Al-Meezan
Investment Bank, being one of the largest capitalized investment bank
with a strong Middle Eastern shareholding, has taken a lead in the
Introduction of Certificates of Islamic Investment in Pakistan. Last
month Al-Meezan launched a Shariah compatible Islamic Investment Deposit
by the name of “Al-Meezan‘s Riba Free®”. Through these
investment certificates, the deposit holder participates in the Bank’s
financing business and shares the profits earned on a quarterly
basis. These certificates are available in tenures of 3,6 and 12 months
with minimum investment of Rs 100,000/-. This product has been
introduced with a vision to establish Islamic banking to provide an
investment opportunity that is both Halal and Secure.
“Riba Free®” has been launched with a strategic alliance with ABN
AMRO Bank offering interest averse investors a deposit scheme which is
according to Islamic Shariah principles backed with highest
international service standards of a multinational bank. Al-Meezan
Investment Bank operates under the guidelines laid down by the Islamic
law. Their Shariah Adviser, a Ph.D. in Islamic Finance, monitors
conformity to Shariah. Holder of ‘Riba Free®’ certificates
share in Meezan bank’s income, which is derived from Halal
transactions based mainly on Murabaha.
Talking
about the future of Islamic Banking in Pakistan Mr. Pervez Said,
Business Development Head at Al Meezan said that Islamic banking is a
simple, more efficient and socially responsible system of banking as it
earns profit from the participation in economy by sharing risk and
rewards through pricing of goods, services and benefits. Islamic banking
windows are successfully being run in 42 countries of the world. The
same could be done here in Pakistan.
While according
to Dr. Imran Usmani, Shariah Advisor of the bank, Islamic banking is the
panacea to all ills in the economy resulting from the interest
factor. ‘Riba Free®’ is ideal investment product for those
investors who are interest averse and are looking for a banking
alternative, which is Shariah based and could earn them Halal profits.
Contributed By: Nadia Ahmed
"It
was under the influence of the Arabs and Moorish revival of culture and
not in the 15th century, that a real renaissance took place. Spain, not
Italy, was the cradle of the rebirth of Europe. After steadily sinking
lower and lower into barbarism, it had reached the darkest depths of
ignorance and degradation when cities of the Saracenic world, Baghdad,
Cairo, Cordova, and Toledo, were growing centers of civilization and
intellectual activity. It was there that the new life arose which was to
grow into new phase of human evolution. From the time when the influence
of their culture made itself felt, began the stirring of new life.
It
was under their successors at Oxford School (that is, successors to the
Muslims of Spain) that Roger Bacon learned Arabic and Arabic Sciences.
Neither Roger Bacon nor later namesake has any title to be credited with
having introduced the experimental method. Roger Bacon was no more than
one of apostles of Muslim Science and Method to Christian Europe; and he
never wearied of declaring that knowledge of Arabic and Arabic Sciences
was for his contemporaries the only way to true knowledge… Although
there is not a single aspect of European growth in which the decisive
influence of Islamic Culture is not traceable, nowhere is it so clear and
momentous as in the genesis of that power which constitutes the permanent
distinctive force of the modern world, and the supreme source of its
victory, natural science and the scientific spirit.
The
debt of our science to that of the Arabs does not consist in startling
discoveries or revolutionary theories, science owes a great deal more to
Arab culture, it owes its existence."
.Source:
Robert Briffault, "The Making of Humanity," London, 1938.
Its literal meaning is sharing. The root of the word "Musharakah" in Arabic is Shirkah, which means being a partner. Under Islamic jurisprudence, Musharakah means a joint enterprise formed for conducting some business in which all partners share the profit according to a specific ratio while the loss is shared according to the ratio of the contribution. It is an ideal alternative for the interest based financing with far reaching effects on both production and distribution.
A e-Publication of BITS Club, IBA September 2000 Issue www.goenlightenment.com
