Sharia-compliant is Islamic banking

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Benefits of Transparency (as a value)

An oft used word in today’s corporate world with limited or practically no delivery in terms of action. This could sound like a pretty strong judgemental statement. It probably is. It’s based on a decade long experience across industries, professional dealings and employee-company relationship. Out in my part of the woods, the experiential learning seems to lean towards the above (so far. And I’m still looking out to be proved wrong!)

Whilst developing a ‘brand identity’, the marketing team, the consultants, advisors et all use this particular word quite often. Finally, it goes into the documentation and at times also into the processes developed. But that’s where the DROP occurs! When it comes to putting the process to practice ie having free flowing two-way information between the employee and his/her superior, between the senior management and the mid, and junior management levels, somewhere some of the ‘information’ is “not communicated” in its full form. Resulting in assumptions, presumptions, and individual interpretations and finally producing a ‘pot-pouri’ where the brand experience is concerned.

So the question is, can such DROP’s be avoided or a back-up plan developed in case it does occur (during a strategic plan implementation stage)? YES, it can be avoided.

The way to do this is:
1.Role clarity: Right from the start of any project/activity, the team leader should ensure that each individual of the team involved understands his/her role in terms of how the communication would flow, who is responsible for what, and the timelines of the same.
2.Reviews: in the implementation process, productive reviews should be factored in. Productive reviews are team meetings which are aimed at bringing up to date the team members on each specific area of the project as well as each team member using that review session to clarify queries, flag issues and agree to the next deliverable.

Transparency can’t be simply spoken about. As a work cultural value it needs to be demonstrated or shown. And the best way to show is by practicing it.

If a organisation, in its daily operations, follows the above two steps of basic project management, they will automatically be creating a ‘transparent culture’ ie a culture where failure is not penalised as the occurrence of failure will be diminished due to the teams having role clarity and frequently meeting and clarifying all issues.

This in turn would form part of the ‘brand experience’ that the employees in turn will make the stakeholders experience. Simply put, the employees would behave (with the stakeholders) exactly as they do in their interactions internally as it would be a habit for them. As a result, the stakeholders would be getting full information on their brand through their interactions and this would enable them to trust the brand more and more thereby leading to becoming the external brand champions.

(But that’s another topic…..)

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Category: Marketing to the ummah, 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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