Archive for the ‘About sharia’ category

From Wall Street to Dubai – The Lucrative Idiosyncrasies of Islamic Banking

April 6th, 2012

A supranational symposium of key financial players took place recently (March 2nd and 3rd, 2010) at the posh King Hussein Bin Talal Convention Center on the shores of the Dead Sea, circa 25 miles southwest from Amman, Jordan.

The event received trifling media interest from major western news outlets; however, behemoths in the global banking industry were closely eying pivotal decisions that may be announced in the final communique.

They were right to do so.

The gathering, the first Islamic Finance and Investment Forum for the Middle East, occurred in economically healthy and politically stable Jordan – a prominent ally of the West in a geostrategically susceptible region, – which enjoys the highest quality of life in the Middle East and North Africa Region, according to the 2010 Quality of Life Index prepared by International Living Magazine.

Another essential factor to heed lies in the fact that participants were among the crme de la crme of the Islamic financial marketplace, a group of over 350 bankers and experts from 15 countries that are spearheading transformational shifts in an economic sector likely to experience solid growth in the foreseeable future.

A bird’s eye view of Islamic banking is utile to fathom the industry’s core dynamics.

Islamic banking – and to a larger extent, Islamic finance – is deeply rooted in Islamic economics and quintessentially governed by Sharia, a legislative corpus that encapsulates the religious precepts of Islam.

Sharia – or its financial section known as Fiqh al-Muamalat (Islamic rules on transactions) – allows financial intermediaries to engage in any form of economic activity so long as they don’t charge interest (Riba) and shun businesses implicated in forbidden (Haraam) undertakings.

Sharia strongly furthers risk sharing among investors and economic transactions collateralized by tangible assets such as land or machinery but outlaw derivative financial instruments.

A derivative instrument is a product that derives its value from other financial instruments (known as the underlying), events or conditions. It is mostly utilized for hedging risk or speculating for profit. The recent turmoil in global capital markets and the ensuing socio-economic pandemonium owe much of their existence to a type of derivative called Credit Default Swap (CDS).

Viewpoints alien to the Muslim world may find Sharia restrictions deleterious for sustained economic development because what Muslim jurisprudence defines as vice (gambling, adult filmography, alcohol, etc.) not only plays a vital role in many countries’ GDPs but is also an arguable social and temporal concept.

Hiring an International Shipper

February 19th, 2012

If you were looking for a challenging place to get a package, you would be hard-pressed to find a better challenge than Kyrgistan. Shipping to Kyrgistan means tackling a job that starts with a landlocked nation that is famous for its mountainous terrain. Add to this that the most developed nation with which this nation shares a border is Kazakhstan, and you have an idea of how tough this task can be. If you’re doing business in this part of the world-which is becoming very attractive due to the growing economy-you absolutely need the best logistics company possible.

Shipping to Kyrgistan means shipping to Russia, in most cases. Unfortunately, many logistics companies have only basic services in this part of the world. This means that you may be paying much more than is necessary for overland transport once your shipment arrives. You may also find yourself facing bizarre bureaucratic hassles and unexplained fees if your logistics company doesn’t know what they’re doing. There are two main things that are required of anyone shipping to Russia or Kyrgistan: You need a company with an office in Russia and with employees familiar with the local laws and customs.

A good logistics company knows how to exploit the transportation resources from Russia to Kyrgistan to your advantage. Though it is difficult to grasp for an outsider, shipping to Kyrgistan is something the Russians have been doing for years. This nation was part of the Soviet Union and, thus, there are effective and modern transportation links available between the two nations. In fact, getting your goods to Kyrgistan is really just a matter of knowing what resources are available and knowing how to deal with delays and other difficulties that might present themselves. There are few companies who can handle this challenge.

Look for a company that offers shipping to Russia specifically among its services. Shipping to Kyrgistan will start there and, if your logistics company isn’t up to the challenge, it will probably end there, too. You need a company that can handle complex cargo. If some of your cargo needs to go by air and some by train, you need a company that can handle both effortlessly. You also need a company that has contacts in Kyrgistan, to ensure that communication lines are always open and that your cargo’s location and disposition are always instantly available.

Working With a Freight Forwarder

February 19th, 2012

Shipping has been around for thousands of years and, despite constant advances in technology, it’s still the best way to get goods from one part of the world to another. Performing this task, however, is incredibly complex. Even though they have access to a host of technological advantages, an African freight forwarder will still need to have on-the-ground experience with shipping. The type of cargo being shipped will play a huge part in determining the cost, and best methods of completing, such jobs. It’s always best to go with an experienced company.

If you’re using an African freight forwarder to move your personal possessions to or from the continent, you’ll have particular needs. For starters, your shipment will most certainly not take up one of the huge containers used on ocean-going cargo vessels. This requires the logistics company to do a bit of work to get you the space you need. You’ll also need to deal with customs and the laws of each nation to and from which the shipment is moving. Be sure that you’re also dealing with a company that knows how to make accommodations for personal items. This means the correct packaging and the right means of transportation.

For business shippers, logistics companies make it possible to increase profit by reducing the costs of shipping items worldwide. An African freight forwarder allows their clients to seamlessly move in and out of these markets, and does so in such a developed and smooth fashion that the complexity of the affair is not at all apparent. If you’re shipping out of South Africa, the situation and available resources are commensurate with that of any first-world nation. If you’re shipping out of Congo, however, you’ll face much different challenges. Good logistics companies, quite simply put, can handle any challenge.

Keep in mind that an African freight forwarder may have some better ways to get your goods to their destination than you may have previously considered. Their experience means that they have probably already found solutions to just about any situation you throw their way and, oftentimes, you’ll be a bit amazed at how they can get goods from one point on the globe to another. Whether you’re doing it for business or personal reasons, these logistics companies have the end effect of taking a lot of stress out of your life and of making international business possible.

Trade in Latin America – Discover the Opportunities

February 19th, 2012

Before looking to invest in this area, you must understand Latin America. It represents 20 countries and a population of over 550 million people. It is sectioned into North America, Central America and South America. The countries that make up Latin America are Mexico, Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, French Guiana, Guyana, Paraguay, Peru, Suriname, Uruguay and Venezuela.

With the constantly changing and challenging global economy, companies are forced to constantly evaluates new ways to increase their international sales. This region seem to be increasingly interesting for those companies therefore the investment levels have increased in the past years.

For many years, Latin America seem to be an unknown market to a lot of foreign companies. It was a far away region with beautiful beaches and was associated with exotic tourist destination. To the surprise of a lot of people, they have discovered extremely modern cities with abundant buildings and thriving businesses. The countries that are currently standing out for trade are Brazil, Peru, Panama, Uruguay. These countries are showing positive growth rates despite the global economic crisis. The biggest and strongest economy is Brazil which is expected to growth even further with international events such as the Soccer World cup and the Olympic Games to be hosted in 2014 and 2016 respectively.