Islamic banking superior to Western kind: Mahathir

By AFP SINGAPORE - Malaysia's outspoken ex-prime minister Mahathir Mohamad on Tuesday blamed Western lending practices for the world's financial problems and hailed Islamic banking as a "superior" model.

Mahathir told a conference on Islamic finance in Singapore that the 2008 global financial crisis was sparked by excessive lending by Western banks.Islamic banks, in contrast, are constrained because every deal needs to be backed by a real asset under the principles of Sharia law, he said."So if you make a comparison, the Islamic system is in many ways superior to the conventional banking system," said Mahathir, one of the best-known political figures in the Muslim world. "The conventional banking system is much more open to abuse than the Islamic banking system," added the former leader, who steered Malaysia through the 1997-98 Asian financial crisis and stepped down as prime minister in 2003.

So far, the Islamic banks have not been involved in the present crisis except those perhaps who dabble in the money markets in the West," he said."Islamic banking is almost immune to these kinds of crook deals."Islamic banking fuses principles of Islamic law, known as Sharia, and modern banking methods. Islamic funds are banned from investing in companies associated with tobacco, alcohol or gambling.Sharia-based finance also bans interest, which is seen as usury, and risks are shared between the creditor and borrower."The conventional bank lends 30 times the amount of money that they have but the Islamic bank, because they have to participate in taking the risk, they will have to be much more careful," Mahathir said.

Mahathir, 85, attacked the Federal Reserve's controversial decision to pump an extra 600 billion dollars into the US economy."Do you think that they have this money with them that they have it in their vault kept there, 600 billion dollars to be issued whenever someone needs money?" said Mahathir."No, they don't have but they can give the money, 600 billion dollars, simply because they can create money."

On the prospects of Islamic finance, Mahathir said the industry can grow further especially in Southeast Asia which includes Indonesia, the world's largest Muslim-majority country with almost 240 million people.He urged Muslims in Southeast Asia to tap business opportunities offered by Islamic finance."With Islamic banks being available, there is capital which is now accessible to conscientious Muslims who do not want to be involved with interest," said Mahathir."Whether Islamic banking prospers or not depends very much on the ability of the Muslims firstly to do business, to understand business."

Assets of Islamic financial institutions increased five-fold to around one trillion US dollars between 2003 and 2009, according to credit watchdog Moody's Investors Service.

It has estimated the full potential of the industry at five trillion dollars or more.

Mubadala to invest in Malaysia’s $7bn smelter target=

Mubadala plans Dh25 billion investment in Malaysia By Saifur Rahman, Business Editor Published: 13:40 October 8, 2010 Image Credit :SuppliedDubai From left to right: Waleed Al Mokarrab Al Muhairi, Chief Operating Officer, Mubadala; Khaldoon Khalifa Al Mubarak, Chairman of the Executive Affairs Authority of the Government of Abu Dhabi and Chief Executive Officer and Managing Director, Mubadala; Malaysian Prime Minister Dato' Sri Mohd Najib Tun Haji Abdul Razak and Shahrol Halmi, Chief Executive Officer, 1MDB; marking the signing of two collaboration agreements on a strategic partnership between Mubadala and 1MDB. Mubadala Development Company, an Abu Dhabi Government investment arm, yesterday said it has signed two agreements on a strategic partnership with 1Malaysia Development Berhad (1MDB) , a Malaysian Government undertaking, that could lead to an investment of up to $7 billion (Dh25 billion) for the development of a major initiative in the country. 1MDB Chief Executive Officer Shahrol Halmi and Mubadala Chief Operating Officer Waleed Al Mokarrab Al Muhairi signed the agreement for their respective companies in the presence of Malaysian Prime Minister Dato' Sri Mohammad Najib Tun Haji Abdul Razak and Khaldoon Khalifa Al Mubarak, Chairman of the Executive Affairs Authority of the Government of Abu Dhabi and Chief Executive Officer and Managing Director of Mubadala. "The agreements have been signed with Mubadala Real Estate and Hospitality (MREH) and Mubadala Industry (MI). MI has agreed to assess the viability of an investment of up to $7 billion for the development of a major initiative in the aluminium sector based on hydro power in the Sarawak Corridor of Renewable Energy (Score)," Mubadala said in a statement. "The two state-owned companies are starting preliminary assessment work on the project, which will create more than 10,000 jobs during construction and another 2,000 specialist jobs." The opportunities in the corridor also lie in its huge energy resources — 28,000 megawatts of hydropower, 1.46 billion tonnes of coal, and 40.9 trillion square cubic feet of natural gas that will allow Sarawak to price its energy competitively and encourage investments in power generation and energy-intensive industries. China has already signed up for $11 billion in Score. If realised, this would be the single largest UAE investment in Malaysia. The move reflects a shift to the East by Gulf investors. Excellent infrastructure "The opportunities now lie in emerging markets, mostly in the Far East and the move by Mubadala reflects that shift," business analyst Jitendra Gianchandani, Chairman of Jitendra Group, told Gulf News. "Malaysia has a stable government. Its infrastructure is excellent and the country has a young and educated population. Inflation is less than 4 per cent. I think this is a good move by Mubadala to diversify investments in different geographical areas," he said. "As the opportunities lie in the emerging markets, especially in the Bric (Brazil, Russia, India and China) countries and the Far East and the Middle East region, the Gulf's investors will do well in investing in these regions that could ensure faster and better return on investment. "Through this, the sovereign wealth funds of the GCC will do well to recover from the losses made earlier in the West, by investing in the emerging markets." 1MDB is a wholly-owned subsidiary of Malaysian federal government and has already received $5 billion investment pledge from Qatar Investment Authority. Earlier, Masdar, a Mubadala subsidiary that is developing a $22 billion Greenfield carbon neutral project, Masdar City, signed a MoU with 1MDB to develop Malaysia's first carbon neutral city.

Awalan Ramadhan

Selama bcuti di Malaya , tak tempuh2 blog ni. Al maklum lah kan banyak activity …..Bila tiba Abu Dhabi dah cepat ngantuk lak….Taapi alhamdulilleh tak yah masak slama 10 hari sbb masakan frozen yg ku tinggalkan utk suami masih ada lagi. Sahur makan roti, cheese, timun, tomato, zatar dan susu. Alhamdulileh rumah dah dibersihkan oleh budak bangla yg menjaga kawasan rumah sini. Suami , tak banyak kerenahnya, tapi….bila ku dah pulih spt biasa n tido lewat., dia btanya, “what do u think if we invite ....……for iftar”? dipindikan cerita, ku beranikan diri memasak nasi biryani, ikan masala dan daging. Tak susah pun ada pack2 yg tak memeningkan kepala. Itu la dia…spt gambar di bawah ni kann.

Sbb 1st time maka kena lah masak malam2 nanti nak rasa2 nak tambah apa2 senang…..Lagi pun makanan ni kan sdp selepas semalam. Resepi Biryan tu sepatutnya campur daging tapi ku tak ikut, instead ku letak gajus dan kismis. Ikan masala pula tak ada daun kari (ingatkan daun kari kering yg di bawa dr malaya tu masih ada), cili hijau n biji sawi tak letak spt yg tertulis dikotak tu...sbb lebih suka terung hijau, tapi....bila time rasa...alamak! tak sedap..then add in sugar lemon, rasa lagi, hemmmm mcm ada yg kurang. Tomato la jawabnya....ptg2 campak dlm periuk. Rasa nya boleh tahan.Ikan dah pun sedia (dulu ptg2 bakar n frozen). Bila nak makan nanti curahkan aje atas ikan tu. Ha ha kan senang....ok done Daging no problem,unta mmg sentiasa sedap masak kari.

Esoknya relax mcm tak da apa2. Ptg2 panaskan lauk tu plan2 sambil buat salad dan ptg buah2an. Lepastu done!.Suami tlg susun pingan. Tetamu Omani dan Iraqi pun tiba dgn minyak wangi…menusup hidung ku. Seorg lagi tak dapat dtg hai....rugi lah dia masakan sedap ni. Tapi lelaki je…isteri masing2 ddk Abu Dhabi yg nun 250km dr tempat ni. Tempat ni kan susah cari tempat tinggal, jadi isteri2 dan anak2 kena tinggal2kan dulu.Mcm ku dulu gak… 3bulan sendirian, syok juga, boleh buat apa2 kita suka. Ok berbalik pd tetamu, al kisah mereka suka sgt2 sbb pedas dan tah apa2 lah tak faham.Ku pula tak suka makanan berempah bln puasa, jadi jawapan nya ku bungkus semua2 tu bagi mereka bdua.Ok selesai masallah…..

ISLAMIC FASHION INDUSTRY to be worth more than $96b!

By Samia Badih

Thanks to years of steady acceptance and growing support from top fashion icons, Arabic and Islamic fashion is set to continue its influence on the global fashion industry, according to French Fashion University Esmod Dubai, a fashion institution in the Middle East. The international Islamic fashion industry is estimated to be worth more than $96 billion (Dh352.6 billion), assuming that 50 per cent of the world's 1.6 billion Muslims each spend at least $120 a year on modest clothing, according to a study conducted by Tamara Hostal, director and founder of Esmod Dubai. "We can see Arabian styles steadily influencing European street fashion, which proves the potential of this emerging niche," Hostal said. The growth and expansion of the Muslim middle class and their penetration into Western society are making them more dress- and fashion-conscious. As more and more Muslim men and women become educated and take up professions and develop businesses, they adopt modernism with a touch of Islamic tradition to match their modern lifestyles. Analysts say these factors will drive growth in the Islamic fashion and clothing industry. Market potential According to the report, consumers in countries such as France and the United Kingdom, with higher purchasing power are willing to spend more than $600 a year on high-end clothing. There are more than 1.5 million Muslims in the UK alone, so the market for Muslim fashion could be worth between $90 million and $150 million a year. The report says that at this rate, the 16 million Muslims in the European Union would represent a potential clothing market of $960 million to $1.5 billion a year. "Aside from making abayas decorated with crystal beads, pearls, embroidery, satin flowers, and other colourful adornments, designers are also introducing dramatic new styles, fabrics, and colours to Islamic dresses," Hostal said. "High-end designers such as Hermes and Gucci are also trying to break into the Muslim market with scarves and other products," she said. Some Arabic style outfits can sell for as much as $10,000, yet remain in high demand due to the robust economies of key markets such as the UAE, the report says. Aiisha Ramadan, a Lebanese fashion designer who's worked in the UAE for two decades, told Gulf News that an acceptable price for an abaya is around Dh3,000. She said that news about the Middle East has also brought attention to its culture and that it has become an area of interest for Westerners. "Designers may have Islamic and Arabic references for mere inspiration or to cater to the market, which will eventually sell more." She said that the fashion industry in the Middle East is indeed growing. "Designers are growing more aware of what the international and the Arab markets want. We are being more open minded about combinations of colours, fabrics, higher standards in terms of finishing and techniques and the design in general," she said. Speaking of the tastes of Arab women when it comes to fashion, Aiisha said that women in the Arab world are looking for individuality and uniqueness. Last year, Arabic and Islamic fashion took centre stage at the first all-Arab fashion event which was held in Europe under the theme ‘Arabian Fashion World.' Five Arab designers from Saudi Arabia, Lebanon, the UAE, Morocco and Jordan brought the best of their designs to London.

Fireworks dazzle at Burj Khalifa

Dubai boom ends as one cheque in four bounces

Up to one quarter of all the cheques written in Dubai may be bouncing as expatriate residents in the Gulf state struggle as the economy slows. Blank cheques are used to underwrite financial arrangements, such as credit cards, in Dubai, guaranteeing future payments such as a rental agreement or bank loan. This system arose in the United Arab Emirates (UAE), which includes Dubai, because of the difficulty of doing credit checks on foreign workers. As many of these workers have now lost their jobs in the recession, the number of bounced cheques has risen. The penalty for failing to honour a cheque is severe and some people have ended up in jail. Dubai’s police chief said this year that about one fifth of all prisoners in the emirate were there because of bounced cheques. Most of these are likely to be foreign workers. Official figures for the first four months of this year showed that 544,196 cheques bounced — equivalent to 5.7 per cent. However, analysts believe that the total figure may be much higher once all private sector cheques are included. As many as one in four cheques could be bouncing, according to Ghanem Nuseibeh, senior analyst at Political Capital, a consultancy firm. His estimate is based on data from local banks and figures for departing expats. Cheques are a fundamental part of the Dubai financial system — Mr Nuseibeh, for example, wrote 70 cheques to cover payments for his car. RAK Bank, which operates in Dubai but is based in neighbouring Ras Al Khaimah, has said that 2,500 of its expatriate customers were leaving every month with unpaid credit card bills. These individuals were also likely to be leaving behind bouncing cheques for accommodation and cars. During Dubai’s boom years, expatriates from around the world took advantage of cheap credit and a booming economy to live a luxury lifestyle. Easy credit arrangements meant that they could buy penthouses, motorboats and expensive cars with little or no scrutiny from lenders. When the economy slowed, many foreign workers lost their jobs or had their salaries cut and became unable to keep up with their payments. Some abandoned their luxury cars at Dubai airport as they fled their debts and possible imprisonment. Some have been jailed while others have struggled to stay in Dubai. “Many of the British expatriates in particular tried to hang on as long as possible to life there and sadly many have ended up writing bounced cheques, having their passports confiscated so they cannot leave the country and really living in appalling conditions in bedsits shared with maids, or even in cars parked in car parks,” Mr Nuseibeh said. About 10 per cent of expatriates in the UAE have lost their jobs, according to a Yougov survey this month. This does not include the large number of construction and blue-collar workers who have also had their contracts cancelled. The large number of redundancies has led many to forecast that the population of the UAE — and Dubai in particular — could shrink this year, partly because visas are revoked 30 days after leaving a job, prompting many foreign workers to leave. UBS, the Swiss bank, has estimated that Dubai’s population of 1.5 million could fall by 8 per cent this year while Political Capital estimates the decline could be between 14 per cent and 28 per cent. The UAE economy grew rapidly in recent years, driven by high oil prices and Dubai’s construction and tourism boom. Economic growth is now expected to fall to minus 1.4 per cent this year before recovering to 4.1 per cent next year. Many of the large construction projects in Dubai have stopped as a result of the downturn. House prices and rents have reportedly fallen by about 40 per cent. Engulfed in the downturn • Dubai is one of the seven emirates and the most populous city of the United Arab Emirates (UAE) Its main revenues are from tourism, property and financial services Property and construction form a large part of the Gulf state’s economy. Revenues from petroleum and natural gas account for less than 6 per cent of Dubai’s $37 billion (£22.5 billion) economy. It is estimated that Dubai produces 240,000 barrels of oil a day as well as substantial quantities of gas from offshore fields.• Dubai’s oil reserves are expected to be exhausted in 20 years Property values, construction and employment have all fallen as the economy has slowed As of February 2009, Dubai’s foreign debt was estimated at $100 billion, which means that each of its 250,000 UAE nationals are responsible for $400,000 in foreign debt .

Prince Azim of Brunei

Spoilt, moi? Prince Azim is above the plain old superrich Who is this pint-sized, diamond-covered Furby? Our correspondent talks to the latest fixture on the celebrity circuit Camilla Long So what exactly does a billionheir do all day? “Wake up, then . . .” Prince Azim of Brunei, 25, fiddles with an enormous turqoise cocktail ring (real, but he’s not sure exactly what stone it is). “Sometimes, I stay in bed all day and watch DVDs. Sometimes I write songs – lyrics. My friend has a studio, so I’ll go to see him and put songs down, with him at the keyboard. That’s my creative process,” he sighs, “but I don’t think I’ll ever release anything.”A pint-sized, diamond-covered Furby with a shock of black hair and dancing features, Prince Azim probably need not worry about his recording career any time soon.

As the second son of the Sultan of Brunei, he is set to inherit a slice of his father’s whopping £25 billion oil fortune, so life will never be any more taxing than the odd dinner at Nobu and nights at “Mahiki!” he squeals in his high-pitched, MTV voice. “I think I’m addicted. It’s all the cheesy music they play.”

Jade Goody and the Sultan of Brunei's son Prince Azim's close friendship makes them possibly one of the weirdest duos in the world of showbiz. As heatworld was the first to reveal yesterday, Azim bought Jade a rather gorgeous diamond ring as a way of saying thank you for Jade buying the drinks when they met up. But get this – the ring's only bloody well worth £3million. THREE. FREAKING. MILLION. As in pounds. 

  Along with the Rausings, the Mittals and the Abramoviches, Prince Azim occupies a level above the plain old superrich. For him, life is a boggling whirl of superyachts, private 747s, massive rocks and security – a world far beyond anything the Beckhams could dream of.
“My dad once gave me a solid-gold and diamond GameBoy,” he says. “I was like, this is too heavy, I want a normal one.” His three bodyguards are a constant shadow on the party circuit. “You just accept things,” he shrugs.And yet, he insists, he’s no materialist – his most treasured possessions are “my pictures”, he says solemnly. He picks up a photograph, one of countless celebrity snaps that line the dining room of his mother’s vast house – sorry, terrace of houses – in Kensington. “Leonardo [DiCaprio]. I met him at the Baftas a couple of years ago.
We talked about some green charity. Orlando Bloom,” he points to another, “I met at the premiere of Kingdom of Heaven. And Johnny Depp was at the Dorchester.” (Azim’s father owns the hotel, along with the Plaza Athénée in Paris, the Beverly Hills Hotel in LA and, oh, yes, 531 Mercs.) “He was very nice. I [also] met him at Cipriani,” he says. Here’s another, in a black suit, on a polo field, with a bemused Prince Charles and sons William and Harry. “The princes – very, very nice,” he says. “They were playing polo somewhere and someone introduced us.” In the entrance hall, there is, rather spookily, a picture of Azim with Heath Ledger. “He was really, really nice.”The prince is not afraid of showing his love of celebrities, either. He once sent a private jet to deliver a £3m diamond necklace and ring to Mariah Carey – “Some things are exaggerated,” he tweets. He hired his idol, Diana Ross, to sing at a party in 2004, and flew in Michael Jackson to another last year. Almost anyone, it seems, will do. 

He had a notorious escapade with Jade Goody. He was snapped leaving a club with the Big Brother foul-mouth, who was wearing, the tabloids claimed, a £30,000 ring he had given her. “She was a very nice person,” he says. “A wonderful person. I don’t judge people by what I read. I asked her if she needed a ride home, and she was with her boyfriend Jack, so we sent them home.”Aside from the celebrity-chasing – “Madonna, if you’re reading, I want a picture!” – Azim fills his time with charity work, such as Fashion for Relief, organised by Naomi Campbell, which raised money for the Rotary Flood Disaster Appeal and which he supported by – what else? – appearing in a catwalk show. “[My first thought was] I’m too short,” he squeals. “Need I wear heels?” He found it “scary. You’ve got Claudia Schiffer and Kate Moss in the front row. I mean, I’ve met some of them before, but I don’t really hang out with them”. Afterwards, he says: “Kate was nice. She said, ‘Good work.’ I said, ‘Thank you very much. Can I have a picture?’ ” Fashion is another passion for the prince. In Versace jeans, a yellow T-shirt and a black waistcoat he designed himself – “only for myself, not a range” – his own taste is distinctive. “I like designers who are different: Galliano, Versace,” he says. "I don’t like following the trend. I do go shopping, but not all the time".
In fact, the reason for our extraordinary invitation to Azim’s mansion is none other than a weekend bag he has designed for charity for the luggage giant MCM, which is relaunching in the UK next month. “It’s called the Prince Collection,” he coos.Azim spends half the year in Brunei, in northwest Borneo. “It’s a place to relax,” he says. His uncle, Prince Jefri, achieved fame in the 1980s for his flashy lifestyle, including a 180ft yacht called Tits, complete with tenders Nipple 1 and 2. He was sued for embezzlement by Azim’s father, but the brothers are now reconciled.

  Prince Azim of Brunei pictured on a nightout at the Mahiki nightclub in London.


Azim himself has three full siblings and eight half-brothers and sisters through his father’s other two wives. “My father treats us all the same,” says Azim. “He’s a very intelligent and reserved man.”

His mother, a former air stewardess, split up with his father six years ago – but not before adopting (keep up) 10 further children from all over the world. Azim cites his parents’ break-up as one of the worst times of his life.
 “You never want that to happen to anybody, but we made her laugh,” he says. “Why does anybody split up? Irreconcilable differences.”As for his own romantic life, “I’m one of those unlucky-in-love people,” says Azim, who lays claim to two past girlfriends.
Love at first sight “happened to me”, he confirms, “but she got married. I don’t think you should force it – everybody finds their someone”. Instead, he surrounds himself with a loyal core of protectors/friends/social secretaries such as Nash, a pretty little munchkin in a Juicy Couture tracksuit who escorts the Style crew to the Prince’s gold-encrusted home, where yet more hangers-on loll around, along with bodyguards and ancient Bruneian staff, who trot out a stream of cakes, chocolates and hot drinks.
“My sisters Azima and Fadzilla – Godzilla with an F, ha, ha, ha! – are based over here, so I see them a lot,” he says. “Being alone is my biggest fear.” Unsurprisingly, he is wary of new people and being taken advantage of. “It comes with the territory,” he says. “I know a lot of people see me as a party person.” Back home, he’s kept on a tighter leash – official engagements and no holidays, because “it’s a whole big deal with the High Commission, so sometimes you just don’t want the headache”, says the prince who, apart from travelling to the UK, has only ever been abroad twice.

Poor Azim! For all his cartoonist behavior, he is a rather lovable character, a sensitive soul who cries at films such as In Her Shoes, and who, in spite of the absurd things he does with it, seemingly appreciates his wealth.“Yes, I’m spoilt! But I’m grateful to have what I have, and I like to share it,” he says.

“My mother was good in making us realise that material things aren’t everything. If I had nothing tomorrow, I’d be able to live my life and still be happy and enjoy it, because I don’t need all this gold. I just need e-mail and Twinkie rolls.” But he wouldn’t quite be the same without it.