The recent Reuters' article on the GS Sukuk controversy contains some very helpful insights from Sh Dr Aznan Hasan:

Aznan Hasan, one of the scholars who signed the Goldman fatwa, said there were no sharia-related problems with the sukuk. The intention to list on the Irish exchange is purely for tax purposes, he said. But he added that Goldman should consider more measures to address doubts. 'I personally think the issue now is what is the mechanism to ensure that it is not traded, and even if it is traded, that it's traded at par, and they have to come up to us with a mechanism for that,' he told Reuters.

He said Goldman might issue an additional or complementary prospectus to address this aspect and describe how it would ensure proceeds of the sukuk were only used for sharia-compliant purposes. Goldman might also agree to issue a letter to its board of sharia scholars whenever it used the proceeds, or agree to quarterly audits, he added.

"If they can put all the mechanisms in there, then there shouldn't be any problem," said Hasan. "The murabaha is not a new one -- there is nothing new in the structure."

 

 

Here is another article from noted IF journalist, Mushtak Parker, on the controversial proposed Goldman Sachs' sukuk. While the issues at play are more complex than the journalistic treatment of this sukuk makes them seem (they always are!), Parker does make some interesting points that sector watchers should have on their radars. Specifically, those of us who act as Shari`a advisors in the sector, sit on international Shari`ah Boards, etc need to constantly be on guard so as to safeguard our reputations against reputational attacks like the attacks that have been launched during this controversy. Another takeway: Because there is such a low level of familiarity with fiqh among non-specialists, journalists and even practitioners in the sector, it becomes possible/much easier for doubts to be raised (correctly or incorrectly) about the activity of Shari`a experts in the sector (Thanks to Sh Moustafa Kassam for this last point).

 

Harvard IFP (Islamic Finance Project) announced a few months back that its Tenth Harvard University Forum on Islamic Finance (the first was in 1996/7!) will be held this spring at the Harvard Law School. In addition to academics, financial professionals and other stakeholders, Shaykh Nizam Yaquby (Bahrain) and colleague Shaykh Yusuf al-Shubaily (Najd) are expected be in attendance, so Shari`a scholars/Shari`ah experts and all other interested in applied Islamic ethics are encouraged to sign up and show up!

Check out the Al-Madinah Int'l University PhD in Islamic Banking and Finance. It appears to be an program that could be very attractive to aspiring Shari`ah advisors, particularly those who are have strong English-speaking backgrounds and have completed Masters' degrees (or have Masters' equivalent training) in Islamic studies at traditional seminaries (e.g. the Nizamiyya madaris in the South Asian subcontinent or diapsora) or in an Arabo-Islamic college or university. Thanks to  Sh Moustafa Kassem, our newest associate, for bringing this to our attention.

Check out the Durham Islamic Finance Program and its programs.

Gadhafi’s exit to spur Libya’s Shariah banking (Bloomberg).

The Islamic Globe's current issue includes an article in which an interesting scheme is described: mobile phone airtime, provided by Malaysian a virtual network provider, is used as the underlying commodity in a tawarruq-based scheme that is offered via a personal financing software system that apparently acts as a broker.

European nations ban short selling (NYT).