Lotus Halal ETF and the rising profile of islamic finance in Nigeria

The Debt Management Office has also given a time frame through 2017 for the debut of a Nigerian sovereign Sukuk.

Source : BusinessDayOnline / 18 Sep 2014

Lotus Halal ETF, a non-interest capital market product which tracks the NSE Lotus Islamic Index (NSE-LII) was launched back in August.

The NSE-LII index tracks the performance of 15 Sharia-screened equities listed on the stock exchange. Some of companies comprised in the index include Cadbury Nigeria, Dangote Cement and Unilever.

The fund was launched with the aim of providing alternative ethical investment in Nigeria and caters to investors seeking to invest in ethical products, avoiding companies involved in the production of goods and services such as alcoholic beverages, interest-driven financial services, and adult entertainment.

The fund targets the Muslim population of about 88 million that have a preference for Sharia-compliant finance practices such as non-interest financing.

“Interest has been strong,” says Hajara Adeola, the managing director of Lotus Capital in an interview. “We expect that the offer will be fully subscribed”.

On a broader note, the Islamic finance industry, supported by the government, continues to enjoy a more profound profile.

In 2013, the SEC established a Non-Interest Capital Market 10-year Master plan Committee, to develop strategies to foster the Sharia compliant sector.

The Debt Management Office has also given a time frame through 2017 for the debut of a Nigerian sovereign Sukuk.

A ‘Sukuk’ is the Islamic equivalent of a bond.

Differing from the typical bond which grants ownership of a debt asset, a Sukuk will grant the investor a share of the underlying asset, along with equal cash flows and an equal amount risk.

Typically banning interest, the Islamic bond will pay the returns from proceeds of the underlying asset in order to comply with Islamic law.

In September 2013, Osun state, in the Cocoa producing hub, sold about $64 million or N10 billion naira of Sukuk; becoming the first state in Nigeria to explore this alternative form of financing.

In June this year, Senegal issued $208 million of debt, beating both Nigeria and South Africa, which are yet to issue national Islamic bonds.

Hong Kong, on Friday, 11th September, issued $1 billion sovereign Islamic bonds, in its first ever issue.

The issue generated a demand 4.7 times greater than the planned offer. Hong Kong’s offer of $1 billion received orders worth $4.7 billion.

In the UK, ‘Sukuk’ bonds were sold for the first time in June this year.

The UK, along with Hong Kong vies for the position of top Sharia-compliant global financial hub.

Globally, Islamic bond offerings rose 27 percent to $24 billion in 2014 from last year, according to Bloomberg data. Islamic banking assets this year have hit the $2 trillion mark.

South Africa, which has the largest stock and bond market in Africa, plans to issue a sukuk this year, its National Treasury said in April.

According to SEC Rules, “Public companies (including Special Purpose Vehicles), State Governments, Local Government, and Government Agencies as well as multilateral agencies are eligible to issue, offer or make an invitation of sukuk upon seeking the Commission’s approval under set rules.”

To formally sell Islamic debt, key legislative amendments will have to be made to address issues such as double taxation on capital gains.

Turkey to develop economic relations with Russia amid sanctions

Russian President Vladimir Putin (l) and Turkish president Recep Tayyip Erdoğan

Source : AA / 17 Sep 2014

Turkey is to increase its exports to Russia in the face of toughened Western sanctions against the country over the Ukrainian crisis, Turkey's Economy Minister Nihat Zeybekci has said.

Following talks with Russian Economic Development Minister Alexei Ulyukayev on Tuesday, Zeybekci said Turkey sought to increase the bilateral trade volume with Russia to $100 billion from the current level of $32 billion, although he pointed out it would be a difficult task given the current state of bilateral economic relations.

Zeybekci said: "Both countries know very well that to come to such level requires lifting commercial restrictions and customs walls, including logistical tariff restrictions and physical and customs restrictions. But both have certain sensitivities in doing that.

"Turkey is to increase rather than limit its exports to Russia, to support such an important neighbor in such a difficult situation."

To put pressure on the Russian government over the conflict in Ukraine, the EU and the U.S. have announced various sanctions, some restricting Russia's three biggest oil companies - Rosneft, Transneft and Gazprom Neft, and banning them from raising long-term capital on European financial markets.

One million children die on first day of life

Since 1990, the number of under-five deaths has been slashed in half from 12.7 million to 6.3 million.

Source : UN.org / 17 Sep 2014

While child survival rates have increased dramatically since 1990, one million babies each year do not see their second day of life, many succumbing to complications during labour and delivery that could be easily prevented with simple, cost effective interventions, according to a report released today by the United Nations Children’s Fund (UNICEF).

The 2014 Committing to Child Survival: A Promise Renewed progress report – the second in a series intended to track progress on child survival and hold Governments accountable – indicates that many of these deaths could be easily prevented with simple, cost-effective interventions before, during and immediately after birth.

“The data clearly demonstrate that an infant’s chances of survival increase dramatically when their mother has sustained access to quality health care during pregnancy and delivery,” said Geeta Rao Gupta, UNICEF Deputy Executive Director in a statement to the press.

“We need to make sure that these services, where they exist, are fully utilised and that every contact between a mother and her health worker really counts. Special efforts must also be made to ensure that the most vulnerable are reached.”

Since 1990, the number of under-five deaths has been slashed in half from 12.7 million to 6.3 million. But more remains to be done. The first 28 days of a newborn’s life are the most vulnerable and as it stands now almost 2.8 million babies die each year during this period.

New analysis points to failures in the health system during the critical time around delivery as a significant contributing factor to these unnecessary deaths. It also shows that there is considerable variation – from country to country and between rich and poor –in the quality of health services available to pregnant women and their babies.

Around half of all women do not receive the recommended minimum of four antenatal care visits during their pregnancy. Complications during labour are responsible for around one quarter of all neonatal deaths worldwide. In 2012, 1 in 3 babies (approximately 44 million) entered the world without adequate medical support.

While evidence shows that breastfeeding the newborn within one hour of birth reduces the risk of neonatal death by 44 per cent, less than half of all newborns worldwide receive the benefits of immediate breastfeeding.

Analysis of 10 high mortality countries found that less than 10 percent of babies delivered by a skilled birth attendant went on to receive the seven required post-natal interventions, including early initiation of breastfeeding.

Similarly, less than 10 per cent of mothers who saw a health worker during pregnancy received a core set of eight prenatal interventions. Those countries with some of the highest number of neonatal deaths also have a low coverage of postnatal care for mothers.

Additionally, the education level and age of the mother has a significant bearing on the chances of her baby’s survival. Neonatal mortality rates among mothers with no education are nearly twice as high for those with secondary schooling and above.

There is some good news, however. The report suggests that in every region, except sub-Saharan Africa, the proportion of under-five mortality among the poorest sections of society is declining faster than in the richest.

“It is deeply heartening that the equity gap in child survival is continuing to narrow,” said Ms. Rao Gupta. “We need to harness this momentum and use it to drive forward programmes that focus resources on the poorest and marginalised households; a strategy which has the potential to save the largest number of children’s lives.”

A Promise Renewed is a movement launched by UN Secretary-General Ban Ki-moon to intensify global action to improve the health of women and children and reduce preventable maternal, newborn and child deaths. Since June 2012, 178 Governments, members of civil society and the private sector have signed a pledge to redouble their efforts for the cause.

Taliban Group Drops Arms, Shifts to Charity

OnIslam & News Agencies

Monday, 15 September 2014 00:00

The group’s decision has been widely welcomed by analysts as weakening TTP.

PESHAWAR – The Punjab chapter of Tehreek-e-Taliban Pakistan (TTP), widely known as the Punjabi Taliban, has renounced military work in Pakistan, vowing to continue with preaching and charity work to help people in flood-hit areas of the country.

“The group had already been engaged (by government) before launching the North Waziristan onslaught, to shun violence,” Amir Rana, an Islamabad-based security analyst, told Anadolu Agency on Sunday, September 14.

“The announcement is the outcome of that continuous engagement.”

The Punjabi Taliban announcement was made last Saturday by Ismatullah Moawiah, a purported spokesman for the group deemed one of the key components of the Tehrik-e-Taliban Pakistan (TTP), the mother network of different insurgent groups in Pakistan.

In a video message, he said that the group had decided to surrender and renounce militant activities.

He did not elaborate if or when members of his group would hand over their arms to security forces.

Moawiah said that after consulting other Muslim leaders, the organization would now limit its use of force to “infidel forces” and would focus on promoting Shari`ah law.

He added that Punjabi Taliban would continue to operate in Afghanistan but would focus on “Dawat Tablig” preaching and called on other Taliban factions to abandon their insurgencies in Pakistan.

“Peace is the need of the hour to foil conspiracies against Pakistan and its people,” he said.

Dropping arms, the Punjabi Taliban would take part in relief activities to help nearly two million people affected by huge floods which have inundated 21 districts in the northeastern Punjab province.

Praise

The group’s decision has been widely welcomed by analysts as weakening TTP, which has already lost much of its influence due to the ongoing Operation Zarb-e-Azb in North Waziristan Agency.

The Tehreek e Taliban Pakistan umbrella group broke into three factions earlier this month after a group of commanders, mainly Mehsud and Wazir tribesmen from North Waziristan, announced they had broken away to form their own group.

“This is a very important group which had been committed to attacks and terrorism, they have been very effective in the past. This [announcement] will demoralize the others,” retired Lieutenant-General Talat Masood, a leading strategic analyst, told The Telegraph.

“It shows the military operation in North Waziristan is having an effect. It would be very unfortunate though if Pakistan allows them to go to Afghanistan – we have to make sure they don't use their energies in Afghanistan.”

However, others referred the group’s decision to behind-the-scenes talks between the group and government negotiators.

The army launched a full-scale operation in North Waziristan on June 15 to root out Pakistani Taliban’s mother coalition, Tehrik-e-Taliban Pakistan (TTP) after peace talks between the two sides collapsed in April last following an end to a 40-day long ceasefire between the security forces and the Taliban.

Some 1000 “militants” have been killed in army air strikes, while 85 troops have also been killed since June 15.

According to FATA (federally administered tribal areas) disaster management authority, some 200,000 out of total 800,000 population of North Waziristan have already moved to other parts of the country, including neighboring Afghanistan.

The authority expects that the number of internally displaced persons (IDPs) may reach at 500,000 in coming days.

Cape Town 'Open Mosque' Criticized as Gay

OnIslam & Newspapers

Monday, 15 September 2014 00:00

The new "mosque" has attracted criticism from South African Muslim groups and leaders.

CAIRO – Described by its founders as the first gender-equal, non-sectarian worshipping house, a new Cape Town mosque planned for inauguration next Friday has sparked huge criticism on social media, described as a “gay temple” that contradicts with Islam.

“I guess the Muslim clergy is not pleased with an independent new mosque that will challenge their authority,” Taj Hargey, a professor of Islamic Studies and African history at Oxford University, told Cape Times on Monday, September 15.

“I preach an Islam that is enlightened, erudite and egalitarian.”

Hargey is the founder of the new Open Mosque, planned to host its first prayer next Friday in Lester Road, Wynberg, Western Cape Town.

The new mosque is described by its founder as South Africa’s first gender-equal, non-sectarian and interracial mosque.

The house of worshipping would welcome both Sunni and Shiite Muslims at the same service.

Moreover, it will invite women to lead prayers and welcome gays and non-Muslims.

“I do not endorse homosexual living, but I do not condemn them as people. We will, however, welcome gay people and discuss topical subjects like sexuality, politics and others,” he said.

He added that the mosque would also marry Muslim women who wanted to wed outside their faith.

Hargey, however, stressed that the Muslim Judicial Council (MJC) had no authority over him or the mosque.

“I think the reason for the strong reaction to the mosque was because the clergy like the MJC do not want to be challenged on the theological monopoly they have,” he said.

“The MJC is unelected, non-transparent and self-styled. They have no authority over me or the mosque.”

Criticism

Apart from the storm raised on social media and WhatsApp regarding the new mosque, it has also attracted criticism from South African Muslim groups and leaders.

“We see and feel the anxiousness in our community. Alhamdulillah (Thank God), our community is trying to protect the integrity and purity of our deen (faith),” Riad Fataar, MJC deputy president, told the Voice of the Cape over the weekend.

Fataar added that the MJC council was investigating the establishment of the mosque.

“Anything that goes against our deen (faith) and which rejects the primary sources such the Qur’an and Hadeeth will be condemned by the MJC,” he said.

“We want to make sure that our deen is protected and that the Muslim community is not fooled.”

Mansoora Africa, chairwoman of the Islamic Unity Convention, felt a woman could lead Friday prayers only if there was no “capable man” at the gathering.

In general, during Muslim prayers, women may not lead men but may lead other women, which is the case of females leading prayers in female-only mosques in China.

In Islam, the majority of jurists maintain that a woman is allowed to lead her fellow sisters in congregational prayer if there is no man to lead the congregation.

Same-sex relationship and marriage are totally prohibited in Islam, Christianity and all divine religions.

Islam teaches that believers should neither do the obscene acts, nor in any way indulge in their propagation.

The Catholic Church teaches that homosexuality is not a sin, but considers homosexual intercourse as sinful.

In November 2012, a French homosexual opened a mosque in Paris that welcomed gay worshippers and women who do not wear hijab.

The move triggered condemnations from French Muslims, as Muslim scholars denounced it for promoting immoralities and wrongdoings.

First Veiled Mascot Walks Out Yaya Toure

OnIslam & Newspapers

Sunday, 14 September 2014 00:00

“Yaya was very friendly and asked if I was nervous," A'isha said.

CAIRO – A British young Muslim girl became the first veiled mascot on football pitches in UK’s Premier League as she accompanied Manchester City’s champ Yaya Toure before the Liverpool game while donning her Islamic headscarf.

“It was a very surreal experience for me. I thoroughly enjoyed the day,” A’isha Dalal, a young girl from Blackburn, told Lancashire Telegraph.

“The players were so friendly and made us feel at home.”

A’isha, and her younger brother Khalil, who escorted French midfielder Samir Nasri, joined players from the current Premier League champions’ and Capital One Cup holders before the Liverpool game at the Etihad Stadium on August 26, which City won 3-1.

“We were lucky to have been allowed to pick our players,” A’isha said.

A’isha was happy to accompany former Barcelona player, who became the only second midfielder to score 20 Premier League goals in a season as City won the title in May.

“Khalil wanted to walk with Samir Nasri, as he is a big fan,” she added.

“Yaya was very friendly and asked if I was nervous. I said a little. He reassured me not to be scared and I wished him good luck. It was a day Khalil and I will never forget.”

Toure, named by Eurosport in 2005 as one of the most promising young players in the world, is one of the Premier League’s superstars.

Gifted in holding and protecting the ball, he excels also in long, short and direct passes.

In difficult situations, Toure is distinguished by his ability to make forward runs, earning him the nickname "box-to-box" player.

He had previously played for Spain’s giant FC Barcelona.

From the first moment of joining FC Barcelona, he made no secret about his religion, insisting there was no contradiction between being a successful footballer and a devout Muslim.

Proud of Hijab

Speaking of her big moment, the young girl said that she was proud of wearing her scarf.

“I really enjoyed buying my kit. Looking for the right colour scarf was time consuming but my mum’s friend managed to eventually find one,” A’isha said.

“Wearing a scarf wasn't something I gave a second thought to as I wanted to show that you don't have to be shy about showing your faith.

“If you want to wear it then feel confident to wear it anywhere,” she added.

Islam sees hijab as an obligatory code of dress, not a religious symbol.

Britain is home to a Muslim community of nearly 2.7 million.

In 2011, think tank Demo found that Muslims in the United Kingdom are more patriotic than the rest of population.

Responding to the statement “I am proud to be a British citizen”, 83% of Muslims said they are proud of being British.

Muzaffarnagar Muslims Aspire for New Life

OnIslam & Newspapers

Sunday, 14 September 2014 00:00

CAIRO – Trying to get back to normal life, dozens of Muslim families have been returning to their villages almost a year after deserting them to run for their lives during Muzaffarnagar riots in which scores of Muslims were killed by Hindu mobs.

“We left with 350 other Muslim families in September last year,” Abdul Wajid of Khera Mastan, who as he sat outside his brick and cement house with peeling paint in Budhana's Khera Mastan village,  told The Times of India on Sunday, September 14.

“It was miserable there as we lived off donations. We kept thinking of home,” he added, describing his life over the past months.

“We finally decided four months ago that we need to return. Our mukhiya also said everything would be done to maintain communal harmony and we need fear no danger.

“Village elders from Hindu families would visit and urge us to come back. It seemed to be better than living on charity. Others will follow, I am sure.”

Abdul Wajid is one of dozens of Muslim who decided to get back to their homes after abandoning Jhola camp 5km away from the village.

Streets and markets of the Hindu-majority village were picked with vigilant Muslim who also flocked to the mosque to attend Friday prayer.

“Some Muslim families have come back for their land. We collectively own 2,200 bighas,” said Umaid Ali, a Muslim Jat from nearby Kharad, using a traditional unit of land measure in several parts of India that could extend up to 3 acres.

“Mine alone is 3 bigha. Yeh wahi khet hai jismein logon ne aag lagai thi (These are the same fields that were set on fire by some rioters.) We meet some of them while going for work and they are apologetic. We are trying to pick up from where we left.”

Yet, many Muslims are still afraid of returning back to the village where dozens of them were killed last year.

“My brother Mohammad is still at the camp,” Ali added.

“That day when we fled, Mohammad was very happy as he was getting ready for the wedding of his son. Everything was destroyed.”

New Ties!

The Muslims’ return followed several calls by Muslim and Hindu organizations to leave camps and return to their own lands.

“Our organization visited every possible camp to convince people to return,” said Sajid Attar from Jamaat-e-Islami Hind, an organization that has been working closely with refugees of the riots.

“If the Muslims of Muzaffarnagar don't show the courage to leave the camps, future riots will displace many more from many more districts.”

Highlighting bonds between the Hindu and Muslim community, some Hindu leaders said they will continue efforts to persuade Muslims to come back.

“We have ties, we work together, we celebrate festivals together. Let the bypolls get over, I will meet Muslim leaders and urge them to get the others back too,” said Pradhan Tham Singh of neighboring Fugana.

“My work has suffered 100%. We provided the milk for the Eid sewai. I was always present at the bidaai of their daughters. For those times, they must return. We must stand together now.”

Hopes of reviving peace and multi-faith ties in Muzzaffarnagar ware also voiced by the town's youth.

“We will reclaim that. It will take some time,” said Nivil Malik, a 28-year-old Jat.

Hindu-Muslim clashes in Muzaffarnagar, located in the western part of the UP province, left 60 dead in 2013.

They also forced some 70,000 people to flee their villages, according to the state government.

The crisis began in the village of Kawal, when a Muslim man was killed by the brother and cousin of a Hindu girl after allegedly harassing her.

The two killers, members of the Hindu Jat community, were reportedly lynched by the family of the slain Muslim and others in the locality.

Muzaffarnagar district remains tense, with many who fled last month's violence still living in camps.