slideshow

Direct Investment and Islamic Syndication

Posted on 11th August 2012 by Camille Paldi,

Rome Nights – Street Scene

 

Thoughts from Iraj Toutounchian’s Islamic Money & Banking, Integrating Money in Capital Theory

This is another of the activities of Islamic banks subject to joint-venture regulations.  The establishment and start-up of new production and development units through this type of investment is permitted where equity participation is either impossible or where the private sector is reluctant to become involved.  Where possibilities for direct investment exist in line with the country’s economic expansion and development programs, such a contract is the most viable for Islamic banks.  They are subject to the usual technical, economic, and financial studies and evaluation, which should show the project to be viable from all angles.

The syndication transaction is a special financing instrument devised for the purpose of financing large-scale investment projects.  Such projects are jointly financed by a consortium of Islamic banks, which pool their resources and thus spread the risk between them.

Khan recommends that this consortium be operated using a lead-manager in the shape of a bank of international repute and standing: “It is usual for the Lead-Manager to form a consortium of underwriters and co-managers to execute [the project] effectively.  The relationship between the Lead-Manager and other participants in the financing is clearly defined.” (Khan 2000: 29)  The sale of all or part of the investment (that is, all or part of the shares of the Islamic bank) to the general public in an Islamic stock exchange is possible after the project becomes operative.   (Iraj Toutounchian)


Posted on 11th August 2012 by Camille Paldi


Comment on this post







Twitter

    • 31st August @camille paldi
    • Lawmaker files bill to strengthen Islamic banking - http://t.co/o2AJGyK5cy #GoogleAlerts
    • 31st August @camille paldi
    • Difference Between Manfa'ah and Intifa'a - http://t.co/7UeFRCcfNg #GoogleAlerts
    • 31st August @camille paldi
    • Waqf Sukuk - http://t.co/eXH3RFmSAZ #GoogleAlerts
    • 31st August @camille paldi
    • Mawqoof - http://t.co/TuwF3BpOOy #GoogleAlerts
    • 30th August @camille paldi
    • https://t.co/g8gX1Q3sy7
    • 30th August @camille paldi
    • Islamic finance sector forecast to hit $3,24tr - http://t.co/L5k6o32oTX #GoogleAlerts
    • 30th August @camille paldi
    • SUKUK PIPELINE - Issue plans around the world - http://t.co/8VM8oYujhC #GoogleAlerts
    • 30th August @camille paldi
    • Kenya Looking at Sovereign Sukuk - http://t.co/Y0qW0VwNHf #GoogleAlerts
    • 30th August @camille paldi
    • https://t.co/Nm1BBJii4j
    • 29th August @camille paldi
    • Green Sukuk - http://t.co/jofZfBxoPQ #GoogleAlerts
    • 28th August @camille paldi
    • Only a few days left to register for this exciting training event! camille@faaif.com. https://t.co/JpIamQ2uag
    • 28th August @camille paldi
    • STMB diversifies distribution channel to bolster Takaful penetration rate - http://t.co/h0wIYw6NBX #GoogleAlerts
    • 28th August @camille paldi
    • Russia seeks Malaysian expertise in halal food, Islamic Finance - http://t.co/ILRGCgmiDK #GoogleAlerts
    • 28th August @camille paldi
    • Moody's: Oman's government financing needs grow amid low oil prices - http://t.co/S7mAcXm5mK #GoogleAlerts
    • 28th August @camille paldi
    • World Bank's IFC gets preliminary top rating for $100m sukuk - http://t.co/fiABRFcBgK #GoogleAlerts
    • 28th August @camille paldi
    • Islamic Financial Instruments Promoted to Brazilian Exporters - http://t.co/dXCMdZpwDI #GoogleAlerts
    • 27th August @camille paldi
    • Ghana could get first Islamic Bank before end of year - http://t.co/kH76LJdKHH #GoogleAlerts
    • 27th August @camille paldi
    • World Bank's IFC to meet investors on sukuk issue - http://t.co/koN1tJvowH #GoogleAlerts
    • 27th August @camille paldi
    • Islamic windows should become full subsidiaries: Bank Nizwa CEO - http://t.co/qJhPmMBlt9 #GoogleAlerts
    • 27th August @camille paldi
    • Indonesia and Turkey Pushing Islamic Bank Cooperation - http://t.co/KqTGKMmSWa #GoogleAlerts

Articles

Reforming Economics and Finance in the Light of Abrahamic Principles

Reforming Economics and Finance in the Light of Abrahamic Principles

Introduction

The modern day economic system is built upon and around interest-based lending, which allows one class of people to grow rich at the expense of the majority of the population. Interest has been prohibited in all Abrahamic religions for essentially the same reaso...

Posted on 1st July 2015 by Camille Silla Paldi

China's Entry to the Islamic Finance Market

China's Entry to the Islamic Finance Market

 

By Matthew Pendrey

Assistant Director at The Royal Bank of Scotland

 

 

In April 2015, Qatar International Islamic Bank signed an historical agreement with Southwest Securities, based in Chongqing, to develop Shari'ah-compliant finance across ...

Posted on 1st July 2015 by Matthew Pendrey

Islam Explains Why Interest is Prohibited in the Bible and Torah

Islam Explains Why Interest is Prohibited in the Bible and Torah

 

By Camille Paldi, CEO of FAAIF, camille@faaif.com

 

 

Lending money is not prohibited in the Bible. What is prohibited is charging abusively high interest. This is because high-interest loans...

Posted on 6th June 2015 by Camille Silla Paldi

The Changing Face of Banking in Dubai

The Changing Face of Banking in Dubai

The Changing Face of Banking in Dubai

Posted on 30th May 2015 by Matthew Pendrey

Video

Find all our videos here, and also a link to our YouTube video channel so you can view our 'video of the week'

Submit

We would like you to get involved with our site. So if you want to submit Articles, Videos, Events and Call for Papers, please click the button below:

Submit

Valid XHTML 1.1 |  Valid CSS |  Web Design in Durham and Newcastle |  Copyright © 2015

* Prices are converted at USD$0.2723 per AED 1