Difficult product names in Islamic Banking

[Farhat Abbas Shah Shah]

Dear Friends,
Since last year I have been studying Islamic Banking, particularly Islamic microfinance. I definitely agreed that especially in Muslim countries it the need of the day and Banks are rapidly diversifying regarding their business models and products.However due to non familiar and difficult names of the products and new terminology they are not as success full as commercial banking. Farz foundation wants to start Islamic microfinance in Pakistan with a little innovation of translating the Arabic terms into English and Urdu.So the terms become familiar and easy to understand. I am just seeking guidance from all of you regarding this innovation. Is there any example like that anywhere? Should we come with this innovation or only should follow the conventional things?
Regards,
Farhat.

[Asim Mushtaq]

 Dear Farhat

In Islamic finance system, there are two types of financial instruments i.e. Trade based and Equity based. There are various types of contracts in each category. For Instance... in Trade based ....Murabaha, Salam etc and in Equity based ..Musharka ,Mudarbha etc. These contracts are generally represents the financial products.Arabic name of financial products illustrates the contract features.  You can choose the name of financial products provided that contract features not conflicting with new name.

With best regards

Asim





________________________________
From: farhat <farhatabbasshah@...>
To: MicrofinancePractice@...
Sent: Sun, November 8, 2009 12:07:36 PM
Subject: [MFP] Difficult  product names in Islamic Banking

 
Dear Friends,
Since last year I have been studying Islamic Banking, particularly Islamic microfinance. I definitely agreed that especially in Muslim countries it the need of the day and Banks are rapidly diversifying regarding their business models and products.However due to non familiar and difficult names of the products and new terminology they are not as success full as commercial banking. Farz foundation wants to start Islamic microfinance in Pakistan with a little innovation of translating the Arabic terms into English and Urdu.So the terms become familiar and easy to understand. I am just seeking guidance from all of you regarding this innovation. Is there any example like that anywhere? Should we come with this innovation or only should follow the conventional things?
Regards,
Farhat.


 


     

[Non-text portions of this message have been removed]

[sajjad ali]

Dear Farhat,
 
Nice to see you with Islamic Banking topic, please find a attachment here with e-mail which will understand us concept and products of Islamic Microfinance in Pakistan. This presentation has been given by Mr. Mehmood Shafqat, Senior Joint Director, Banking Policy and Regulations Department, State Bank of Pakistan on June 09, 2009 at NIBAF Islamabad.
Hope this presentation will response about your topic.
 
Regards,



Syed Sajjad Ali Shah
Manager-MED
Microfinance Operations, 
TRDP.

--- On Sat, 11/7/09, farhat <farhatabbasshah@...> wrote:


From: farhat <farhatabbasshah@...>
Subject: [MFP] Difficult product names in Islamic Banking
To: MicrofinancePractice@...
Date: Saturday, November 7, 2009, 11:07 PM


 



Dear Friends,
Since last year I have been studying Islamic Banking, particularly Islamic microfinance. I definitely agreed that especially in Muslim countries it the need of the day and Banks are rapidly diversifying regarding their business models and products.However due to non familiar and difficult names of the products and new terminology they are not as success full as commercial banking. Farz foundation wants to start Islamic microfinance in Pakistan with a little innovation of translating the Arabic terms into English and Urdu.So the terms become familiar and easy to understand. I am just seeking guidance from all of you regarding this innovation. Is there any example like that anywhere? Should we come with this innovation or only should follow the conventional things?
Regards,
Farhat.









     

[Non-text portions of this message have been removed]

[Richard Meyer]

I could not find an attachment.  Dick


At 05:47 AM 11/10/2009, Syed Sajjad Ali Shah wrote:

>Dear Farhat,
>Â
>Nice to see you with Islamic Banking topic,
>please find a attachment here with e-mail which
>will understand us concept and products of
>Islamic Microfinance in Pakistan. This
>presentation has been given by Mr. Mehmood
>Shafqat, Senior Joint Director, Banking Policy
>and Regulations Department, State Bank of
>Pakistan on June 09, 2009 at NIBAF Islamabad.
>Hope this presentation will response about your topic.
>Â
>Regards,
>
>
>
>Syed Sajjad Ali Shah
>Manager-MED
>Microfinance Operations,Â
>TRDP.
>
>--- On Sat, 11/7/09, farhat <farhatabbasshah@...> wrote:
>
>
>From: farhat <farhatabbasshah@...>
>Subject: [MFP] Difficult product names in Islamic Banking
>To: MicrofinancePractice@...
>Date: Saturday, November 7, 2009, 11:07 PM
>
>
>Â
>
>
>
>Dear Friends,
>Since last year I have been studying Islamic
>Banking, particularly Islamic microfinance. I
>definitely agreed that especially in Muslim
>countries it the need of the day and Banks are
>rapidly diversifying regarding their business
>models and products.However due to non familiar
>and difficult names of the products and new
>terminology they are not as success full as
>commercial banking. Farz foundation wants to
>start Islamic microfinance in Pakistan with a
>little innovation of translating the Arabic
>terms into English and Urdu.So the terms become
>familiar and easy to understand. I am just
>seeking guidance from all of you regarding this
>innovation. Is there any example like that
>anywhere? Should we come with this innovation or
>only should follow the conventional things?
>Regards,
>Farhat.
>
>
>
>
>
>
>
>
>
>
>
>[Non-text portions of this message have been removed]
>
>
>
>------------------------------------
>
>WARNING! If you hit REPLY, your message will go
>to the entire listserve, not just the original author!Yahoo! Groups Links
>
>
>

[SYED MOEEZ]

Dear Meyer

Hope you are fine.

 

Please find a presentation on some of the products used in Islamic microfinancing.

MuslimAid is also practicing the product of Murabaha in Pakistan for last one and a half year. People who do not want to get interest based loan are contacting our project. But this is a pilot project which our head quarter (in UK) started in its all field offices ion various countries. After 2 year we will review the project and then replicate the best product and practices of various field offices.

 

You can find a lot of material on islamic microfinance on internet.

 

Thanks

 

Syed Moeez Ud Dn Kakka khail

Program Manager

Muslim Aid

Pakistan Field Office, Islamabad

 

 

 


To: MicrofinancePractice@...; MicrofinancePractice@...
From: meyer.19@...
Date: Tue, 10 Nov 2009 12:07:23 -0500
Subject: Re: [MFP] Difficult product names in Islamic Banking

 



I could not find an attachment. Dick

At 05:47 AM 11/10/2009, Syed Sajjad Ali Shah wrote:

>Dear Farhat,
>Â
>Nice to see you with Islamic Banking topic,
>please find a attachment here with e-mail which
>will understand us concept and products of
>Islamic Microfinance in Pakistan. This
>presentation has been given by Mr. Mehmood
>Shafqat, Senior Joint Director, Banking Policy
>and Regulations Department, State Bank of
>Pakistan on June 09, 2009 at NIBAF Islamabad.
>Hope this presentation will response about your topic.
>Â
>Regards,
>
>
>
>Syed Sajjad Ali Shah
>Manager-MED
>Microfinance Operations,Â
>TRDP.
>
>--- On Sat, 11/7/09, farhat <farhatabbasshah@...> wrote:
>
>
>From: farhat <farhatabbasshah@...>
>Subject: [MFP] Difficult product names in Islamic Banking
>To: MicrofinancePractice@...
>Date: Saturday, November 7, 2009, 11:07 PM
>
>
>Â
>
>
>
>Dear Friends,
>Since last year I have been studying Islamic
>Banking, particularly Islamic microfinance. I
>definitely agreed that especially in Muslim
>countries it the need of the day and Banks are
>rapidly diversifying regarding their business
>models and products.However due to non familiar
>and difficult names of the products and new
>terminology they are not as success full as
>commercial banking. Farz foundation wants to
>start Islamic microfinance in Pakistan with a
>little innovation of translating the Arabic
>terms into English and Urdu.So the terms become
>familiar and easy to understand. I am just
>seeking guidance from all of you regarding this
>innovation. Is there any example like that
>anywhere? Should we come with this innovation or
>only should follow the conventional things?
>Regards,
>Farhat.
>
>
>
>
>
>
>
>
>
>
>
>[Non-text portions of this message have been removed]
>
>
>
>------------------------------------
>
>WARNING! If you hit REPLY, your message will go
>to the entire listserve, not just the original author!Yahoo! Groups Links
>
>
>

     
_________________________________________________________________
Windows Live: Friends get your Flickr, Yelp, and Digg updates when they e-mail you.
http://www.microsoft.com/middleeast/windows/windowslive/see-it-in-action/social-network-basics.aspx?ocid=PID23461::T:WLMTAGL:ON:WL:en-xm:SI_SB_3:092010

[Non-text portions of this message have been removed]



------------------------------------

WARNING! If you hit REPLY, your message will go to the entire listserve, not just the original author!Yahoo! Groups Links

<*> To visit your group on the web, go to:
    http://groups.yahoo.com/group/MicrofinancePractice/

<*> Your email settings:
    Individual Email | Traditional

<*> To change settings online go to:
    http://groups.yahoo.com/group/MicrofinancePractice/join
    (Yahoo! ID required)

<*> To change settings via email:
    MicrofinancePractice-digest@...
    MicrofinancePractice-fullfeatured@...

<*> To unsubscribe from this group, send an email to:
    MicrofinancePractice-unsubscribe@...

<*> Your use of Yahoo! Groups is subject to:
    http://docs.yahoo.com/info/terms/

[swati_2881]

Dear ALL

I would like to get connected to Senior Professionals in the Microfinance Sector based in Pakistan.

Please feel free to get in touch at swtai.singhal@...

Thanks & Regards,                              

Swati Singhal
Manager - Quadrangle- International Search (An Associate of Naukri.com)|InfoEdge India Ltd |E- 2, Sector 1 |  Noida- 201301 |
* swati.singhal@... | Landline : 0120-4304611

 

-----Original Message-----
From: MicrofinancePractice@... [mailto:MicrofinancePractice@...] On Behalf Of SYED MOEEZ
Sent: Wednesday, November 11, 2009 10:15 AM
To: microfinancepractice@...
Subject: RE: [MFP] Difficult product names in Islamic Banking




Dear Meyer

Hope you are fine.

 

Please find a presentation on some of the products used in Islamic microfinancing.

MuslimAid is also practicing the product of Murabaha in Pakistan for last one and a half year. People who do not want to get interest based loan are contacting our project. But this is a pilot project which our head quarter (in UK) started in its all field offices ion various countries. After 2 year we will review the project and then replicate the best product and practices of various field offices.

 

You can find a lot of material on islamic microfinance on internet.

 

Thanks

 

Syed Moeez Ud Dn Kakka khail

Program Manager

Muslim Aid

Pakistan Field Office, Islamabad

 

 

 


To: MicrofinancePractice@...; MicrofinancePractice@...
From: meyer.19@...
Date: Tue, 10 Nov 2009 12:07:23 -0500
Subject: Re: [MFP] Difficult product names in Islamic Banking

 



I could not find an attachment. Dick

At 05:47 AM 11/10/2009, Syed Sajjad Ali Shah wrote:

>Dear Farhat,
>Â
>Nice to see you with Islamic Banking topic,
>please find a attachment here with e-mail which
>will understand us concept and products of
>Islamic Microfinance in Pakistan. This
>presentation has been given by Mr. Mehmood
>Shafqat, Senior Joint Director, Banking Policy
>and Regulations Department, State Bank of
>Pakistan on June 09, 2009 at NIBAF Islamabad.
>Hope this presentation will response about your topic.
>Â
>Regards,
>
>
>
>Syed Sajjad Ali Shah
>Manager-MED
>Microfinance Operations,Â
>TRDP.
>
>--- On Sat, 11/7/09, farhat <farhatabbasshah@...> wrote:
>
>
>From: farhat <farhatabbasshah@...>
>Subject: [MFP] Difficult product names in Islamic Banking
>To: MicrofinancePractice@...
>Date: Saturday, November 7, 2009, 11:07 PM
>
>
>Â
>
>
>
>Dear Friends,
>Since last year I have been studying Islamic
>Banking, particularly Islamic microfinance. I
>definitely agreed that especially in Muslim
>countries it the need of the day and Banks are
>rapidly diversifying regarding their business
>models and products.However due to non familiar
>and difficult names of the products and new
>terminology they are not as success full as
>commercial banking. Farz foundation wants to
>start Islamic microfinance in Pakistan with a
>little innovation of translating the Arabic
>terms into English and Urdu.So the terms become
>familiar and easy to understand. I am just
>seeking guidance from all of you regarding this
>innovation. Is there any example like that
>anywhere? Should we come with this innovation or
>only should follow the conventional things?
>Regards,
>Farhat.
>
>
>
>
>
>
>
>
>
>
>
>[Non-text portions of this message have been removed]
>
>
>
>------------------------------------
>
>WARNING! If you hit REPLY, your message will go
>to the entire listserve, not just the original author!Yahoo! Groups Links
>
>
>

     
_________________________________________________________________
Windows Live: Friends get your Flickr, Yelp, and Digg updates when they e-mail you.
http://www.microsoft.com/middleeast/windows/windowslive/see-it-in-action/social-network-basics.aspx?ocid=PID23461::T:WLMTAGL:ON:WL:en-xm:SI_SB_3:092010

[Non-text portions of this message have been removed]



------------------------------------

WARNING! If you hit REPLY, your message will go to the entire listserve, not just the original author!Yahoo! Groups Links

[Richard Meyer]

Did you mean to attach something?  There was nothing attached.  Dick


At 11:44 PM 11/10/2009, you wrote:

>Dear Meyer
>
>Hope you are fine.
>
>
>
>Please find a presentation on some of the
>products used in Islamic microfinancing.
>
>MuslimAid is also practicing the product of
>Murabaha in Pakistan for last one and a half
>year. People who do not want to get interest
>based loan are contacting our project. But this
>is a pilot project which our head quarter (in
>UK) started in its all field offices ion various
>countries. After 2 year we will review the
>project and then replicate the best product and
>practices of various field offices.
>
>
>
>You can find a lot of material on islamic microfinance on internet.
>
>
>
>Thanks
>
>
>
>Syed Moeez Ud Dn Kakka khail
>
>Program Manager
>
>Muslim Aid
>
>Pakistan Field Office, Islamabad
>
>
>
>
>
>
>
>
>To: MicrofinancePractice@...; MicrofinancePractice@...
>From: meyer.19@...
>Date: Tue, 10 Nov 2009 12:07:23 -0500
>Subject: Re: [MFP] Difficult product names in Islamic Banking
>
>
>
>
>
>I could not find an attachment. Dick
>
>At 05:47 AM 11/10/2009, Syed Sajjad Ali Shah wrote:
> >Dear Farhat,
> >Â
> >Nice to see you with Islamic Banking topic,
> >please find a attachment here with e-mail which
> >will understand us concept and products of
> >Islamic Microfinance in Pakistan. This
> >presentation has been given by Mr. Mehmood
> >Shafqat, Senior Joint Director, Banking Policy
> >and Regulations Department, State Bank of
> >Pakistan on June 09, 2009 at NIBAF Islamabad.
> >Hope this presentation will response about your topic.
> >Â
> >Regards,
> >
> >
> >
> >Syed Sajjad Ali Shah
> >Manager-MED
> >Microfinance Operations,Â
> >TRDP.
> >
> >--- On Sat, 11/7/09, farhat <farhatabbasshah@...> wrote:
> >
> >
> >From: farhat <farhatabbasshah@...>
> >Subject: [MFP] Difficult product names in Islamic Banking
> >To: MicrofinancePractice@...
> >Date: Saturday, November 7, 2009, 11:07 PM
> >
> >
> >Â
> >
> >
> >
> >Dear Friends,
> >Since last year I have been studying Islamic
> >Banking, particularly Islamic microfinance. I
> >definitely agreed that especially in Muslim
> >countries it the need of the day and Banks are
> >rapidly diversifying regarding their business
> >models and products.However due to non familiar
> >and difficult names of the products and new
> >terminology they are not as success full as
> >commercial banking. Farz foundation wants to
> >start Islamic microfinance in Pakistan with a
> >little innovation of translating the Arabic
> >terms into English and Urdu.So the terms become
> >familiar and easy to understand. I am just
> >seeking guidance from all of you regarding this
> >innovation. Is there any example like that
> >anywhere? Should we come with this innovation or
> >only should follow the conventional things?
> >Regards,
> >Farhat.
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >[Non-text portions of this message have been removed]
> >
> >
> >
> >------------------------------------
> >
> >WARNING! If you hit REPLY, your message will go
> >to the entire listserve, not just the original author!Yahoo! Groups Links
> >
> >
> >
>
>
>
>
>_________________________________________________________________
>Windows Live: Friends get your Flickr, Yelp, and
>Digg updates when they e-mail you.
>http://www.microsoft.com/middleeast/windows/windowslive/see-it-in-action/social-network-basics.aspx?ocid=PID23461::T:WLMTAGL:ON:WL:en-xm:SI_SB_3:092010
>
>[Non-text portions of this message have been removed]
>
>
>
>------------------------------------
>
>WARNING! If you hit REPLY, your message will go
>to the entire listserve, not just the original author!Yahoo! Groups Links
>
>
>

[Dr Mohammed Obaidullah]

Dear Farhat

Congratulations on the new initiative.

Islamic banking and microfinance products have arabic names that are not easy to tranlate into english. Each product at a basic level is modeled after a specific contract, details of which could be found in books of Islamic contract law. There are of course composite products that use a combination of contracts. I have tried to provide english translations of some widely used products in my book ISLAMIC FINANCIAL SERVICES that is freely downloadable from the following link.

http://islamiccenter.kau.edu.sa/english/Publications/Obaidullah/ifs/ifs.html

You may also like to visit the resources page of Islamic Microfinance and Development Project for a number of books and papers on IsMF at:

http://www.imad.in/resources.html

A rough list of products that may serve your purpose is as follows:

1. Qard: Loan
2. Murabaha: Cost-Plus Financing (popular term in ME)
3. Bai-Bithaman-Ajil: Deferred Payment Financing (popular term in SE Asia)
4. Ijara: Leasing
5. Ijara wa Iqtina or Ijara Thummal Bai: Financial Lease
6. Bai-Salam: Deferred Delivery Financing
7. Bai-Istisna: Manufacture Financing
8. Mudharabah: Trustee-Partnership
9. Musharakah: Joint Venture
10. Mudharah: Output Sharing (specific to agriculture)
11. Wakala: Agency
10. Kafala: Guarantee
12. Hawala: Assignment of Debt
13. Takaful: Mutual Guarantee
14. Hiba or Tabarru or Sadaqa: Donation

Products 2-11 are for-profit ones and Products 1 and 10-14 are not-for-profit. Of course the actual operational cost of providing the services (not interest) may be recovered from the beneficiary in case of not-for-profit products.

Hope this is useful. It is however, pertinent to note here that some MF providers and Islamic banks prefer to work with arabic names as a strategy of product differentiation.

Mohammed Obaidullah
Jeddah, KSA

> > >--- On Sat, 11/7/09, farhat <farhatabbasshah@...> wrote:
> > >
> > >
> > >From: farhat <farhatabbasshah@...>
> > >Subject: [MFP] Difficult product names in Islamic Banking
> > >To: MicrofinancePractice@...
> > >Date: Saturday, November 7, 2009, 11:07 PM
> > >
> > >
> > >Â
> > >
> > >
> > >
> > >Dear Friends,
> > >Since last year I have been studying Islamic
> > >Banking, particularly Islamic microfinance. I
> > >definitely agreed that especially in Muslim
> > >countries it the need of the day and Banks are
> > >rapidly diversifying regarding their business
> > >models and products.However due to non familiar
> > >and difficult names of the products and new
> > >terminology they are not as success full as
> > >commercial banking. Farz foundation wants to
> > >start Islamic microfinance in Pakistan with a
> > >little innovation of translating the Arabic
> > >terms into English and Urdu.So the terms become
> > >familiar and easy to understand. I am just
> > >seeking guidance from all of you regarding this
> > >innovation. Is there any example like that
> > >anywhere? Should we come with this innovation or
> > >only should follow the conventional things?
> > >Regards,
> > >Farhat.
> > >
> > >
> > >
> > >
> > >
> > >
> > >
> > >
> > >
> > >
> > >
> > >[Non-text portions of this message have been removed]
> > >
> > >
> > >
> > >------------------------------------
> > >
> > >WARNING! If you hit REPLY, your message will go
> > >to the entire listserve, not just the original author!Yahoo! Groups Links
> > >
> > >
> > >
> >
> >
> >
> >
> >_________________________________________________________________
> >Windows Live: Friends get your Flickr, Yelp, and
> >Digg updates when they e-mail you.
> >http://www.microsoft.com/middleeast/windows/windowslive/see-it-in-action/social-network-basics.aspx?ocid=PID23461::T:WLMTAGL:ON:WL:en-xm:SI_SB_3:092010
> >
> >[Non-text portions of this message have been removed]
> >
> >
> >
> >------------------------------------
> >
> >WARNING! If you hit REPLY, your message will go
> >to the entire listserve, not just the original author!Yahoo! Groups Links
> >
> >
> >
>