Sharia-compliant is Islamic banking

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Ogilvy & Mather to help marketers build brands that appeal to Muslim consumers

Ameen Ul Haque, vice-president, planning, at O&M, says the Muslim market in India cannot be ignored because of its size and the challenges in India here are different from other places.

“There are unique challenges in India — one of inclusion rather than exclusion,” he says.
The idea is to communicate about brands that are coherent with Islamic values, which will help members of the community to be included in the larger mainstream.

“For instance, being a Muslim does not mean one should get isolated in a beer-drinking crowd as non-alcoholic beer brands too are available,” he says. “Then, there is no need to order a fresh lime soda.”

Brand expert Harish Bijoor says the initiative provides scope for advertising to split into cultures.

Islam is non-profiteering and has specific features such as food habits, he says. This also means breaking the secular framework and transcending from pan-Indian to pan-global cultural niches. “Even if comparisons are made between south India and north India, cultures cannot be ironed out. They can, at best, be creased out,” he says.  Full Article

Am I wrong in doubting the expertise of Ogilvy Noor based on the statement above, from the vice-president of planning at O&M, Ameen Ul Haque?


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Category: Marketing to the ummah

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Key Islamic securities market set for growth

MANAMA: The prospects for growth in Islamic securities markets are likely to be positive in spite of the credit crunch, an increase in commodity prices and the widespread global economic slowdown.
That was the message to the opening session of the Sixth World Conference of the Islamic capital markets and investment funds at the Gulf Hotel from Central Bank of Bahrain (CBB) executive director of financial institutions supervision Abdul Rahman Al Baker yesterday.
"Islamic financial products represent a class of investment which may appeal to those looking for socially responsible or ethical investments, as these products comply with strict Sharia rules that have religious as well as ethical underpinnings," he said.
"It is estimated that investors globally hold more than $1.5 trillion in Sharia-compliant investments. These include equities that are in line with Islamic principles, sukuk and Islamic funds.
"Currently, there are more than 500 funds globally that comply with Islamic principles, of which one-third of these funds were launched during the past four years, and the figure is projected to double in the coming five years. Read the rest of this entry »

Allianz Malaysia Sees Takaful Openings Through Government Policies

Although Islamic Shariah law has strict limitations on the use of premiums from takaful sales, Allianz Malaysia said it is open to tapping the market, with its estimated annual growth of up to 20% under positive government support.
"We are interested in takaful business as it is an attractive and promising segment with a lot of potential for growth," Alexander Ankel, chief executive of Allianz Malaysia, told BestWeek Asia/Pacific.
The emergence of the takaful sector is "broadening" the competitive horizon of the insurance industry, and customers now have access to a variety of options, said Ankel. "We believe takaful will help the insurance industry to grow further as Malaysia is set to emerge as a leader in Islamic finance."
With the enactment of the Takaful Act 1984, the first takaful company in Malaysia was established in 1985. Since then, Malaysia's takaful industry has been "gaining momentum" and increasingly recognized as a "significant" contributor to Malaysia's overall Islamic financial system, said the Bank Negara Malaysia, the central bank of Malaysia, in a statement.
Takaful Opening
Globally, the takaful industry has been growing rapidly, and appeals to both Muslims and non-Muslims. "The industry is expected to grow by 15% to 20% annually, with contributions expected to reach US$7.4 billion by 2015," according to the Institute of Islamic Finance and Insurance and Investor Offshore Review in February 2006, said the central bank. Read the rest of this entry »

The New Marketing Frontier

The global Muslim population is approximately 23% of the world’s population and is a unique consumer segment in many ways:


  • In its ability in providing strong purchasing power.
  • In its socio-cultural identity that stems from Islam.
  • In its present day needs as a conspicuous consumer.
  • As consumers, many are increasingly making choices that reassert their identity as Muslims and respect their Ummah, the Qur’an, and sharia principles.
  • Many consciously seek out consumer products that are based on Islamic values.
  • They choose products and services that are in compliance with the Qur’an--from halal foods,financial services, to fashions that combine the latest trends in designing with Islamic principles of modesty and personal care products.

This uniqueness of the segment makes it a necessity for marketers to identify innovative strategic means to obtain brand usage from a Muslim consumer. In this, Daily Baraka is the ENABLER by being the bridge between the consumer and the marketer.

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