Académique Documents
Professionnel Documents
Culture Documents
TWO-STEP MURABAHA P 5
Research Activities 7
E-LEARNING P 10 KNOWLEDGE BASE P 11
Training Activities 9
IRTI - The Islamic Research and Training Institute is an affiliate of the Islamic Development Bank
Statistical Data 12 Group responsible for leading the development and sustenance of a dynamic and comprehensive
Islamic Financial Services Industry that supports socio-economic development in Member countries.
New Faces at IRTI 13
www.irti.org
Forthcoming Events 15
Eighth International Conference on
Islamic Economics & Finance
Islam provides for a mandatory
form of charity in the form of
Knowledge Review
PUBLICATIONS IN SPOTLIGHT
WHAT IS ISLAMIC ISLAMIC BANKING
ECONOMICS (ARABIC) STRUCTURES Dr Muhammad Umer Chapra,
Author: Dr Muhammad Umer Chapra Author: Dr. Abdelrahman Elzahi Saaid Ali an eminent scholar is working
as Research Advisor, IRTI.
Prior to this he worked as
Senior Economic Advisor at
the Saudi Arabian Monetary
Agency (SAMA) . Dr Chapra has
also taught at the Universities
of Wisconsin (Platteville) and
Kentucky (Lexington), USA and
worked in Pakistan at the Institute
of Development Economics and
the Islamic Research Institute.
e-mail: muchapra@isdb.org
3
the goals, worldview and method of valuable to the management of
conventional economics, to prepare Islamic banks and to those who
a suitable background for the are engaged in the fields of Islamic
discussion of Islamic economics in banking and finance.
part two.
Knowledge Review
Upon notification by the
exporter and the request from
5
100,000,000
of Purchase Price directly to
40,046,388
the exporter. 50,000,000 14,418,093
7,237,030 12,747,891 5,349,343
97,441
The importer can clear the
0
goods from customs based on Murabaha Leasing Mudarabah Musharakah Salam Istisna Other
this payment and shall repay
Source: http://www.ibisonline.net
ISLAMIC FINANCE
microfinance with case studies
of village-bank model in Jabal Al
Hoss, Syria, joint-liability-group
M icrofinance and Islamic Inclusive Islamic Financial Sector and training for microfinance; and
finance have much in Development: Enhancing Islamic examine the role of government
common. Islam emphasizes Financial Services for Micro in enhancing financial inclusion
ethical, moral, social, and religious and Medium Sized Enterprises through microfinance.
factors to promote equality and organized by Islamic Research and
fairness for the good of society Training Institute of the Islamic
as a whole. Many elements of Development Bank and the Centre
microfinance are consistent for Islamic Banking, Finance and
with the broader goals of Management of Universiti Brunei
Islamic finance. Both advocate Darussalam. The papers included
entrepreneurship and risk sharing in this volume seek to deal with
and believe that the poor should major issues of theoretical and
take part in such activities. Both practical significance and provide
focus on developmental and social useful insights from experiences The book deals
goals. Both advocate financial of real-life experiments in Shariah-
inclusion, entrepreneurship and compliant MME finance. with major issues
risk-sharing through partnership
The first two papers deal with
of theoretical
finance. Both involve participation
by the poor. There should,
the concept of social solidarity, and practical
therefore, hardly be much doubt
responsibility and microfinance.
The first paper in this volume
significance and
about the possibility of a successful
marriage between the two. This
examines the basic joint-liability- provide useful
may involve experimenting with
based microfinance model and insights from
finds support for it in the concept
the best practices and models
of Asabiyah or social solidarity. The experiences
of conventional microfinance
while modifying the products and
second paper reviews the notion of real-life
services to make them Shariah-
of corporate social responsibility
and the place of microfinance
experiments
compliant. Issues pertaining
to Islamic microfinance is the
as a tool of poverty alleviation. in Shariah-
subject of this edited volume
The next seven papers deal with compliant MME
Islamic contracts and products for
containing eighteen carefully
microfinance. More specifically, finance
selected research papers that
they deal with various Shariah-
were presented at the First
nominate modes, such as,
International Conference on
Knowledge Review
RESEARCH ACTIVITIES
INTERNATIONAL RESEARCH EVENTS
IRTI organized and participated in a number of research events across the globe, a theme-wise summary of
which is provided below.
Workshop on Morality and Markfield, The Markfield Institute of Higher The workshops shed lights upon the
Economics United Education role of morality and ethics in shaping the
Kingdom economic behavior.
6th IDB Global Forum on Islamic The forum highlighted liquidity risk
Finance Managing Liquidity and Jeddah, KSA In conjunction with the IDB Annual management which has become one
of the most widely discussed topics
Enhancing the Size of Islamic Meeting in Islamic finance industry after the
Financial Institutions financial crisis.
Risk Management, Regulation and Supervision of the Islamic Finance Industry
Islamic Financial Sector The conference stimulated critical
Development: Post Financial Crises Langkawi, Insaniah University, Malaysia thoughts on state of Islamic banking
and the Resilience of Islamic Malaysia development after the crisis
Financial Services
Future of Arab Economics in the The conference stimulated critical
Light of the Local and International Cairo, Egypt The Arab Society for Economics thoughts on the challenges the lie ahead
Challenges in the region
Orientation Seminar on Islamic Markfield, The Islamic Foundation, United It was aimed at creating awareness
Finance United Kingdom among academicians and practitioners
Kingdom in the UK
Poverty Alleviation and Maqasid-Based Development
3rd Insaniah IRTI Life International The workshops shed lights upon the role
Conference 2010 on Contemporary Langkawi, Insaniah University, Malaysia of religious belief in the development of
Issues on Aqidah Dimension in Malaysia Islamic economics discipline.
Islamic Economics
2nd International Conference on Khartoum, Sudan Academy of banking and The conference stimulated critical
Inclusive Islamic Financial Sector Sudan Financial Sciences thoughts on state of Islamic microfinance
Development during and after the crisis
The Role of Islamic Waqf in Alexandria, The forum highlighted the role of waqf as
Supporting Higher Education in Egypt Alexandria University, Egypt financial instruments in supporting higher
Muslim World education.
7
The objective of the event
was to find an effective
Symposium on Endowment and Dubai, UAE Kuwait Awqaf Foundation and and efficient way to
Education Zayed University, UAE revive the role of the
waqf to support
education
Knowledge Review
TRAINING ACTIVITIES
T he importance of capacity building and human capital development for the growth and development of the
Islamic financial services industry can be hardly overemphasized. The following training events were recently
organized by IRTI in IDB member countries with a view to achieve above objectives.
Durham University, UK
The Markfield Institute of Higher Education
(MIHE), UK
Al Imam Al-Ouzai University in Lebanon
International Islamic University Islamabad, Pakistan
University of Indonesia
Imam Sadiq University, Iran
Knowledge Review
KNOWLEDGE BASE
IBIS A Cutting Edge In order to address this, IRTI has embarked on a
major initiative - the Islamic Banks Information System
Project (IBIS) - to serve the seekers of Islamic financial data.
The date are presented in a processed and easily
readable format Besides particular analysis; with
11
Islamic Research & Training Institute
STATISTICAL DATA
The Assets Volume of Islamic Banks (000 US$) - 2009
Region Country # Banks per Country Shares (%) per Region Shares (%)
Albania 1 44,091 0.009%
Europe 1,925,388 0.40%
United Kingdom 4 1,881,298 0.389%
United Arab
Emirates 5 56,380,607 11.673%
Bahrain 21 21,998,207 4.554%
Jordan 2 4,582,575 0.949%
Kuwait 4 47,305,298 9.794%
Middle East Palestine 1 293,661 0.061% 219,344,618 45.41%
Qatar 4 22,538,812 4.666%
Saudi Arabia 4 62,779,711 12.997%
Syrian Arab
Republic 2 1,632,766 0.338%
Yemen 2 1,832,980 0.379%
Azerbaijan 1 21,408 0.004%
Bangladesh 6 7,587,349 1.571%
Indonesia 3 4,260,112 0.882%
Asia Iran 7 128,509,365 26.605% 243,693,350 50.45%
Malaysia 18 75,952,287 15.725%
Pakistan 6 5,085,992 1.053%
Turkey 4 22,276,837 4.612%
Egypt 2 7,186,400 1.488%
Sudan 15 10,023,805 2.075%
Africa 18,055,068 3.74%
Tunisia 1 523,261 0.108%
South Africa 1 321,602 0.067%
Grand Total: 114 483,018,424 100% 483,018,424 100%
Sectorial Financing of Islamic Banks (000 US$) - 2009 Regional Murabaha Lines (000 US$) - 2009
(Based on data for 81 Islamic Banks) (Based on data for 109 Islamic Banks)
49,850,407 50,399,603
1,892,741
7,848,204 356,590
4,843,426
31,021,323 131,727,812
46,593,970 107,204,598
31,425,241
56,165,272
8,504,031
Europe Asia
Consumer Durables Real Estate & Construction Middle East Africa
Agricuture Banks & Financial Institutions
Manufacturing Service
Trading Others
Transportation
Source: http://www.ibisonline.net
Knowledge Review
NEW FACES AT IRTI
Hylmun Izhar Prior to joining He taught courses of his specialization and conducted
IRTI, IDB, he was a lecturer at seminars at both IIUM and KAAU. He has published
the Markfield Institute of Higher several papers in refereed International Journal with
Education (MIHE), Leicester, focus on Syntactic Studies, Translation Studies,
United Kingdom where he taught Contrastive Linguistics and Computational Linguistics.
Islamic Financial Instruments,
Economic Development and
Dr Dadang Muljawan is currently
Finance and Cross Culture
a Senior Economic Researcher
Management. He was also a
at IRTI-IDB. He holds BSc
Research Associate in Islamic
in Engineering Physics from
Finance at Oxford Islamic Finance, Ltd, a wholly
Bandung Institute of Technology,
owned subsidiary company of the Oxford Centre for
MBA from PPM Graduate School
Islamic Studies (OXCIS), Oxford, United Kingdom.
of Management, and PhD in
In 2005, he was awarded Master degree in Islamic Economics from Loughborough
Banking, Finance and Management with distinction by University, UK. He has written a
Loughborough University, United Kingdom. number of research publications
Mr Izhar was honoured Doctoral Fellowship by the in international journals and presented papers in
Graduate School, Durham University and is currently international conferences. His areas of interest
completing his PhD at Durham Islamic Finance cover financial supervision and regulations, and
Programme, School of Government and International financial assessment both in micro level and macro
Affairs, Durham University. level. He has been exposed to more than 10 years
He has also presented numerous papers in various of experience in the Central Bank of Indonesia as
international conferences in the area of Islamic an economic researcher and the IFSB in the area
Economics and Islamic Banking and Finance. of prudential database for Financial Soundness
Indicators (FSI). Currently, he is in charge in
Having been an active contributor to Muslim World
researches relating to the development of regulatory
Book Review, Mr. Izhars academic articles appear
framework for Islamic financial institutions.
in a number of refereed journals such as Review of
Islamic Economics, IIUM Journal Economics and Dr. Nasim Shah Shirazi joined
Management, Journal of Islamic Banking and Finance IRTI as a Senior Economist. His
and Kyoto Bulletin of Islamic Area Studies. areas of interest are Development
Economics, Public Finance and
Dr. Wejdan Kenali joined IRTI as
Islamic Economics. The focus
an Arabic Language Editor. He
of his research has been on
occupied the position of Assistant
Development Economics, Public
Professor of Arabic Language and
Finance and Islamic Economics.
Literature, International Islamic
He has number of publications
University Malaysia (IIUM). He
to his credit, including research
contributed as a Visiting Scholar
articles in the national and international journals,
to the Faculty of Arts and as a
books and research reports.
Collaborator Editor at the Scientific
Publishing Center, King Abdul Before joining IRTI, IDB, he has been
13
Aziz University (KAAU). He holds a PhD in Arabic all along working as a University
Language and Literature from theUniversity of Jordan. teacher and researcher over a
He occupied the function of Coordinator of Information period of last 30 years. He served
and Communication Technology, IIUM and the International Islamic University,
function of Coordinator of Arabic Writing Lab, IIUM. Islamabad holding different positions
Knowledge Review
BACKGROUND OF
FORTHCOMING EVENTS
CONFERENCE SERIES
The first conference in the
series was held in Makkah Al
Mukaramah, Kingdom of Saudi
EIGHTH INTERNATIONAL CONFERENCE ON ISLAMIC Arabia in 1976 under the auspices
ECONOMICS & FINANCE of King Abdulaziz University,
SUSTAINABLE GROWTH AND INCLUSIVE ECONOMIC DEVELOPMENT
Jeddah and it marked the start of
FROM AN ISLAMIC PERSPECTIVE
December 19-21, 2011 Doha, Qatar development of Islamic economics
and finance as modern scientific
disciplines. The second conference
was held in
Islamabad, Pakistan, in 1983
under the auspices of the
International Islamic University,
T he Eighth International
Conference on Islamic
Economics and Finance is jointly
students, and practitioners to
address the problems of poverty
alleviation, inclusive economic
Islamabad. The third conference
was held in 1992 at the
being organized by the Islamic growth, and macroeconomic International Islamic University,
Research and Training Institute stability from the perspective of the Selangor, Malaysia. The fourth
(IRTI), Qatar Foundations Faculty Islamic Economics and Finance conference was held in 2000
of Islamic Studies (QFIS) through discipline. at Loughborough University,
its Islamic Economics and The conference will witness Loughborough, U.K. The fifth
Finance Centre, the International presentations of theoretical and conference was held in Bahrain
Association for Islamic Economics, empirical research papers in under the auspices of Bahrain
and the Statistical, Economic Arabic and English languages University, Bahrain in 2003. The
& Social Research & Training broadly in the areas of:
sixth conference was held in 2005
Centre for Islamic Countries Islamic economics in Jakarta under the auspices of
(SESRIC), with the support of other Critique/assesment of different the Indonesian Ministry of Finance
stakeholders. The Conference will models and policies of and the Central Bank of Indonesia.
provide a platform for dialogue and economic development
The Seventh Conference was held
discussions between policymakers, The way out towards practical
in Jeddah under the auspices of
academics, researchers, graduate and implementable road maps
King Abdulaziz University in 2008.
For more information about
previous conferences in this series,
please visit:
http://islamiccenter.kau.edu.
sa/7iecon/index_english.html
Doha, Qatar
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Islamic Research & Training Institute
IMPORTANT DATES
ABOUT IRTI
Editorial Board
T he Islamic Research and Training Institute (IRTI) was established
in 1401H (1981G). The purpose of the institute is to undertake
research for enabling the economic, financial and banking activities Dr. Mohamed Obaidullah
in Muslim countries to conform toShariahand to extend training mobaidullah@isdb.org
facilities to personnel engaged in economic development activities in Dr. Mahmoud Sami Nabi
IDB member countries. The Institute is located within the headquarters msnabi@isdb.org
ofIDBin Jeddah, Saudi Arabia.
Dr. Wejdan Kenali
wejdan@isdb.org
Contact us Br. Mehmet Fehmi EKEN
Islamic Research and Training Institute meken@isdb.org
Member of the Islamic Development Bank Group
P.O.Box 9201 - 21413 Jeddah, Kingdom of Saudi Arabia
General Phone: +966-2-6361400 IRTI Fax: +966-2-6378927
Director Gen. Office: +966-2-6466131
E-Mail: irti@isdb.org
Knowledge Review