"The formation of the entity is an important step forward. We need to set a framework for rules for different financial products to be offered by these banks or through the Islamic banking windows," said
He was talking to
"We will introduce a financial product like Tabung Haji which would be a great relief to those who want to undertake the pilgrimage," said the minister, who has aggressively been pursuing the idea ahead of the general elections two months away.
The money is reinvested in Shariah-compliant vehicles that give reasonable returns.
"It mainly goes into infrastructure funding. We build roads, bridges and other basic infrastructure using this fund. There are big office complexes and housing projects that it has funded," said Rajah Mohammed Abdullah, chairman and chief executive officer of the Muslim World Biz, which holds global summit on Islamic finance here every year.
Khan wrote to the RBI Governor,
"This is a great development everybody was looking forward. It'll help
"I personally hope that the proposed Haj fund will ultimately lead to the undesirable practice of government offering subsidy to Hajj pilgrims," said Ahmed, who heads the Saudi-based ITL-Eram group.
"Cheraman did not to set up such a fund because we found the government funding was not desirable as its sources of income include liquor and gambling".
Nonresident Indian billionaires based in the Gulf, P Mohammed Ali, PNC Menon and CK Menon, are among other directors of the NBFC that follows Islamic principles in which the state government holds 26 percent equity.
It was not allowed to accept deposits from the public or offer retail banking services, which needs amendments in Indian laws, making it inaccessible to ordinary citizens who want to make small investments.
In 2008, a high-level committee on financial sector reforms headed by Rajan recommended interest-free finance and banking in the "interest of inclusive and innovative growth" and suggested taking measures "to permit the delivery of interest-free finance on a larger scale, including through the banking system".
Islamic banking and finance is now present in over 75 countries including
Cheraman, named after the king who is believed to have built
It has already started funding startup companies and infrastructure projects and floated the
It also has a subsidiary Cheraman Infrastructure for "channelizing ethical investments for developing world class industrial, social and residential infrastructure" in
This business vertical focuses on infrastructure development activities through Build Operate and Transfer (BOT) and other related modes.
The company targets development of industrial and knowledge parks, standard design modules, logistics parks, special economic zones, electronic parks, roads and urban transportation, social infrastructure like hospitals and educational institutions, housing and shopping malls.
(c)2014 the Arab News (Jeddah, Saudi Arabia)
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