Saturday, March 22, 2008

Sharia Finance - Pay no attention to the Imam behind the curtain

Dubai gets first Islamic bourse.

It is fitting that Dubai, home of the first Islamic bank in the world, would also be home to the first Islamic financial market, said Hussaim Hamid, chairman of the DFM Sharia Board.

"The conversion of DFM from a conventional market to an Islamic one has been implemented according to the principles of Sharia. We are in the process of issuing directives for investors on how to invest in financial markets according to Sharia principles," Hamid said.

These directives will be a part of the official DFM Investor Guide, which will be made available soon, he added.

Okay, possums. So what does this mean? It means Sharia-schmaria. The Koran is the furthest thing from their principles on this one. They're just making it up as they go along. And what else does Dinah say about things like this?

Figures never lie, liars figure.

Watch out. I just hope I'm still around to watch this house of cards when it comes tumbling down.

More on the Imams behind the curtain beneath the fold.

The Imams behind the curtain:

The move was decided by the DFM Sharia board during its first meeting, held under the chairmanship of Dr. Hussain Hamid. Among the board members attending the meeting were Dr. Abd Al Sattar Abu Gheda, Dr. Ojail Jasim, Dr. Mohammed Qassim, Dr. Mubad Ali Al Jarihi, General Secretary of the board, and Motaz El Demerdash, representing DFM Company.

Essa Kazim, Chairman of Dubai Financial Market, thanked the Sharia board for its confidence in DFM. He said that the market's operations will continue to abide by Sharia principles, noting that DFM's conversion to an Islamic market will make it the first Islamic financial market in the world.

Dr. Hussaim Hamid, Chairman of DFM Sharia Board, said: 'The conversion of Dubai Financial Market to a Sharia-compliant market is a challenge for the board. DFM will become an international symbol for investing in Islamic securities.'

The board approved all documents and contracts related to the establishment of DFM. The board also decided to start working on structuring criteria that will be used by DFM to classify listed companies in terms of Sharia compliance. The board has adopted an action plan to implement the project. The plan will be further discussed during the next meeting.

The board also approved that investments made by DFM Company are Sharia-compliant. The board adopted all the Fatwas issued by the board's chairman in response to the DFM management's queries.

The board also confirmed that the DFM conversion process to an Islamic market is being implemented according to Sharia principles. The board also approved printing a booklet for investors on how to invest in financial.

Check out the credentials of the Imams on the Fatwa and Sharia'a Board .