Ijarah (Islamic Leasing) and Takaful have been hot topics among investors and Islamic finance. What is better than the entire event arranged to enlighten the practical aspect of Islamic banking, Takaful and Finance. Before shedding light on the event, and the objectives achieved through this conference, let’s briefly talk about the major theme of the conference, Ijarah and Takaful.
What is Ijarah (Islamic Leasing) and Takaful?
Ijarah (Islamic Leasing) tends to be an agreement that allows one party (Lessee) to use the asset or property owned by the counterpart (Lessor). There is an agreed-upon rental for a specific period. Ijarah is an asset finance form, which draws the advantage of using assets without owning them. The lessee would acquire it without the need to borrow on the interest method. The person can obtain the benefit of usage. On the contrary, the lessor receives regular rental payment, along with the asset’s residual value. However, the leaser distinguishes it from the sale mechanism as there is a fine line between ownership and use. It does not involve any corpus transfer or ownership of the asset.
However, Takaful derives from the Arabic word ‘Kafala’, which means to take care of one’s needs. It is an alternative to the traditional insurance system, based on Shariah law or Islamic principles. This system of Takaful guarantees each other against any loss or damage incurred. Through Takaful, the policyholders turn into a member of the pool, based on Shariah law. The members are responsible for the protection of one’s needs within the pool.
About the Conference
A 2-day conference, on the 10th and 11th November 2021, was held in the Radisson Blu Istanbul Sisli Hotel, Turkey. It brought together investors and individuals belonging to the Islamic finance sector under one roof. This event aimed to get a deep insight into the untapped market of Ijarah, which is deemed Islamic leasing. Moreover, through a healthy discussion with the experts of Islamic finance, the latest trends, opportunities, and challenges in the Islamic banking and finance industry was discussed.
The event provided practical insights into the international efforts and accomplishments of Ijarah, the renowned Islamic banking product. Furthermore, it shared hands-on knowledge of the flexibility of the Islamic finance markets and situation prevailed during the COVID situation. The 2-day conference was followed by a one-day post-event workshop on 12th November, on the practicality of Islamic banking and finance, particularly Takaful. The event ended on a high note with a day tour of Istanbul, Turkey, for all participants on 13th November.
The Notable Panel
A panel of speakers were brought together, with Mr Pervez Naseem (Chairman & Chief Executive Officer of Ansar Financial & Development Corporation, Canada), Mr Muhammad Zubair (Managing Director – of AlHuda CIBE FZ LLE – U.A.E and Chief Executive Officer of AlHuda CIBE – Pakistan) and Mr Levant Sumer (Chairman of SMR Strategy Turkey) being the notable ones. The event was adorned with the presence of the esteemed Mr Ihsan Ovut (Secretary-General, The Standards and Metrology Institute for Islamic Countries (SMIIC), Turkey).
Topics covered in the Conference
The 2-day conference on Ijarah and Takaful covered the following topics:
- Introduction to Ijarah (Islamic Leasing)
- How Ijarah helps financial inclusion
- Innovative Products of Ijarah
- Investment opportunities related to Ijarah
- Global Overview of Takaful Industry
- Practical Implications of Takaful
- Fundamentals for a Sound Takaful System
- Accounting Treatments and Standards of Takaful Businesses
While the post-workshop on 12th November covers the following practical aspects:
- Introduction to the Islamic economic and finance system
- How does Islamic banking differ from the traditional banking system
- Potentials and Challenges of the Islamic banking system in a global market
- Historical background of Takaful
- Takaful Model and Documents
- A comparison of Takaful with the conventional insurance system.
The Prime Sponsor – Caizcoin
The entire event was sponsored by Caizcoin. It is a platform viewed as a revolution in the cryptocurrency market and a force in the Islamic banking and finance sector. Following the spirit of Islamic morals and ethical values, Caizcoin, a unique and innovative product, amalgamates the futuristic financial system with the augmented philosophy of Islamic finance. It has created a buzz with a trend of secure trading, based entirely on trust, credibility, community building and welfare for all its trusted partners.
The four-day international conference held in Turkey, Istanbul, has been commended by the financial experts. This event gave an approach and direction to Islamic finance and banking. It has elaborately covered the theoretical and practical aspects of Takaful and Ijarah, stranding an impactful mark in the industry with many more conferences soon to follow to support developments and innovation in Islamic banking and finance.