ISLAMIC FINANCE & CAPITAL MARKETS

How To Invest in the Intellectual Future of Muslims Globally?

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1 year ago

January 2, 2023

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The intellectual development and progress of any society are crucial for its overall growth and success. This is especially true for Muslim communities around the world, which have a rich history of scientific, philosophical, and cultural achievements. However, in recent years, Muslims have faced numerous challenges and barriers that have hindered their ability to fully engage in and contribute to global intellectual discourse.

One of the major challenges facing Muslim education and knowledge production is the lack of access to quality education and resources. Many Muslim-majority countries suffer from inadequate infrastructure, poorly trained teachers, and limited funding for schools and universities. As a result, many Muslim students struggle to receive a comprehensive and meaningful education.

In addition to these structural issues, Muslims also face cultural and social barriers that prevent them from pursuing intellectual growth. For example, certain traditional or conservative viewpoints may discourage critical thinking and discourage Muslims from engaging with new ideas and perspectives.

Despite these challenges, investing in the intellectual future of Muslims globally is crucial for the long-term growth and prosperity of Muslim communities. By supporting education and knowledge production among Muslims, we can help to foster the next generation of Muslim scholars, scientists, and thinkers, and ensure that Muslims can fully participate in and contribute to global intellectual discourse. So, individuals and organizations need to explore ways to invest in the intellectual future of Muslims globally and support their education and knowledge production.

Challenges to the Intellectual Growth of Muslims

Several challenges prevent or hinder Muslims from achieving intellectual growth and progress. These challenges can be broadly classified into economic, social, and political factors.

One of the major economic challenges facing Muslim education and knowledge production is the lack of access to quality education and resources. Many Muslim-majority countries have poorly funded and poorly equipped schools and universities, which lack the necessary infrastructure and resources to provide a comprehensive and meaningful education to students. This is particularly true for disadvantaged and marginalized communities, who may not have the same access to education as their more privileged counterparts.

In addition to economic challenges, Muslims also face social and cultural barriers that discourage intellectual growth and progress. For example, certain traditional or conservative viewpoints may discourage critical thinking and discourage Muslims from engaging with new ideas and perspectives. There may also be social norms or expectations that discourage Muslims from pursuing higher education or intellectual pursuits.

Political factors also play a role in hindering the intellectual growth of Muslims. In some Muslim-majority countries, governments may actively suppress intellectual freedom and discourage critical thinking and debate. This can create a climate of fear and intimidation that discourages intellectual curiosity and exploration.

Overall, the challenges facing Muslim education and knowledge production are complex and multifaceted, and addressing these challenges will require a combination of economic, social, and political solutions. However, by identifying and addressing these challenges, we can help to create a more supportive and enabling environment for Muslims to achieve intellectual growth and progress.

How To Promote Intellectual Development Among Muslims?

There are many ways that individuals and organizations can support and promote the intellectual growth and progress of Muslims globally. Some of the opportunities and approaches that can be considered include:

Providing financial aid and support to Muslim students and scholars: One of the most practical and impactful ways to invest in Muslim education and knowledge production is by providing financial support to Muslim students and scholars. This can include providing scholarships, grants, and fellowships to help cover the cost of tuition, books, and other expenses related to education. Additionally, organizations can provide mentorship and support to help Muslim students and scholars navigate the academic and professional worlds and succeed in their chosen fields.
Supporting Muslim institutions and organizations: Another way to invest in Muslim education and knowledge production is by supporting Muslim institutions and organizations that are dedicated to advancing education and research. This can include providing funding for research projects, supporting academic conferences and workshops, and collaborating with Muslim institutions to co-sponsor educational programs and initiatives.
Leveraging technology and the internet: In today’s digital age, technology and the internet have transformed the way we access and share knowledge. By leveraging these tools, individuals and organizations can help to bridge the education gap and provide Muslims with access to a wide range of educational resources and opportunities. This can include creating and sharing educational content online, providing access to online learning platforms and resources, and using social media and other digital tools to connect and collaborate with others.

Overall, there are many ways to invest in the intellectual future of Muslims globally. By supporting Muslim education and knowledge production, we can help to foster the next generation of Muslim scholars, scientists, and thinkers, and ensure that Muslims can fully participate in and contribute to global intellectual discourse.

In conclusion, investing in the intellectual future of Muslims globally is crucial for the long-term growth and prosperity of Muslim communities. By supporting education and knowledge production among Muslims, we can help to foster the next generation of Muslim scholars, scientists, and thinkers, and ensure that Muslims can fully participate in and contribute to global intellectual discourse.

There are many ways that individuals and organizations can support and promote Muslim education and knowledge production, including providing financial aid and support to Muslim students and scholars, supporting Muslim institutions and organizations, and leveraging technology and the internet to provide access to educational resources and opportunities.

If you are interested in learning more about this topic and exploring ways to invest in the intellectual future of Muslims globally, there are numerous resources available online and in your local community. Some tips for getting started include researching organizations and initiatives that are dedicated to supporting Muslim education and knowledge production, connecting with others who are interested in this issue, and considering how you can use your skills and resources to make a positive impact.

Finally, we encourage readers to share their ideas and experiences related to investing in Muslim education and knowledge production. Whether you are a student, scholar, or simply someone passionate about this issue, your perspective and insights can help to inspire and motivate others to take action. Together, we can work to build a brighter and more intellectually vibrant future for Muslims around the world.

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ISLAMIC FINANCE & CAPITAL MARKETS

HAQQ Network Advances Islamic Web3 with Gold Token and Real World Assets

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3 days ago

May 16, 2024

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HAQQ Network Expanding Islamic Web3 Initiative With Gold Token and RWA” has taken a significant leap forward with the launch of its Gold Token in June, marking a critical advancement in the network’s broader ambition of tokenizing real-world assets (RWA). In a detailed blog post, Alex Malkov, the co-founder and CEO of HAQQ Network, highlighted the dual role of the Gold Token—not only as a stable store of value but as a pivotal element in the Islamic Interbank Market.

Tokenized commodities like the Gold Token promise a more streamlined and transparent approach than traditional asset exchanges. The Gold Token is not just a digital asset but is directly exchangeable for physical gold. HAQQ plans to expand this concept to include other investment commodities and potential securities.

Furthering its innovative strides, HAQQ Network also intends to tokenize Islamic financial products such as Sukuk, transforming them into blockchain-based tokens. This transformation enhances liquidity, accessibility, and efficiency, allowing for fractional ownership and broader distribution. Importantly, these tokens adhere to Shariah law, integrating compliance rules within the token’s smart contracts to ensure religious adherence.

Expanding its offerings, HAQQ has recently introduced VISA cards denominated in its ISLM token, explicitly targeted at EU residents. This development represents a significant stride toward bridging Islamic digital assets with mainstream financial services, offering EU users a platform to manage their finances according to Islamic principles.

Last year, the Islamic Coin project under HAQQ Network saw an impressive launch, garnering extensive coverage from leading crypto publications globally and major fintech outlets in the Middle East. The project built a robust community of over 1.5 million members and was backed by an advisory board that includes members from the UAE’s ruling families. The ISLM token raised substantial funds through private sales and secured investments, totalling over $400 million.

However, despite its successful launch and substantial technological foundation, Islamic Coin faced hurdles, including regulatory scrutiny and media misinformation. The Virtual Asset Regulatory Authority (VARA) initiated an investigation, but HAQQ Network cooperated fully, leading to the closure of the investigation without any enforcement actions.

Alex Malkov acknowledged the challenges posed by the VARA investigation but reiterated their commitment to transparency and combating misinformation and Islamophobia. This stance aims to foster a more inclusive and equitable financial ecosystem. Despite setbacks, Islamic Coin is now listed on major centralized exchanges such as KuCoin, LBank, XT, and MEXC and decentralized platforms like SushiSwap, Osmosis, and Uniswap. This has significantly boosted the token’s liquidity and visibility.

Moreover, HAQQ has launched a non-custodial wallet available on the Apple Store and Google Play, designed to attract non-crypto users with features like social login and device recovery. This wallet is trendy in regions such as Nigeria, Indonesia, and Turkey, providing secure asset management without intermediaries.

A noteworthy wallet feature of the “HAQQ Network Expanding Islamic Web3 Initiative With Gold Token and RWA” is staking, where ISLM holders can earn rewards while enhancing the network’s security and governance. Additionally, they can participate in ‘halal yield’ through liquidity pools on decentralized exchanges, adhering to Islamic financial principles and enabling Muslim investors to engage in the digital economy without compromising their religious values.

HAQQ Network’s dedication to merging Islamic finance with cutting-edge Web3 technology demonstrates its potential to influence the financial landscape significantly, adhering strictly to Islamic ethical standards

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ISLAMIC FINANCE & CAPITAL MARKETS

What is Microtakaful and How Does It Work?

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2 weeks ago

May 6, 2024

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By Hafiz M. Ahmed

In recent years, the concept of microtakaful has emerged as a significant development in Islamic finance, offering a Shariah-compliant insurance solution tailored to the needs of the less affluent segments of society. This form of microinsurance is designed not only to adhere to Islamic principles but also to provide financial protection to those typically underserved by conventional insurance systems. This blog post will explore what microtakaful is, how it operates, and its impact on communities.

What is Microtakaful?

Microtakaful is a form of Islamic microinsurance that offers Shariah-compliant insurance solutions to low-income individuals and communities. This system operates on the principles of mutual assistance and risk sharing, where participants contribute small premiums to a collective pool. The funds are managed according to Islamic law, ensuring no investment in prohibited activities, and profits and risks are shared among all participants.

Difference between Takaful and Microtakaful

Takaful and microtakaful are both forms of Islamic insurance, but they cater to different segments of the market and have distinct operational scales and objectives. Here are the key differences between the two:

Target Audience:
- Takaful is geared towards a broader audience, including businesses, middle to high-income individuals, and larger entities seeking Shariah-compliant insurance solutions.
- Microtakaful specifically targets low-income individuals and communities, offering them affordable insurance coverage to help mitigate financial risks associated with accidents, health issues, and other unforeseen events.
Scale and Scope of Coverage:
- Takaful policies generally cover a wide range of risks and can offer substantial coverage amounts, similar in scope and scale to conventional insurance policies.
- Microtakaful provides smaller, more limited coverage aimed at essential needs, reflecting the lower premium capacity of its clientele. The focus is on accessibility and essential protection rather than comprehensive coverage.
Premiums and Contributions:
- Takaful involves higher premiums reflecting the broader and more significant coverage it offers, and these premiums are also used to invest in permissible (halal) ventures according to Islamic law.
- Microtakaful requires very small, affordable premiums to ensure that the financially weaker sections of society can also access insurance. These contributions are pooled to cover the collective risk of the group.
Objective and Impact:
- Takaful aims to provide a Shariah-compliant alternative to conventional insurance, ensuring participants avoid Riba (interest), Gharar (excessive uncertainty), and Maysir (gambling).
- Microtakaful not only aims to be Shariah-compliant but also focuses on social impact by enhancing financial inclusion and providing safety nets to economically vulnerable groups.

How Does Microtakaful Work?

The operational model of microtakaful is fundamentally different from conventional insurance. Here’s a step-by-step breakdown of its mechanism:

Risk Pooling: Participants contribute small, affordable premiums into a collective pool, which is used to cover potential losses or damages. These contributions are considered donations and thus embody the Islamic principle of charitable giving and mutual assistance.
Takaful Operator: A takaful operator manages the pool. The operator is responsible for ensuring that the fund is used properly, adhering to Shariah principles, and overseeing claims and compensation. Importantly, unlike conventional insurance, the operator does not own the fund but acts as a custodian or manager.
Shariah Compliance: The operations of microtakaful are governed by a Shariah board, which ensures that all transactions remain free from interest (riba), uncertainty (gharar), and gambling (maysir). Investments made with the pooled funds must be in halal (permissible) ventures, avoiding industries like alcohol, gambling, and tobacco.
Surplus and Deficit Handling: Any surplus in the takaful fund (after claims and expenses) can be distributed to the participants as dividends or reinvested to increase the fund’s capacity. In the case of a deficit, the takaful operator may provide an interest-free loan (qard hasan) to the pool to cover the shortfall, which is subsequently repaid.
Claims and Compensation: When a claim is made, compensation is paid out from the collective pool. The focus is on solidarity and support among the members rather than on profit-making.

Benefits of Microtakaful

Microtakaful has several advantages, particularly for low-income communities:

Accessibility: It provides financial security to those who may not afford or access traditional insurance products.
Community Empowerment: By promoting mutual assistance, microtakaful strengthens community ties and resilience.
Economic Stability: It helps stabilize the economic conditions of individuals and small businesses by mitigating risks and providing support in times of need.

Challenges and Future Prospects

Despite its benefits, microtakaful faces challenges such as low awareness, regulatory hurdles, and the need for more tailored products to meet diverse needs. However, the potential for growth is significant, especially in countries with large underserved Muslim populations. As awareness and understanding of microtakaful increase, it is expected to play a more prominent role in global Islamic financial services.

In conclusion, microtakaful represents a pioneering approach to financial inclusion, blending traditional Islamic principles with innovative risk-sharing mechanisms to protect the most vulnerable. Its expansion can lead to more equitable access to insurance and contribute to the broader economic empowerment of disadvantaged communities worldwide.

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ISLAMIC FINANCE & CAPITAL MARKETS

IsDB Forecasts $15 Trillion Needed by 2040 for Global Sustainable Infrastructure

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3 weeks ago

April 30, 2024

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By Aamer Yaqub

At the Islamic Development Bank’s (IsDB) 2024 Annual Meetings in Riyadh, President Dr. Mohammed Al-Jasser articulated a compelling vision for addressing the global infrastructure deficit, which demands an estimated $15 trillion by 2040 to meet burgeoning needs. This statement aligns with the headline: “World needs $15 trillion to bridge the financing gap for sustainable infrastructure projects by 2040: IsDB”. This gathering, which also marked the bank’s Golden Jubilee, was themed “Cherishing our Past, Charting our Future: Originality, Solidarity, and Prosperity.”

Dr. Al-Jasser’s comments, as the Saudi Press Agency reported, emphasized the critical inadequacies of current public financing mechanisms in keeping pace with the escalating demands for sustainable infrastructure. He underscored the urgency of rethinking financing strategies to effectively support long-term investment in infrastructure, particularly in the world’s least developed countries.

These nations, hardest hit by resource depletion exacerbated by the COVID-19 pandemic, face a stark reality. The pandemic strained their development efforts and posed significant risks to their future growth and stability. Dr. Al-Jasser pointed out that these countries are at risk of enduring further economic and social degradation without immediate and decisive action.

Highlighting the unique position of Islamic finance in this scenario, Dr. Al-Jasser noted its suitability for funding substantial, long-term infrastructure projects. Islamic finance, known for being asset-based and embracing risk-sharing, dovetails with sustainable and environmentally responsible investing principles. This makes it an ideal approach to tackle these countries’ infrastructural challenges, ensuring that development aligns with ethical financing principles.

Dr. Al-Jasser called for a global mobilization to leverage the principles of Islamic finance to not only bridge the financing gap but also catalyze prosperity, solidarity, and equitable growth across the least developed nations. His vision extends beyond financial growth, aiming to foster enhancements in healthcare, education, and job creation, thus attacking the roots of poverty.

This focus on sustainable and responsible finance underscores a broader shift in global development priorities, where ethical considerations are increasingly becoming as significant as economic factors. Dr. Al-Jasser’s advocacy for a strategic reorientation in financing reflects a deep understanding of Islamic finance’s challenges and transformative potential in the contemporary global economy. This strategic shift is crucial as the “World needs $15 trillion to bridge the financing gap for sustainable infrastructure projects by 2040: IsDB,” emphasizing the urgency and scale of the financial challenges ahead.

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