Dubai Financial Market To Become Global Islamic Market
The Dubai Financial Market (DFM) has announced the launch of a process to transform itself into the first global Islamic financial market, following the approval of religious advisory and oversight bodies of the Islamic financial institutions in the U.A.E.
According to a fatwa, about 98% of DFM revenues are shari'a-compatible, with only 2% being commissions for traditional services.
Following the decline of the DFM, which lost 15% of its value in 10 days, it sought to obtain another fatwa to legitimize underwriting activities of the non-Muslim companies listed on the market. The purpose of the new fatwa is to prevent objections based on the sayings of the Prophet Muhammad against underwriting and usury.
The DFM stated that it would form a religious association, consisting of three senior religious scholars specializing in capital markets.
Source: Al-Eqtisadiya, Saudi Arabia, June 20, 2007
Palestinian Shares Rise Amid Optimism Over Lifting Of Embargo
After falling for over a year, Palestinian share prices have jumped, amid optimism regarding promises by the West to lift the ban on aid, as well as the wane in the fighting in the Gaza Strip.
Shares have risen 15% since the appointment of the emergency government in the West Bank and the subsequent U.S. and European undertakings for resuming economic aid, which was suspended last year.
The value of the stock market is estimated at about $3 billion, slightly higher than its $2.9 billion value in 2006 but less than its peak of $5.4 billion the previous year, prior to the economic sanctions.
Apparently, decisions this week by the E.U. and the U.S. to end the 15-month-old blockade, along with Israel's willingness to release the Palestinian tax revenues that it had held to support the new government, have encouraged investors to buy shares.
Source: Elaph, June 20, 2007
Tehran Brandishing "Oil Weapon"
The Iranian delegate to OPEC has confirmed statements in the Iranian newspaper Al-Sharq regarding his country's willingness to use oil as a weapon in a possible confrontation with the U.S.
The delegate added, "If the American administration does not lift the military threat, Iran will remain committed to the possible use of oil as a weapon.
He stressed that his country would be ready to export oil to the U.S. if Washington lifted the embargo on Iran.
In addition, he acknowledged that Iran had suffered from U.S. sanctions imposed on its oil industry, saying, "American companies are not participating in our oil sector, so we are forced to deal with second-level companies, and we have no choice but to accept their high prices."
Source: Dar Al-Hayat, London June 20, 2007
Dubai Basins To Build 4 Tankers Worth $175 Million
Dubai Basins has announced that it has entered into an agreement with a Singaporean company to build four medium-range tankers, with the option of building four additional ones.
The value of the contract is $175 million, making it the largest deal ever concluded by the U.A.E company, which is gambling on transforming this step into a launching pad for entering the market of building larger commercial vessels.
Source: Al-Sharq Al-Awsat, London, June 20, 2007
Al-Jazeera Satellite To Expand "Al-Jazeera Mobile" Worldwide
The Al-Jazeera satellite network will expand its "Al-Jazeera Mobile" service to all parts of the world, and will include new services for video and live and direct broadcasting to mobile.
The current number of subscribers in the Middle East is about 100,000, and this number is expected to increase to around 1 million in the coming period.
The number of subscribers worldwide, after the company extends its service to include Arabic, English, French, Hindi, Turkish, and German, is expected to reach 5 million.
Source: Al-Sharq, Qatar, June 20, 2007
Date Posted: June 20, 2007