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All Finance


UK: Shariah compliant student loans to be offered for first time

By: Eleanor Harding, Education Correspondent For The Daily Mail Source: The Daily Mail Sharia student loans will be set up for the first time in Britain as part of a drive to boost the number of young Muslims applying to university. The Government confirmed on Monday that a new ‘halal’ finance model will be introduced which does not conflict with the rules of Islam. Muslims are forbidden from taking out loans on which they would be charged interest, and campaigners say this is putting some youngsters off going to university. In a white paper published yesterday, the government vowed to tackle the issue by creating a so-called ‘Takaful’ model, which is Sharia-compliant. Ministers are...

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Australia: Expect Islamic Finance to grow

By: Patrick Durkin Source: Cashed-up Middle Eastern investors will be able to bid for major road, rail and port projects after the Turnbull government quietly changed tax laws in the budget to accommodate Sharia law. The Australia Arab Chamber of Commerce and Industry, bankers and tax experts said the changes may prove one of the most significant moves in last week’s budget with a host of state infrastructure assets up for grabs including Victoria’s $6 billion Port of Melbourne and NSW’s remaining $10 billion electricity assets. Half of the world’s top 10 sovereign wealth funds worth $US2.4 trillion were created from oil wealth – 20 times the firepower of...

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Why Australia needs Islamic financing

By: Chris Wright Source: Imagine a global industry in these volatile and bruising times where it is considered a disappointment that growth might drop to single digits this year for the first time in more than a decade. That industry is Islamic finance, a system based on a set of Islamic principles that includes sharing risk in financial transactions. Standard & Poor’s estimates the sector now has more than US$2 trillion in assets. It has grown at between 10 and 20 per cent almost every year of this century to date, but may finally be slowing down as it achieves critical mass. Mohamed Damak, global head of Islamic finance at S&P, sees headwinds on the horizon: the...

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