Papers by Mohamed Ebrahim
SSRN, 2019
In recent years, the United Nations - Sustainable Development Goals (SDG’s) have risen to the top... more In recent years, the United Nations - Sustainable Development Goals (SDG’s) have risen to the top of the development agenda, with an emphasis on a partnership approach between the financed and financier. Given the scale of the financial resources required to support the SDG’s, coupled with the strain on government budgets, the mobilization of financing through innovative instruments becomes imperative. Islamic finance, through the Maqasid al-Sharia – Islamic moral economy values being the foundation for Islamic finance, where participatory modes of finance take center stage.
Hence, the potential of the use of Islamic finance to support “Green” investments to finance the SDGs has been receiving increased attention. With recent issues of “Green” Sukuk to finance climate friendly projects, water and sanitation projects, clean energy projects.
This is enhanced by the rise of the class of Ethical Social Governance (ESG) friendly investor and investment manager, who will mobilize the funds for investing in green sustainable projects.
It is in this melting pot of ESG, Islamic moral value-based financial products, and impact investing, where innovative participatory finance will fusion to enable funding for green sustainable projects to actualize the SDG.
SSRN, 2019
Abstract
The question in most people mind regarding Financial Reporting for Islamic Financial In... more Abstract
The question in most people mind regarding Financial Reporting for Islamic Financial Institutions is which standards, my view is first the Financial reporting should be based on International Financial Reporting Standards (IFRS) or the appropriate national reporting standards if the Country it is incorporated follows National Standards (it is a no special consideration being an Islamic Financial Institutions), then the reporting should comply with the National Companies Act and Banking or Financial Services Act requirements, then only should the reporting being accordance with Accounting and Auditing Organisation for Islamic Financial Institution (AAOIF) http://aaoifi.com/?lang=en or Islamic Financial Services Board (IFSB) https://www.ifsb.org/. The reason behind this is the foundation of Islamic finance is the ethical values on which it is based on, which would not allow it to violate national laws. The guiding maxim being “hub ul watan minal imaan” loosely translated as “love of one’s country is part of faith”.
However, there is need to have a common framework for accounting and financial reporting for Islamic Financial Institution’s (IFI’s) to demonstrate to the common users of general purpose financial statements that the entities they are associated with comply, in form and in substance, with the principles and rules of the Islamic Sharia (“Jurisprudence”) in their financial and other transactions.
Kenya had its first REIT offer the Stanlib Fahari I-Reit on 25th October 2015. This is the first ... more Kenya had its first REIT offer the Stanlib Fahari I-Reit on 25th October 2015. This is the first REIT offering after The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations, 2013 vide legal notice no. 116 came into effect on18th June, 2013. The same regulations also provide for the rules to govern Islamic REIT’s. This is an important and promising asset class for sharia complaint investment, both for an individual’s personal financial plan and for institutional investor’s like fund managers who operate Islamic Sharia Compliant retirement benefit schemes and Islamic Mutual Fund managers.
SSRN, 2014
Islamic finance (Capital Markets, Banking and Insurance) has emerged from a niche financial marke... more Islamic finance (Capital Markets, Banking and Insurance) has emerged from a niche financial market to the mainstream of finance. The geographic market, clientele served, products base and volume of funds have grown significantly. Furthermore, the players have increased and now include not only pure Islamic institutions but also hybrid players (conventional bank with Islamic Finance windows). Therefore, not understanding the unique risks of the Islamic Finance model (risk sharing and risk pooling) can cause a failure of the model igniting a financial crises with a ripple effect on the Islamic faith. Hence, managing these unique risks is extremely important.
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Papers by Mohamed Ebrahim
Hence, the potential of the use of Islamic finance to support “Green” investments to finance the SDGs has been receiving increased attention. With recent issues of “Green” Sukuk to finance climate friendly projects, water and sanitation projects, clean energy projects.
This is enhanced by the rise of the class of Ethical Social Governance (ESG) friendly investor and investment manager, who will mobilize the funds for investing in green sustainable projects.
It is in this melting pot of ESG, Islamic moral value-based financial products, and impact investing, where innovative participatory finance will fusion to enable funding for green sustainable projects to actualize the SDG.
The question in most people mind regarding Financial Reporting for Islamic Financial Institutions is which standards, my view is first the Financial reporting should be based on International Financial Reporting Standards (IFRS) or the appropriate national reporting standards if the Country it is incorporated follows National Standards (it is a no special consideration being an Islamic Financial Institutions), then the reporting should comply with the National Companies Act and Banking or Financial Services Act requirements, then only should the reporting being accordance with Accounting and Auditing Organisation for Islamic Financial Institution (AAOIF) http://aaoifi.com/?lang=en or Islamic Financial Services Board (IFSB) https://www.ifsb.org/. The reason behind this is the foundation of Islamic finance is the ethical values on which it is based on, which would not allow it to violate national laws. The guiding maxim being “hub ul watan minal imaan” loosely translated as “love of one’s country is part of faith”.
However, there is need to have a common framework for accounting and financial reporting for Islamic Financial Institution’s (IFI’s) to demonstrate to the common users of general purpose financial statements that the entities they are associated with comply, in form and in substance, with the principles and rules of the Islamic Sharia (“Jurisprudence”) in their financial and other transactions.
Hence, the potential of the use of Islamic finance to support “Green” investments to finance the SDGs has been receiving increased attention. With recent issues of “Green” Sukuk to finance climate friendly projects, water and sanitation projects, clean energy projects.
This is enhanced by the rise of the class of Ethical Social Governance (ESG) friendly investor and investment manager, who will mobilize the funds for investing in green sustainable projects.
It is in this melting pot of ESG, Islamic moral value-based financial products, and impact investing, where innovative participatory finance will fusion to enable funding for green sustainable projects to actualize the SDG.
The question in most people mind regarding Financial Reporting for Islamic Financial Institutions is which standards, my view is first the Financial reporting should be based on International Financial Reporting Standards (IFRS) or the appropriate national reporting standards if the Country it is incorporated follows National Standards (it is a no special consideration being an Islamic Financial Institutions), then the reporting should comply with the National Companies Act and Banking or Financial Services Act requirements, then only should the reporting being accordance with Accounting and Auditing Organisation for Islamic Financial Institution (AAOIF) http://aaoifi.com/?lang=en or Islamic Financial Services Board (IFSB) https://www.ifsb.org/. The reason behind this is the foundation of Islamic finance is the ethical values on which it is based on, which would not allow it to violate national laws. The guiding maxim being “hub ul watan minal imaan” loosely translated as “love of one’s country is part of faith”.
However, there is need to have a common framework for accounting and financial reporting for Islamic Financial Institution’s (IFI’s) to demonstrate to the common users of general purpose financial statements that the entities they are associated with comply, in form and in substance, with the principles and rules of the Islamic Sharia (“Jurisprudence”) in their financial and other transactions.