Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Qatar- Islamic finance making inroads into the US  Join our daily free Newsletter

MENAFN - Gulf Times - 15/03/2017
No. of Ratings : 0
Add to Mixx!


(MENAFN - Gulf Times) Islamic finance is increasingly making inroads into the US in a variety of forms, but widely out of the radar of the broader public. In the recent past, there has been a rise in the number of Islamic financial service providers and institutions that range from small cooperative banks in communities to mortgage companies to investment banks and brokers operating countrywide.
There are now about three dozen official Islamic finance providers in the US. Among the top institutions offering Islamic financial services in the country in terms of asset size are Lariba American Finance House and the associated Bank of Whittier in Los Angeles, as well as University Bank and its subsidiary University Islamic Financial in Michigan.
Washington state-based Saturna Capital is an investment advisor and fund management company that manages more than 3.5bn in assets, mainly invested into Shariah-compliant mutual funds, and JP Morgan and Standard Chartered are offering Islamic banking services to clients.
In terms of skills training, Harvard University has an Harvard Islamic Finance Program and Palo Alto-based Franco-American Alliance for Islamic Finance is organising Islamic finance seminars in the US beginning with Chicago and San Francisco this summer. Some other universities and business school s also have Islamic finance seminars on their curriculum.
Other initiatives include occasional social projects such as Somali entrepreneurs trying to transform neglected neighbourhoods in Minneapolis with the help of an Islamic financing programme that offers micro-loans to small business owners.
Among the latest, and widely unnoticed, Islamic finance transaction in the US was a project financing deal in May 2016 by New York real estate developer Sharif El-Gamal, CEO of Soho Properties, for a development at Park Place in Manhattan, two blocks from the World Trade Center where El-Gamal intends to construct an Islamic museum and a 50-unit condominium tower. It is not widely known that Maybank from #Malaysia and Warba Bank from #Kuwait led the 219mn financing for the development, and MASIC, the investment arm of Saudi Arabia's Al-Subeaei family, one of the richest in the Arab world, also participated in the loan package.
'It has been the largest syndicated Shariah-compliant construction loan in New York City so far, El-Gamal, who has Egyptian roots, said, adding that 'it brought on board global investors that have never really participated in real estate transactions in New York.
Looking back, the foundations of Islamic finance in the US were laid in the 1990s when regulators formally recognised ijarah and murabaha models as being valid for transactions involving residential property purchases. In 1999, the launch of the Dow Jones Islamic Market Index created opportunities for investors looking for Shariah-compliant equities. Today, the index covers thousands of blue chips, fixed income investments and industry indices involving listed companies that meet certain requirements related to the acceptability of their products and business activities for Muslim investors. Apart from that, fund firms and asset managers so far launched Islamic funds with total assets under management of more than 5bn and growing, while the sukuk market has been tapped with issuances by GE Capital, Goldman Sachs, University Bank and utility firm East Cameron Gas.

On the consumer side, Islamic finance in the US is mostly prevalent in the real estate market. Shariah-based home financing products have become popular in some communities, particularly after the subprime mortgage crisis ten years ago, and account for most of the demand.
Where the future lies for Islamic finance in the US is hard to tell, though. It depends much on the political climate and possible interventions by the current administration. It is certainly still a niche sector by assets, but it starts to get noticed.
Regulation-wise, there are little barriers. The relevant regulation on banking in the US is currently similar for all banks, whether conventional or Islamic. However, regulators have raised the concern that banks offering products like murabaha may be violating rules prohibiting banks in the US from owning real estate other than their own buildings and foreclosed properties. As a result, most Islamic finance institutions targeting the retail market in the US rather opt for a licence as a leasing company or mortgage broker, businesses that enjoy fewer regulations than full-fledged banks.
'I believe it is about time that the US take steps to introduce rules and regulations required to engage in the worldwide Islamic finance, sukuk and takaful business, said Camille Paldi, Islamic finance expert and founder of Franco-American Alliance for Islamic Finance. 'The opportunity cost for the US is quite large in not participating in this opportunity. Interest free financing modes may enhance the system currently in use in the US and offers a chance for Americans to diversify portfolios and to attract global investors.

MENAFN1503201700670000ID1095314797


 


Gulf Times




  MENA News Headlines
 Apr 27 2017 - Afghan, Iraq Troops a 'Long-Term' Pledge: TurnbullDaily Outlook Afghanistan
(MENAFN - Daily Outlook Afghanistan) KABUL - Australian soldiers will remain in Iraq and Afghanistan for a long time, Prime Minister Malcolm Turnbull has said during a secret visit to the Middle ...

 Apr 27 2017 - Jordan- Interior minister discusses with British official security cooperationJordan News Agency
(MENAFN - Jordan News Agency) Amman, April 27 (Petra)--Interior Minister Ghalib Al Zu'bi on Thursday, discussed with London Metropolitan Police's acting deputy commissioner Police Mark Rowley, scopes ...

 Apr 27 2017 - Jordan- King congratulates Sierra Leone, Togo on national daysJordan News Agency
(MENAFN - Jordan News Agency) For newspapers........ Amman, April 27 (Petra)--His Majesty King Abdullah II, on Thursday, sent cables of congratulations to President of Sierra Leone Ernest Bai Koroma ...

 Apr 27 2017 - Jordan- State minister for media affairs meets IINA directorJordan News Agency
(MENAFN - Jordan News Agency) Amman, April 27 (Petra)--State Minister for Media Affairs and Government Spokesperson Mohammad Momani received on Thursday, Director General of the International Islamic ...

 Apr 27 2017 - Jordan- Spring, warm weather forecast over weekendJordan News Agency
(MENAFN - Jordan News Agency) Amman, April 27 (Petra)-- Warm and spring conditions are forecast to prevail Thursday in most parts of the Kingdom, while it will be relatively hot in the Dead Sea and ...

 Apr 27 2017 - Jordan- Huge blasts rocks Damascus airport, thought to be Israeli strikesJordan News Agency
(MENAFN - Jordan News Agency) Amman, April 27 (Petra) --Several large explosions early Thursday have reportedly hit the vicinity of Damascus airport. According to Sputniknews, Israeli war planes ...

 Apr 27 2017 - Kuwait's Interior, Foreign and Defense Ministers depart to RiyadhKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, April 27 (KUNA) -- First Deputy Prime Minister and Foreign Minister Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah, Deputy Prime Minister and Defense Minister ...

 Apr 27 2017 - Kuwait- Two police shot while arresting suspected extremist on Reunion IslandKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) PARIS, April 27 (KUNA) -- Two French police officers were shot and wounded Thursday during an operation to arrest a radical extremist suspected of terrorist ...

 Apr 27 2017 - Kuwait divers take part in Int'l conf. on marine lifeKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, April 27 (KUNA) -- Kuwait Dive Team (KDT), affiliated with the Environmental Voluntary Foundation (EVF), has taken part in an educational conference on ...

 Apr 27 2017 - OPEC, non-OPEC most likely to extend output cut for 6 months moreKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) VIENNA, April 27 (KUNA) -- The OPEC and non-OPEC producers of the 'Declaration of Cooperation' to cut oil production will meet in Vienna on May 25 and are most ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Search News
Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help