The Purpose of Islam Economics

The betterment of life both in financial and spiritual is the root of all objectives of Islam Economics. Basic of Islam method is concerned into supporting people to be caliph in this earth. The rules manage the relationship between human with the family, human with human, leader with employees, the rich one and the poor one, and also the properties with the children that will give good benefit for the human and avoid the badness like what we say ”jalbil mashalih wa daf’il al dharar”.

Islamic Bonds Increasing

Global issuance of sukuk (or Islamic bonds) has surged in recent months in a marked turnaround from earlier in the global credit crisis, Moody’s Investors Service notes in a new Special Report.

Amid current economic and capital market conditions, sukuk issuance is starting to become dominated by sovereigns and government-related entities, a development that Moody’s believes will foster a more efficient and soundly based sukuk market. The launch of sukuk funds and various legislative measures in certain countries should also deepen the market and add transparency and efficiency.

Takaful Dilemma Facing European Insurer

LONDON (Reuters-inazj9y2vm) - Major European insurers eyeing a move into the market for Islamic insurance, or takaful, face a tough decision whether to use diminished resources to secure an upper hand or risk losing ground to niche providers. “Some of the bigger players in Europe definitely have plans to offer takaful products. The question is when’s the right time to launch them,” Khan said at the Reuters Islamic Banking and Finance Summit.

Middle East Insurance and Reinsurance Summit 2009

The Middle East Insurance and Reinsurance Summit will be held at the Monarch Hotel in Dubai on 11-15 2009, exploring Middle East insurance market growth potential of up to 400 percent, through a full programme of speeches, panel sessions and workshops for encouraging open discussion between delegates and expert panelists and speakers.

World First Charitable Insurance Product

T’azur launched first charitable insurance product named “Sadaqah” that would help donors save regular donations which T’azur invest in shari’a compliant funds over a set number of years. Then the accumulated capital passed to the Charity of donor’s choice. T’azur will contine making regular donations on the behalf of the donor through Takaful, in the event certain circumstances (e.g. illness, disablity) which prevent the donor from making charitable donations.

The Chancellor Guide - Islamic Finance -

Chancellor Guide to the Legal and Shari’a Aspects of Islamic finance is now published, providing western institutions that interested in Islamic finance genuine and reliable information on structuring of Shari’a compliant financial product that are rarely to be found. The publication is the pioneer in explaining many important legal aspect of Islamic Finance. 19 Legal practitioners and advisors are together in bringing 355 page guide that offers practical insights on Islamic finance which are valuable both to experts and laypersons.

Indonesia, The Center of World Islamic Law Insurance (3)

There is an impression in society that industrial is only suitable for the middle class society and the high one. While for low society is not. How is Islamic perspective about the main aim of insurance?
Yes, there is still an impression like that, but soon it will change as long as the socialization is done continuously. I had explained above that many functions of insurance such as health, accident, death, that mostly for the low class society.

Indonesia, The Center of World Islamic Law Insurance (2)

What things that can be insuranced based on Islamic perspective?
Theoretically, all insurance objects can be insuranced. But the higher the risks of an insurance object, the higher the grade of grahar (unclear), and the grade of maisir (gamblinhg). That’s why Islamic Law Insurance, especially the insurance of damages, should avoid the insurance objects with high risk, because in that insurance object, the ghahar is big and the gambling also. So, actually all conventional insurance products can be put into the Islamic profession of faith.

Indonesia, The Center of World Islamic Law Insurance (1)

Islamic Law insurance is getting more develop nowadays. Since it was published in 1994, up to now, the amount of Islamic Law insurance industrial gets into hundreds branches that are spreading along Indonesia. Moreover, the market demand that is still under 5% will be more develop in the future.

Muhammad Syakir Sula, a practician and consultant of Islamic Law Insurance explains that seeing the fast growth of it, Indonesia has a good potential to be the center of Islamic Law insurance.
It is caused by the big potential and support that Indonesia has. By the amount of Islamic people that reach up to 85% more than 230 people, it becomes the biggest market in the world for Law Islamic insurance industrial.
“Now, the challenge is make the Islamic people sure to know it more. Because the advantage is totally great if it is compared with conventional insurance,” said the General Head of IIIS (International Islamic Insurance Society) to Syahruddin El-Fikri from Republika.

Here are the quotation of interview with that man who was born in Palopo, South Sulawesi, at 12 February 1964.

Hertawan Kartajaya: Islamic Economy is Fair and Beautiful

The teacher of marketing, Hermawan Kartajaya, has interacted for a long time in the sharia financial practitioners. He started eloquently stating that Islamic tenet as “rahmatan lil alamin”. Being a Catholic, he intends to develop the value of Islamic marketing. See the quotation of interview shortly after the launching of Sharia Marketing book in Jakarta a week ago.

Actually, what is the difference of sharia and conventional?
In the marketing world there is a term of “kelirumologi”. It is the nine principles which is misinterpreted For example, marketing is meant to persuade people to buy as much as possible. Or, marketing eventually make the best package as much as possible, but the product itself is not good. Or, persuade people will all things so that they will join and buy. That’s “kelirumologi” (referred to the term popularized by Jaya Suprana). Sharia marketing teaches people to be honest to their customers or others. The value of sharia prevents people (marketers) to fall to that “kelirumologi”. There are several values must be held by marketers, particularly if they are Moslems.