Islamic Finance through Co-operatives in Mauritius Mr Raffick

Islamic Finance through Co-operatives in Mauritius Mr. Raffick Nabee Mohomed n Founder & Secretary n n Al Barakah Multi-purpose Co-operative Society Limited 1 Islamic Banking – The trends, challenges & best practices worldwide & the Mauritius-African outlook

About The Speaker Mr. Mamode Raffick NABEE MOHOMED The Founder and Secretary of Al Barakah Multi-purpose Co-operative Society Limited, Mauritius. Mr. Nabee Mohomed holds a Bachelor of Commerce, a Post Graduate Certificate in Education as well as a Post Graduate Diploma in Islamic Banking & Insurance. He is an Education Officer, also a lecturer on Islamic Banking as well as Finance and is an Associate Fellow of the Institute of Islamic Banking and Insurance which is based in London. Mr. Nabee Mohomed has also done a thesis on the empirical study of the Muslim Family in a rural set up. He has presented the case study of Al Barakah Co-op at conferences and seminars in Trinidad & Tobago, India and Pakistan. 2 Islamic Banking – The trends, challenges & best practices worldwide & the Mauritius-African outlook

About Our Organisation PIONEER IN ISLAMIC FINANCE IN MAURITIUS Islamic Banking – The trends, challenges & best practices worldwide & the Mauritius-African outlook 3

About Our Organisation AL BARAKAH Idea of establishing an Islamic bank in Mauritius in 1990’s. q Preliminary work carried out by Islamic organizations. q Emergence of a Credit Union in the Co -operative sector (AL BARAKAH) q 4 Islamic Banking – The trends, challenges & best practices worldwide & the Mauritius-African outlook

Agenda Integrating Islamic Finance in Co-operatives n Legal Framework n Products & Services n Challenges n Q&A n 5 Islamic Banking – The trends, challenges & best practices worldwide & the Mauritius-African outlook

Islamic Finance through Co-operatives q Integrating Islamic Finance in the co-operative sector: (1) Islamic Finance–based on Islamic ethics: justice, fairness, sharing, co-operation, benevolence (2) What is a Co-operative ? - A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. - Based on principles & values: honesty, openness, equity, equality, democracy, solidarity etc. 6 Islamic Banking – The trends, challenges & best practices worldwide & the Mauritius-African outlook

Islamic Finance through co-operatives q (1) (2) (3) (4) (5) (6) (7) (8) Why co-operatives? Legal framework Values Easy formation Small capital Co-operative sector is more people-oriented “ Co-operate in what is good and pious and do not co-operate in what is sinful and wicked…. ” (Q-5: 2) Islamic Finance within the co-operative sector around the globe. Mauritius? Islamic Banking – The trends, challenges & best practices worldwide & the Mauritius-African outlook 7

Islamic Finance through Co-operatives in Mauritius q 1. 2. 3. Formation of Al Barakah (Registered on 10 th June 1998): To provide an alternative to the interestbased financial institutions To provide halal investment opportunities and returns. To contribute in the overall development of the economy. 8 Islamic Banking – The trends, challenges & best practices worldwide & the Mauritius-African outlook

LEGAL FRAMEWORK Operates: q Within the Co-operative Societies Act 2005 q Within the framework of its rules and regulations q In accordance with Islamic Financial Laws. 9 Islamic Banking – The trends, challenges & best practices worldwide & the Mauritius-African outlook

VISION q To be a leading Co-operative Society in the field of Islamic Finance for a fair and just society. MISSION q To operate as a financial institution based on Islamic co-operative principles and providing a wide range of services on an interest-free basis 10 Islamic Banking – The trends, challenges & best practices worldwide & the Mauritius-African outlook

PRODUCTS & SERVICES BASED ON ISLAMIC FINANCIAL TECHNIQUES q Schemes based on Murabahah 1. Household General Financing 2. Computer Financing 3. Traders/Entrepreneurs Financing 4. Home Financing q q q Istisnaa Financing (Manufacture-Sale) Interest-Free Loan (Qard-al-Hasan) Partnership with shareholders Islamic Banking – The trends, challenges & best practices worldwide & the Mauritius-African outlook 11

Computer Financing n To purchase new computers sets, Laptop, etc. . . 12 Islamic Banking – The trends, challenges & best practices worldwide & the Mauritius-African outlook

Our Special Funds 1. 2. 3. ISLAMIC FINANCE RESEARCH EDUCATION & TRAINING FUND (IFRET FUND) SOLIDARITY FUND DIVIDEND EQUALISATION FUND 13 Islamic Banking – The trends, challenges & best practices worldwide & the Mauritius-African outlook

OTHER ACTIVITIES q Creating awareness about Islamic Finance. q Organizing lectures, seminars, conferences and workshop. q Organizing mini trade fair/sociocultural programme. 14 Islamic Banking – The trends, challenges & best practices worldwide & the Mauritius-African outlook

CHALLENGES 1. 2. 3. 4. 5. 6. Individual/organisational/government level Legal framework Public acceptance Economic potential Human Resource Mass Education 15 Islamic Banking – The trends, challenges & best practices worldwide & the Mauritius-African outlook

CONCLUSION 1. 2. 3. 4. 9 years of operation An eye-opener Islamic finance at different levels Well-being of all citizens 16 Islamic Banking – The trends, challenges & best practices worldwide & the Mauritius-African outlook

References ü ü ü An introduction to Islamic Finance By Mufti Mohammad Taqi Usmani Meezan bank’s guide to Islamic Banking By Dr. M. Imran Ashraf Usmani A model of pure interest–free banking By Mohammad Saeed Shingeri A compendium of legal opinions on the operations of Islamic Banks By Yusuf Talal Delorenzo Islamic Law of Business Organisation By Imran Ahsan Khan Nyazee www. mcca. com. au www. bankrakyat. com. my www. isnacanada. com/achc. htm www. solbaram. org/articles/credun. html www. ica. coop muslimcreditunion@tstt. net. tt Islamic Banking – The trends, challenges & best practices worldwide & the Mauritius-African outlook 17

Q&A 18 Islamic Banking – The trends, challenges & best practices worldwide & the Mauritius-African outlook

M. Raffick Nabee Mohomed E-mail: albarakahcoop@hotmail. com Tel: (230) 6275766, 7781738 19 Islamic Banking – The trends, challenges & best practices worldwide & the Mauritius-African outlook