Ijara Company Kyrgyzstan (“ICK”), the Islamic leasing flagship of Kyrgyzstan, has hired global Sharia Advisory firm Shariyah Review Bureau (“SRB”) to manage its Sharia certification and Sharia supervisory structure in line with international practices.
ICK offers its customers leasing facility (Ijara Muntahia Bitamlik). As an IDB funded company, ICK is supported by ICD’s more than 30 year history as the trusted leasing company to deliver services for SME financing support in Kyrgyzstan. Ulan Satyvaldiev, Chief Executive, commented, “ICK is a growing leader of the Kyrgyzstan’s leasing and financing market since 2015. To continue this growth, we have decided to invest in our Sharia compliance infrastructure by hiring Shariyah Review Bureau.” “We keenly look forward to bringing their Sharia advisory expertise and Sharia audit capabilities to our market on a managed basis. We will be leveraging on their proficiencies, which allows for dynamic and rapid certification deployment so as to effectively support our new products and risings client demands.”
Shariyah Review Bureau offers financing companies with enterprise-grade Sharia solutions helping them uncover operating efficiencies in Sharia compliance management by lowering their overall cost of Sharia Board management, reduce fee leakage for ad-hoc consultation and improve Sharia auditing and Sharia compliance reporting. This has allowed not only financing companies but dozens of banks, and Takaful companies to focus on their businesses, and save cost.
“Outsourcing Sharia advisory services has become a critical resource in rapidly-evolving Islamic financial markets. It is often the most efficient way to upgrade or maintain Sharia compliance functions” stated Yasser S. Dahlawi, CEO of SRB. Speaking on the new engagement in Kyrgyzstan he added “We look forward to working with ICK, and manage their entire Sharia compliance lifecycle efficiently and transparently.”
Murabaha Capital, a platform set-up to address the funding needs of SMEs, invoice financing and consumers in a Sharia compliant way, today announced the assignment of Shariyah Review Bureau (SRB) as its Sharia Advisor.
The platform of Murabaha Capital envisions the simplification of the process for both lenders and borrowers allowing the latter to showcase their growth, portfolio and financial health to multiple investors at the same time without having to chase them. As part of its capital introductory service, the platform aims to process SME applications faster than traditional measures thereby allowing Islamic banks and financing companies to identify and connect with credit worthy businesses. This will be an important step in the evolution of the industry and is expected to be welcomed by Islamic banks who require superior diligence in credit screening, liquidity control and transparency. Murabaha Capital aims to help these banks save overhead costs in originating prospects and respond quickly to financing needs, save money, and deliver innovative services. Using modern-day Peer 2 Peer cloud-based technology the platform aims to handle complexities of managing the entire online marketplace Murabaha cycle from online origination to servicing and managing multiple investor portfolios.
“With the changing environment of banking primarily due to fintech-driven shifts, the market for Islamic finance servicing is poised to see disruption” said Abbas Hijazi, co-founder of Murabaha Capital “it is for this reason that we are seeing an increasing demand for digital based trading and lending in the Islamic markets.” Commenting on the assignment of SRB he added “We have assigned Shariyah Review Bureau as an independent Sharia Advisor to help us comply with the critical procedures of Sharia compliance. We hope this will drive international Islamic investors and businesses to generate new opportunities in the marketplace compatible to their faith based values.”
SRB will supervise the platform and provide comprehensive Sharia guidelines for trading assets using Murabaha modalities. It currently offers an international Sharia advisory service, providing consistent, quality assured, Sharia certifications and Sharia audits to establishments around the world. Its capabilities span the entire Sharia compliance value chain with holistic Sharia advisory solutions, and product assessment customized to the needs of the financial institutions it serves.
In response to the assignment, Yasser S. Dahlawi, Founder and CEO of SRB commented “High quality Sharia advice and certification services are critical to our business and we are ready to deliver what’s required to support the future ambitions of the users of Murabaha Capital.” He added, “we will ensure that the people and institutions using the platform have assurance and access to the levels of expertise required for attaining Sharia compliance in their business facilities.”
Connecting Banks, Payment Systems and People
Blockchain Protocol: Stellar Network
As a Sharia Advisor, it’s always humbling when you encounter a perfect investment opportunity. Shari’a compliant design attract our attention with its simplicity, is universally understood by investors, and does not sacrifice returns with large agency fees.
Today, Stellar gave us one such perfect piece – through its platform that connects banks, payments systems, and people. With a distributed network of global servers Stellar allows the movement of money quickly, reliably, and at almost no cost. It helps you create and design a new set of business environment through a specialized native asset known as Lumen. For example, Lumen can help your investment navigate from one side of the country to the other, transfer units with investors instantaneously, or even offer incremental payment options to customers. The best part is that you don’t have to pay huge sums to manage your accounts. You can visit the Sharia guidelines we designed for Stellar here.
We expect Stellar to become an international obsession in the Islamic financial markets. All in all, we built our Shari’a Advisory platform to help make such amazing experiences possible in the Islamic industry, but the investments that you can build on Stellar is what will truly make Sharia compliance come alive.
We can’t wait to see what you will build on Stellar!
As The First Blockchain Protocol to Receive The Sharia Compliance Certification, The Stellar Network is Poised to Enable Greater Global Financial Access and Inclusion
Certification Will Drive Growth for Stellar Network with Financial Institutions in the Persian Gulf and Southeast Asia
San Francisco, CA. July XX, 2018 — Stellar.org, a nonprofit that promotes financial access and inclusion, today announced that it has received Sharia compliance certification for the Stellar network. The Shariyah Review Bureau (SRB), a leading international Sharia advisory agency licensed by the Central Bank of Bahrain, has reviewed the properties and applications of the Stellar network and has promulgated guidance and guidelines that enable Shari’a compliant applications of Stellar technology in Islamic financial institutions.
Stellar is the first blockchain protocol to receive Sharia compliance certification in the money transfer and asset tokenization space. Additionally, the Sharia compliance certification extends to applications and usages of lumens (XLM).
Stellar.org’s founding mission is to promote global financial access and inclusion through the development of the Stellar Network, a distributed, hybrid blockchain that is fully open-source. Its infrastructure facilitates cross-asset transfers of value, including payments, and provides an instant clearing, settlement, and execution platform — enabling money to move directly between people, companies and financial institutions across borders as easily as email. By building public, open-source software, Stellar.org enables institutions to provide low-cost financial technologies and applications to serve all geographies, ethnicities, wealth levels, and religions.
Based out of Bahrain and licensed by the Central Bank of Bahrain, SRB has been serving the Islamic financial markets for well over 13 years. With 35 scholars spanning 19 countries, its Sharia certification and Sharia audit services are recognized globally. SRB is widely considered as one of the world’s leading Sharia advisory organization offering banks, insurance and asset management institutions a range of Sharia certification and supervisory services across all major asset classes.
In partnership with SRB, this certification will help grow the Stellar ecosystem in regions where financial services require compliance with Islamic financing principles. For example, Islamic financial institutions in the Gulf Cooperation Council (i.e. Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE) and parts of Southeast Asia (e.g. Indonesia and Malaysia) will now be able to integrate Stellar technology in their Sharia-compliant product and service offerings.
The Stellar network’s Sharia compliance certification will help further the organization’s mission of driving global financial access and inclusion, as these regions in the Gulf and Southeast Asia are major endpoints of popular foreign worker remittance corridors. In the next few months, members of the Stellar.org will meet with Islamic financial institutions and engage them on how to best utilize Stellar in their financial services and products.
Stellar.org is a Silicon Valley based nonprofit organization that supports the Stellar network, a free, open-source network that connects diverse financial systems and lets anyone build low-cost financial services—payments, savings, loans, insurance—for their community. The Stellar network enables money and value to move directly between people, companies and financial institutions as easily as email. This interconnectivity means more access for individuals, lower costs for banks, and more revenue for businesses. For more on Stellar.org, visit www.stellar.org.
Kazakhstan Ijara Company (“KIC”), the first Sharia compliant leasing company that was established in Kazakhstan announced the assignment of Shariyah Review Bureau (“SRB”) to setup its Sharia Supervisory Board and help manage ongoing certification, consultation and Sharia Audits.
Founded in April 2013, KIC employs more than 20 staff, and primarily operates in the field of leasing and providing financing facilities to all sectors of the Kazakhstani economy, including supporting the growth and development of small and medium enterprises in the country.
SRB is one of the leading Sharia advisory firms serving clients worldwide and is acting as Sharia Advisor to various Kazakhstani financial institutions. Based out of Bahrain, it has a global network of more than 34 scholars and a dedicated team of Sharia consultants and Sharia auditors. In line with legal regulations of the Central Bank of Bahrain, SRB has built its own global Sharia compliance program.
KIC has already registered its breakthrough by having served 120 institutional clients in the country and now hopes to be doing a lot more in the region. Yusuf Karsi, General Director, said “We can provide any leasing and financing solution in the SME space: project finance, leasing development, agricultural services everything from hiring to the sale and transfer of assets. With such diverse offerings, we see it very important to create the necessary Sharia frameworks for KIC.” He adds that the assignment of SRB is part of the firm’s strategy to ensure robustness in Sharia compliance affairs. “Our new arrangement with SRB will provide us with a Sharia springboard and further strengthen our existing offerings as we continue to build upon our client base and expansion strategies in the country. We remain committed on providing the highest quality Sharia compliant products and services to our clients.”
The ability to model and certify diverse products and investment structures is critical for Islamic financial institutions. Technical support and Sharia compliance reporting are also key factors. It is here that SRB assists in maintaining and supervising Sharia compliance across variant departments and functions all the while ensuring compatibility with internal reporting structures and the central Sharia Board and review requirements. It’s centralized approach has helped lower Sharia review and certification costs.
“In today’s ever-changing world, outsourcing Sharia Board services has become a solution for an increasing number of establishments worldwide. The constant demand of new investment Funds and banking products is changing the way Islamic financial industry functions” said Yasser S. Dahlawi, CEO and Founder of SRB. “Compared with outsourcing Sharia Advisory functions ten years ago, the main driver behind today’s outsourcing services is more than just cost savings. Today, Islamic banks and financing companies are looking to achieve a competitive edge and guidance about product transformation through quicker reviews and certification.”
Yasser adds “this is why we continue to make big investments in Sharia advisory management in order to be a reliable and trusted partner for our clients in their outsourcing assignments and the positive feedback we continue to receive from our clients shows our commitment.”