrealestatefinancingDiminishingmusharakahLaribaAmericanFinanceHouse/BankofWhittierHeadquarters:Pasadena,CaliforniaShariah-compliantproductsofferednationwideNon-bankmortgagecompanyBrokers/offersitsfinancingproductsinsomestatesthroughitsaffiliate,BankofWhittierFundingprovidedbyFreddieMac,FannieMaeand/orBankofWhittierResidentialrealestatefinancingCommercialrealestatefinancingHomeconstructionBusiness&tradefinanceCurrentaccount/depositproductIjaraplusdiminishingmusharakah,musharakahandmurabahaSamadGroupHeadquarters:Ypsilasti,MichiganShariah-compliantproductsofferedinMichiganonlyNon-bankmortgagecompanyResidentialrealestatefinancingIjaraNEWHORIZON AprilJune 2009

www.newhorizon-islamicbanking.comANALYSIS

3 IIBI3FINANCIALINSTITUTIONGEOGRAPHICPRESENCECOMPANYSTRUCTURE/FUNDINGSOURCEPRODUCTSOFFEREDSTRUCTURESUSEDCOMMUNITY-BASEDFINANCINGPROGRAMMES/ORGANISATIONSCityofMinneapolisAlternativeFinancingProgrammeHeadquarters:Minneapolis,MinnesotaGovernmentsponsoredprogrammeforsmallbusinessownersCo-financingarrangementswithothercommunityproviders(i.e.AfricanDevelopmentCenter,orotherbanks)RealestateconstructionfinancingMicrofinancingMurabahaMinnesotaHousingFinanceAgency,StateofMinnesotaHeadquarters:Minneapolis,MinnesotaGovernmentsponsoredprogrammeforlowincomeparticipantsFundingprovidedbyStateofMinnesotaLow-incomeresidentialrealestatefinancing;wholesaleprovidertoDevonBanksresidentialrealestatefinancingproductsMurabahaAfricanDevelopmentCenterHeadquarters:Minneapolis,MinnesotaNon-profitcommunitydevelopmentcorporationMicrofinancingResidentialrealestatefinancingResidentialmortgagebrokerforDevon-MinnesotaHousingFinanceAgencyProjectMurabahaNeighborhoodDevelopmentCenterRibaFreeProgrammeHeadquarters:Minneapolis/St.Paul,MinnesotaNon-profitcommunitydevelopmentcorporationMicrofinancingMurabahaandmusharakahWorldReliefHeadquarters:Nashville,TennesseeNon-profitcommunitydevelopmentcorporationFundingprovidedbyOfficeofRefugeeResettlementintheUSDepartmentofHealthandHumanServicesMicrofinancingMurabahaAmeenHousingCo-operativeHeadquarters:PaloAlto,CaliforniaFundingprovidedbyco-opandinvestorsCo-opresidentialfinancingprogrammeCo-operativefinancingstructurewithincomedistributedasdividendsINVESTMENTADVISORS/MUTUALFUNDCOMPANIESSaturnaCapitalHeadquarters:Bellingham,WashingtonInvestmentadvisor,assetmanagerPublicinvestmentfunds(AmanaMutualFunds)AzzadAssetManagementHeadquarters:FallsChurch,VirginiaInvestmentadvisor,assetmanagerPublicinvestmentfunds(AzzadMutualFunds)NorthAmericanIslamicTrust/AlliedAssetAdvisorsHeadquarters:BurrRidge,IllinoisInvestmentadvisor,assetmanagerPublicinvestmentfunds(TheImanFund)INVESTMENTBANKSArcapitaHeadquarters:Atlanta,GeorgiaSubsidiaryofArcapitaBank(Bahrain)PrivateequityRealestatefocusedinvestmentsVenturecapitalInnovestCapitalHeadquarters:Cleveland,OhioSubsidiaryofGulfInvestmentHouse(Kuwait)RealestatefocusedinvestmentsTransOceanGroupHeadquarters:Boston,MassachusettsSubsidiaryofGulfInvestmentHouse(Kuwait)PrivateequityUIBCapitalChicagoHeadquarters:Chicago,IllinoisSubsidiaryofUnicornInvestmentBank(Bahrain)PrivateequityOverlandCapitalGroupHeadquarters:Boston,MassachusettsInvestorsincludeGulf-basedfinancialinstitutionsandinvestorsRealestatefocusedinvestmentsEquipmentleasingAssetmanagementNEWHORIZON Rabi Al ThaniJumada Al Thani 1430

www.newhorizon-islamicbanking.comANALYSIS

IIBI 44ISLAMIC FINANCE, SMEs AND THE RECENT GLOBAL SHOCKWAVES IN EUROPE Dorsaf, Islamic Banking Finance and Commerce Conference Oxford 2012 55FRENCH INITIATIVES FOR ISLAMIC FINANCE Dorsaf, Islamic Banking Finance and Commerce Conference Oxford 2012 66British Prime Minister

Speaking at the Islamic Finance and Trade Conference the chancellor said he wanted to make the UK "the gateway for Islamic finance".He pointed to reforms of the tax system to make Sharia compliance easier. "It is the vibrancy and dynamism of Britain's Muslims, combined with Britain's openness to the world and our historic ties with Muslim countries, that means the ambition you have set for yourselves - to make Britain the gateway to Islamic finance and trade - is one I believe Britain is well placed to achieve," Brown told a conference on Islamic banking in London.7Size of the market in the UK and globally

There are thought to be about 1.8 million Muslims in the UK or 3 per cent of the population. 50% of these are estimated to reside in the London area. There are also estimated to be about half a million regular Muslim visitors to the UK and approximately 12 million Muslims living in the EU, principally in France & Germany.

The main centres for Islamic banking still tend to be concentrated in the Middle East and Gulf region. Assets controlled by Islamic banks at the global level are estimated to be $200-500bn and are growing at a pace of 10-15% per year.8The Financial Services Authority is the regulator of the financial services industry in the UK

The FSA's policy towards Islamic banks, and indeed any new or innovative financial services company, can be summed up simply as "no obstacles, no special favours". We are keen to promote a level playing field between conventional and Islamic providers. One thing we are clear about is that we are a financial, not a religious, regulator.9UK Government & Its Claims For Islamic Finance Growth in London

Markets and skills base: It has a tradition going back to the seventeenth century, if not before, of being willing to innovate and respond flexibly to new ideas. London has deep and liquid markets and the exchanges are among the most frequently used venues for listing and trading financial instruments globally. The London Metal Exchange has already been mentioned. The UK financial services industry has a proven record of developing and delivering new products and a large pool of legal, accounting and financial engineering skills on which to draw. Several of these firms have now established or expanded offices in other Islamic centres. English law is already the preferred legal jurisdiction for many Islamic finance transactions.

Islamic windows: Several major international institutions such as Citi, Deutsche, and HSBC have had a presence in the Middle East and South East Asia for several years. As a result, they have developed considerable knowledge and experience of local markets, including Islamic ones. To accommodate the new and growing demand for Islamic products, they have established business lines known as Islamic windows, some of which are based in the UK and others in the Middle East and South East Asia. These windows have contributed signi

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