Islamic Bank the challenges

Forbidden to you (for food) are: dead meat, blood the flesh of swine, and that on which hath been invoked the name of other than Allah, that which hath been killed by strangling, or by a violent blow, or by a headlong fall, or by being gored to death; that which hath been (partly) eaten by a wild animal; unless ye are able to slaughter it (in due form); that which is sacrificed on stone (altars); (forbidden) also is the division (of meat) by raffling with arrows: that is impiety. This day have those who reject Faith given up all hope of your religion: yet fear them not but fear Me.
This day have I perfected your religion for you, completed my favors upon you, and have chosen for you Islam as your religion.

But if any is forced by hunger, with no inclination to transgression, Allah is indeed Oft-Forgiving Most Merciful. (3) Quran Al Maidah 3

· Islam is completed and there is no transition, shariah is complete and there can’t be any more addition.
· The door of Ijtehaad is open but stopped long time ago.
· Ijma of Scholars of Ummah is open and practiced.
Those who are talking of transition period, there is no transition. There are no differences or dispute on any of the basic principles of Shariah.
· Maqasid al Shariah – everyone is agreed on it.
· Halal and Haram everyone agrees and no issues.
· Ethics, moral values and transparency is agreed upon.
· Basic principles of contract and product is agreed
Transition is only related to work in progress for something innovative within parameters and limits of shariah. (This should go on and more expertise and competence should be develop.)
I am talking of basic principles which have been agreed by AAOIFI and IFSB and IOC Fiqah Academy. How much compliant are our institutions are? I am talking about three examples.
· Even though Shariah Board of the company has very clear opinion and this opinion that the contract is Shariah Compliant and this opinion is held by all Shariah Scholars also, do company has any right to go to the secular court and fight a case in secular court (judge do not understand Shariah, his judgment will be based on who has better lawyer and argument) because company has ill intentions not to pay.
· Is there any logic or compliance when funds invest in haram, whatever may be the case?
· Can there be Sukuk for a company engaged in Haram Activities and its majority income is Haram.
· Sukuk are assets based or assets backed, when they default why there is long litigation, basically the assets should be sold to pay the investors.( there are big litigations and fights because really we do want a product which can be sold as Islamic in market but we do not want to adhere to the principle and spirit of Shariah.)
· Shariah Compliance inside the institution and its practices and its supervision of activities. How many of IFI are following these standards.
· Derivatives and structured products – There is no scope that industry can act in this matter, industry do not any right to come out re packaged product. There is no place of self-regulation (regulating or enacting or making new law) or self-governance (self-regulation). Only Shariah Scholar based on Ijma of Scholars of Ummah can come to some kind of solution for this. There is no place for industry overtones or self-proclaimed product agreed by Industry. (Even if all Ummah agrees on Haram, it cannot be allowed and will always remain Haram.)
· Industry must have enough presentation for those who understands and follows Shariah so that these people can keep watch on complete life cycle (product life cycle) of IFI products and services.
· Just Shariah Board an outsider is not enough to say company is Shariah Compliant and its Product and services is Shariah Compliant.
· There must be enough Muttaqueen (pious, who fear Allah and Follows Shariah in all aspects of life). Unless and until this happens there is little chances the IFI can remain Islamic.