Tunisia has big potential for Islamic Finance: Zubair Mughal

Tunisia would be the global hub of Islamic Finance for French speaking countries

Zubair Mughal, CEO, AlHuda CIBE Speaking at International conference "The Enterprise and Finance", which is jointly organized by World Bank, IMF, IFC & European Bank of Reconstruction and Development at Sousse – Tunisia

Muhammad Zubair Mughal, being the guest of honor, during his address he stated that international financial crisis can be addressed in a better way through Islamic Finance and such financial crisis could have not been happened if Islamic financial system was followed and implemented at that time, he said there are about 2000 Islamic Financial Institutions working globally as Islamic Banks, Takaful ( Islamic Insurance), Sukuk ( Islamic Bonds), Islamic Fund and Islamic Microfinance institutions etc in more than 100 countries and fortunately no Islamic Financial institution was effected by such global financial crisis which ensures the strength and rationality behind the Islamic financial system. He also added that international institutions such as Islamic Development Bank (IDB), Accounting and Auditing Organization of Islamic Financial Institutions (AAOIFI), Islamic Financial Services Board (IFSB) and International Islamic Liquidity Management (IILM) are dedicatedly working for Islamic finance around the globe which will further promote and strengthen the Islamic finance in future globally. He, responding to a question related to the relationship between religion and Islamic finance in question answer session, said that Islamic banking and finance is a name of a system not religion so all other religions can get benefit from it and that is why Islamic banking and finance is growing in the western world while non Muslims are utilizing the Islamic financial products, considerably, to fulfill their business, personal and financial needs as in only America which has more than 20 Islamic financial institutions are working, which are actively providing the Islamic financial services to fulfill the financial needs of Muslims and non-Muslims equally.

During his stay in Tunisia, he met with Dr. Amel Amri, President – Tunisian Association for Islamic Finance (TAIF), Dr. Raza, President – Islamic Economic Association Tunisia and heads of some other Islamic financial institutions. He said that Tunisia has a good recognition in Islamic financial industry having 2 full-fledged Islamic banks, Takaful companies, universities with having Islamic finance program, Sukuk Laws and some other similar institutions which are indicating the best future of Islamic finance in Tunisia but he, realizing the need of Islamic microfinance, said that Islamic microfinance is missing component of Islamic finance in Tunisia while socioeconomic development and poverty reduction can be done in better way through Islamic microfinance in Tunisia.

Global Halal Meat Market volume reached up to $ 300 billion: Zubair Mughal

Brazil, America, Australia and India have substantial market share in Halal meat Industry.

(Lahore) Halal meat market is growing rapidly throughout the world and its demand is increasing day by bay, Pakistan ranked 18th in the production of Halal Meat Market and its volume is only 2.9 % of the global Halal meat production which is very low, These views were expressed by Muhammad Zubair Mughal, Chief Executive Officer-Halal Research Council, he mentioned that Pakistan can play pivotal role in this growing market because Pakistan have more than 160 million quality live stock including 71 million Cattles & Buffalos and 89 million goats & sheep’s. He pointed out that there is no Muslim country is included in the list of first ten Halal meat exporters, although Pakistan, Sudan and other Muslim countries have big potential of exporting Halal meat globally. He said Halal meat is not only the name of meat but more than 26 Halal industries are also based on bi-products of Halal meat e.g. Casings, Bone crashing, Gelatin, Sausages, leather and other industries are associated with it. He further explained that to strengthen the Global Halal meat industry, Halal Research Council is going to organize an international workshop on Halal Meat which will be scheduled on 26th August, 2013 in Dubai – U.A.E. In which renowned expert, Prof. Dr. Javaid Awan - Agriculture University Faisalabad, Nasib Ahmad Saifi - Chief Executive Officer- Anis Associates Pvt. Ltd and other International speakers will limelight the need and importance of Halal Meat, Fundamentals of Halal certification, Animal welfare and stunning, Impact of Halal slaughtering on meat quality, Pre- and post-slaughtering procedures, Global market and demand for Halal meat, Strategies to increase the share of Halal meat in global meat market, Livestock management for Halal meat, Slaughterhouse automation - machinery, tools and training and Utilization of halal meat in the production of processed and semi-processed food items. The main aim of this Int’l workshop is to promote the trade and importance of Halal Meat at International level. Halal meat exporters, Veterinary Doctors, Shariah Scholars, food technologists and hotel industry will get benefit through this workshop. Halal Research Council (HRC) is a Pakistan based think tank working for the development of Halal Industry through research, advisory, advocacy, market intelligence & Capacity Building. HRC working globally with the help of 28 International strategic partners which are based in USA, U.K, Kenya, Malaysia, Pakistan, Spain, Germany, India, Bangladesh, Sweden and other countries.

Pakistan can be superpower of world Halal market: Malaysian Minister Haji Abdul Malik Kassim

Exports of meat from Punjab to Malaysia have picked up recently.

Two months ago, Malaysia’s state minister for religious affairs and domestic trade Haji Abdul Malik Kassim, while on a visit, had stated that Pakistan can play a major role in the global halal meat industry. Halal meat contributes about 16 per cent of total world trade of the commodity.

It is only in recent years that Pakistan has begun to realise the importance and export potential of halal food. In fact no Muslim country features among top 10 halal meat exporters. The market is dominated by multinationals of the western countries. According to a survey, the global Muslim population is around 1.86 billion, which constitutes 30 per cent of the total world population. The volume of overall halal products, which was $635 billion dollars in the year 2010, is estimated to have reached $2 trillion.

Pakistan ranks 18th in the production index of halal meat market and its share is only 2.9 per cent of the global output. That Pakistan can do more is evident from the fact that it has 71 million cattle heads and buffaloes and 89 million goats and sheep.

The government could help raise halal food exports by formulating sound policies in collaboration with the private sector. The existing exports are no match to the country’s annual output of halal meat or its export potential. Local businessmen estimate potential of halal products at $5 to $6 billion, if incentives are provided by the government to encourage export of good quality food products. One may note that India, not a majority Muslim country, is also an active player in the halal food market and its exports have reached $23 billion per annum.

Lahore Chamber of Commerce and Industry claims that halal meat exports from Punjab have made remarkable progress over the last few years owing to positive steps taken by the provincial government.

The Punjab government has also started work on halal certification which can go a long way in further facilitating exporters of halal products. It is claimed that about 50 halal certified companies have emerged in recent past and are now engaged in export business and that there are also state-of-art halal slaughter houses in the province complying with international best practices.

Some companies are using Australian technology and their beef and mutton plants are equipped with the most updated systems available. Their main customers are from Saudi Arabia, UAE, Oman, Qatar, Kuwait, Bahrain and Iran.

However, exporters of halal food products complain of a few hardships. They demand they should not be subjected to unjustified taxes and prolonged gas and power loadshedding and be freed from bureaucratic hassles.

Pakistani exporters should also ensure that their products fully comply with the strict safety codes of meat importing countries. Many companies suffer from lack of technical know-how in processing, storing, transporting and marketing of meat and its products. It is for this reason that Halal Research Council (HRC) was recently established and empowered to issue halal certification and assurance programme.

HRC is a Pakistan-based organisation working for the development of halal industry through research, market intelligence and capacity building. It is working globally with the help of 28 partners based in several countries.

A local certification programme pursued by another such body, namely, Halal Industry Research Centre (Shariah Board) is adopting a professional approach to follow Islamic laws. The Centre employs the services of some scholars from Binoria Town, Karachi to determine correct interpretations. If the scholars see no harm in a particular business process, it means the company has complied with all the standards under Pakistan Halal Standards and is issued a certificate.

Pakistan has, meanwhile, approached food importing countries, including the European Union and Gulf countries, to seek recognition as a halal meat exporting country with specific reference to value-added chicken products.

A research report released this month says that global halal food market is set to grow at 4.44 per cent during 2012-2016. One of the key factors contributing to this market growth is the increase in the Muslim population. The market has also been witnessing increasing R&D in halal product innovations.

However, the decrease in the integrity of halal foods could pose a challenge to the growth of this market. The research report by ResearchMoz is based on an in-depth market analysis with inputs from industry experts from different countries.

Refference: Pak Observer and Daily Dawn.

                 

Halal Accreditation will Introduce Pakistani Products around the Globe

The Role of Pakistan National Accreditation Council (PNAC), in this regard is commendable which will help in the growth of Halal Exports:  Zubair Mughal

(Lahore) The step of introducing Halal Accreditation Scheme by Pakistan National Accreditation Council (PNAC), Federal Ministry for Science and Technology is commendable which will help introducing Pakistani Halal products globally hence will increase the exports as well. These words were expressed by Mr. Muhammad Zubair Mughal, Chief Executive Officer – Halal Research Council in a seminar on the topic of Halal in Lahore. He said that due to non availability of Halal accreditation in Pakistan, Pakistan’s Halal Certification Agencies were facing many difficulties at national and international level. He said that despite this fact that Pakistan is facing different international propagandas, there is a positive side that Pakistan’s Religious prestige and authenticity is endorsed and highly recognized all around the world and international communities gives vital importance to products certified & Exported by Pakistan along with the Halal label. He said that this accreditation will not only help Pakistan to increase the exports of Halal food, meat, dairy products, chemical beverages and spices but also would help to promote the non food products like Halal Cosmetics, Chemicals, gelatin, pharmaceuticals and Halal Tourism. He further added that Pakistan Standard and Quality Control Authority have issued two standards, PS: 4992–2010 and PS: 3733–2010 in which PS: 3733-2010 relates to management and procedure of Halal food for Halal Food industry whereas PS: 4992-2010 is related to general procedure of Halal Certification Institutions. He said that Halal Research Council is a registered institute under Joint Stock Company Act, 1860 which primarily works for Halal Certifications, Research & Education, Training, Advisory and Consultancy whereas its strategic partners are providing the services of Halal certification in Malaysia, Italy, UK, Philippine and Mauritius.

MoU signed Between Halal Research Council and Malaysia

The ceremony held during International Conference on Halal Industry at Expo Centre Lahore and Zubair Mughal, CEO, Halal Research Council Pakistan and Haji Abdul Malik Kassim, State Minister for Religious Affairs & Domestic Trade Penang- Malaysia.

Lahore (Press Release) “International Conference on Halal Industry” was organized today at Expo Centre, Lahore – Pakistan. The conference was inaugurated by Haji Abdul Malik Kassim, State Minister for Religious Affairs, Domestic Trade & Consumer Affair Penang Govt.- Malaysia in which speakers and researchers from America, Australia, U.A.E., Romania, U.K. and South Africa participated to deliver their valuable knowledge& Research about Halal Industry. The point of interest was the MoU signing ceremony between Halal research Council and Malaysia for the promotion of Halal industry, the establishment of Halal Industrial Park, the easy availability of Pakistani Halal products in Malaysian market and the exhibition of Pakistani Halal certified products in Malaysian market.

Addressing to the audience, Haji Abdul Malik Kassim, Religious Affairs, Domestic Trade & Consumer Affair Penang Govt.- Malaysia said that the MoU signing is a very significant occasion. He further added that Halal food market is very rapidly increasing market and Malaysia is playing a momentous role in this regard. During the occasion, Muhammad Zubair Mughal, Chief executive Office, Halal Research Council, Pakistan said that the MoU will prove to be a bridge between Pakistan and Malaysian market through which we will be able to brand our products on International platforms. He said that the main purpose of this conference is to introduce Pakistan among international market so that it could play its technical & Shariah role in this highly distinguished market of more that one trillion dollars worth.

Many national and international speakers delivered their valuable research works and speeches on this international conference in which Haji Bill Yahya Ibrahim Aossey, Founder and Senior Director, Regional Representative Islamic services Of America America, Engr. Shaukat Hussain, Director General, Pakistan National Accreditation Council (PNAC), Islamabad, Pakistan. Mr. Alaa Kamal, Regional Representative, Of Islamic Service of America Dubai, Dr Muhammad M Khan, Food Technologist, (Canada), Executive Director, Halal Australia Halal Consultant Australia, Mr.Dorin Ecea, Development of the Halal Industrial Park, Halal Assets Council in Romania, Romania, Haji Abdul Malik Kassim, Minster of Religious Affairs, Penang- Malaysia, Mr.Hamid Ahmad, Halal Slaughter and Animal Welfare, Ex-Principal Scientific Officer, Biotech. and Food Research Centre, Pakistan Council of Scientific & Industrial Research (PCSIR), Lahore, Dr.Hamid Talil, Chief Executive officer, Lahore Meat Company, Lahore, Dr.Shazad Afzal, Director, Pakistan Standards & Quality Control Authority, Ministry of Science & Technology, Government of Pakistan, Lahore, Dr. Zubair Usmani, Shariah Advisor, MCB Limited. Pakistan, Capt. M. Jamil Akhtar Khan, Managing Director, Universal Insurance Company, Mr.Raheel Iqbal, Chief Executive Officer, Halal Industry Research Centre, Karachi-Pakistan. Prof. Dr. Faqir M. Anjum, Director General, National Institute of Food Science and Technology, University of Agriculture, Faisalabad- Pakistan, Prof. Dr. Javaid A Awan, Country Director, Islamic Food & Nutrition Council of America, Dr .Shahid Raza, Chairman, Bio world Forum. Pakistan, Mr. Mashood Ahmed Siddiqui, Manager products, Vectra foods, Karachi-Pakistan, Dr. Muhammad Jamil Khattak, Chairman Department of Microbiology & Biotechnology Kohat University, Pakistan and other speakers participated their thoughts on Halal Industry, Halal Food, Halal Tourism, Halal Slaughtering and Halal Banking etc. It is to note that Halal Research Council is an organization working nationally and internationally on Halal certification and accreditation, research and education.

Islamic Microfinance should be Introduced Internationally: Dr. Fatima Al-Blooshi

(Dubai) Islamic Microfinance is an effective tool for the poverty alleviation and it should be introduced around the globe to state an effective policy for ultimate poverty alleviation from the world, these views were stated by Dr. Fatima Mohamed Yousif Al-Balooshi, Minister (Ministry of Social Development – Bahrain) as a Chief Guest in the 3rd Global Islamic Microfinance Forum (GIMF) held on 6th to 8th October, 2013 at Dusit Thani Hotel, Dubai in which delegates from more than 30 countries participated actively and this Forum was organized and conducted by AlHuda Centre of Islamic Banking and Economics (CIBE). She also added that Islamic Microfinance should be presided and supported by the Government in different countries of the world to promote the Islamic Microfinance Institutions. She also admired the endeavors of AlHuda CIBE at the inauguration of 3rd Global Islamic Microfinance Forum on 6th Oct, 2013 and also proposed to conduct the 4th Global Islamic Microfinance Forum in Bahrain.

Muhammad Zubair Mughal (CEO – AlHuda CIBE), addressing to the Forum, said that Poverty is increasing in the Muslim countries rapidly and consequently the half of the world poverty has, approximately, been confined to the Muslim countries in the current age. The involvement of interest in micro financing is one of the major causes behind this phenomenon and that is why Muslims hesitate to avail microfinance facility. If Islamic Microfinance is not introduced resolving this issue, the world’s poverty will increase extraordinarily. He said that the forum aimed at gathering all the Islamic Microfinance Institutions at single platform, to streamline the policies for poverty reduction, to promote the Research and Education in Islamic Microfinance industry and to enhance its outreach on global canvas. He said that current facts to the failure of microfinance system require an alternative and prudent Islamic Microfinance system to the world to enhance the financial inclusion globally and ultimate global economic prosperity.

Addressing to the forum Mr. Mr. Hamdan Mohamed Al Murshidi (President & Chairman of the Board, Arab Business Club, United Arab Emirates) said that there is no other argument to address poverty through Islamic Microfinance as it is the ultimate solution to this problem and also he committed with his reward less services to promote Islamic Microfinance globally. While Mr. Amjad Saqib (Executive Director – Akhuwat) said that Islamic Microfinance is a Hope for the Poor which they (poor) are looking forward to resolve their Social and Economic problems, so Islamic Microfinance should be promoted globally. He, by presenting Akhuwat as a case study, figured out that there are about 380000 families benefitting through Qarz e Hasana from Akhuwat. Meanwhile its portfolio has crossed PKR. 5 billion with an increasing trend day by day.

The forum was attended by Researchers, Scholars and Islamic Microfinance practitioners including: Justice (R) Khalil Ur Rehman (Shariah Advisor – AlBaraka Islamic Bank, Chairmen – Punjab Halal Development Agency – Govt. of Pakistan), Mufti Aziz Ur Rehman (Manager-Shariah, Mawarid Finance – Dubai), Dr. Ajaz Ahmed Khan (Microfinance Advisor, CARE International UK), Mr. Atef Ebrahim (Chief Executive Officer, Family Bank - Bahrain), Mr. Zeinoul Abedien Cajee (Founding CEO/ Management Board, National Awqaf Foundation of South Africa), Mr. Mamode Raffick Nabee Mohomed (Founder/ Secretary, Al Barakah Multi-purpose Co-operative Society Limited – Mauritius), Ms. Rehab Lootah (Managing Director - Mawarid Consultancy Dubai - U.A.E), Mr. Mohamed El Mehdi Zidani (Author - An Islamic Analysis of the Grameen Bank and Director Baraka Editions – France), Mr. Pervez Nasim (Chairmen & CEO, Ansar Financial and Development Corporation – Canada), Mr. Abdul Samad (Shariah Advisor, The Bank of Khyber – Pakistan), Mr. Humayun Saeed Jamshed (Senior Director - Islamic Banking & Finance, SAB – France), Mrs. Thamina Anwar (Founder and CEO, Awqaf New Zealand Mrs. Helena Lutege (Founder and Managing Director, BELITA Fund – Tanzania), Mr. Ali Tariq (Executive Director, Iraqi Microfinance Network – Iraq), Dr. Mohammed Kroessin (Global Microfinance Advisor – UK), Mufti Barkatulla (Sharia Advisor, Islamic Bank of Britain, London, UK) and some other prestigious international speakers addressed in this forum.

ASEAN Countries have big potential for Islamic Finance: Zubair Mughal

(Manila - Philippines) There are multiple opportunities in Association of Southeast Asian Nations (ASEAN) countries to promote Islamic Finance, through which Halal Industry can be flourished rapidly in the region. These views were expressed by Muhammad Zubair Mughal, Chief Executive Officer, AlHuda Centre of Islamic Banking and Economics (CIBE) during his speech at “First National Halal Forum” in Manila which was organized by Department of Science and Technology, Government of Philippines at a local hotel (Shangri-La Makati) on 29th- 30th October, 2013, in order to grow Halal Industry and Economy on both regional and international level. 

During his address to the Forum, he stated that Islamic Finance and Halal Industry are complement to each other. Micro and Small Medium Enterprises (MSME’s) can be energized by utilizing Islamic Finance concept in the region which will be cause to reduce in poverty and ultimate socio-economic prosperity in the ASEAN member Countries. He, presenting an analysis on ASEAN countries (Malaysia, Indonesia, Brunei Darussalam, Loa PDR, Myanmar, Singapore, Thailand and Vietnam), stated that the approximate total population of ASEAN countries is 600 million including the Muslim Population more than 40% (240 million) which is a potential indicator for Islamic Finance growth whereas in Malaysia, Indonesia and Brunei Darussalam already have significant contributions in Islamic Banking, Takaful, Sukuk and Islamic Funds, while Philippines and Thailand are being considered as future potential markets for Islamic Banking and Finance in ASEAN countries. 

He explained that Islamic Banking and Finance is the system not a religion which can be utilized by Muslim and Non-Muslims to get absolute benefits from the best services of Islamic Banking and Finance as its best example is the South Africa where Muslim population is less than 2% of the whole population but it has more than 5 Islamic Banks, 13 Islamic Funds and 2 Takaful companies working actively, which are equally famous among Muslims even non-Muslims communities because of their best practices and services. He said that Philippines is an important country of the region with having 100 million populations, approximately, containing Muslim population by more than 7% which bears it out that there are momentous chances for the promotion of Islamic Finance and, apparently, government of Philippines found active in this concern and it will, definitely, energize Islamic Banking and Takaful in result. He also stated that government of Philippines can generate financial resources for national level mega projects by utilizing the concept of Sukuk (Islamic Bonds). 

National Halal Forum continued for two days at Manila where experts from different countries of the world participated including Pakistan, Turkey, Malaysia, Indonesia and Thailand.

Takaful has global potential, say experts

Dubai: The takaful industry has huge potential to join the mainstream insurance business outside Muslim countries as a viable alternative to conventional insurance, say experts.

The global takaful (Islamic insurance) industry, which has a relatively small share of about $17 billion (Dh62 billion) in underwritings compared to the $3 trillion held by the mainstream industry, needs to attract wider audience and underwrite insurance requirements of larger businesses, said delegates at the Global Islamic Economy Summit 2013.

“There are a large number of big businesses such as huge infrastructure projects, oil and gas installations and power projects including nuclear projects coming up in the region,” said Fareed Lutfi, Secretary General of Emirates Insurance Association.

“Currently the takaful industry’s role in underwriting big-ticket risks is minimal while the industry is focused mostly on life and family takaful, motor insurance and relatively small businesses. This situation calls for creation of larger re-takaful companies that have the capital size to cover larger size risks.”

While the creation of new takaful giants is a solution, industry players said the merger of existing players and the entry of insurance multi-nationals into the business could help the industry to achieve critical mass in the Islamic re-insurance business. “Currently there are just 16 re-takaful companies,” said Firas El Azem, General Manager of Takaful Re. “These companies have the capacity to cover small- to medium-size risks. But when it come to larger risks the size is a constraint and it needs to be addressed.”

The total size of the insurance business in Islamic countries is estimated at $80 billion, with takaful accounting for less than $20 billion (including the industry in Iran). Industry representatives said that while there is huge growth potential for the takaful industry within the core markets such as the Middle East, Africa and south-east Asia, industry representatives said, takaful should look beyond the 1.2 billion Muslims and appeal to a wider global audience.

“In Malaysia, the Chinese populations constitute a big component of the takaful customers,” said Sohail Jaffar, Deputy CEO of FWU Global Takaful Solutions. “In the UAE there is a growing segment of non-Muslim takaful customers such as non-resident Indians. The industry should offer innovative insurance solutions that are competitive.” While Saudi Arabia, the UAE and Malaysia hold the lion’s share of the takaful market, the acquisition of market share has not necessarily translated into profitability in many instances. Panelists at the summit said most takaful companies in the region are relatively young and are at the early stage of their business development. Most operators have yet to achieve critical business volume despite incurring substantial establishment costs over their formative years.

Industry representatives said there are a number of untapped business areas such as the private pension market, insurance-linked products in education and longer-term saving schemes. However, all agreed that the GCC region requires comprehensive regulatory reforms to tap into these business segments. “Private pension schemes are virtually non-existent in the region,” said Hatim Al Tahir, Director Islamic Finance Knowledge Centre, Deloitte. “This is an area where takaful has huge growth potential if right regulatory framework is in place.”

Given the short-term nature of the work contracts of expatriates in the region, experts suggested that regulations should be tailored to suit portability of insurance schemes to their home markets or offshore financial centres.
Refference: gulfnews.com/business/banking/takaful-has-global-potential-say-experts-1.1259741