May 15 2012
|more articles from|
Seminar on Goldman Sukuk with Khnifer as Guest Speaker at Alfaisal University
Below is an excerpt of his university speech:
"The Goldman sukuk experience is leading a lot of people in the industry to rethink what are our true values. It has done the market a big favour.
160 days ago, a research note was published with the mere intention of alarming the Islamic industry that we are about to lose track of our core principles. Looking back now, I would say our industry has come a long way ever since. Now we are gradually hearing vocal voices that call for institutional reform and closer scrutiny of sukuk issuance.
Scholars are now more than ever before under more pressure from the public to "scrutinize" the transaction. All these are steps in the right direction. This is something we would not have achieved if it was not for the "Goldman debate".
Probably one of the key repercussions we came across after deconstructing the sophisticated structure of the Goldman sukuk is the reported fatwa from ADIB scholars who sanctioned the impending issuance as non-Islamic, re-confirming at the same time two of the three flaws that were mentioned first in December 2011.
Ever since Islamic finance came into existence, a combination of sukuk potentially based on Reverse Tawarruq (RT) is unheard of. The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) does not recognize a RT sukuk with the cover-up of "plain vanilla" Murabaha. AAOIFI urgently needs to update its sukuk standards in order to keep up with the pace of financial engineering in our industry.
According to the recent media report, the Irish Stock Exchange is unable to stabilize the tradability of Goldman sukuk at par, which sanction this sukuk as non-Islamic. Further, there will be no control over the OTC transactions which means the sukuk could be traded at market value.
Questions remain whether the scholars, who have signed off the fatwa, would react to such a revelation. If our industry does not react, then a "Dichotomy" of the sukuk market would be in the making. That being, a Sub-Islamic debt market called a "Conventional" Sukuk market.
Guest speakers from industry are an important component of subjects taught in the College of Business undergraduate degree program. According to Dr William Lathen, Acting Dean of the College of Business, "The mark of a distinguished business program is one where students are introduced to actual and current business issues. Students must be prepared for business practice when they graduate. The Goldman Sachs sukuk case that Dr. Declan McCrohan is using in his finance course is a perfect example of learning and applying actual business practice in the classroom".
About Alfaisal University
Inspired and guided by the words of the late King Faisal, Alfaisal University was launched in 2003 by the highly reputed King Faisal Foundation as a private, non-profit institution which aspires to be a world-class research university committed to the creation, dissemination and application of knowledge in the fields of business, engineering, life sciences and medicine, and to the development of knowledge-based economies.
Alfaisal University is a student-centered university which creates and disseminates knowledge through world-class undergraduate and graduate education programs, and research and service that benefit the Kingdom of Saudi Arabia, the region and the world, and that stimulate the development of knowledge-based economies.
In addition to attracting a distinguished board of trustees, led by HRH Prince Khalid Al Faisal bin Abdulaziz Al Saud, the university attracts world-class scholars and researchers to lead its Colleges and drive innovation in the Kingdom and the region and has forged important academic and research alliances with world leaders.
Using up-to-date technology and equipment, and through accountable instruction and cutting-edge research, Alfaisal's Colleges of Business, Engineering, Medicine and Science & General Studies work in close collaboration with each other, industry, government, and other leading institutions to address some of the region's most exciting opportunities and important challenges.
Alfaisal University is a socially aware institution that respects the dramatically changing needs of today's students and is therefore student-centered in its mission. The Alfaisal community is entirely committed to ensuring that students have the opportunity to succeed in their academic, co-curricular, extra-curricular, social, moral, and civic endeavors, not just while they are enrolled as our students, but throughout the remainder of their lives. All members of our university community assist students in achieving their individual academic and personal goals in accordance with the university's mission statement.
Our faculty and staff at Alfaisal continually engage and challenge our students academically through teaching them leadership and problem-solving skills, and the values of quality, ethical behavior, and social responsibility, and by inculcating in them a commitment to work.
Alfaisal will Graduate its first cohort of Business & Engineering students and also MBA students on May 20th 2012. This historic event will be celebrated under the auspice of HRH Prince Sattam bin AbdalAziz, HRH Prince Khaled Alfaisal, HRH Prince Turki Al Faisal, Board Members and esteemed guests.
About Mohammed Khnifer
Mohammed Khnifer is regarded as part of a second generation of Islamic banking practitioners, who come with a solid academic background in Islamic finance. He is now an Associate at a multinational banking group. He is also a Sukuk Structurer as well as an External Islamic Finance Expert at the New York-based Edcomm Group Banker's Academy. He was recently featured on the front page of the Financial Times & presented as 'Sharia Adviser' & with Bloomberg as "Sukuk Structurer". He received his MSc. in Investment Banking & Islamic Finance from Reading University and is a Chartered Islamic Finance Professional (CIFP) from INCEIF. He is mostly remembered in the industry as the person who ignited the "Great Debate" over Goldman Sachs' Tawarruq Sukuk. During the past seven years, he became one of the most prolific researchers & media figures, specialising in Islamic finance today. To compliment his technical knowledge, Khnifer is also an MBA holder specialising in Islamic Banking & Finance (Bangor University).
© Press Release 2012
© Copyright Zawya. All Rights Reserved.