Islamic Finance Tour Stops in VA

Community News - Community News

Written by Muslim Link Staff

Thursday, 22 July 2010 08:48

An Islamic Finance National Tour made a stop in Northern Virginia on July 15, 2010, aiming to connect Islamic finance firms with potential clients in the DC region.

About five firms selling “sharia compliant” financial products like loans, insurances, and retirement packages came out to the Embassy Suites Dulles Airport hotel along with around 50 area Muslims. The event was organized by New Jersey based Mlink, which also organizes an annual American Muslim Consumer conference in New Jersey.

After a youth from New Jersey recited a verse from the Qur’an condemning usury or interest, Faisal Masood of Mlink welcomed guests and sponsors.

“I’m surprised because at [our] New York and New Jersey [events] there is a lot of mingling and networking and people have to [be forced] to sit down … here everyone is kind of sitting my themselves,” he said to the small gathering. Masood spoke briefly on the need to give exposure to Muslim businesses.

The first presenter was Ali Farooq representing Amana Mutual Funds. Started in 1986 as a small investing club, the fund now manages about three billion dollars, investing for clients in the stock market but avoiding investing in insurance, alcohol, gambling, pork, and pornography. If a business has income coming from one of these areas, it must be less than 5% of their total income for Amana to invest in its stock. Also, less than 33% of the financing can come from debt to meet Amana’s investment criteria. Farooq said about 80% of Amana investors are non-Muslims. Morningstar investment research firm gave Amana the highest rating it has – 5 stars.

Wesam Berjaoui spoke about University Islamic Finance’s offerings, including both residential and commercial financing.

A representative from UK based Iman Insurance said his firm – which provides property and other types of insurance to about 600 masajid in the UK – open their first US office in New York this past May. With over 30 employees in New York, Iman Insurance hopes to expand nationally before the end of this year. Conceding the western world doesn’t yet have a framework to implement a full “takaful” model of Islamic insurance, Iman follows conventional insurance models but strives to “work within the confines of the sharia.” Iman Insurance says they donate 50% of all profits into charitable community projects. About $14 billion in premiums have been placed with Iman thus far.

Soho Properties, a small real estate asset management firm operating exclusively in Manhattan, also presented their projects, showcasing their higher risk projects which return up to 40%, and their more stable, income producing properties which return about 10%. Soho manages about $165 million in Manhattan real estate. Only two people raised their hands when the Soho representative asked who in the audience came to tonight’s event to invest.

Guidance Financial presented last, followed by a question and answer period. An audience survey showed most attendees came to learn about Islamic investing and what Islamic loan products are available.

Mlink partnered with the ADAMS Center to bring the Islamic Finance National Tour to Virginia. The tour goes to Chicago, Houston, and Los Angeles later this year.