WRONG PERCEPTION OF ISLAM AND SHARIAH

It is indeed ironic that people loves to talk and/or comment about Shariah matters even though they have little (or no) knowledge of the subject .

The statement was issued by my Islamic law professor the other day and that kept me thinking…is it because that it involves the issue of Islam as a religion? Or is there any other issue/agenda that needs to be probed further?

We must realize that the Western world holds false perception about Islam that has no relationship with reality; and the intensity and continuity of this prejudice shows no signs of slackening even in this liberal and tolerant climate of today's world. In the Western perception, Shariah law is seen as law of intolerance which promotes the denial of basic human rights and is intolerant of other faiths. It is also presumed that Shariah law does not give any rights to women and treats them as second-class citizens. This perception is based on the stories that are published in the press about the practices of honour killing and the treatment of women in Afghanistan and Pakistan.

What have been painted so far are actually the extremes and do not depict the real essence of Islam. We all know that the religion of Islam does not teach us division or hatred. Islam only teaches peace and co-existence and understanding of each other, and stands supreme among all religions for its comprehensiveness and rationality.

The Holy Prophet Mohammad (PBUH) encapsulated the guidance in his sermon that he delivered on the 9^th Zulhijjah 10 A.H. in the valley of Mount Arafat in Mecca where he said,:

"O People, lend me an attentive ear, for I know not whether after this year I shall ever be amongst you again. Therefore listen to what I am saying very carefully and take these words to those who could not be present here today.

People, just as you regard this month, this day, this city as Sacred, so regard the life and property of every Muslim as a sacred trust. Hurt no one so that no one may hurt you. Remember that you will indeed meet your Lord, and that he will indeed reckon your deeds.

Beware of Satan, for the safety of your religion. He has lost all hope of that he will be able to lead you astray in big things, so beware of following him in small things.

People, it is true that you have certain rights with regard to your women but they also have rights over you. Remember that you have taken them as your wives only under Allah's trust and with His permission.

If they abide by your right, then to them belongs the right to be fed and clothed in kindness. Do treat your women well and be kind to them for they are your partners and committed helpers. And it is your right that they do not make friends with anyone of whom you do not approve, as well as never to be unchaste.

O People, listen to me in earnest, worship Allah, say your five daily prayers, fast during the month of Ramadhan, and give your wealth in Zakat.

Perform Hajj if you can afford to.

All mankind is from Adam and Eve, an Arab has no superiority over a non-Arab nor a non-Arab has any superiority over an Arab; also a white has no superiority over a black nor a black has any superiority over a white - except by piety and good action.

Learn that every Muslim is a brother to every Muslim and that the Muslims constitute one brotherhood. Nothing shall be legitimate to a Muslim that belongs to a fellow Muslim unless it was given freely and willingly. Do not therefore do injustice to yourselves.

Remember one day you will meet Allah and answer your deeds. So beware: do not stray from the path of righteousness after I am gone.

People! Understand my words which I convey to you. I leave behind me two things, the Qur'an and my Sunnah and if you follow these you will never go astray.

All those who listen to me shall pass on my words to others and those to others again; and may the last ones understand my words better than those who listen to me directly. Be my witness, O Allah, that I have conveyed Your message to Your people."

I would like to quote one part of the article written by Denis J. Wiechman, Jerry D. Kendall, and Mohammad K. Azarian on "Islamic Law : Myths and Realities" where it was said that contemporary treatment of Islamic Law and "Radical Muslims" is filled with stereotypical characterizations. Some in the Western media have used the "New York City bombings" as a way to increase hate and prejudice. They have taken the views of a few radicals and projected them onto all Muslims. This action has done a great disservice to the Muslim world. Some academic writings also have been distorted and not always completely accurate and some researchers have concluded that Islamic Law requires a fixed punishment for all crimes.

Lastly, a Muslim who is trying to live his religion is indeed a true believer in God. This person tries to live all of the tenets of his religion in a fundamental way. Thus, a true Muslim is a fundamentalist in the practice of that religion, but a true Muslim is not radical, because the Quran teaches tolerance and moderation in all things. When the popular media generalizes from the fundamentalist believer to the "radical fundamentalist" label they do a disservice to all Muslims.

MILESTONES IN ISLAMIC FINANCE

1950s-1960s: First experimental Islamic banks develop interest-free savings and loans societies in Pakistan and the Indian subcontinent. Egypt and Malaysia see pioneering ventures in 1960s. New banks develop during the 1970s as oil money pours into Gulf states.

1975: First commercial Islamic bank opens, the Dubai Islamic Bank (http://www.dib.ae). Close to 30 such banks set up over the next decade.

In October 1975, the umbrella Islamic financing institution, the Islamic Development Bank (http://www.isdb.org) opens in Jeddah, Saudi Arabia. Between 1975 and 2005 it funds more than $50 billion worth of projects in Organization of the Islamic Conference (OIC) member countries.

1979: Pakistan becomes first nation to "Islamize" banking practices at state level. Process continues until 1985.

July 1983: Malaysia opens its first official sharia-compliant bank, Bank Islam Malaysia. Other banks also offer Islamic products and are supervised by the central bank, which is advised by a board of sharia scholars.

Sept 1983 : Sudan reforms banking system on Islamic principles after President Jaafar al-Numeiri establishes sharia law. Dual banking system develops, Islamic in the north, conventional in the south.

March 1984: Iran switches to interest-free banking at national level after passing a 1983 Islamic Banking law that was promised in the 1979 Islamic revolution.

By 1985: Islamic financial products offered by more than 50 conventional banks around the globe. Other major banks follow by the 1990s.

Feb 26, 1990: International Islamic accounting standards Organization, the Accounting and Auditing Organization for Islamic Financial Institutions, (http://www.aaoifi.com), established in Bahrain by the IDB.

1991: Indonesia's first officially-sponsored Islamic bank, Bank Muamalat, established.

By 2000: About 200 Islamic financial institutions have over $8 billion in capital, over $100 billion in deposits, and manage assets worth more than $160 billion, according to economist Mohammad Nejatullah Siddiqi.

About 40 percent are in the Middle East, another 40 percent in South and Southeast Asia, and the remaining 20 percent are split between Africa, and Europe and the Americas

2001: Malaysia's Financial Sector Masterplan sets target for Islamic finance to make up 20 percent of finance sector by 2010. By 2009, its share of financial assets is about 17 percent.

2002: International standard setting Organization the Islamic Financial Services Board (http://www.ifsb.org) established in Kuala Lumpur.

2004-2008: Investor interest in Islamic finance products grows strongly amid steady rise in oil prices and petrodollars flowing through oil producing states. World oil prices peak at over $147 per barrel in mid-2008 before sliding sharply.

Sept 2004: Islamic Bank of Britain -- the country's first sharia-compliant high street bank -- opens in London.

Nov 2006: Dubai's main stock exchange, the Dubai Financial Market, announces it is restructuring itself into world's first Islamic bourse.

2008: Global credit crisis and economic slowdown send conventional financial markets into steep tailpsin and have chilling effect on Islamic finance as investors avoid risk and asset prices tumble. New Islamic bond issuance falls two-thirds to a three-year low of $15.77 billion, Islamic Finance Information Service says.

Jan 2009: Singapore launches first Islamic bond program as it vies with Malaysia for market share.

Feb 2009: Indonesia, the world's most-populous Muslim country, sells its first retail sharia-compliant bonds, or sukuk.

FULL RESULTS OF ISLAMIC FINANCE NEWS AWARD - POLL 2008

The fourth annual Islamic Finance news Poll results are in after a record-breaking 2,491 unique votes were cast by the Islamic finance industry’s leading practitioners and participants.

In the financial sphere 2008 was deemed by many as an annus horribilis with the global markets plummeting due mainly to the US mortgage industry. The Islamic finance industry also succumbed to market forces but by and large fared better than its conventional counterparts.

What is clear, from the results of the 2008 Islamic Finance news Poll, is that the more focused and specialized Islamic financial institutions are favored to those of the larger global historically conventional institutions with Islamic operations.

With 2,491 votes cast, this is the industry’s most comprehensive and definitive survey.

In the Best Overall Islamic Bank category Kuwait Finance House again ran out easy favorite for the second year running. Malaysia’s CIMB Islamic climbed one place to second this year with Saudi Arabia’s Al Rajhi taking third spot. One notable absentee from this category is two-time winner and runner up in 2007, Dubai Islamic Bank.

As more of the world’s financial centers announce their interest in attracting Islamic finance to their shores one would assume the Best Central Bank in Promoting Islamic Finance category would be more competitive. Not so. For the fourth straight year Bank Negara Malaysia was voted number one with more than double the votes of its nearest rival, the State Bank of Pakistan, which itself leapfrogged the Central Bank of Bahrain into second place.

In new categories for the 2008 Poll, BMB Islamic won Best Islamic Shariah Advisory Firm and KFH Research was voted best Islamic Research Firm.

In a year when many banks collapsed or merged, the Islamic finance industry witnessed a number of new arrivals ensuring a hotly contested Best New Islamic Bank category, with the UK’s Gatehouse Bank scraping victory over Maybank Islamic, which was a close second.

In other categories Norton Rose climbed from second in 2007 to first in the Best Law Firm in Islamic Finance, Moody’s Investors Service was voted Best Islamic Rating Agency, Path Solutions won Best Islamic Technology Provider, Oasis Asset Management was named Best Islamic Fund Manager and Takaful Ikhlas the Best Takaful/reTakaful Provider for 2008.

In the Best Islamic Banks by Country category there were notable wins for MCCA (Australia), Faisal Islamic Bank (Egypt), Bank of London and The Middle East (UK) and Bank Muamalat Indonesia.

ISLAMIC FINANCE ASSETS TO GROW TO $1.6 TRILLION BY 2012

-Extracted from Reuters-

Assets of the global Islamic finance industry are estimated to grow to around $1.6 trillion by 2012, a report by consultancy Oliver Wyman said.

It said growth opportunities lie in underpenetrated markets with large Muslim populations awaiting better Islamic finance products in the Middle East, Pakistan and South East Asia.

Islamic finance has grown by over 20 percent annually over the past years and estimates of its current assets range from $700 billion to $1 trillion.

The report by Oliver Wyman said most institutions are far from taking full advantage of that growth as they lack both an understanding of the opportunities and the required operational capabilities.

It said Islamic wholesale banking, the industry's most important sector, needs to diversify from real estate loans and ordinary lending to include advanced treasury services, innovative asset management, balance sheet management and securitisation management.

"This will allow them to address the needs of underserved market segments such as Islamic financial institutions, corporates, sovereign wealth funds and private wealth clients," the report said.

Islamic finance is a nascent and diverse industry, in which many products well-established in conventional banking are still being developed.

It is based on shariah, or Islamic law, which is open to interpretation and caters to investors who want to avoid paying or earning interest, viewed as usury under Islamic law.