The Halal Journal - Sep/Oct 2009 by The Halal Journal

| kasehdia.com | www.halaljournal.com | september+october 2009

ramadhan AL MUBARAK

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PP13884/10/2009 (023251)

How the world celebrates the blessed month

MALAYSIAN FOOD MARKET Structure and potential: Revitalising the domestic Halal food industry THE FATWA PARADOX Assumptions for conditions vs. real situations MOSQUE ARCHITECTURE Islamic symbol across cultures & geographical boundaries ISLAMIC FINANCE Corporate rescues & redistributing national wealth

LIVING: MOSQUES: ISLAMIC SYMBOL ACROSS CULTURES & BOUNDARIES EXPLORING MANADO RESTAURANT REVIEW: ALOUNAK, LONDON BOOK REVIEW: THE WISH MAKER cover sep 09.indd 2

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halal market potential - A regional focus K e y To p i c s To Be D e l i be r at e d : I n t e r n at i o n a l H a l a l A c c r e d i tat i o n , C e rt i f i c at i o n a n d S ta n d a r d s De v e l op i ng t h e H a l a l I n d u s t ry w i t h I s l a m ic u n de rs ta n di ng The European Halal market Investment and Trade Opportunities H a l a l I n d u s t ry : G r o w i ng I m p orta nc e i n Tod ay â&#x20AC;&#x2122;s E c ono my Halal Ingredients Market in the Europe Halal Pharmaceuticals: Emerging Sector

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Disclaimer :  While all care is taken, the publisher accepts no responsibility for the information contained herein which is believed to be reliable. The publisher/editor takes no responsibility for opinions expressed or implied as they are the writers’ own and do not necessarily reflect that of the publisher or editor who make no warranties governing material, including advertising or features contained within this publication. This publication may not in whole or part, be copied, reproduced or translated without prior written permission of the publisher.

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s e p t e m b e r + o c to b e r 2009

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contents 18} WORLD HALAL FORUM EUROPE First regional excavation: the bandwagon travels to the Netherlands

Ramadhan Al MUBARAK

how the world celebrates the blessed month

26} THE FATWA PARADOX Assumptions for conditions vs. real situations 28} MALAYSIAN FOOD MARKET Structure and potential: Revitalising the domestic Halal food industry 32} FASTRACK ASIA The Islamic perspective on domestic violence 34} FASTRACK ASIA Sri Kulai launches licensing programme and lifestyle concept outlet 36} FASTRACK ASIA The growth of Indian Halal meat exports to GCC countries 40} ISLAMIC FINANCE 1 Cash-Waqf Certificate: Its objectives, implications & operational guidelines 44} ISLAMIC FINANCE 2 Corporate rescues & redistributing national wealth 46} ISLAMIC FINANCE 3 Digging into the world of Islamic Banking & Financing

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Ed’s Note

“It is essential to promote Islamic art as widely as possible. Many of the world’s problems today are caused by lack of understanding about Islamic culture. This does not apply solely to non-Muslims. To understand the true nature of Islam necessitates an appreciation of Islamic culture. The most visible and enduring expressions of this are art and architecture.” Lucien De Guise, Head of Curatorial Department, Islamic Arts Museum Malaysia

Regulars 08} Global News  A brief insight into events currently shaping the Halal industry around the globe + Calendar of Events + Online Polls 38} Country in Focus Algeria: Opportunities behind a veil of dust

Living 55} FEATURE COVER Mosques: The symbol of Islam across cultures & boundaries 60} journey Exploring Manado 62} Browsing Alounak, London in Restaurant Review; Roadsinger by Yusuf Islam in Music; and The Wish Maker and The Help in Books 64} On Display Halal and good stuff found on the shelf 66} SNAPSHOTS Images of recent happenings in the industry 68} Parting Words Lucien De Guise, Head of Curatorial Department, Islamic Arts Museum Malaysia

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Muslims the world over are once again celebrating the blessed and holy month of Ramadhan, portraying a largely unified community through performing one of the five central obligations of the Islamic faith: fasting in Ramadhan. Ramadhan is on the cover of this issue with special focus on the flurry of socio-economic activities and practices in different countries such as Syria, Pakistan, Egypt, Malaysia and Brunei. Read all about it on p22. This issue also features an article on fatwa by Dr. Hani Mansour Mosa Al-Mazeedi (Associate Researcher at the Kuwait Institute for Scientific Research). In his article (p26), Dr. Hani compares the assumptions for conditions before a fatwa on Halal and Haram is delivered, with real situations that may cause a fatwa to change after. The next feature is by our industry advisor, Irfan Sungkar, who discussed the general scenario of the Halal food market in Malaysia, aiming to provide further understanding of the market. This article later delved into two parts: the chilled and frozen Halal food products, and Halal meat and meatbased products. Get the updated statistics on p28. Our country feature column takes you to a journey into Algeria, where opportunities lie amidst a veil of dust. Get to know its demography, economy, religion and politics, as well as the main attractions on p44. The Islamic Finance section features the second part of an expert’s view on Cash-Waqf Certificate (p40), where the author explains its objectives, implications, and operational guidelines. This section also covers the issue of corporate rescues and redistribution of national wealth to the people (p44), as well as an exclusive interview with the core team at AmIslamic Bank (p46), sharing insights on how Islamic Finance is affected by the economy, apart from explaining the importance and benefits of Islamic Finance. Did you know that there are three basic designs of mosques that were developed in the Islamic world? One design was from the time of the Umayyad Dynasty, and this design, if not the other two, could possibly be the design used to build the mosque nearest to you. Get to know the architecture of mosques on p55. As a final offering from us in this blessed month, read the truth about the etymology of the word mosque. Does it really come from the word mosquito, reflecting claims that the word was first used during the Christian invasion of Muslim Spain in the 15th century? Find out in the Living section alongside the story on mosque architecture. Have a good read and we wish you Ramadhan Mubarak!

the Halal Journal team ... the Hea rt of The Ha l a l Journa l ... Halal refers to that which the Creator has made lawful. Its opposite, Haram, refers to what is forbidden. These parameters have been designed for health, safety and benefit of all mankind regardless of age, faith or culture. The realm of the Halal extends beyond the obvious references to food and touches all matters that relate to human life. In the commercial arena, all goods and services, markets, transactions, currencies and other activities come under the judgments of Halal and Haram. These parameters include protecting the environment, humane treatment for animals, ethical investment, the intrinsic value of currencies and fairness in all commercial transactions. We believe that the emerging global Halal market will be one of the great market forces in the coming decades.

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The essentials for being authentic Halal are: animals are raised on natural, healthy and Halal feed; animals are physically fit; hand-slaughtered by a Muslim; and no stunning of any kind, reciting Allahu Akbar (Allah is great) while slaughtering.

UNITED ARAB EMIRATES

AL ISLAMI FOODS LAUNCHES ‘100 SCHOOLS HEALTH AWARENESS DRIVE’

As part of their corporate social responsibility programme for the education sector, Al Islami Foods – a leading Halal food producer in the Middle East, today launched the ‘100 Schools Health Awareness Drive’ across the UAE to combat growing obesity and diabetes. Al Islami will organise educational sessions for 100 schools across the UAE to educate students on how to tackle these hazards through the power of knowledge about hygiene, quality and the real Halal. Al Islami, with its real Halal process, ensures the food developed at Al Islami is healthy, highly hygienic and of good quality. Besides dramatic growth of the Halal food market, Al Islami stresses on correctly defining and educating the public about the ‘Real Halal’, on which the company is among the pioneers in the world. The essentials for being authentic Halal are: animals are raised on natural, healthy and Halal feed; animals are physically fit; hand-slaughtered by a Muslim; and no stunning of any kind, reciting Allahu Akbar (Allah is great) while slaughtering. With the kick-off of the awareness drive, the first batch of 36 students from Nibras International School Dubai, along with their teachers, last week, were invited to the main production unit of Al Islami in Jebel Ali. The students went through an education session of the phases of food production, Halal, hygiene and quality.

UNITED STATES OF AMERICA

CATERING TO THE ULTIMATE UNTAPPED MARKET

“Hey let’s go out and grab some Halal food!” This line has now become all too common, especially if you live in New York City where Halal food carts are sprawled all over Manhattan. But going out for a Halal dinner does not necessarily mean restricting your choices to the local Pakistani or Middle Eastern eatery. In fact if you live in Copperfield, Texas going out for Halal food could very well mean dining at Bonsai Fusion Steak House. The Japanese steak house is one of a growing number of restaurants that are offering Halal food as an option to Muslim customers. In these troubled economic times, American businesses are scouring for unfilled niches and untapped markets, and restaurants are no different. Muslims are, after all, the ultimate untapped market. A force to be reckoned with, the Ummah measures 1.8 billion globally – and close to 8 million Muslims call America home. Needless to say, Muslims worldwide and in the US are a sizeable demographic with substantial spending capital.

A force to be reckoned with, the Ummah measures 1.8 billion globally.

Dubai Municipality is intensifying its crackdown on manufacturers and distributors of cosmetics and toiletries that contain banned substances linked to cancer and animal products that violate Islamic beliefs. Industry sources said some products available on the international market contained substances such as arsenic, lead and jelly or fat produced from swine or dogs. Redha Hassan Salman, Head of the municipality’s Public Health and Safety Department said that manufacturers should ensure that their products do not contain dangerous metals such as mercury, zinc cyanide, lead, chrome and cadmium and preservatives that cause cancer or other problems. Companies exporting these products into the UAE have to obtain a certificate from the approved health authorities in the country of origin and get them endorsed by the UAE mission there. Cosmetic manufacturers can also obtain certificates from internationally approved laboratories or have products tested and certified by the Dubai Municipality Central Laboratory. Manufacturers of some health supplements and cosmetic products have to obtain a Halal certificate from internationally recognised Halal bodies certifying that the products are suitable for human consumption in an Islamic country such as the UAE. The certificates should prove the products do not contain animal fat and jellies widely used in the cosmetic industry.

The Muslim world has already seen an outburst of US food franchises entering their shores offering Halal versions of their menus: Kentucky Fried Chicken, Pizza Hut, Subway and McDonald’s, to name a few. The American dining scene is fast witnessing a quiet revolution of its own. More and more local eateries are now offering Halal meat, such as Bonsai Fusion and Outback Steakhouse, where the lamb is usually Halal. Fitness clubs are jumping on the bandwagon as well. Due to an increased demand from Muslim and Jewish women for gendersegregated workout areas, more and more gyms are now offering women-only hours allowing their clientele the privacy they need. Fitness USA, Curves and Harvard University have already successfully met this request. Businesses that are reaching out to American Muslims are seeing for themselves that by meeting their niche customers’ needs they have nothing to lose and everything to gain and that can make all the difference for American businesses in this economy.

|SOURCE: BUSINESS 24-7, 29 JUNE 2009

|SOURCE: EXAMINER.COM, 23 JUNE 2009

|SOURCE: AME INFO, 8 JUNE 2009

UNITED ARAB EMIRATES

CRACKDOWN ON COSMETICS USING BANNED SUBSTANCES

compiled by ZAAHIRA MUHAMMAD

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MALAYSIA

INDONESIA

The management and issuance of Halal certificates has been transferred back to the Islamic Development Department (JAKIM) from the Halal Industry Development Corporation (HDC). Minister in the Prime Minister’s Department Datuk Jamil Khir Baharom said the Cabinet directive came into force with immediate effect. “The Government felt that it was better to separate the role of the issuance of Halal certificates and the development of the regional and global Halal market between the two agencies. The move will help improve public confidence in JAKIM’s duties in the Halal certification industry,” he told a press conference at the Parliament lobby yesterday. Jamil Khir also said JAKIM officers who had been seconded to HDC to assist in the certification process will return to JAKIM. He added that JAKIM would be involved in improving the legal process of Halal certification and conduct research to create quality and competitive Halal products. |SOURCE: THE STAR ONLINE, 10 JULY 2009

Indonesia’s row with Aussie and Kiwi beef has come to an end. Indonesia has released more than 100 containers of Australian and New Zealand beef held at a Jakarta port for nearly three weeks amid concerns it did not meet Islamic Halal standards. Quarantine authorities impounded the meat after Indonesia’s top Muslim body, the Indonesian Council of Ulema (MUI), sent them a letter saying the beef did not meet its new Halal standards. But it has since become clear that the MUI’s letter was just a warning that new Halal standards would come into force in October. The agriculture department has now instructed officials to release the containers and to let future Australian and New Zealand beef imports into the country without fuss. Indonesia requires all beef imports to be Halal – taken from cattle slaughtered in a manner deemed suitable for consumption by Muslims. |SOURCE: WATODAY.COM.

MANAGEMENT OF HALAL CERTIFICATIONS TRANSFERRED BACK TO JAKIM

“The Government felt that it was better to separate the role of the issuance of Halal certificates and the development of the regional and global Halal market between the two agencies.” Datuk Jamil Khir Baharom, Minister in the Prime Minister’s Department UNITED STATES OF AMERICA

BETHLEHEM MARKET HAS KOSHER AND HALAL FOODS

Modern Bethlehem may be a mostly Muslim city in the West Bank, but it is also home to a stalwart Christian community and one of the most important Jewish holy sites. The city’s inclusiveness is what inspired the name of Abeer Abdulhade’s new grocery store, which caters to the special dietary needs of both the local Muslim and Jewish communities. Bethlehem Market, which opened on 6 July at 4323 W Kennedy Blvd., sells both kosher and Halal foods as well as Turkish coffee, specialty Arabic desserts like baklava and kanafa, and carved olive wood Christian figurines imported from Bethlehem. Abeer said she was tired of spending too much time and gas money to drive to North Tampa for Halal foods, which are prepared according to Islamic law. Some of her Jewish friends, she said, have been known to drive to Miami for kosher goods they couldn’t find locally. Her goal is so that everyone in the community is able to walk into a store that would serve all of them. Hours at Bethlehem Market are 9 a.m. to 8 p.m. daily. During Ramadhan (the Islamic month of daylight fasting that begins on 21 August this year) the market will be open until 10 p.m. Call (813) 287-5758 for more information. |SOURCE: ST. PETERSBURG TIMES, 17 JULY 2009 MALAYSIA

MIHAS 2009 RECORDS SALES OF RM3.01 BLN

The 6th International Halal Showcase (MIHAS 2009) continues to sustain business confidence to chalk up potential sales of RM3.01 billion. Last year, the potential sales were RM2.20 billion. Malaysia External Trade Development Corporation’s (MATRADE) chief executive officer, Dato’ Noharuddin Nordin, said from the RM3.01 billion potential sales, RM1.15 billion was expected to come from exhibitions and RM1.86 billion from incoming buying mission (IBM). “This year’s MIHAS also posted immediate sales worth RM226.4 million, of which RM26.1 million was from exhibitions and the balance from the International Buying Mission (IBM),” he said at a media briefing here today. Noharuddin said one of the reasons for this year’s strong performance was due to the increase in awareness of the importance of Halal products and services. The five-day event, from 6-10 May, was organised by MATRADE with the cooperation of the Halal Industry Development Corporation (HDC) and Islamic Dakwah Foundation Malaysia. Noharuddin said next year’s MIHAS would be held for four days beginning 23 June. He said that with the recovery in the global economy, potential sales next year could reach some RM3.5 billion. |SOURCE: BERNAMA, 10 JUNE 2009

INDONESIA CLEARS HALAL AUSSIE, NZ BEEF

AU, 9 JUNE 2009

MALAYSIA

HDC OPTIMISTIC HOTEL OWNERS WILL OBSERVE HALAL REQUIREMENTS

The Halal Development Corporation (HDC) is optimistic that hotel owners will observe the Halal requirements to promote and enhance their business. “The need is pressing. Of more than 2,000 hotels (including budget hotels) in Malaysia, only 195 have their kitchens certified Halal. At the same time, as part of the requirements by the government for these hotels to obtain functions or programmes to be handled on their premises, they must obtain a Halal certificate,” said HDC chief executive officer Dato’ Seri Jamil Bidin. Prior to certification, all hotel premises are encouraged to undergo proper training for better understanding of measures in compliance with the Malaysian Halal standard. In line with this, HDC organised the first dialogue session of its kind to brief hotel owners on the functions and responsibilities of HDC in managing the Halal industry as well as Halal certification. The dialogue session focused on the Halal certification for the hotels’ kitchens. Other areas of discussion included the Halal requirements, processes and standards. Through the dialogue session, HDC hoped the participants will better understand the function and responsibilities of HDC and the Halal certification requirements and processes. |SOURCE: BERNAMA, 18 JUNE 2009

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CITY BANS HALAL MEAT IN SCHOOLS

There will be no more Halal meat served in the schools of Eskilstuna (Sweden). The politicians in the children and education committee will adopt the regulations on this issue. The new guidelines for meals in pre-schools and schools in the municipality require that food and products will not be supplied based on ethical and religious grounds, such as Halal meat. According to Sophia Ånhed, food consultant, some pre-schools in the municipality previously bought Halal meat due to an existing contract. But this will also be stopped when the regulations are adopted. Those who would otherwise eat Halal meat, will now be directed to the vegetarian and fish alternatives, which will be a satisfactory alternative to the meat. Abd al Haqq Kielan, chairman of the Swedish Islamic Communities in Sweden, says that it is pure discrimination and indirectly an infringement of the law. “There are hundreds of Muslim children in Eskilstuna pre-schools and schools who, starting from the fall, will not be able to eat meat in the schools. The municipality risks committing an uncommonly targeted discrimination, these children will feel singled out. Halal slaughter is not illegal and the politicians apparently do not understand that.” He thinks that the Muslim children should have the same rights as the others and point out that schools around Stockholm serve Halal meat. “The discriminating ombudsman already took up several such cases and gives us support. In the schools where Halal meat is not served the children are forced, for example, to eat vegetarian, which does not satisfy their hunger. This means that they will have difficulties following the school work and will be tired.” He thinks a ban on Halal meat in the schools in Eskilstuna is abusing the children |SOURCE: EUROPE NEWS, 11 JUNE 2009

“The discriminating ombudsman already took up several such cases and gives us support. In the schools where Halal meat is not served the children are forced, for example, to eat vegetarian, which does not satisfy their hunger. This means that they will have difficulties following the school work and will be tired.” Abd al Haqq Kielan, chairman of the Swedish Islamic Communities INDONESIA

INDONESIA DEMANDS HALAL CERT ON NZ’S MEAT PRODUCTS

Indonesia has asked New Zealand to certify its meat products exported to Indonesia with Halal certification, meaning it had been slaughtered in line with Islamic practice, Indonesian Foreign Affairs Minister, Hasan Wirayuda, said. Speaking on the sidelines of his meeting with visiting New Zealand Foreign Minister Murray McCully, Hasan disclosed that he had conveyed to his NZ counterpart the Halal certification demand on New Zealand’s meat products exported to Indonesia during the meeting. Foreign Minister McCully asked for more time to comply with the Halal certification demand on meat products imported from New Zealand. Wirayuda said that the demand was initially submitted by MUI (Indonesian Council of Ulema), and had been conveyed by Indonesian foreign affairs ministry to Australia and New Zealand governments earlier. Citing MUI’s demand, Wirayuda said that the government-sanctioned Muslim cleric council asked Halal certification must be fulfilled no later than October this year. MUI’s Halal certification demand is aimed at assuring that meats imported from New Zealand are allowed to be consumed by Muslims in Indonesia. |SOURCE: BERNAMA, 25 JUNE 2009

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PHILLIPPINES

DA PROMOTES HALAL FOOD PRODUCTION IN MINDANAO

The Philippines Department of Agriculture (DA) is promoting Halal activities especially in Mindanao. DA Secretary, Arthur Yap, said at the recent International Halal Assurance Seminar that his department is conducting trainings and seminars on the proper production, processing and marketing of Halal cereal and vegetable crops, fruits, meat, milk, fish and other commodities. The DA said Mindanao has a competitive edge over other countries in the region because it is free of the foot-and-mouth disease and the avian influenza or bird flu virus. Mindanao also has reliable supply of feed ingredients for Halal food production, namely, corn, rice, copra meal, fish meal, and palm oil. The DA has arranged separate discussions with Saudi Arabia, Kuwait and Brunei which are looking at billions worth of possible investments in the domestic Halal sector, particularly in Mindanao. Around 32,000 Muslim farmers and entrepreneurs in Mindanao are expected to benefit from proposed Halal initiatives. |SOURCE: ABS-CBNNEWS.COM, 5 JULY 2009

ZURICH

ZURICH HOTELS PREPARE FOR RAMADHAN GUESTS

Hoteliers in Zurich, famous for fastidious attention to detail, have been taking lessons in how to cater for Muslim guests during the holy month of Ramadhan. The numbers of Arab tourists to the city has doubled within four years and Ramadhan falls in the peak month of August in 2009. Hotels are keen to please their fasting and free-spending guests. Zurich Tourism got together with Muslim organisations in the city to arrange a series of workshops in May. High on the list of topics was catering for guests who do not eat or drink between sunrise and sunset and require specially prepared meals. Hassan Abo Youssef, Vice-President of the Zurich Association of Islamic Organisations, told swissinfo.ch that Zurich hotels have been on a steep learning curve. “Hotel directors have to be informed about the times people are fasting, when people are eating and what they are eating,” he said. “They learn that these guests take their breakfast at sunset and another meal before dawn.” |SOURCE: SWISSINFO.CH, 4 JULY 2009

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INDONESIA

BPOM DISCOVERS MORE PORK IN 3 “HALAL” BEEF JERKY BRANDS

The Food and Drug Monitoring Agency (BPOM) has discovered more samples of dendeng, or beef jerky that contain pork despite being labelled suitable for consumption by Muslims. Husniah Rubiana Thamrin, the head of BPOM, said her agency conducted a second test on 34 products collected randomly from supermarkets and found that four contained pig DNA. Dua Daun Cabe Kwalitet Istimewa, Dua Dinar and Brenggalo beef jerky, as well as the latter’s dried ground meat, all contained pork. According to the BPOM, the tainted dendeng products were registered with health agencies. But a check with the Indonesian Council of Ulema (MUI), which certifies Halal products, found that the tainted products’ Halal labels were fake and had not been issued by the council. Husniah said the products could be easily found in common wet markets and supermarkets. Manufacturers mixed pork with beef because pork was cheap. In a country that has the world’s largest Muslim population; Husniah said selling pork-laced Halal-labelled products was a serious crime. Municipalities could charge businesses with violating the Consumer Protection Law, which carries a jail term of up to five years and a Rp2 billion (USD186,000) fine. Members of the public should be careful when choosing food at the market. Dendeng made from pork, Husniah said, tend to be lighter in colour because it contained more fat, and the grains of the meat are smoother than beef. |SOURCE: THE JAKARTA GLOBE, 2 JUNE 2009

Members of the public should be careful when choosing food at the market. Dendeng made from pork, Husniah said, tend to be lighter in colour because it contained more fat, and the grains of the meat are smoother than beef. MALAYSIA

MENINGOCOCCAL QUADRIVALENT VACCINE FOR PILGRIMS IS HALAL

The meningococcal quadrivalent vaccine (ACYW135) for hajj and umrah pilgrims is Halal (permissible in Islam). The vaccine does not use pig or cow extracts as reported by a tabloid, Kosmo yesterday, said the Health Ministry. It said the vaccine was made an entry requirement for hajj and umrah (small hajj) pilgrims to prevent meningococcal meningitis disease. The vaccine is administered on hajj and umrah pilgrims free of charge once every three years, it added. |SOURCE: BERNAMA, 9 JUNE 2009 PAKISTAN

HALAL FOOD CERTIFICATION STRESSED FOR BETTER SALE

Speakers at an international conference in the provincial metropolis stressed the importance of Halal food certification for boosting consumers’ confidence in foods and improving their sale. The conference titled “Halal Foods and Ingredient Concerns” was held at the Pakistan Council of Scientific and Industrial Research here on Monday. It was jointly organised by the Islamic Food and Nutrition Council of America (IFANCA) and the Pakistan Society of Food Scientists and Technologists, while it was attended by a large number of food industry representatives. The conference made several recommendations which included that the Pakistan Standards and Quality Control Authority (PSQCA) must approve a national Halal standard based on the standards currently available in other Muslim countries. The PSQCA and others must develop guidelines to monitor products imported by multinational and national companies and guidelines may be implemented at the import points, it said, adding that the public sector must create a list of approved Halal certifiers from other countries based on specific criteria and the Pakistan Society of Food Scientists and Technologists (PSFST) and others must position it as a Halal certifier through proper training about Halal certification guidelines. |SOURCE: THE INTERNATIONAL NEWS PAKISTAN, 30 JUNE 2009 The Halal Journal | SEP+OCT 2009

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Globalnews the halal journal MALAYSIA

LOCAL MEAT PRODUCERS URGED TO COMPETE IN GLOBAL HALAL MARKET

Local producers of Halal meat and meat products have been urged to increase their production as well as the promotion of their products to capture some of the global Halal products and services market which is valued at RM7.6 trillion annually. Deputy Minister of International Trade and Industry, Dato’ Mukhriz Tun Mahathir, said that in Malaysia itself, local meat producers also had the edge as their products were fresher than the imported meats which are stored frozen for a long time in the process of delivery. Mukhriz said that while many local restaurants serving steak usually advertised that their meat is imported from Australia, Argentina, New Zealand or the US, the meat from Malaysia in reality was also at par and capable of competing, he said. Local meat, apart from the guarantee of being Halal, are also more fresh considering that they are kept frozen for a shorter period than imported meat, he said. As for the meat produced by Rumpun Berkat, the cows slaughtered and processed by them are of the Brahman mixed breed imported from Australia and marketed under the name of Amal Beef. He said the opportunity to enter the global Halal market should be grabbed by local producers as many of the producers of Halal products including meat are currently nonMuslim countries while the consumers were also mostly non-Muslim countries. |SOURCE: BERNAMA, 3 JUNE 2009

INDONESIA

NO PIG SLAUGHTERING TO BECOME ‘HALAL CITY’

Beginning August this year, Bogor municipality will ban pig-slaying at the city slaughterhouses, in a bid to become a Halal city, a concept launched last year. Bogor’s mayor, Diani Budiarto, said the new city-owned slaughterhouse in Bubulak subdistrict did not provide the tools to slaughter pigs. “We don’t offer pig-slaughtering equipment; our demand for pork is limited anyway. For other groups of people who need pork, we let them provide the tools. The city administration won’t provide the service.” |SOURCE: JAKARTA POST, 1 JULY 2009

There are fears that the current economic meltdown is driving the world economy towards deglobalisation and trade/ tariff barriers. Is this good for the global Halal industry?

OnlinePoll Should Halal food and beverages remain with traditional non-Halal names (e.g.: Beef Bacon, Turkey Ham, and Zero Percent Alcohol Beer/ Halal Beer) or should be re-named (e.g.: Beef Crispies, Turkey Slices, and Carbonated Malt Drink)?

Yes, names do not matter

Unsure

19.4% 19.4%

No, it’s not good

43.9% 43.9% 36.7% 36.7%

Yes, it’s good

22.2% 22.2% 77.8% 77.8% No, names must be changed so as not to be misleading

BRUNEI

BSB MUNICIPAL DEPT LEADS SPOT-CHECKS AT NIGHT MARKET & FOOD STALLS

The Bandar Seri Begawan Municipal Department made spot-checks at the Gadong night market, Tamu Selera in Bandar Seri Begawan and the Jalan Residency food stalls. The spotchecks involved around 30 officers and staff members from the Bandar Seri Begawan Municipal Department’s Licensing Section and Enforcement Unit, as well as six members of the Halal Food Control Unit and Syariah Affairs Department at the Ministry of Religious Affairs. Leading the spot-checks was Hj Jamaluddin Orang Kaya Maharaja Dinda Hj Saman, Head of the Bandar Seri Begawan Municipal Department’s Licensing Section. The operation was a continuation of the Municipal Department’s efforts towards the prevention and control of Influenza A (H1N1), and was also aimed at reminding vendors on the importance of maintaining their own personal hygiene, as well as the cleanliness of the food sold to the public. It also carried the objective of ensuring that all food being sold was Halal. All spot-checks involved in last night’s operation were carried out within the municipal area of Bandar Seri Begawan and will be continued periodically to ensure that business premises, particularly eateries, are always clean and also meet Halal requirements. |SOURCE: BORNEO BULLETIN, 14 JULY 2009

The operation was a continuation of the Municipal Department’s efforts towards the prevention and control of Influenza A (H1N1), and was also aimed at reminding vendors on the importance of maintaining their own personal hygiene, as well as the cleanliness of the food sold to the public. UNITED KINGDOM

BLACKBURN PIZZA SHOP SWITCHES TO HALAL MENU

A takeaway restaurant will start serving Halal pizzas in an attempt to bring in more Muslim customers. Domino’s Pizza, Whalley New Road, Roe Lee, Blackburn, has secured accreditation from the Halal Food Authority (HFA) in a bid to widen its appeal to residents in the town. Franchisee of the Blackburn store, Slawomir Szulc, said the move towards Halal pizzas was vital if the takeaway was going to have a viable future. Domino’s has worked closely with the HFA – the UK’s leading accreditation authority for Halal food, which has examined every stage of the pizza-making process. The HFA also explores where ingredients are sourced from, to how they are stored and prepared, ensuring Domino’s meets its strict criteria. The menu includes Halal spicy beef, roast and tandoori chicken, Halal pepperoni and Halal cured turkey – all produced and stored within the HFA’s strict guidelines. |SOURCE: LANCASHIRE TELEGRAPH, 23 JUNE 2009

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TURKEY

COMMITTEE WORKS TO DRAFT HALAL FOOD STANDARDS

Following a global trend in the certification and sale of Halal foods, Muslim countries have developed a draft of common standards for the Halal food market. Working under the supervision of the Islamic Development Agency (İKT), the Halal Standards Preparation Committee, established by experts from 52 countries, has recently produced a draft of mutually agreed upon standards. The newly prepared standard draft was reviewed by experts in a meeting in Ankara last April. It is expected that the Halal standards will be given their final shape following a conference to be held in Istanbul in October. The Foreign Trade Undersecretariat (DTM), the Turkish Standards Institute (TSE) and Turkish Accreditation Agency have all taken part in the committee’s deliberations. The experts emphasize that it is of the utmost importance for Muslim countries to define a mutual Halal standard and market Halal foods within that framework. Current Halal standards are numerous and differ from one another; each country applies its own criteria. For a sustainable improvement in trade among Muslim countries, Halal standards should be established on a common ground. The list of standards is expected to weed out differences in interpretation of Islamic rules among Muslim countries. The İKT standards will be valid only among Muslim countries until they are reviewed and verified by an authorized international body, posing a problem for the global marketing of Halal products. |SOURCE: TODAY’S ZAMAN, 17 JULY 2009

For a sustainable improvement in trade among Muslim countries, Halal standards should be established on a common ground. The list of standards is expected to weed out differences in interpretation of Islamic rules among Muslim countries. MALAYSIA

FIND NEW WAYS TO MAKE MARK IN HALAL MART

“Malaysian entrepreneurs must seek new ways to establish themselves in the Halal industry,” said Deputy International Trade and Industry Minister, Dato’ Mukhriz Tun Mahathir. “By doing it with high standards, entrepreneurs will find their products and services attractive to the market, which would also fast track the entry of Malaysian products and services into the Middle East,” he said during a seminar on ‘Effective Entry into the Middle Eastern Market’ in Petaling Jaya, Selangor, Malaysia, yesterday. While the government has taken various initiatives to support the development of the Halal industry, Mukhriz said the private sector must intensify their investments in new production areas, upgrade existing facilities, intensify research and development, technology acquisition, marketing and promotion. “In an effort to promote greater participation of SMEs in the Halal industry, particularly in the development and promotion of Halal products, the Small and Medium Industries Development Corporation (SMIDEC) provides a matching grant for development and promotion of Halal products,” he added. Under this grant scheme as at April 2009, a total of 259 applications have been approved valued at RM15.25 million. It is estimated that the value of the global Halal market, which include both food and non-food sector, is USD2.1 trillion (RM7.31 trillion) annually. He also urged Malaysian exporters to use the Middle East as a gateway to the US and the European Union (EU) markets as there is a growing demand for Malaysian-made products such as palm oil, machineries, air-conditioners and electrical home appliances there. Malaysia’s trade with the Middle East rose 36.78 per cent to RM54.53 billion last year, from RM39.87 billion in 2007. Export value from Malaysia in 2008 was RM28.96 billion, up 30.65 per cent from RM22.16 billion in 2007. Import value also increased 44.45 per cent from RM17.71 billion in 2007 to RM25.58 billion in 2008. Malaysia’s trade with the Middle East is 4.6 per cent of its total trade with the world and the top five products are electrical and electronic products valued at RM5.2 billion, palm oil (RM4.7 billion), jewellery (RM3.5 billion), processed food (RM2.1 billion) and machinery, and appliances and parts (RM1.7 billion). With the Middle East now opening up to more inward investments such as Saudi Arabia, foreign companies are allowed to engage in trading activities through joint venture partnerships with local entities. “There are vast growth opportunities for retail sector in the UAE market as there are more international brands like Australia’s Myers and US Deli Balduccis operating in the region,” said Mukhriz. |SOURCE: BUSINESS TIMES, 3 JUNE 2009

Calendar of events 10 – 14th October 2009 Anuga 2009 Cologne, Germany Koelnmesse GmbH Tel: +49 0 221 821 2240 Fax: +49 0 221 821 3410 Website: www.anuga.com 2nd – 6th November 2009 6th Kuala Lumpur Islamic Finance Forum 2009 Nikko Hotel Kuala Lumpur, Malaysia CERT Events Sdn Bhd Tel: +603 4108 1439 Fax: +603 4106 1549 Email: zarina@cert.com.my, ana@cert.com.my Website: www.kliff2009.com 10 – 12th November 2009 Halal Expo Dubai 2009 Madinat Jumeirah Dubai, UAE Orange Expo Tel: +971 4 2987730 Fax: +971 4 2987886 Email: orangex@emirates.net.ae Website: www.worldhalalexpos.com 17 – 18th November 2009 World Halal Forum Europe Novotel World Forum Convention Centre The Hague, Netherlands KasehDia Sdn Bhd Tel: +603 6203 1025 Fax: +603 6203 4072 Email: info@worldhalalforum.org Website: www.worldhalalforum.org 1st – 3rd December 2009 Diyafa 2009 Doha Exhibition Centre Doha, Qatar IFP Qatar Tel: +974 432 9900 Fax: +974 443 2891 Email: info@ifpqatar.com Website: www.ifpqatar.com 4 – 7th February 2010 HALALISTEXPO 2010 Istanbul Yesilkoy Exhibition Centre Istanbul, Turkey Atilim Fairs & Org. Tel: +90 212 273 1818 Fax: +90 212 273 1819 Email: info@halalistexpo.com Website: www.halalistexpo.com 12 – 14th February 2010 Global Halal Expo Pakistan 2010 Karachi Expo Centre Karachi, Pakistan Global Exhibitions & Marketing Tel: +92 21 3531 0301 Fax: +92 21 3531 0030 Email: info@halalexpopakistan.com Website: www.globalhalalexpo.com 21st – 24th February 2010 Gulfood 2010 Dubai International Convention & Exhibition Centre Dubai, UAE Dubai World Trade Centre L.L.C., Tel: +971 4 308 6081 Fax: +971 4 318 8607 Email: gulfood@dwtc.com Website: www.gulfood.com 23rd – 26th February 2010 Ingredients Middle East 2010 Airport Expo Dubai Dubai, UAE Dubai World Trade Centre L.L.C., Tel: +971 4 308 6081 Fax: +971 4 318 8607 Email: ingredientsme@dwtc.com Website: www.ingredientsme.com 25 – 28th March 2010 Singapore International Halal Showcase 2010 (SIHAS 2010) Singapore Expo Hall 6 Singapore Adex Communications Pte Ltd Tel: +65 6242 0872 Fax: +65 6242 6153 Email: sihas@adexcomm.com Website: www.sihas.com

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event highlights EVENT: 4TH BRUNEI INTERNATIONAL HALAL PRODUCTS EXPO DATE: 30 JULY - 2 AUGUST 2009 VENUE: INTERNATIONAL CONVENTION CENTRE, BRUNEI DARUSSALAM

Brunei IHPE 2009 Opens Doors for Brunei Halal Agenda The 4th Brunei International Halal Products Expo (Brunei IHPE 2009) was successfully held at the International Convention Centre in Berakas, Brunei Darussalam, despite the challenges that have arisen from the global economic crisis and the Influenza A H1N1 pandemic. The exhibition was declared open on 30 July by the Sultan and Yang Di-Pertuan of Brunei Darussalam His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah, who was accompanied by the Royal entourage. Since its inauguration in 2006, the IHPE has become essential for the Brunei government’s mission to promote the Brunei Halal Brand. The government had since continued strengthening the Brunei Halal Brand as a symbol for Halal assurance, product quality and safety, good business practices, and a significant platform for achieving economic diversification. Brunei IHPE also acts as a platform to raise awareness on the Halal Certificate and Label Order 2005, which came into force starting 1 August 2008, coinciding with the launch of the Brunei Halal Brand.

EVENT: DATE: VENUE:

The first IHPE in 2006 featured 73 exhibitors from 10 countries (95 booths) and welcomed 12,506 visitors. In 2007, the figures doubled to 158 exhibitors from 26 countries (158 booths) and 39,322 visitors. Last year, there were 182 exhibitors from 10 countries, 260 booths and an outstanding 48,522 visitors from 15 countries. Co-organised by Brunei’s Ministry of Industry and Primary Resources, Ministry of Health, and Ministry of Religious Affairs, and managed by Sunlit Advertising Sdn Bhd, almost 50,000 visitors to the 4th IHPE were treated to 215 booths of exhibits by 135 companies offering a wide array of products and services this year.

Brunei IHPE 2009 offered opportunities to participants and other stakeholders in the Halal industry to gain knowledge and learn about recent developments in the industry, renew friendships, meet new business contacts, see new products and brands, as well as take advantage of special product promotions. With support of partners, entrepreneurs, traders and consumers, the Brunei IHPE will continue to be a platform for Brunei Darussalam in realising the country’s vision to become a Halal economy. Being a regular feature in the continuous promotion of the Brunei Halal Brand, Brunei IHPE is set to host its fifth expo on 3-6 June 2010. hj

4TH INTERNATIONAL HALAL MARKET CONFERENCE 2009: HALAL – AN ENGINE OF GROWTH AND OPPORTUNITY 1-2 AUGUST 2009 INTERNATIONAL CONVENTION CENTRE, BRUNEI DARUSSALAM

IHMC 2009 Opens New Chapter for Brunei Halal Agenda The 4th International Halal Market Conference (IHMC 2009) in Brunei Darussalam opened on 1 August to a packed auditorium, with all 450 seats taken to hear Brunei’s Ambassador-At-Large for Ministry of Foreign Affairs and Trade, HRH Princess Hajah Masnah binti Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, deliver the keynote address. Brunei’s focus on developing the Halal sector is based on a three-fold approach. Firstly, it is taken as a fardu kifayah responsibility for the Malay Islamic Monarchy; secondly, it is a means to diversify the national economy; and thirdly, Halal can be a means of developing the SME sector. The conference theme, “Halal – an engine of growth and opportunity”, covered a good spectrum of global themes, and at the same time provided a good platform for Brunei to showcase their recent achievements in the Halal sector. With the recently signed joint venture project between the Brunei government and KerryFSDA of Hong Kong to form Ghanim International Food Corporation, the audience were keen to hear the presentations about the overall Brunei Halal agenda, Ghanim’s approach to the international markets, and the progress with the Halal Agro-Technology

Park, which is now about to enter the next phase of development. There was also a preview of the new Brunei standard for pharmaceuticals, traditional and herbal medicines. The following day and a half were taken up with international issues covering ethics and morality; new corporate models and CSR initiatives; opportunities in the pharmaceutical sector; Halal standards development

under the OIC; how to turn SME’s into Halal champions; how standards compliance can boost sales; and new developments in Halal science. The final session was an open discussion on how Halal can be an engine of growth in a turbulent global economy, along with a round up of reports from the UK and Europe, South Africa, the Philippines, and Australia. Departing delegates reported a high degree of satisfaction with the overall organisation, content and speakers, plus a CD of all the presentations in soft copy. An impressive 100 per cent of those polled expressed a desire to return next year; so the decision to use the newly-built conference and expo centre at Jerudong for the IHMC 2010 looks like being a wise choice. Mark down 5-6 June 2010 in your calendar today! hj

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event highlights EVENT: GLOBAL HALAL EXPO & CONGRESS 2010 DATE: 10-14 FEBRUARY 2010 VENUE: KARACHI EXPO CENTRE, PAKISTAN

Pakistan organises the first Halal expo and congress in the country Pakistan is the 26th largest economy in the world in terms of purchasing power. With a GDP or Gross Domestic Product growth rate of 5.8 per cent, Pakistan is an overwhelming market for new products and services. Banking reforms and financial steadiness has resulted in a strong consumer banking sector in the past five years. A population of more than 170 million Muslims in Pakistan makes it a huge ready market for global Halal suppliers to sell their products in Pakistan. Afghanistan: Pakistan is the main supply route for all Halal products to the 30 million Afghans. Central Asia: Pakistan offers easy road access to the 55 million plus Muslims in Central Asia. India: Road transportation gives Pakistan direct access to the 150 million Muslims in India. Middle East: Pakistan is an important gateway to the 56 million Muslims in the Middle East. Direct access to a grand total of 460 million Muslim customers makes Pakistan the biggest Halal hub in the region. First Global Halal Expo (GHE 2010) GHE 2010 is the first and most comprehensive Halal event in Pakistan that will be held at the Karachi Expo Centre

from 12 to 14 February 2010. GHE intends to foster trade and facilitate convenient access to genuine Halal goods and services, making it within reach of millions of customers. It will provide a platform for international companies and Halal buyers to enhance business relations and initiate trading deals in Pakistan. Hosted Buyer Program GHE has identified international buyers of Halal products from around the world, and a “Hosted Buyer Programme” has been initiated to ensure the presence of maximum international buyers at the Expo. Pre-arranged business matching sessions between international and Pakistani Halal buyers will be arranged with Halal suppliers to ensue best yield of buyers’ and suppliers’ time. GHE offers participants the following: • First ever platform for international buyers to source products

and services from Pakistan • A centralised showcase for international companies to market their products and services in Pakistan • An opportunity to place spot orders for the best quality goods and avail special discounts • A big variety of suppliers from Pakistan and all over the world • Awareness regarding the potential and opportunities in the Global Halal market Global Halal Congress (GHC 2010) An international conference on “Halal and Islamic Business” to provide means for gathering up-to-date information about the potential of Pakistani Halal market among the leading international Halal industry players and Halal Agenda promoters.

For more information, contact info@globalhalalexpo.com.

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event highlights EVENT: WORLD HALAL FORUM EUROPE 2009 DATE: 17-18 NOVEMBER 2009 VENUE: WORLD FORUM CONVENTION CENTRE, THE HAGUE, NETHERLANDS

The World Halal Forum introduces its first regional event in Europe

ollowing the resolution of the 4th World Halal Forum (WHF), which was held in Kuala Lumpur on 4 and 5 May this year, the first regional World Halal Forum will be held in Europe on the 17 and 18 November 2009. Themed “Halal Potential – A Regional Focus”, this event will be conducted at The Hague, Netherlands in a world class facility: the World Forum Convention Centre. Being one of the fastest growing industries, the Halal industry has growth rates exceeding traditional industry sectors. At present, supply of Halal products and services are dominated by non-European countries, but huge gaps remain between the existing trade level of Halal products and size of the market potential. Hence, there is a relatively large untapped potential for European countries and companies to be involved in the Halal industry. In order to facilitate this, WHF Europe aims to deliver a comprehensive understanding on the potential of the global and regional Halal industry, trade and market access as well as major characteristics and issues faced by the

industry to the delegates/ participants. It is also a perfect platform to conduct business networking between speakers, panellists and participants of the event to harness trade opportunities in this industry. From a gathering of high-level participants, industry experts, academicians and scholars, deliberations and resolutions at WHF Europe 2009 will shape the future of the Halal industry. Be the first to understand the challenges and issues of the Halal market and get the leaders’ advantage by participating. Tentative topics to be deliberated WHF Europe 2009 is the perfect avenue with expanding opportunities for market leaders, industry experts,

academicians, and Islamic scholars to gather and comment on the Global Halal Standard, as well as gain insights on potential implications on Halal integrity, business and trade. Topics to be deliberated on at WHF Europe 2009 are as follows: • International Halal accreditation and certification • International Halal standards • Developing the Halal Industry with Islamic understanding • The European Halal market • European market access • OIC development agenda • Halal market and Islamic finance • Industry case studies • Investment and trade opportunities • Halal Industry: Growing importance in today’s economy • Halal certification

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Photo by Herman Brinkman

event highlights

• • • • • • • • • •

and regulatory issues Food safety and quality aspects of Halal products Potential of the Halal market and industry issues Growth of Halal products in the retail market Halal ingredients market in the Europe Halal pharmaceuticals: Emerging sector Halal logistics: Importance of port-to-port protocol in the trading of Halal products Traceability as the main element in the Halal industry Animal supply chain management Benefits of having a reliable Halal certification Changing consumer preference and awareness level: Impact on the foodservice industry

If you are in the Halal industry, you cannot afford to miss being in The Hague on 17 to 18 November 2009. We look forward to welcoming you to what is shaping up to be an exceptional event. Be in the know. Be at the World Halal Forum Europe 2009.

A World Class Event at a World Class Venue The upcoming World Halal Forum Europe 2009 in November is actually a sound investment, considering the priceless future returns to your organisation by being a part of a pioneer group that charts the course of the global Halal industry over the next decade. For starters, delegates will gain first hand information and knowledge on how to develop organisations within this highly lucrative industry, enabling companies to identify the areas of opportunity and prospects. Delegates are expected to have invaluable networking opportunities within the circle that matters; since it will be attended by all captains of the Halal industry. To be staged at the magnificent World Forum Convention centre at the picturesque city of The Hague as a backdrop. An early bird rate of Euro 600 is available for delegates until 1 September 2009. The offer also extends to repeat delegates from the WHF 2009 in Kuala Lumpur. Normal price is Euro 750 per person; and a group rate for more than 10 delegates by request. Download the registration form now at: www.worldhalalforum.org/whfeurope For more information on attending the World Halal Forum Europe, log on to www.worldhalalforum.org, email to info@worldhalalforum.org, hj or call the WHF Secretariat at +603 6203 1025. Book your seat now!

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news+update

Providing assistance for Halal initiatives in several countries

After presenting five modules of its global Halal standard at the 4th World Halal Forum (WHF), there is no rest for IHI Alliance. Soon after the conclusion of the WHF 2009, IHI Alliance was called upon to assist and be involved in the Halal initiatives of several countries. IHI Alliance’s Visit to Phnom Penh, Kingdom of Cambodia IHI Alliance recently made its official visit to Phnom Penh, Kingdom of Cambodia, on 15 June 2009. Darhim Hashim, CEO of IHI Alliance, and Dino Khalid, Senior Manager of Halal Standards and Systems, had the opportunity to meet Cambodian Senior Minister of Commerce at the Ministry of Commerce and Taskforce of Halal Project, H.E. Dr. Cham Prasid, to discuss several matters pertaining to Cambodia’s Halal industry development framework. The objective of the meeting was to introduce IHI Alliance’s global Halal initiatives and the role it could play in Cambodia’s

Halal initiative. Cambodia’s population of 14.5 million are predominantly Buddhist with a 2.1 per cent Muslim minority and currently does not have a Halal certification authority. The Senior Minister emphasised the importance of the Halal economy for Cambodia as a new territory that should be explored in a systematic way. Apart from tourism, Cambodia’s export of rice, fish, timber, garments and rubber are also among major contributors to its economy. This effort will be the Cambodian government’s first step towards realising the “Cambodian Halal Institute” – a Halal authority body envisaged to coordinate and monitor the country’s Halal-related trade activities.

Darhim delivering warm welcome remarks as dinner host Dinner guests listening to presentation on Malaysiaís Halal initiatives

Cambodian Senior Minister of Commerce at Ministry of Commerce and Taskforce of Halal Project, H.E. Dr. Cham Prasid (right) delivers a welcome speech to visiting delegation

Darhim Hashim, CEO of IHI Alliance explaining to the Senior Minister about IHI Alliance Halal initiatives

An Evening with Malaysian Honorary Consuls On 19 June 2009, 52 Malaysian Honorary Consuls enjoyed a dinner at Eden Restaurant, Chulan Square, hosted and organised by IHI Alliance. The Honorary Consuls were in town attending the 7th Heads of Mission Conference and 4th Honorary Consuls Meeting themed “Malaysian Foreign Policy: Future Direction for 2009-2015” with the Government of Malaysia in Putrajaya. The dinner was held to provide an overview of the global Halal industry in line with IHI Alliance’s international role in developing and harmonising the sector. Led by Darhim Hashim, CEO of IHI Alliance, the evening also saw the presence of some familiar figures in the Malaysian Halal industry, namely Mr. Rafaiq Bakri Zakaria, Director of Strategic Management Division of Standards Malaysia; Mr. Ahmad Jazri Mohd Johar, Undersecretary

of the Organisation of Islamic Conference (OIC); Dr. Nor Azman Ngah, General Manager of Halal Park of Halal Industry Development Corporation (HDC) and Mr. Irfan Sungkar, Associate Director for Global Food Research and Advisory. In his welcome remarks, Darhim thanked all the honorary guests for taking time out of their busy conference schedule for the evening. He further explained that IHI Alliance, being an international organisation under the OIC, understands the importance of reaching out to every country in gaining support to increase the level of awareness towards building a harmonised Halal industry. The dinner was concluded with a short speech from a representative of the Consuls delegate, Mr. Hassan Salleh, the Honorary Consul of Consulate of Malaysia in South Australia, who later presented a token of appreciation to the dinner host for a successful evening.

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news+update

Audience and press at the launching ceremony of Global Halal Expo and Halal Congress 2010 in Karachi

IHI Alliance and Pakistan – Media Launch of the Global Halal Expo and Global Halal Congress 2010 in Karachi, Pakistan Pakistan’s first ever major Halal event, Global Halal Expo and Global Halal Congress, have been slated to be held in Karachi from 12 to 14 February 2010 at the Karachi Expo Centre. Expected to be held back-toback in Karachi, Global Halal Congress is an international conference for leading Halal industry players, Halal certification bodies and other major stakeholders to discuss the latest trends and issues in the Global Halal industry and to identify the opportunities available for Halal suppliers.

The Global Halal Expo will be an international Halal exhibition showcasing Halal products and services from all over the world. Making a presence at the launching ceremony on 28 July 2009 was the CEO of IHI Alliance, Darhim Hashim, who delivered a speech on global Halal standards development. Darhim in his speech highlighted that Pakistan could overcome the trade deficit by exporting Halal products to over 1.8 billion Muslims in the world. “Pakistan can play a key role in the supply of Halal food with the help of available raw material including meat, milk, poultry and grains,” he added. The event will mark the inauguration of Pakistan’s Halal initiatives in the Islamic republic that has the second

Darhim and Asad Sajjad, Managing Director of MESSE Pakistan (left) at the MOU signing

largest Muslim population after Indonesia. IHI Alliance’s presence at the launching ceremony is the latest development of its collaboration with MESSE Pakistan after signing a Memorandum of Understanding in support of the event on July 2009. The MOU establishes a new collaborative effort between the two organisations whereby IHI Alliance supports the initiatives by MESSE Pakistan to promote and boost Halal industry development in Pakistan. The cooperation focuses on several aspects such as IHI Alliance’s assistance in promoting the Global Halal Expo and Global Halal Congress, Halal industry workshops and training towards the development of the Halal industry in Pakistan.

One day before the ceremony, Pakistan’s Ministry of Commerce had announced that the government will support the cost of certification by 50 per cent. The initiative is part of Pakistan Trade Policy 2009-10 recently presented by the Minister of Commerce, H.E. Makhdoom Amin Fahim. The absence of Halal certification in the country is seen as an obstacle for local Halal goods producers in penetrating a global market worth USD2.1 trillion. IHI Alliance will play a major role in assisting the set up of a complete Halal certification system in Pakistan and provide training and workshops to ensure a proper compliance hj system is in place.

Event Participation of IHI Alliance around the Globe 28 September – 2 October 2009 OIC HALAL STANDARDS MEETING, ISTANBUL, TURKEY Event profile: This is the second session of the 10th meeting of OIC Standardisation Expert Group (SEG) with the task of studying and developing the OIC Halal Food Standards. IHI Alliance will be represented in this meeting. 11 October 2009 ANUGA, GERMANY Event profile: International Trade Fair for food & beverages for exhibitors and visitors to conduct cross-border business and participate in international networking. Darhim Hashim, CEO of IHI Alliance, will be a moderator at Anuga’s International Conference on World Halal Science, Industry and Business - Significance of Science & Technology in Assuring Halal Food Products Integrity and Safety.

11-16 October 2009 OIC EXPO 2009, CAIRO, EGYPT Event profile: The 12th Trade Fair of OIC Member Countries – OIC Expo 2009 - is organized by the General Organization for International Exhibitions & Fairs (GOIEF) and the Islamic Center for Development of Trade (ICDT). It aims to create favourable conditions for local and foreign enterprises and trade organizations to search for business partners; expand markets; develop production, business and import-export activities; as well as showcasing new products and services. 29-31 October 2009 DUBAI INTERNATIONAL HALAL FAIR (DIHAS) Event profile: The prestigious event will bring together companies from around the world to display genuine Halal products and services.

8-9 November 2009 GLOBAL ISLAMIC SUMMIT 2009, DUBAI Event profile: Featuring premier keynote address from His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Prime Minister of United Arab Emirates, the event will discuss issues, future directions and best practices of Islamic finance, international trade and human capital development in the current economic environment. Darhim Hashim, CEO of IHI Alliance, has been invited to speak on global Halal trade. 17-18 November 2009 WORLD HALAL FORUM EUROPE Event profile: Following the resolution of the 4th World Halal Forum, which was held in Kuala Lumpur in May 2009, World Halal Forum Europe will be the first ever regional edition of this premier event. Slated to be held at World Forum Convention Centre in The Hague, Netherlands, the forum is themed “Halal Potential – A regional Focus”.

15-18 December 2009 THE 4TH CAMBODIA IMPORTEXPORT & ONE PROVINCE ONE PRODUCT EXHIBITION Event profile: The 4th Cambodia ImportExport & One Province One Product Exhibition will be held at Mondial Exhibition Center, Phnom Penh. Organised by Cambodia’s Ministry of Commerce, this annual event will be incorporating three sub-events: Keynote Business & Investment Forum, Seminar & Workshop on One Province One Product Strategy, and relevant Business Matching.

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Cover Story Words By Ruzanna Muhammad

Ramadhan Al Mubarak

How it is celebrated in different parts of the world

A few hours before the break of dawn, the clattering sound of pots and pans can be heard in the kitchen and soon the aroma of food fills the air. The clinking of utensils against dishes merged intimately with the soft sounds of a conversation. This is nothing strange for Muslims, but only during Ramadhan. It is the sound of people waking up for sahur (meal consumed at pre-dawn/ before fajr prayer) to prepare them for a day of fasting… Is this a norm throughout the world?

The answer to that is yes. It is a norm for Muslims to wake up before fajr prayer for sahur in the month of Ramadhan simply because sahur prepares them from hunger when fasting throughout the day, much like having breakfast on regular days outside Ramadhan. It is compulsory for all Muslims who are able, to fast throughout Ramadhan1. For 29 or 30 consecutive days, Muslims would abstain from food, drink and sexual relations with their spouse from dawn to dusk; and nights are devoted to supplications and recitation of verses from the Quran. Fasting in Ramadhan – the ninth month in the Islamic (lunar) calendar – is one of the five central obligations of Islam2. Abstaining oneself from what is Halal and enjoyable (nikmah) throughout the day is a dictation from God to teach Muslims humility, patience, and to understand (experience) the hardships of the poor. For Muslims, Ramadhan is a holy month because it was in this month that the Quran was revealed; as stated in Surah Al-Baqarah verse 185 in the Quran (as translated by Abdullah Yusuf Ali [1934]): Ramadhan is the (month) in which was sent down the Quran as a guide to mankind, also clear (Signs) for guidance and judgement (between right and wrong). So every one of you who is present (at his home) during that month should spend it in fasting, but if any one is ill, or on a journey, the prescribed period (should be made up) by days later. Allah intends every facility for you; He does not want to put you in difficulties. (He wants you) to complete the prescribed period, and to glorify Him in that He has guided you; perchance ye shall be grateful.

Ramadhan is a month every Muslim looks forward to because it is the month when Muslims worldwide from a diverse culture and race feel a spirit of tolerance, patience, and unity that transcends regional and sectarian differences. For example, although Muslims around the world are of different socio-cultural traditions and despite practices of the different Schools of Thought, this act of fasting for a month demonstrates the unity of Muslims all over the world. Wherever they may be, inevitably, they will celebrate Eid ul Fitr, which signals the end of Ramadhan and welcomes the start of the new month, Syawal. The distinguishing factor, however, is how the fasting month and Eid ul Fitr are celebrated in different parts of the world. It is during this month that many economic activities within the circle of Muslims in their countries vibrantly flourish – either in preparation for Eid ul Fitr, or in celebrating Ramadhan itself – which mainly revolves around the culture of iftar3 (breaking fast), which is concurrent with the prayer at sunset (maghrib). In most countries around

the world, the fasting month is marked by the sighting of the new moon (rukyah), usually conducted by a team of ulemas from the local Islamic authority. When the new moon is sighted, this team would then announce that the fasting month will begin the next day. On the same night of the announcement, Muslims will gather in mosques to perform the first nonobligatory (sunat) prayer during Ramadhan called tarawih. A few hours prior to the fajr prayer, there will be a flurry of activity in a Muslim household in the silence of the night – waking up for sahur; following which they will fast throughout the day, carrying out their daily routines as they would on any other day until sunset, and later in the evening, they would rush for iftar either at home, at the mosque, or in restaurants. In Malaysia (being a multiracial and multicultural nation), there is one thing that the locals, both Muslims and non-Muslims, look out for during Ramadhan – the bazaars commonly known as Pasar Ramadhan, where one can find a variety of cooked food for iftar as well as cookies

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Although Muslims around the world are of different socio-cultural traditions and despite practices of the different Schools of Thought, this act of fasting for a month demonstrates the unity of Muslims all over the world. Wherever they may be, inevitably, they will celebrate Eid ul Fitr, which signals the end of Ramadhan and welcomes the start of the new month, Syawal.

and cakes for Eid ul Fitr. Pasar Ramadhan is set up in almost every state, city and town in Malaysia only during the fasting month (hence its name), where the stalls are run by Muslims. Foods bought from the bazaar are for takeaway only; normally enjoyed at home with family members or friends. After iftar, most would flock to the mosques for tarawih. Some would also host family gatherings for iftar together, followed by tarawih at home in congregation. The normal iftar scenario in shopping malls in the city would portray Muslims sitting in restaurants or cafes waiting for iftar by 6.30pm, and some shopping malls would announce over their PA system when it is time for iftar. Muslims would then break their fast, before going off to perform the maghrib prayer. In rural areas, exchanging dishes with neighbours are a common practice, as well as bringing food to the mosque to be enjoyed together at the call of maghrib. At the call of maghrib in the capital city of Syria, “75 per cent of Muslims would break their fast with family members at home,” said Wasim Syrin, a local who runs a business selling beautifully hand-sewn table cloths and runners, place mats, curtains and so on. “And then there would be tarawih. Most of us would perform this prayer at home if there are five or more people, otherwise we would go to the nearest mosque”, he continued. The rest of the night for Muslims in Damascus will be filled with prayers and supplication as well as mingling amongst family members, and naturally, sleeping right up until sahur, similar to their Muslim brothers and sisters in other parts of the world. Going back to the local scene before iftar is the hustle and bustle of their version of the Ramadhan bazaar, which is like Malaysia’s Pasar Ramadhan, except its opening hours. In Damascus, the Ramadhan bazaars operate from 9.30am up until maghrib throughout the first 15 days of the fasting month. During the remaining 15 days leading up to Eid ul Fitr, the bazaar opens as usual from 9.30am and business stops for iftar, resuming after tarawih, after which the bazaar reopens until midnight. These bazaars mainly sell products such as condiments, clothing apparels, and home décor items catering mostly for Eid ul Fitr celebration. There is also a special bazaar for groceries that opens almost 20 hours daily, from 8am to around 3am (or until sahur), on the last 15

days of Ramadhan. At the Median quarter of Damascus, the sales of sweets generally double during the fasting month. Although the varieties of sweets sold are innumerable, the traditional specialty sweet called the baraziq4 is most popular, and is only sold during Ramadhan. The bazaars in Malaysia, however, do not resume after tarawih like those in Damascus. Pasar Ramadhan closes completely during the call for prayer (azan) for maghrib. In fact, closer to Eid ul Fitr, you will see a decreased number of stalls (especially in cities); not because business is bad, but because vendors start leaving for their hometown. Narrating the words of Hajjah Riffat, a Pakistani from Lahore who is now residing and working in Brunei, “Ramadhan, in Pakistan, is a month everybody looks forward to. It is a month filled with prayers and ibadah, of course, with extra prayers and doa (supplication). It is very religious, and is a blessing, yet it is exciting for Muslims of all ages.” “There will be extra food stalls set up (throughout Ramadhan), and there are also the regular food stalls (those that are regularly open throughout the year) as well as restaurants that opens for sahur and iftar. For sahur, food stalls normally sell freshly cooked pratha and capati,” shares Hajjah Riffat. Although there are food stalls and restaurants that open with special promotions for Ramadhan, most locals in Pakistan prefer to have iftar at home with family. Sometimes, a household would host iftar,

inviting other families, to their home. Some also share food with their neighbours, exchanging dishes prepared for iftar. Like other mosques around the world, mosques in Pakistan also serves free iftar throughout the fasting month (with the food sponsored by different people at their own will), catering for the poor and needy, as well as anybody else who walks into the mosque at that time. It is a time when Muslims from all walks of life would sit down for a meal together regardless of social stature. Similar to this is what is called the ‘tables of mercy’ in Cairo during the fasting month, which are seating areas underneath colourful tents set up on street sidewalks or even the grassy centres of main roads by wealthy patrons to serve free iftar to the poor. During the daylight hours of Ramadhan, the metropolis is quiet and reserved compared to the cacophony of the rush hour as more than 16 million Muslims hurry off for iftar later in the day. While most locals would rush through the heavy traffic for iftar at home, some would attend iftar in restaurants or hotels, sponsored by companies or friends. After iftar, tarawih is also performed in Cairo, where most would congregate at the Al Hussein Mosque in the city centre. Sarah Gauch, in her article ‘Fasting days, feasting nights – Ramadhan in Cairo’5 wrote: “By eight o’clock, prayers are over, and the area around Al Hussein is boiling with activity. People are out shopping in the medieval covered markets, sitting in cafés The Halal Journal | sep+OCT 2009

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Cover Story or listening to live music behind the mosque. Tables and chairs spill onto the streets with people drinking sahlib, a hot, creamy drink with nuts and raisins, sipping hot hibiscus tea, or smoking sheesha, the ‘hubbly-bubbly’ waterpipe, while hawkers squeeze by selling Ramadhan-lantern key chains. Many will remain until one or two o’clock in the morning, when they will eat sahur.” For sahur in rural residential areas, a mesaharati6 would walk down the streets banging a drum to remind anyone asleep to wake up and eat before sunrise. “Cairo during Ramadhan is transformed, perhaps more vibrantly than any other city in the Muslim world, into a kaleidoscope of light and colour, with glittery streamers connecting the houses and colour-glass lanterns hanging everywhere,” stated Gauch. Iftar in Brunei is what the locals would refer to as sungkai in the local dialect. The atmosphere of Ramadhan in Brunei is similar to Malaysia, where even the non-Muslims look forward to Ramadhan, because of the variety of food sold at seemingly endless bazaars, and sales for cheaper shopping. Operating from 2pm to 8pm, the Ramadhan bazaars sell food for iftar and other merchandise for Eid ul Fitr preparations such as clothes, textile, home décor items, and so on. Halal restaurants would promote buffets and meals at a discounted price especially for iftar, and some restaurants are also open for sahur (from 1am to 3am). Most locals would see the signal of the approaching Ramadhan when His Majesty the Sultan and Yang Di-Pertuan of Brunei would distribute dates to all Muslim households in the country, towards the end of the eighth month of the Islamic calendar, Sya’aban. These dates by the Brunei Monarch would be delivered to the Heads of villages (ketua kampung), who would then distribute the dates to the villagers accordingly. Also in Sya’aban, most Muslims in Brunei would organise a small gathering in their homes for praying, supplication and recitation of the Surah Yaasin from the Quran. This gathering is called doa selamat to seek blessings from the Almighty and to welcome the month of Ramadhan. As narrated by a group of young Bruneians, “The Istana (Monarch’s palace) is open during the first ten days for recitation of the Quran (Tadarus Al Quran), which normally takes place after the night prayer (isha’).” In Brunei, it was mentioned that revenue of businesses is increased three-fold compared to regular months; especially businesses in automobile, furniture, electronics, as well as textile – perhaps due to the increased spending by the locals in preparation for Eid ul Fitr. Muslims around the world are diverse in culture and tradition, but in Ramadhan, one will notice similarities in terms of basic practices conducted by Muslims worldwide: the fasting from sunrise to sunset; waking up for sahur; gathering for iftar; the reciting of the Quran; and performing the tarawih. These are spiritual aspects of major focus throughout the holy month of Ramadhan. Mosques everywhere are filled to the brim every night with those who pray the tarawih. For example, Palestinians, both men and women, would make their way across the Israeli border to pray at the Al Aqsa Mosque in Jerusalem during Ramadhan. Concurrently, Muslims in other countries are also making their way to the nearest mosque to perform the tarawih. All over the world, most radio and television

stations would broadcast many spiritual and Islamicrelated documentaries and educational programmes, as well as the recitation of the Quran. One will also be able to watch how tarawih is performed in Saudi Arabia, namely in Medina and Mecca. Muslims throughout the world would also spend this Holy month with charitable activities. To provide for the poor and needy, there are the free iftar in mosques worldwide that are sometimes sponsored by individuals, companies, or associations; the ‘tables of mercy’ in Cairo; iftar gatherings hosted by companies or the wealthy for orphanages; the ‘Feed the Fasting’ programme by Islamic Relief worldwide; and so on. Another flurry of activities throughout the fasting month is that concerning food – prominent across geographical regions with a taste of local culture. The foodservice and hospitality sectors offer special promotions for iftar and some even extending their services for sahur. There are also Ramadhan bazaars selling food in many parts of the world where you will find delectable local treats such as the traditional sweet meats sold for iftar at the Chalk Bazaar in Dhaka, Bangladesh; specialty cookies of Syria only sold during Ramadhan; the variety of colourful traditional delicacies of Malaysia, Indonesia and Brunei; and many other specialties only available during the fasting month. For the festive Eid ul Fitr, small businesses selling cookies, cakes and biscuits would also flourish, although seasonal. Businesses, however, do not only stop at food during Ramadhan. The textile sector in many parts of the world would see an increase in sales because many people would buy new clothing to celebrate Eid ul Fitr. In Brunei, many would visit textile shops for materials to make their traditional outfit; and in Dhaka, Bangladesh, workers

in a factory producing prayer caps would be busy sewing, because of the huge demand for prayer caps during Ramadhan. Home décor, furniture and electronic hardware sectors would also see their businesses flourish during Ramadhan and especially nearing Eid ul Fitr; one example is how the sale of lanterns grows tremendously during Ramadhan in Egypt - as a local tradition, Egyptians would decorate their homes with the colourful Fanus Ramadhan7. The fasting month is filled with blessings from God, and one such blessing is that Ramadhan provides an avenue for businesses to prosper. Muslims all over the world would take the opportunity to run even the smallest business of selling food at a Ramadhan bazaar – a source for extra income. Ramadhan being a time to reflect and learn, perhaps Muslims could extend their businesses even after Eid ul Fitr; for example, those in the food business could consider providing for the increasing demand for Halal food, be it for the small Muslim community in a Muslim minority country or for the larger Muslim population worldwide; whereas those in other sectors could focus on the Muslim market that they could cater for in their specific areas, such as Islamic hospitality services, Islamic fashion, and Islamic tourism. At the end of the day, the spirit of celebrating Ramadhan unites Muslims all over the world in the spiritual values it brings about, and the act of fasting, which is a method of self-purification and selfrestraint. Ramadhan is a time for reflecting, educating and learning, forgiving, sharing and caring. It teaches us how to live in moderation and to be thankful with what we have. But most of all, it allows us to be closer to the Creator, Allah the Almighty, reminding us of our responsibilities hj as vicegerents on Earth.

Footnote: 1. Quran: Surah Al-Baqarah verse 183 (as translated by Abdullah Yusuf Ali [1934]): O ye who believe! Fasting is prescribed to you as it was prescribed to those before you, that ye may (learn) self restraint… 2. The Five Pillars of Islam are the foundation of Muslims’ life. They are: 1) Recitation of the Syahadah, which is a declaration of faith or belief in the Oneness of God and that the last prophet is the Prophet Muhammad (p.b.u.h); 2) Establishment of the five daily prayers; 3) Paying Zakat (almsgiving to the needy); 4) Fasting in the month of Ramadhan; 5) Pilgrimage to Makkah to perform the Hajj (for those who are able). 3. Iftar is the time each day when the fast is broken with a meal at dusk 4. Baraziq is a delicious cookie, crisp and flat and covered with oven-browned sesame seeds. 5. This article, written by Sarah Gauch (a freelance news and magazine-feature writer in Cairo), appeared on pages 60-65 of the January/February 2002 print edition of Saudi Aramco World, and is now available online at http://www.saudiaramcoworld. com/issue/200201/fasting.days.festive.nights-ramadan.in.cairo.htm 6. The person who is in-charge to stroll through the streets before dawn, banging drums to wake people up for sahur during Ramadhan. In this digital era, a mesaharati remains a steadfast Ramadhan tradition, except in rural areas where alarm clocks or any media used to tell time is hard to come by. 7. Fanus Ramadhan – traditional lanterns that are famous in Egypt during Ramadhan

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World Halal Forum Europe

Call for papers THE WORLD HALAL FORUM IS ACKNOWLEDGED AS THE FOREMOST GATHERING OF HALAL INDUSTRY LEADERS FROM ALL OVER THE WORLD, ALL CONVERGING TO DISCUSS ISSUES WITHIN THE GLOBAL HALAL INDUSTRY. THIS MAKES IT AN EXCELLENT PLATFORM TO SHARE IDEAS, RAISE CONCERNS AND SUGGEST OPPORTUNITIES SO AS TO CHART THE FUTURE GROWTH AND DEVELOPMENT OF THE HALAL INDUSTRY. WE THEREFORE INVITE ALL INDIVIDUALS AND CORPORATIONS TO CONTRIBUTE TO THE DEVELOPMENT OF THE GLOBAL HALAL MARKET BY SUBMITTING PROPOSED PAPERS TO BE PRESENTED DURING THE WHF EUROPE 2009.

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Fatwas

between its assumptions for conditions and real situations Words By

Dr. Hani Mansour Mosa Al-Mazeedi, Kuwait Institute for Scientific Research

atwa is a religious answer to a question regarding a matter or an event in question. Mufti is a person who delivers the fatwa, and an Ifta committee is a group of Muftis delivering a fatwa. Modern events require an Ifta committee to deliver a fatwa, since an event under a fatwa requires measuring it to similar events that happened at the time of the Prophet Muhammad (peace be upon him, p.b.u.h), or measuring it to similar events that happened at the time of the companions of the Prophet Muhammad (p.b.u.h), since they are the ones who understand Islam best after the death of the Prophet Muhammad (p.b.u.h). When a fatwa is delivered, its decisions are based on the specific matter or event put in front of an Ifta committee, and when it is delivered, it is assumed that it happened the way it has been narrated. Ifta committee always asks many questions to see if an event happened as the questions have been tailored. Sometimes, an event is not well established, or was assumed it happened that way, and when later discovered to be otherwise, the fatwa will be changed. Two examples of interest to Halal meat providers are on stunning1 and mechanical 26 The Halal Journal | sep+OCT 2009

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slaughtering. The fatwas, referring to these two critical issues, have put few assumptions and conditions based on what has been narrated to the Ifta committee, and in the end, it has allowed eating meat from carcasses, these techniques of which, have been made compulsory as part of the Halal slaughtering process. However, experts in the Halal meat industry, think that the assumptions and conditions put by Ifta committees for stunning and mechanical slaughtering could be totally misunderstood and misused by the meat industry as an official green light to the use of such techniques. With regards to stunning, the assumptions and conditions fatwas have put are as follows: “If stunning proves to be humane, and merciful, then it can be used”. But, how could someone prove that stunning of animals or birds before slaughtering is more humane? The only way would be to speak face to face to the stunned animals or birds and ask them if it is merciful and more convenient before they get slaughtered!! And on behalf of all animals and birds, I would answer: NO! It is not merciful. Why? Just imagine, before someone gets killed (as part of a death sentence by an official court), his head is struck against a wall, or he gets an electrical shock. I would classify that act as inhumane and torturous. Therefore, for the slaughtering of an animal/ bird, a better and more humane way would be to make a quick cut with a sharp knife across the major blood arteries to allow for complete bleeding. This could put the animal/ bird into a quick sleep and total loss of consciousness – a procedure which has been followed since the creation of Adam (p.b.u.h.) for the preparation of meat

from animals and birds. Another condition imposed by fatwas regarding stunning is that: “It should not lead to the immediate death of animals or birds before the actual slaughter by a sharp knife”. In practice, and in a real scenario, when electric stunning is used, birds or small animals such as sheep will go back to life again after the stunning effect is gone. However, if the voltage is not properly calibrated or set incorrectly (as reported by Muslim Halal meat experts), it may lead to the immediate death of birds and small or weak animals. With penetrating captive bolt pistol, which is the stunning method used for big animals such as cows, this method will definitely lead to the death of the cow after a short period of time if the stunned cow is left without slaughtering. The final condition imposed by the Ifta committee for the use of stunning is that: “During bleeding, stunning should not reduce the amount of blood”. Researches conducted on the effect of stunning on bleeding process reported that stunning of animals or birds reduces the amount of blood, which means that most of the blood has not been drained out from the carcasses. This puts the meat obtained from stunned animals or birds under a food safety issue, a sign of which, it will be unsafe and could lead to a shorter shelf life. In addition, consumers buying the meat of animals/ birds that have been put under stunning conditions will have to pay a higher price, as they will also be paying for the extra blood in the meat (considering that meats are purchased based on weight). This is considered as a malpractice and as an added economical value for the meat industry. Mechanical slaughtering

is a technique which is used worldwide by many poultry slaughterhouses that slaughter birds on a mass scale in a short period of time. The assumed condition made by an Ifta committee for the use of mechanical

knife is positioned, to ensure the re-recitation of the Tasmiyyah. The question now is: who is behind the idea of stunning and use of mechanical slaughtering? Is it the Farm Animal Welfare Council (FAWC)?

Sometimes an event is not well established, or was assumed it happened that way, and when later discovered otherwise, the fatwa will be changed. slaughtering is that: “The sharp cylindrical knife must cut precisely at the location specified by Islam (which is under the Adam’s apple and to ensure the cutting of the major arteries)”. However, in reality, the precise location of the cut specified by Islam does not often happen, as the knife requires constant calibrations; and thus, it cuts at a different part of the upper area of the bird, such as part of the head and not the neck and so on, as reported by experts from Halal meat groups in Malaysia and Kuwait. As a result of such findings, it has caused the Malaysian government to change its fatwa, and thereby has prohibited its use. The other condition set by the fatwa regarding the use of mechanical slaughtering is that: “If the mechanical slaughtering for any reason has stopped, and before switching on the mechanical knife again, the Muslim in charge of the slaughtering process must again recite the Tasmiyyah (Bismillah Wallahu Akbar)”. This means that mechanical slaughtering requires the permanent presence of a Muslim supervisor located in an area exactly where the mechanical

I totally doubt it. Or, is it the owners of slaughterhouses? To this, I would comfortably and without any doubt answer: YES! The meat industry is the one who supports stunning and mechanical slaughtering in order to make fast money, which means more money in a short time, and this is at the expense of moral, religious values, and the mercy of animals and birds. In conclusion, my advice to all Ifta committees worldwide is to reconsider fatwas on the use of stunning and mechanical slaughtering. These techniques are inhumane and not well developed especially in the case of mechanical slaughtering, and will definitely make meat obtained from such techniques doubtful, and does not suit the ideal Islamic Law of providing 100 per cent Halal meat. Allah the Almighty hj knows what is best. Footnote: 1. Stunning uses electric shock like concussion, or by hammer like knocker and mushroom head gun, or blow on head, like penetrating captive bolt pistol, or using suffocating gas. **Note: Dr Hani Mansour Mosa Al-Mazeedi is an Associate Research Scientist at the Kuwait Institute for Scientific Research. He was one of the pioneers who started promoting Halal in a holistic manner integrating HACCP and Halal, and taking the concept across the whole supply chain. He can be contacted via email at mazeedi@hotmail.com or his mobile at +96597498500.

The Halal Journal | sep+OCT 2009

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The Chilled and Frozen Halal Food Market in Malaysia

Structure and Potentials Malaysia has been undergoing Halal food industry revitalisation since late 1998 with the launch of the Third National Agricultural Policy (NAP3: 1998-2010). The industry received further boost with the launch of the Ninth Malaysia Plan (9MP) where the national vision to be an International Halal Food Hub was reiterated where the agricultural and agri-based sector is designated to be the third engine of economic growth.

he Third Industrial Master Plan (IMP3:20052020) further envisaged the national vision of Malaysia to be an International Halal Hub, where the focus was expanded from Halal food products to non-food products (pharmaceuticals, health products, medical devices, and cosmetics and toiletries) and Halal-related services (logistics, packaging, branding and marketing, print and electronic media, and travel and tourism).

Although the scope of the national vision in IMP3 has been enlarged, this article will only cover the Halal food market, as food products have the largest awareness level as Halal products compared to non-food products due to the issue of polarisation in the interpretation of Halal, as well as ethnicity and customary understanding on what is Halal. The revitalisation of the domestic Halal food industry is projected to grow in the near future as the Halal food industry received worldwide attention due to its expected potential and international

recognition. For Malaysia, as a pioneer in the development of Halal food products, the natural increase in awareness and interest in this sector was due to its perceived lucrative potential in the global market. The Halal Journal (May/June 2009 edition) and Times magazine (May 2009 edition) reported that the global Halal food market size exceeds USD632 billion and the expected future growth rate is enormous. Hence, many Malaysian businesses have tried to tap this market. Nevertheless, the structure of the domestic Halal food

industry in Malaysia is rarely discussed. Therefore, this article aims to provide further understanding of the domestic Halal food industry. Being a net importing country for most of the (Halal) food products, it is obvious that to be strong in the export market, local companies must be able to fully tap the domestic market competitively. The restructuring process of the local Halal food industry can be seen in several parameters, such as the gradual change in the distribution system of Halal meat products in the retail market, where customers are

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slowly moving away from ‘wet markets’ toward modern retail food sectors such as through the existence of supermarkets and hypermarkets. The Malaysian Halal food market can be seen in two dimensions: from the way foods are being prepared (fresh, chilled and frozen); and product categories (meat and meat-based; fishery and seafood; processed; and so on). However, this article will only focus on the chilled and frozen Halal food products, and Halal meat and meatbased products, because these two have the biggest contribution in the market size. Chilled and Frozen Halal Food Products in Malaysia

In line with the gradual restructuration of the domestic Halal food industry, a larger portion of Halal food products need to be chilled or frozen before entering into the distribution system in the country, especially in the case of Halal foods utilising imported products as the main raw material. While fresh Halal food products remain the largest market segment in the country with approximately 70 to 75 per cent share of the total sales of Halal food products, it is worth noting that the sales value of chilled and frozen Halal food products has a relatively faster average growth rate compared to the sales of fresh Halal food products. As noted earlier, busy lifestyle, demographic changes, higher portion of working women in the job market, trend toward delayed marriage and a few other factors contribute to the growth of the sales of chilled and frozen Halal food products in Malaysia, similar to the trends that exist in most modern countries globally. In Malaysia, according to a study conducted by Kassim Chan Deloitte and Touche Tohmatsu Management Solutions Sdn Bhd (DKMC) on “Marketing of Chilled and Frozen Food in Malaysia” in 2002, the estimated total domestic market size for

Table 1: Domestic Market Size of Various Types of Chilled and Frozen Halal Food Products During 1999 to 2010 (RM Million) Product Categories 1999 2005 2010(p) RM (million) % RM (million) % RM (million) A. Ready Meals & Convenience Foods

9.5

0.6

36.3

1.2

73.0

1.3

42.8

2.9

163.3

5.5

328.5

5.9

5.6

0.4

10.0

0.3

24.8

0.4

D. Processed Vegetables

506.7

32.4

1,138.9

35.9

2,750.9

43.2

E. Meat and Meat-Based Products & Fishery/Seafood Products

995.6

63.7

1,763.8

57.0

2,840.6

49.1

1,560.2

100.0

B. Snacks/ Confectionaries C. Food Ingredients

TOTAL MARKET SIZE Source: Calculated from DKMC Study [2002];

3,112.3 100.0

6,017.8 100.0

Note: (p) projection

As a whole, total ex-farm value of livestock industry (fresh, chilled and frozen meat and meat-based products) in Malaysia reached RM9.8 billion in 2008. Of this amount, about 83 per cent or RM8.1 billion (USD3.3 billion) was the annual ex-farm value of the domestic Halal livestock industry. various chilled and frozen food in 1999 amounted to RM1,560.2 million. Of this amount, approximately close to two-thirds, or RM995.6 million was in the form of chilled and frozen meat, and meat-based products as well as processed seafood and fishery products. In line with the requirements set by the Animal Rules 1962, Trade Description Act 1972, Trade Description Order (The Usage of Halal) 1975, and Trade Description Order (Food Labelling) 1975 as well as consumers’ requirements, almost all of these food products are Halal, especially meat and meat-based products that utilise imported raw or primary products for additional processing in the local processing plants. Based on these facts and the fact that Muslims constitute more than 60 per cent of total consumers in Malaysia, literally all of the locally distributed food products are Halal. The projection of domestic market size (as calculated from the DKMC study) for various chilled and frozen

Halal food during the period of 1999 and 2005 as well as estimated market size for 2010 are presented in Table 1. Market Size of Halal Livestock (Meat and Meat-based Products) in Malaysia

domestic market size of Halal meat and meat-based products reached RM2.67 billion in 2005. It is projected to increase to RM3.41 billion in 2010. With an average annual growth rate projection pegged higher at 10 per cent per annum, the DKMC study in 2002 projected the domestic market size of Halal meat and meat-based products to reach RM3.22 billion in 2005 and to continue growing to RM5.19 billion in 2010. Table 2 shows the estimated market size of Halal meat and meat-based products in Malaysia during the period of 2001 and 2010. Information given by the DVS as well as previous studies conducted by KasehDia and the World Halal Forum Secretariat (Malaysia Foodservice Sector Report 2007, and so on) reveal that the estimated market share of foodservice and institutional sector, which consists primarily of fast foods/ quick-serve restaurants, catering services, and hotels and resorts is the largest compared to the retail sector. The projected market The Halal Journal | sep+OCT 2009

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Table 2: Estimated Market Size of Halal Meat and MeatBased Products in Malaysia with Different Scenarios of Average Growth Rate (5% and 10%), 2001 - 2010 Industry Segment and Scenario 2001 2005 2010(p) RM (million) RM (million) RM (million) Scenario 1: Avg Annual Growth = 5% Total Domestic Market Size of the Halal Meat and Meat-Based Products • Foodservice & • Institutional Sector • Retail Sector Scenario 2: Avg Annual Growth = 10% Total Domestic Market Size of the Halal Meat and Meat-Based Products • Foodservice and • Institutional Sector • Retail Sector

2,200

2,670

3,410

1,430 – 1,540

1,740 – 1,870

2,210 – 2,390

660 – 770

800 – 930

1,020 – 1,200

2,200

3,220

5,190

1,430 – 1,540

2,090 – 2,250

3,370 – 3,630

660 – 770

970 – 1,130

1,560 – 1,820

Source: Calculated based on data published by the Department of Veterinary Services Malaysia [2002] and industry survey [2009] Note: (p) projection

share of this sector is about 65 to 70 per cent of the total domestic market size of Halal meat and meat-based industry in the country. The remaining 30 to 35 per cent went to the retail sector, which include the wet markets and the modern hypermarkets such as Carrefour, Tesco and Giant. The fact that foodservice and institutional market plays a major role in the Malaysian Halal food industry shows that the growth potential of the domestic Halal food industry is enormous. In most cases, foodservices and institutional clients such as chained international fast food companies (Burger King, McDonald’s, KFC, and so on) and hotels (JW Marriott, Hyatt, Hilton, and so on) uses the same purchasing standards and requirements in their outlets worldwide. Hence, the ability to penetrate domestic foodservice and institutional clients should be used to minimise the ‘learning curve’ with the objective to penetrate

The fact that foodservice and institutional market plays a major role in the local Halal food industry shows that the growth potential of the domestic Halal food industry is enormous. the global foodservice and institutional markets. Malaysian-based companies have the potential to be the trusted Halal suppliers for these outlets in foreign markets. In addition to that, an increase in the number of foreign tourists coming to Malaysia is also another positive signal to ‘internationalise’ local cuisines/ domestic food products. As an example, based on the information given by the Food Control Department of the Dubai Municipality, UAE, as well as an interview with McDonald’s Middle East (Dubai, 2009), a success story was found about a Malaysian company, MacFood Services Sdn Bhd, which already is

able to position itself as the leading supplier of Halal chicken meat-based products (chicken nuggets, patties, and so on) to McDonald’s outlets in five of the six GCC member countries (UAE, Kuwait, Qatar, Bahrain and Oman) since the past decade. Summary and Concluding Remarks

Malaysia, being a leading country in the promotion of the global Halal food industry has a sizeable Halal food market with enormous growth potential. The estimated domestic market size of chilled and frozen Halal food products reached RM3.1 billion (USD0.86 billion) in 2005 and projected to continue

to increase to RM5.1 billion (USD1.42 billion) in 2010. The above number excludes the fresh Halal food sector, which is mainly in the form of sales from wet markets or traditional markets throughout the country. Hence, it is estimated that the combined market size of fresh, chilled and frozen Halal food in Malaysia could double the above figure. The Halal meat and meat-based (fresh, chilled and frozen) sector remains as among the most important agri-based sectors in the country, with the projected total value of RM8.1 billion (USD3.3 billion) in 2008. Sales of Halal meat and meat-based products are projected to reach between RM3.41 billion and RM5.19 billion during 2010. Out of this amount, sales of the foodservice and institution sector are relatively the largest compared to sales of the retail sector in the country. Malaysian Halal food companies should be able to exploit this situation by increasing their ability to supply to the chained international foodservice outlets and hotels in the country as the standards and purchasing requirements are normally the same across the countries worldwide. Hence, the ability to sell to the local foodservice outlets shall increase the possibility to win the competition in capturing the foodservice sector market in foreign countries. This could be another opportunity for domestic Halal food companies, taking advantage of the fact that Malaysian Halal food products are known as trusted products by consumers in major export markets in the world, where the confidence level for Malaysia Halal is high. hj

References: 1. Third Industrial Master Plan (IMP3: 2005-2020), MITI, Malaysia 2. Third National Agricultural Policy (NAP3: 1998-2010), MOA, Malaysia 3. Ninth Malaysia Plan (9MP: 2005-2010), EPU, Malaysia 4. Kassim Chan Deloitte & Touche Tohmatsu Management Solutions Sdn Bhd/ DKMC [2002]. Study on Marketing of Chilled and Frozen Food in Malaysia, Malaysia 5. KasehDia Sdn Bhd [2007]. Malaysia Foodservice Sector Report 2007, Kuala Lumpur, Malaysia 6. Department of Veterinary Services Malaysia [2002, 2009]

30 The Halal Journal | sep+OCT 2009

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fast track | ASIA

Violence at home Women are most commonly known to be victims of domestic abuse rather than men. For example, in the United States, a woman was decapitated by her estranged husband. However, in this world today, where women’s rights rallies and awareness campaigns have mushroomed throughout the world, it is not surprising to encounter domestic violence committed by women towards men. For example, in Malaysia recently, a man was stabbed by his wife simply because he returned home later than expected after watching a football game between Manchester United and the Malaysian team. This form of abuse is simply intolerable for both sexes. The questions are: why is it that when men are victimised, people do not make it an issue? Could it have occurred often over the years? Are the men too shy to come forth about being abused? The important thing when it comes to domestic abuse or violence is that the victim (regardless of gender) must not be afraid/ shy to report their cases. Domestic violence is something to be concerned about because victims (if they survive) may suffer from long term physical disorders from the physical trauma, or suffer from mental and emotional distress. Most countries already have agencies or institutions that focus on this issue, such as the All Women’s Action Society (AWAM) and Women’s Aid Organisation (WAO) in Malaysia. Coming across associations protecting the rights of women are no longer a tough deal, especially with regards to domestic abuse/ violence. But, where can men find associations/ agencies that protect/ consult them

Photo by Zannina Alzura

Domestic violence frequently refers to violence between family members or in a household. It occurs in all cultures; people of all races, ethnicities, religions, sexes and classes can be perpetrators of domestic violence. Zaahira Muhammad covers the Islamic perspective of domestic violence between husband and wife.

However, Islam only allows a certain type of beating, which is light beating (tapping) when wives disobey their husbands. This beating, even where permitted, is not harsh. when they are victimised by their wives? Authorities in charge of handling domestic abuse/ violence cases must not discriminate the victims by gender, race, religion, or even culture. On domestic violence, The International Islamic Fiqh Academy on islamonline.net stated that, “This behaviour is forbidden because it contradicts the objectives of Shariah as regards to the preservation of life and reason, and because it contradicts the divine approach that is based on righteousness and kind treatment.” Islam calls for peace; it does not encourage all kinds of domestic violence. In order to preserve stability in marriage, Islam gives the head of the family, the husband and father, authority to some firmness in aims to safeguard the family members’ interests while still following the guidelines from the Quran.

Islam and domestic violence are constantly disputed due to the fact that Islam allows husbands to beat their wives in cases of rebelliousness. However, Islam only allows a certain type of beating, which is light beating (tapping) when wives disobey their husbands. This beating, even where permitted, is not harsh. Scholars have mentioned that the Prophet Muhammad (p.b.u.h), directed men to not beat their wives to cause pain but simply to correct their behaviour. Even so, men are not to hit their wives’ faces or leave marks on their wives’ bodies, because that way of beating is not permitted in Islam, which promotes peace and does not condone violence. Verse 34 of Surah An-Nisa’ in the Quran stated that there are four steps to be taken in the following order in case family disputes occur: • Perhaps verbal advice or admonition may be sufficient

• If not, sex relations may be suspended • If this is not sufficient, some slight physical correction may be administered (light beating without causing pain or leaving marks and scars) • If all this fails, a family council is recommended. According to the Islamic scholar, Ahmad Shafaat, “If the husband beats the wife without following the restrictions that were set in the Quran and Hadith, the wife is allowed to take him to court.” In July 2009, a conference entitled Muslim Women: Building Institutions, Creating Change, which was held in Kuala Lumpur, speaks out against domestic violence in Islam. The conference which was held by the Women’s Islamic Initiative in Spirituality and Equality (WISE), is focused on speaking out against violent extremism and domestic violence. This shows how serious these issues on domestic violence are. As human beings with the ability to reason and rationalise, men and women (both Muslims and non-Muslims) should work together to stop domestic violence from continuing. hj

32 The Halal Journal | sep+OCT 2009

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advertorial

Farm’s Best continues to bring its best to the table The Farm’s Best name has become synonymous with quality Halal poultry products since the company’s establishment in 1985. What started out as a small poultry farming business has grown into a multi-million-ringgit poultry processing operation that includes farms, hatcheries, feed mills and a high-tech processing plant that produces fresh, chilled or frozen poultry products. Today, Farm’s Best is a leading poultry processor and principle supplier of various poultry products to major fast food chains, restaurants, supermarkets and hotels in Malaysia. The company also exports to primary markets in the Asian region from Singapore to as far as Hong Kong and Japan. The company’s ISO-certified processing plant harnesses the latest technology in poultry processing, packaging and storage to maintain freshness and quality. In as recently as 2007 and 2008, Farm’s Best introduced its Antibiotic Residue-Free fresh whole broilers and cuts in a new sealed bag format. The hermetically sealed special-grade shrink bag is leak-proof and tamper-proof to retain freshness and prevent cross-contamination. At the same time, the bag has tiny pores that allow the product to “breathe” in order to prevent odour build-up. Once bagged and chilled, the meat stays

fresher much longer than meat packed in ordinary plastic bags. State-of-the-art packaging is just one aspect of producing quality poultry products. At Farm’s Best, great-tasting quality products begin from its hatcheries and farms. An all-natural Halal vegetarian feed supplemented with essential vitamins and routine veterinary health checks ensure a healthy livestock. The company’s operations from its farms to its processing plant are monitored by on-site veterinarians and Quality Control

inspectors according to HACCP (Hazard Analysis and Critical Control Points) and international GMP (Good Manufacturing Practice) guidelines. As a poultry producer and processor dedicated to Halal food production, Farm’s Best has an in-house Halal committee to ensure operations and products meet stringent Islamic requirements at all times. Only Muslims trained in Halal slaughter rites are employed by the company. All raw ingredients are sourced from local and overseas suppliers endorsed by the Department of Islamic Development Malaysia (JAKIM). The finished products carry the official Halal logo issued by JAKIM and are guaranteed Halal. They are also free from common flavour enhancers such as Monosodium Glutamate (MSG) and Hydrolysed Vegetable Proteins (HVPs). A part of Farm’s Best success both locally and abroad stems from its range of product offerings that cater to largescale food industries and the everyday cook. The company produces chilled fresh whole broilers and chicken cuts as well as frozen poultry-based food products. Farm’s Best frozen foods are well-known for quality, great taste and variety. Besides chicken frankfurters, burgers, nuggets and breaded drummets, the company has consistently

introduced new and innovative frozen foods to satisfy market demands for delicious, easy-toprepare food. Its latest frozen food products under the Farm’s Best brand are the cuminflavoured Farm’s Best Chicken Fillets and the crunchy, Orientinspired Farm’s Best Tempura Chicken Nuggets. The two products hit the freezer shelves of Malaysia’s major supermarkets and hypermarkets in 2008. Farm’s Best also produces a range of products that are pre-cooked and packaged for minimal handling from the freezer straight to the microwave or frying pan. Over the years, Farm’s Best has won several product innovation awards and other notable industry awards. The company was awarded the Outstanding Meat Processor Award 2003, the Malaysian Livestock Industry Award in 2001 and 2003, as well as a Super Brands Malaysia award. Riding on Malaysia’s solid reputation as a global Halal manufacturer and exporter, the company is now looking to expand its product lines and its reach to more Halal markets abroad. In order to achieve this, Farm’s Best is constantly on the look out for new technology to augment its existing operations. Its export market expansion plans include countries in the Middle East and other Muslim-majority countries. The Halal Journal | sep+OCT 2009

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fast track | ASIA

Sri Kulai launches licensing programme and lifestyle concept outlet at Jaya One By Zaahira Muhammad

Manufacturer of Sri Kulai, AYS Sdn Bhd, launched its licensing programme and its first lifestyle concept outlet at Jaya One in Petaling Jaya, Selangor, Malaysia, on 18 June 2009, which was officiated by YBhg. Dato’ Hafsah Hashim, CEO of SMIDEC (Small and Medium Industries Development Corporation). Halal Industry Development Corporation (HDC) Vice President of Operations, Farid Z. Hamid, was also present during the launch. Managed by AYS Signatures Sdn Bhd, Sri Kulai licensing is targeting 100 outlets in five years with a total estimated investment of RM190,000 depending on the size and location of the outlet. Sri Kulai Lifestyle Concept Store in Jaya One extended their menu to include various range of microwaveable frozen meals and expansion of its signature dish which is the Halal Dim Sum. Sri Kulai food range is available in selected Jusco outlets as well as on Air Asia flights. Liow Ren Jan, CEO of AYS

Interior of Sri Kulai Lifystyle Concept Store in Jaya One

Sdn Bhd, said, “We are confident our innovative concept of food would be acceptable not just for consumers, but also for budding entrepreneurs. Our first Sri Kulai outlet at Jaya One carries the concept of 3-in-1, where consumers can self-serve with our microwaves, take-away the frozen meals as well as eat-in, based on choices from our menu. The concept can be extended further to four or even 5-in-1 where we would later include delivery service

and a drive-through. ‘Reaching for the stars’, the theme of the launch, was highlighted simply because we believe in striving to the highest peak together with existing and interested individuals and organisations by owning consistent provision of innovative quality products and services.” During the launch, YBhg. Dato’ Hafsah Hashim said, “SMIDEC is pleased to be able to witness a Malaysian company from the Small and Medium Industries

(SMIs) sector take a step forward to achieve its licensing dream for a local brand, especially in the Halal industry. Sri Kulai, a product manufactured by AYS is among the few local SMIs that have dared to dream and is implementing the dream and making it possible.” “The Halal food industry is growing and companies such as AYS who is launching its licensing in the Halal food segment, is doing its part in contributing to the growth of this industry as well as providing further entrepreneurial opportunities and directly promoting awareness on Halal food to Malaysians,” affirmed Farid Z Hamid.Although AYS is currently focusing on the Malaysian and Indonesian markets, views to expand to the Middle Eastern region is among AYS’s expansion plan for the future. Sri Kulai is also offering special promotions for the month of Ramadhan. Head down to Sri Kulai Lifestyle Concept Outlet at Jaya One and enjoy savings of up to 33 per cent! Promotion is valid from 20 July to 30 October 2009. hj

Volys Star

Halal certified

premium cooked poultry products Turkey breakfast meat Meal components Premium charcuterie products

34 The Halal Journal | sep+OCT 2009

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Best Halal Restaurant Awards invitation for Nominations Do YOU have a favourite restaurant in the KlangValley (KL & Greater KL)?

The Halal Guides INVITES you to nominate for the Best Halal Restaurant Award, in the categories listed below. The Halal Restaurant Awards provide unparalleled recognition and credibility. The winners will be highlighted with media coverage in The Halal Journal magazine.

“...the first seworld’s Halal froies of restaur od guidesant .” The As ia Street n Wall Journa l

Vote NOW to ensure YOUR favourite restaurants win the prestigious BEST Halal Restaurant Award Best Halal Malay Restaurant : Best Halal Middle Eastern Restaurant : Best Halal Indian Restaurant : Best Halal Indochine Restaurant : Best Halal Western Restaurant : Best Halal Chinese Restaurant : Editor’s Choice : Write your nominated restaurants in the categories above All participants of Halal Food Guide: Kuala Lumpur 2010-11 stand a chance to win a Best Halal Restaurant Award The submission dateline is 24th October 2009, 1800 hours local Kuala Lumpur time. You may fax this form to us, or alternatively send us an email with your nominations, attention to: Ms. Sunita Riar (Manager - Marketing and Corporate Communications) Fax: +603 6203 4072 Email: sunita@kasehdia.com

Halal Food: Kuala Lumpur 2010-11 will be out in the market soon I wish to nominate for the Best Halal Restaurant Awards (my votes are shown above). I wish to participate in the Halal Food Guide: Kuala Lumpur 2010-11 to be eligible for the Awards. Name:

Organisation: Position: Email:

Telephone:

The Halal Guides Series is created and published by

K a s e h D i a Sd n B h d 3 1 - 2 P l a z a C r y s ta lv i l l e , J a l a n 2 2 A / 7 0 A , D e s a S r i H a r ta m a s , 5 0 4 8 0 K u a l a L u m p u r , M a l ay s i a t +6 03 6203 1025 f +6 03 6203 4072 e info@kasehdia.com w w w w. k a s e h d i a . c o m

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fast track | ASIA

The growth of Indian Halal meat exports to GCC countries The Gulf Cooperation Council (GCC) countries is a grouping of six Arab countries in the Gulf region in the Middle East, which includes Saudi Arabia, United Arab Emirates (UAE), Kuwait, Oman, Bahrain and Qatar. These six countries have among the highest economy and GDP (Gross Domestic Product) per capita in the whole Middle East region. These six countries have relatively low self-sufficiency level of meat products and hence, imports of meat products are considered quite huge. Total imports of Halal meat and meat-based products in GCC countries rose from 691.6 thousand MT (metric tonnes) in 1996 or USD1.1 billion, and rose to 1.37 million MT or USD2.3 billion in 2007. Generally, Brazil is the major source of imported meat in all the six GCC member countries. Moreover, the increase in production cost in European countries and the removal of export subsidy given by European countries to their exporters have strengthened Brazil’s position as a dominant supplier to this region. In terms of total meat imports, Brazil’s share reached 54 per cent with a total export of USD1.24 billion during 2007. Brazil has a much larger market share for poultry meat products, with an estimated market share of about 80 per cent of the total imported poultry meat within the GCC countries. What is more interesting is the growth of Indian export of meat (buffalo meat). India, by virtue of its export of competitively priced buffalo meat to this region managed to secure a strong growth since early 2000 where Indian meat was banned before. In

Photo by George Njoroge

By Irfan Sungkar

Sources of Total Halal Meat Imports in GCC Countries, 2007 USD Source: Calculated based on data from FAO and Trade Map/Intracen, UNCTAD.

While European countries have banned buffalo meat, many Asian countries still rely on buffalo meat products mostly due to the fact that price of Indian Halal meat is lower than Australian beef. 2007 alone, India’s export of meat products (almost all in the form of buffalo meat), reached USD246.1 million, making it the second largest

supplier of meat products into the GCC region with a market share of about 11 per cent. With better quality, consistent supply and

competitively priced products, India is projected to be able to increase its export of meat products to GCC countries. While all imported meat into this region must be Halal, India has proven that the country is able to fulfil this requirement. Thus, India is projected to be able to further strengthen its position as a leading meat exporter to GCC countries and also to other Middle Eastern countries. One main obstacle, however, is the lack of public understanding that beef is different from buffalo meat. While European countries have banned buffalo meat, many Asian countries still rely on buffalo meat products mostly due to the fact that price of Indian Halal meat is lower than Australian beef. Public information on the differences between these two products must be provided. Otherwise, the public will not know what meat they are eating nowadays.

36 The Halal Journal | sep+OCT 2009

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GLOBAL HALAL UNITY IHI Alliance is an international non-profit organisation created to uphold the integrity of the Halal market concept in global trade through recognition, collaboration and membership. Our mission is to propagate the benefits of Halal and elevate it as the standard of choice. Through our strategic partnership with the Islamic Chamber of Commerce & Industry (ICCI), we seek to assemble world class experts, leading industry figures and stakeholders across the whole industry supply chain to harmonise the global Halal industry. We invite companies, organisations and individuals to join as IHI Alliance members and be a part of an initiative to build a stronger and robust global Halal industry. For membership details including benefits, categories and fees, please log on to

www.ihialliance.org or email info@ihialliance.org

INTERNATIONAL HALAL INTEGRITY ALLIANCE LTD (LG05848)

16-2, JALAN 27/70A, DESA SRI HARTAMAS, 50480 KUALA LUMPUR, MALAYSIA T +6 03 2300 1344 F +6 03 2300 1312 A PARTNER OF THE ISLAMIC CHAMBER OF COMMERCE & INDUSTRY (ICCI)

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country in focus Tunisian Canyon, north-east Algeria. Photo by Cristian Popescu

Algeria

Opportunities behind a veil of dust

Spain

Mediterranean Sea

ALGIERS

Tunisia

Morocco

ALGERIA

Mali

In ancient history, Algeria was inhabited

by the Berbers since 10,000 BC, and was taken over by the Carthaginians after 1,000 BC who established their settlements along the coast of Algeria. The advent of the Punic Wars after then gave the Berbers the opportunity to regain their hold of the kingdom. Since independence form the Carthaginians, several Berber kingdoms began to emerge; the most notable was the Kingdom of Numidia whose most famous Kings were Syphax, Massinissa and Jugurta. However, after a war between Jugurta and the Roman Republic, they were once again conquered in 200 BC. The collapse of the Western Roman Republic, once again gave the Berbers independence in many areas; while the Vandals, who had control over other parts, remained until they were expelled by the generals of the Byzantine Emperor, Justinian I. In the eighth century, the Arabs arrived and ended the precarious grip of the Byzantine Empire in the eastern part of the country. Since the arrival of Islam in 647, Muslim dynasties ruled the country from 776 to 1518. Algeria, however, is famous for its great Algerian War of Independence (a guerilla campaign) launched by the National Liberation Front against the French in 1954 ending the age of empires. Algeria became independent after more than a million and a half Algerians were killed in an eightyear fight for independence from France – a struggle that is considered as one of the greatest revolution against colonialism during the 20th century. Today, Algeria is the second largest country on the African continent. It has a geographical advantage of bordering the Mediterranean along with other Maghreb states. Algeria’s population makes up one of the largest Arabic speaking countries in the world. Although the official language is Arabic, French is the predominant business language and fluency is beneficial for business interactions. All relevant documentation is expected to be written in French, hence giving an advantage to importers who are fluent in French.

Economy The country’s economy is highly dependent on the oil and gas sector. Algeria has the fifth largest reserves of natural gas in the world and is the second largest gas exporter, ranking 14th for oil reserves. The sector accounted for nearly 46.7 per cent of GDP (Gross Domestic Product) in 2008 and 97.5 per cent of export revenue. As one of the Arab world’s largest oil and gas exporters, Algeria was ranked the 45th strongest economy in the world in 2008, up four spots compared to its rank in 2007. Recently, a World Bank report revealed that Algeria had the second strongest economy in the Arab world last year (behind Saudi Arabia who had the strongest economy in the Middle East) with a GDP of USD174 billion. Although the oil and gas sector remains to dominate the Algerian economy, Algeria is actively intensifying steps to diversify its economy. Tourism Algeria’s capital city of Algiers offers a rich past, and ruins at Djemila, Tipasa and Timgad are fascinating to the eyes. Apart from that, Algeria offers travellers to discover the historical city of Tlemcen as well as the Grand Mosque, Almohad ramparts, and Masourah Fortress at the Hauts Plateaux. Although there is much to see

Libya

Niger

and enjoy in this historical country, blessed with thousands of kilometres of Mediterranean coastline and vast tracts of Saharan desert wilderness, the number of visitors to Algeria is still relatively small. In respond, the Algerian government took a proactive step recently by announcing that it was slashing taxes on tourism projects to persuade investors into the country, with offers including tax cuts for tourist firms, low-interest bank loans for tourism investments, reduced customs tariffs, subsidised land and streamlined bureaucratic procedures. As another step taken to boost the tourism industry, Algeria signed an air treaty with Malaysia in August 2009, for traffic rights into each other’s country following expansion of demand in the sector. The agreement was reached after negotiations between civil aviation authorities of both countries were concluded in Algiers. The agreement covers full service and low-cost flights as traffic rights are important to support expansion in the sector. Agriculture Algeria has experienced a steady increase in agricultural trade and investment due to gradual privatisation efforts in its agribusiness sector. Presently most of the agricultural goods are received by private businesses such as supermarkets, restaurants and hotels.

38 The Halal Journal | sep+OCT 2009

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Clockwise from top left: • Growing populataion at the Algiers coast. Photo by Moi Moimem • Makam Echahid - Monument for the freedom soldiers in Algiers Algeria. Photo by Messaoudi Rabah • The lion of Oran watches the entrance of the city hall. Photo by Billaudeau Vincent • Views of Algiers, the coast Photo by Moi Moimem

The Algerian agriculture sector provides 21 per cent of the populations’ economic livelihood and represents 10 per cent of the total GDP, with 14 per cent of the Algerian labour force engaged in agriculture. Government efforts to develop infrastructure and stimulate various sectors of the economy outside of energy have been slow and challenged by the demands of a growing population. Algeria holds immense potential as the largest importer of agricultural goods in Africa, making it an attractive market. Agricultural imports provide for most of the consumption needs due to unfavorable harvest conditions often resulting from drought. Algeria’s main agricultural production consists of sheep and cattle. Food processing is also one of the country’s notable industries. According to Euromonitor, meat accounts for nearly 20 per cent of consumer expenditure on food in Algeria. The majority, in fact, 92 per cent of meat imported by Algeria is bovine meat. Whereas ovine meat holds the next highest share of all meat imported, at 6 per cent. Investment Algerian authorities are using various tools to encourage and facilitate investments in strategic sectors. The opening of the Algerian economy has increased significantly in recent years to a market-oriented economy. Seeking to diversify and modernise the economy, the Algerian government has embarked on an aggressive liberalisation programme to attract foreign direct investment. Turbulence and violence has been plaguing the country for years, but now Algeria has seen several policy changes which have had profound positive effects on the national economy and the growth of the local industry. Examples of policy change is the amnesty treaty implemented in 2005 called the Charter on Peace and National Reconciliation which had helped relief the country, and a modernised policy such as the 2005-2009 Public Investment Program that have diversified the national economy. In addition, all State-owned companies are now open to

privatisation. Legislation provides an appropriate legislative framework that harmonises rules and reaffirms requirements for transparency and regularity in privatisation transactions under the supervision of the Council of State Holdings (CPE). It also provides incentives for investors and introduces new measures to promote investment, such as the creation of the National Investment Council (CNI) chaired by the Head of State, which was created to strengthen the legal and regulatory framework for investments. The CNI is in charge of defining investment strategies and priorities, approving special investment incentives by sector, and giving final authorisation for special investment schemes. Unemployment The youth unemployment, however, remains persistently high, with about 75 per cent of the unemployed being those aged below 30. Women account for 25.8 per cent of the total unemployed active population. Whereas the highest share of unemployed male concerns men with medium level education. The highest share of unemployed women concerns highly educated women, according to the World Bank. Thus, equipped with an advantageous geographic location and the clear need for job creation for the youth, Algeria has good potential

for rapid and sustainable growth in the non-oil sector. There is a lot of potential to develop sectors like Islamic banking, tourism and also in manufacturing, especially after Abu Dhabi-based Aabar Investments recently announced the signing of an agreement with the Algerian government to develop a network of vehicle and engine manufacturing plants in ventures with five German companies including MAN Ferrostaal, Daimler AG, Deutz AG, MTU Aero Engines Holding AG, and Rheinmetall, as reported by Bloomberg. The group intends to assemble as many as 10,000 cars and trucks a year. With Algeria’s Muslim population of 99 per cent, the potential for developing the local Halal industry is there to cater for the demand of the local consumers; and with Islam as the national religion of the country, it has been made mandatory for meat products entering Algeria to be Halal certified in the current import regulations. The Algerian authorities have also indicated that the Halal certification by Islamic organisations provided for the imported meat products must be recognised by them. Also, the WTM Global Trends Report in 2007 identified Algeria as an up-and-coming tourist hotspot in the Middle East Northern Africa (MENA) region. Thus with the recent intensifying steps to boost tourism, perhaps tremendous opportunities exist for Algeria to strengthen and diversify its economic via Halal tourism, which would increase demand for Halal food and related services, and inevitably help create more job opportunities to decrease Algeria’s rate of unemployment. Reference: •Algeria woos investors to unlock tourism potential, http://www.reuters.com •Algeria plans new oil and gas infrastructure, http://www.nzte.govt.nz/ •Algeria, African Economic Outlook, http:// www.africaneconomicoutlook.org •World Bank: Saudi Arabia strongest Arab economy, http://www.ynetnews.com/ •Malaysia, Algeria Agree To Sign Air Treaty For Flights, http://www.bernama.com/ •In vest in Algeria, http://investinalgeria.com •Global Halal Food Market, July 2007, Agriculture And Agri-Food Canada •Country Perspectives - Algeria, http://www.animaweb.org •Algerian Embassy in KualaLumpur, www. algerianembassy.org.my •Aabar invests in Algeria car plants, www.ameinfo.com •Global travel trends revealed, www.arabianbusiness.com

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islamic finance Beyond the Malaysian Twin Towers: Mobilisation Efforts of CashWaqf Fund at Local and International Levels for Development of the Islamic Ummah Social Infrastructure and Establishment of World Social Bank > part 2 of 3

Words By Dr. M. A. Mannan Social Investment Bank Ltd. (SIBL), Bangladesh

Cash-Waqf Certificate

Its objectives, implications, and operational guidelines 40 The Halal Journal | sep+oct 2009

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islamic finance

art 1 of this series introduced the Islamic Voluntary sector and Bangladesh’s Cash-Waqf Certificate. This second part however, will cover the objectives and implications of the Cash-Waqf Certificate; as well as introducing an interesting area of economic analysis of resource allocation in public finance. It also highlights the operational guidelines of this scheme as operated in three Islamic Banks in Bangladesh.

Implications of Cash-Waqf Certificate As a part of extending three Sector Model Banking services towards the achievement of corporate objectives of the Social Investment Bank Ltd. (SIBL), SIBL introduced Cash-Waqf Certificate, a new product for the first time in the history of banking in its Voluntary sector banking as mentioned in Part 1 of this series. Cash-Waqf can be seen as a social assignment replacing income tax in many Muslim countries. A great part of direct tax can be converted to social assignments and Cash-Waqf Certificate can partially substitute a substantial part of the income tax for financing strategic social projects in education, health, social welfare activities proposed to be undertaken by the rich. What is needed is a political will. Together, a new beginning can be made for a participatory economy and a caring society. Besides, Cash-Waqf can be used as a strategic investment in alleviating poverty and economic deprivation as well as education, health and research to be discussed later on. By taking part in the scheme, one can not only contribute towards development of a Social Capital Market operation, but also share in permanent social investment. As deposit of Cash-Waqf is only made once, banks can safely invest it either on short term investment (that is micro-credit and micro enterprise investment for poverty alleviation, and so on); medium term investment (such as cottage and weaving industries, and so on); or long term

There are many rich people who have the desire to create CashWaqf for public good as well as for the benefit of their descendants, but they cannot proceed for lack of necessary institutional arrangements for management of Cash-Waqf.

investment (such as various heavy industries/ factories, and so on). These investment activities will result in the creation of new avenues of employment opportunities. A large number of the unemployed shall have opportunities for earning livelihood and thus making contributions to social progress. As noted earlier, there are 150,593 Waqf estates in Bangladesh, and all of them are in immovable properties. There is an immense scope for development of such properties commercially through raising funds by selling Cash-Waqf Certificates. There are many rich people who have the desire to create CashWaqf for public good as well as for the benefit of their descendants, but they cannot proceed for lack of necessary institutional arrangements for management of Cash-Waqf. In Bangladesh, the SIBL (Social Investment Bank Ltd.) is one such institution that provides the necessary institutional support and unique opportunity for opening Cash-Waqf Deposit Account with a view to achieving the following objectives:

Objectives of Cash-Waqf • To provide banking services as facilitator to create Cash-Waqf and to assist in the overall management of Waqf; • To assist in mobilisation of social savings by creating Cash-Waqf, with a view to commemorate living or deceased parents and children, and to strengthen the integration of the family relationship of the well-off people and the rich; • To increase social investment and to transform social savings into capital; • To benefit the general public especially the poor sections of the people out of the resources of the rich; • To create awareness among the rich regarding their social responsibilities to the society; • To assist in developing social capital market; • To assist in overall development efforts of the country and to make a unique integration between social security and social peace.

Cash-Waqf-supported services as social and private good; and criteria of allocative efficiency The Waqf fund-supported activities can be divided into social and private good, thereby introducing an interesting area of economic analysis of resource allocation in public finance. Generally speaking, social good is non-rivalled in consumption as it is difficult to put a price tag on social good as its consumption does not reduce the benefits available to others. This is not true in the case of private good where we can put the price tag and exclude others from consuming it. Its consumption is, therefore, rivalled. “Putting it differently, the benefits derived by anyone consuming a social good are ‘externalised’ in that they become available to all others. This is the situation with social goods. In the case of private goods, the benefit of consumption is internalised with a particular consumer and consumption by him excludes consumption by others”.1 For example, when Waqf fund supports construction of a ‘bridge’ it assumes the character of social good and when it does support construction of a hospital or a school, it does provide public provision of private good for which a price tag can be put. Thus, when total resource generated by Waqf properties can be divided between private and social good or when a mix of social good is chosen, the existence of non-rivalled consumption changes the condition of efficient resource used from those applicable where consumption is rivalled. Then, the institution of Waqf is performing an allocation function, however rudimentary it might be. This allocation function involves not only adjustment of income and wealth, but also adjustment of price of goods and services with which Waqf is associated. Thus, it should be possible to make indepth case studies to show how Waqf supports goods and services; perform allocation, distribution The Halal Journal | sep+oct 2009

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islamic finance and stabilisation function in a modern Muslim state. It should then be possible to discuss further the implications of the spending of Awqaf revenue under the following three effects: (a) “Good deed” effect; (b) “Free rider” effect; (c) “Income redistribution” effect. (a) Good deed effect Historically speaking, once an endowment is made, it is considered to be a good act, because Shariah attributes the quality of “goodness” to it. The satisfaction an individual receives by instituting an endowment is however distinctly different from the results of the act. In economics there is no direct and fixed co-relation between the goodness of the act and its results. This distinction is not generally clearly understood. Are we merely concerned with the act of endowment? Is it enough to say that the goal of such an act is utility, not the utility of the result the endowment brings about? Should the individual be primarily concerned with satisfaction he desires from the act of doing the “good” deed of making the endowment? These are some of the questions which require attention from the viewpoint of Shariah. The fact is that the cost of the endowment is the foregone alternative uses of the funds given up. What is equally important for the individual who makes endowments is to evaluate the results or consequences of such endowments particularly when they are intended to make provision for public goods designed to help the community. Do different types of public good tend to yield different results? Some kinds of broader public goods bring more “goodness” of its results of the contributed dollar to be equal. For example, there is more goodness for most persons in the act of providing schooling facilities for orphans than that in providing toys for them. There is probably also more goodness in building a hospital for the poor than establishing a college of liberal arts, which is likely to produce educated unemployed graduates, or constructing a bridge in a community which can afford to construct the same, given collective effort. The point we are making is that at a given level of social expenditure on public good out of Waqfsupported properties, attempts should be made to maximise the utility of the results. It is therefore, imperative that once a person desires to make an endowment, he should be provided with necessary “advisory services” with respect to different uses to be given to endowment so that the resources generated from them can be better utilised to attain predetermined socio-economic objectives. (b) Free-rider effect Any theory of expenditure of Waqf fund must try to minimise the ‘free-rider effect’ particularly when such fund is directed to providing a public good which is indivisible. In the context of an Islamic economy, this ‘free-rider effect’ will take place when contribution of a

dollar will result in an increase in the total provision of the public good less than a dollar as other individuals would tend to lower their voluntary contribution. We have evidence to show that Waqf-financed education was indeed for children of both rich and poor parents. Since the beneficiaries of education cover children of those who could otherwise bear their education expenses, it tends to create the problem of ‘free-rider effect’. Although it was not immediately visible in simple agricultural societies of the middle ages, the issue of ‘free-rider effect’ needs to be taken rather seriously in a much more complex society of today. In the Middle Ages, the wealthy and rich did compete with one another in contributing to the Waqf-supported schools. The related educational development was possible due to Waqf grants by the successive rulers. The socioeconomic realities of contemporary period are not the same as we found in the early days of Islam. (c) Income redistribution effect It is also important to examine the income redistribution effect of the Waqf. The net income redistribution effects and income transfer payments cannot be analysed in isolation. It depends on the impact of all public taxation and spending activities on various income groups. Generally speaking, the disbursements of Waqf funds should play an important role in any vertical income redistribution. The disbursement of Waqf fund needs to be coordinated so that its redistribution effects in favour of the poor are not cancelled out. It is to be noted that one of the important ways to achieve the vertical redistribution is to make the public provision of certain key services particularly public education for the poor. Historically speaking, a close look at the operation of the Waqf shows a considerable horizontal income distribution from one earning class to another earning class. It is important to see the total effect of its spending in relation to other public expenditure in a modern Muslim state. It is generally

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islamic finance

What is equally important for the individual who makes endowments is to evaluate the results or consequences of such endowments particularly when they are intended to make provision for public goods designed to help the community.

alleged that in the past this institution of Waqf was responsible for industrial backwardness of Muslim communities, because a large amount of resources was diverted for purposes other than development activities. It is also argued that it led to the fragmentation and subdivision of agricultural holding, thereby retarding the process of modernisation of agriculture in Muslim countries. It is also criticised on the grounds that mismanagement of Awqaf properties led to the decline of total revenue of concerned countries which could have been utilised more effectively for other purposes. It is to be examined how far these criticisms are valid in the context of present day situation. Cash-Waqf offers better scope for utilisation of Awqaf resources indeed.

The operational guidelines of CashWaqf Certificate as adopted by three Islamic Banks in Bangladesh The guidelines, governing the operation of the CashWaqf Certificate as introduced by Social Investment Bank Ltd. (SIBL) are as follows: • Cash-Waqfs shall be accepted as endowment in conformity with the Shariah. The bank will manage the Waqf on behalf of the Waquif; • Waqfs are done in perpetuity and the account shall be opened in the title given by the Waquif; • The Waquif will have the liberty to choose the purpose(s) to be served either from the list of 32 purposes identified by SIBL as noted later on (in part three of this series) or any other purpose(s) permitted by the Shariah; • Cash-Waqf amount will earn profit at the highest rate offered by the bank from time to time; • The Waqf amount will remain intact and only the profit amount will be spent for the purpose(s) specified by the Waquif. Unspent profit amount will automatically be added to the Waqf amount and earn profit to grow over time; • The Waquif may also instruct

•

the bank to spend the entire profit amount for the purpose specified by him/ her; The Waquif will have the opportunity to create CashWaqf at a time. Otherwise, he/ she will declare the amount he/ she intends to build up and will start with a minimum deposit of Tk.1000 (USD15) only (or equivalent foreign currency). 2 The subsequent deposits shall also be made in thousand or in multiples of thousand; The Waquif shall also have the right to give standing instruction to the bank for regular realisation of Cash-Waqf at a rate specified by him/ her from any other accounts maintained with SIBL; Cash-Waqf shall be accepted in specified endowment receipt voucher and a certificate for the entire amount shall be issued as and when the declared amount is built; The principles and Shariah-based rules of Cash-Waqf accounts are subject to amendment and hj review from time to time.

**Note: Prof. Dr. M. A. Mannan is the founder and chairman of the Social Investment Bank Ltd. (SIBL) in Bangladesh. He has over 48 years of experience in the fields of money, banking, finance, economic planning, civil administration, teaching, and research in several universities and countries around the world including Australia, Bangladesh, Pakistan, Papua New Guinea, Saudi Arabia, the UK and the USA. He is also a pioneer in the field of Islamic Economics, Banking and Finance, and served about 13 years at the highest professional position of Senior Economist/ Chief Economist in Islamic Development Bank (IDB), Jeddah, Saudi Arabia (1984-96). Prof. Dr. Mannan has written many articles on Economics, Islamic Economics, Banking and Finance, and most can be found on www.drmannan.net. He can be contacted at cmsibl@bdonline.com. Footnote: 1. R.A. Musgrave and P.B. Musgrave: Public Finance in Theory and Practice, McGraw–Hill, 1973, P-7 2. Islamic Bank of Bangladesh starts with a minimum deposit of TK.50,000(USD725 approximately)

Read the third part in the next edition, which will highlight 32 purposes of utilisation of the Cash-Waqf fund; delve into the challenges faced in introducing the CashWaqf scheme in Bangladesh, Indonesia, and the US; as well as recommendations on the way forward, among others.

The Halal Journal | sep+oct 2009

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islamic finance

Corporate rescues and redistributing national wealth to the people The American financial crisis of 2007, had in the months following that, grew into a global financial crisis, peaking at around September and October 2008, which saw steep falls in global financial markets, that now threatens to segue into a global economic crisis. Words By Huzaime Hamid

n countering such devastating effects that the asset value implosions and subsequent financial market meltdown and money market seizures caused, governments around the globe scrambled to resuscitate the financial system by flooding the markets with liquidity. Such actions were from a direct lesson of the Great American Depression of the 1930s when the omission of liquidity injection was thought to have worsened the situation. In the course of the financial crisis, a government, Iceland, went bankrupt with many others teetering on the brink, and many global brand names such as Bear Sterns, Merrill Lynch and Lehman Brothers simply disappeared from the financial scene, and many others, even manufacturing giants had to go on bended knees for rescue from their respective governments. The biggest was America’s General Motors group that went on Chapter 11 bankruptcy protection despite receiving USD19.4 billion in aid from the US government. These rescues have pushed

national budget deficits skyhigh, with many countries now carrying the weight of 6 to 10 per cent budget deficit to GDP (Gross Domestic Product) ratios, which if left untended would probably lead to prolonged periods of austerity until the ratios fall to the more acceptable level of three per cent. There are several ways to quickly bring down these numbers, such as severe budget crimping, revenue raising or privatizing government stakes. During a recession, however, the first two options are quite difficult, if not impossible to pursue. Hence, the sales of government stakes in assets are more likely to be pursued. Here is an idea: Instead of selling them to non-national entities, why not sell them to the people of a nation as a group? Indeed, in these times, sales to non-nationals may find a scarcity of buyers given the global nature of the financial crisis and if such stakes are of strategic importance to the country, such a course may not be feasible. It is worth noting that government rescues typically involve systemically important entities; the rescue of AIG by the US government is a case in point.

There are two important prerequisites for this intended course of action, of course. The first is that there needs to be a cadre of strong, capable, and professional managers to step onto the helm of these companies and second, the infrastructure to receive such a move, in terms of legal aspects and vehicles to buy them and distribute ownership to the people, have to exist. A country that has an exemplary infrastructure already existing for public wealth distribution is Malaysia. Malaysia has a collection of mutual and provident funds that have evolved into becoming significant shareholders of the largest companies in the country. The four main ones are: 1. The Employees Provident Fund (EPF) mandatory national pension plan. Each worker in Malaysia contributes a specified amount of money into the fund from his/ her monthly salary, matched by the employer; 2. The “Permodalan Nasional Berhad”, of which the largest scheme is the “Amanah Saham Bumiputra” (ASB), a public mutual fund;

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islamic finance TABLE 1 Company

Here is an idea: Instead of selling them to non-national entities, why not sell them to the people of a nation as a group? Sales of government stakes

Issued Capital Shareholder (RM mn)

Percentage Held/ Shareholder Rank

Maybank 4,881 ASB EPF

44.67% No. 1 10.25% No. 2

Telekom

5,040 EPF

13.58% No. 2

Tenaga Nasional 4,334 EPF ASB LTH

14.14% No. 2 9.01% No. 3 2.79% No. 5

RHB Capital 2,153 EPF ASB

56.79% No. 1 1.55% No. 4

Bumiputra 3,578 EPF Commerce ASB

16.04% No. 2 2.03% No. 7

Boustead Holdings

325 LTAT

60.1% No. 1

MISC Berhad 3,719 EPF ASB

8.92% No. 2 4.00%, No. 3

Sime Darby 3,004 ASB EPF

34.19% No. 1 12.79% No. 3

Source: Respective companies’ latest available public disclosures

TABLE 2

3. The “Lembaga Tabung Haji” (LTH), a savings fund for pilgrims to the Holy Land; and 4. The “Lembaga Tabung Angkatan Tentera” (LTAT), a scheme like EPF but for members of the Malaysian Armed Forces. Combined, these four schemes are worth more than RM400 billion taken at the end of their latest financial year-ends. Malaysia’s own real GDP as at the end of 2008 was RM528 billion. The amounts of money these funds have are substantial and they have become key shareholders in some of Malaysia’s most notable public listed companies (table 1). These funds and companies they control have also been playing major wealth redistribution roles, taken part in national economic development, as well as leading their respective industries in corporate governance and best practices. For the country as a whole, savings is encouraged and the high rates of return these funds give out provide a stream of income that can tide people over in hard times. Their principle amounts can provide enhancement to their retirement pots as well as cushions during economic difficulties. It certainly provides a choice for the saver who may find bank deposit rates unattractive, or for those seeking better returns, reinforcing the saving habit. Benefits for the government includes providing an alternative source of funds for national development and lessens the fiscal burden needed to kick-start services and industries; and once these companies are capable of fending for themselves, they can be sold to the people and the money received could be recycled for further development or growth needs. The high rates of return for individual savers can be seen from Table 2. For comparison, the Kuala Lumpur Inter-Bank Offer Rate (KLIBOR) at the end of 2005 was 3.20 per cent. If one were to have kept RM100 with either one of the

Respective Scheme’s Annual Total Distribution Rate (%)

Year

EPF

LTH

LTAT

ASB

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

8.00 7.50 7.70 6.70 6.70 6.84 6.00 5.00 4.25 4.50 4.75 5.00

9.50 9.50 9.50 9.50 8.00 8.00 5.50 3.25 3.50 4.00 4.30 4.50

13.00 13.00 13.25 11.50 10.50 12.00 10.00 10.00 10.00 10.75 15.75 15.75

14.00 13.00 13.25 11.50 10.50 12.00 11.75 10.00 9.00 9.25 9.00 9.25

Source: Various public records

TABLE 3 Scheme

Value of RM100/= 12 Years Later By Scheme

EPF LTH ASB LTAT

202.83 214.30 350.92 394.11

four institutions 12 years ago, that RM100 twelve years later would be worth as shown in table 3. Hence, as can be seen, the creation of these large, national scale mutual and provident funds can be an avenue for governments to “download” their newly acquired re-nationalised stakes, done during crisis times. These companies need cleaning up beforehand, of course, and once the companies are back to health, they can be sold to these funds and its wealth distributed to the people for mutual

benefit. Professional management is a required element in this to ensure the longer-term success of this move to increase the prosperity of the people. It can play a substantial step in building the resilience of a country, speed up its development, and increase the wealth of the nation’s people as a whole. Lastly and quite obviously, success breeds even more success. hj **Note: Huzaime Hamid is an independent researcher in Malaysia. The views he expresses are his own. He can be contacted at abstemiousepicurian@gmail.com

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islamic finance

Digging into the world of Islamic Banking and Financing Islamic finance began as a way to service the needs of Muslims who engage in financial transactions, without getting involved in usury (riba’). It is aimed at investors who want to comply with Islamic laws known as Shariah that govern a Muslim’s daily life, and forbids giving or receiving interest, mandate that all financial transactions be based on real economic activity, and prohibit investment in sectors such as alcohol and gambling. AmIslamic Bank provides a wide range of Shariah-compliant commercial banking, retail banking and related financial services, which also include investment advisory as well as treasury products. It incorporates a deep-seated commitment to meet the satisfaction of its wide range of customers, with numerous customer-driven initiatives woven into all forms of communication and interaction with all customer groups. The core team at AmIslamic Bank agree to be interviewed to provide better understanding of the importance and benefits of Islamic Finance as well as to share insights on how Islamic Finance is affected by the economy. In the development of the Halal industry, where does Islamic banking and finance fit in? The additional feature of Shariah compliance makes Islamic products and services more competitive and attractive because it adds value and gives variety in the market, and the products are consumable by all: Muslims and non-Muslims alike. The dynamic Halal industry, which is worth up to USD3 trillion annually is evolving, and because it is not restricted to food, it is envisaged that the development of the Islamic banking and finance sector will gain further momentum, with new areas being included, such as stockbroking and wealth management. The Halal industry’s potential can be gauged by the rising demand for Halal products and services worldwide, which also includes those from, the banking sector. How important is Islamic banking and finance in helping Halal businesses? Islamic banking and finance play a huge role in providing Shariah-compliant financing services to the Halal industry. Because it offers Shariah-compliant products and services, it fits well with other Halal businesses as a complete form of Islamic muamalat (transaction), which has been a key contributor to growth in the financial markets. The Malaysian government is also playing a The Malaysian government is also playing a significant role embarking on various initiatives to transform Malaysia into a major global Halal hub. Further, to fuel the growth of the Halal industry, the Malaysian government in

AmIslamic Bank Tower

with the impact of higher costs. The essence of Islamic banking and finance businesses is Shariah compliance, which is directly related to Halal businesses’ activities. As such Islamic banking and financing facilities are readily and easily accessible to assist and promote Halal businesses. Given the support from the Malaysian government and various initiatives and incentives being introduced, local Halal businesses can benefit from this. What are the benefits of Islamic finance? The benefits gained from using Islamic finance are as follows: • Shariah-compliant – for those seeking Islamic muamalat as part of their Islamic beliefs and preferred lifestyle • Transaction is done clearly and transparent without having gharar or any hidden agenda taking place • Not exposed to the risk of escalating market rates • Very minimal compensation charge for late payment and no compounding on the charge • Competitive rates and a diverse range of products available in the markets at par with the conventional

t is indeed distinctively different from conventional banking in principles, but it does not operate in isolation from the mainstream financial market and hence is not spared from the credit crunch.

collaboration with Bank Negara has introduced a myriad of incentives, particularly to SMEs (Small-Medium Enterprises), in providing financing to Halal businesses, and has recently launched two financing facilities of up to RM1.2 billion to help SMEs cope

Is Islamic finance affected by the current global economy downturn? Yes. Islamic finance relies very much on the same economic environment that the conventional is operating. Once the market is down it would affect both Islamic and conventional business. It is indeed distinctively different from conventional banking in principles, but it does not operate in isolation from the mainstream financial market and hence is not spared from the credit crunch. However, the impact is less as compared to what many conventional banks are facing, as they are prohibited from activities that have contributed to the credit crunch. The rules of Islamic banking and finance read like a how-to guide on avoiding the kind of disaster that is currently gripping world markets. Islam forbids Muslims from usury,

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islamic finance receiving or paying interest on loans, and transactions by Islamic banks must be backed by real assets. Why has the AmBank Group opened its Islamic banking branch? The establishment of AmIslamic Bank has greater potential to complement the goals of AmBank Group by providing business flexibility. Additionally, focus channel through dedicated branches provide customers with easy access of the whole range of AmIslamic Bank products and services. This is to capture a bigger market share in Islamic banking. Also, it is an initiative to further enhance AmBank Group’s image and presence as one of the significant Islamic financial institutions to assume a leading role in Islamic Financial arena. What are the challenges faced by AmIslamic Bank in promoting its products and services? Challenges faced by AmIslamic Bank are as follows: • Continuous education and product training is still on going to educate our staff to be well verse in this area • Continuous education for customers – to get customers’ acceptance • Changing the mindset of doing Islamic banking using musharakah which is the essence of Islamic banking businesses The Islamic banking and finance industry, however, generally face the following challenges: • Manpower/expertise in Islamic banking and finance. • Looking at the background of the people in the Islamic banking and finance industry, we see that almost all are, in one way or another, the product of conventional banking. It is difficult to do away with the banker-customer relationship mentality. Continuous re-training must definitely be the prime agenda to overcome this. Islamic banking and finance is about entrepreneur-investor relationship. • Legislative (readiness/ adequacy of current system): To understand whether the legislative framework in Malaysia is adequate to carry Islamic Financial Institutions to the next level. • Regulatory and Legal: the need for a uniform regulatory framework to address the unique characteristics and attributes associated with Islamic banking operations and Islamic finance instruments. • Shariah should always be viewed as an enabler to innovation and creativity, rather than a constraint. • To sustain growth and fully subscribe to a full Islamic model. • Global competition – Saudi Arabia is aggressively designing to become a financial hub in their own right, where almost all banks offer a wide range of Islamic products and foster a healthy banking environment. What is the response AmIslamic Bank has received from the public? Has it encouraged more people to convert from conventional banking to Islamic banking? Responses are quite encouraging as can be seen through the growth of our Islamic banking assets. AmIslamic Bank is currently ranked fifth for Islamic

he rules of Islamic banking and finance read like a how-to guide on avoiding the kind of disaster that is currently gripping world markets. Islam forbids Muslims from usury, receiving or paying interest on loans, and transactions by Islamic banks must be backed by real assets. financial institutions (by total assets), and third (by total financing) based on quarterly results (as at March 2009). We have various programmes that cut across the AmBank Group to cross sell Islamic products to the existing conventional customers via tapping on our own customer databases for example by tapping on our Hire Purchase database, to offer Islamic Personal Financing, and so on. Bank Negara has also played a key role in introducing important incentives for customers as well as corporate sectors for banking with Islamic banks: for example, 20 per cent stamp duty exemption for Islamic financing products. Also following the local and foreign licenses given, there has been a significant increase in the number of Islamic financial institutions that have been established in the global financial system, and the funds seeking Shariahcompliant investment avenues have also increased dramatically. Where are AmIslamic Bank’s target markets and has it many clients (both Muslim and non-Muslim)? AmIslamic Bank is at the moment very retail in its portfolio, where our market shares in Islamic Hire Purchase, Personal Financing, and Islamic credit card are quite substantial. Notwithstanding this, our corporate portfolio is also steadily growing. Overtime, we would like to have a better market share on our corporate receivables.

Our take up rate among Muslims and non-Muslims is not very different as consumers are keen for products that are able to fulfil/ satisfy their needs, with factors such as pricing and service. With a mission to produce more innovative products and services, how is AmIslamic Bank achieving this and what are its latest innovative products and services? At the moment the Group is continuing and broadening our Customer FIRST strategy that will take us to the next level. It is a strategy that cuts across AmIslamic Bank as a whole. Some key goals set in place are: • While the Group is reinforcing its position as a leading financial services group in Malaysia, we also want AmIslamic Bank to make it as one of the top three Islamic banks in the country. We want our customers to choose AmIslamic Bank as the preferred bank of choice. Hence, there are many detailed plans/ initiatives in the pipeline to promote Islamic banking products to help our customers make informed choices. • We want to double our net profit by 2011. • To deliver a return on equity of 20 per cent and achieve a cost to income ratio of 40 per cent. • To achieve top three market position in all of our chosen segments. Therefore with our complete range of products, we will provide customers with a high level of service efficiency through our Customer 1st Programme, and some of the latest products introduced are as follows: • AmHigh Takaful InvestmentLink Plan, our first Shariahcompliant investment plan; • AmMomentum Select NID-i, our second Islamic structured deposit product; • Family First Islamic Solution, an all-in-one Islamic financial solution that caters to a family’s needs with access to a wealth of resources and privileges; • Flexi Home Financing-i, a variable hj rate home financing facility. **Note: To know more about AmIslamic Bank’s products and services, log on to http://www.amislamicbank.com.my The Halal Journal | sep+oct 2009

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Islamic finance news

sep+OCT 2009 HSBC AMANAH TO LAUNCH FIRST SUKUK FUND HSBC Amanah, the financial group’s Islamic division, said it will start marketing its first Islamic bond fund on Monday as it bids to tap into investors’ appetite for the asset class. The HSBC Amanah Sukuk Fund, domiciled in Saudi Arabia, will comprise Islamic bonds, or Sukuk, issued by 12 to 14 companies, mostly in the real estate, commercial banking and utilities sectors based in the Gulf Cooperation Council (GCC) area. An HSBC spokeswoman said on Friday, it would seek to raise USD100 million for the fund, which has a fouryear maturity and will target middle to high single-digit annual returns. Three quarters of the bonds will be issued by corporate with the balance issued by GCC governments. Unlike a mainstream bond, Sukuk generate income for its holders without paying interest. Most of the Sukuk included in the HSBC fund will be lease and buy back structures, known as Ijara. The fund will use private banks in Saudi Arabia and the rest of the GCC as sales intermediaries and will invite investments in dollars, Saudi riyals, Qatari riyals and the Emirati dirhams. |SOURCE: REUTERS, 29 MAY 2009

ISLAMIC FINANCE TRAINING COURSE LAUNCHED IN LONDON The growing influence and practice of Islamic finance has been recognised through the creation of a London-based training programme for industry professionals. The programme, which was launched by the Lord Mayor of the City of London, Ian Luder, on 27 May 2009, was run by the Islamic Banking Finance Centre UK (IBFC-UK). The aim of the course is to enable financial services centres such as London to better cater for the requirements of Islamic finance, which is guided by Shariah (Islamic law) principles. IBFC-UK has been established in partnership with the Islamic Banking and Finance Institute Malaysia (IBFIM) and Cardiff University’s Business School

and Centre of Islam. Its role is to provide research and training for private and public organisations; and clients include insurance companies, banks, non-financial businesses and academic institutions. The UK Programme has been launched in conjunction with International Business Wales (IBW), the Welsh Assembly Government’s trade and investment arm and will be rolled out in Wales initially, before other areas of the UK and the rest of the world are targeted. There are three main components of the course, covering training for finance industry professionals, finance regulators and those in educational roles who want to become accredited in Islamic finance training. |SOURCE: INTERNATIONAL ADVISER, 1 JUNE 2009

EMIRATES ISLAMIC BANK OPENS UM SUQUEIM BRANCH The new branch was officially inaugurated on Monday, 1 June and graced by Mr. Suleiman Al Mazroui EIB Board Director, in the presence of Mr. Ebrahim Fayez Al Shamsi, EIB CEO, Mr. Faisal Aqil, General Manager of Retail Banking, senior dignitaries and other officials. This is yet another successful step taken by the bank as part of their dynamic plan to expand their entire branch network throughout the UAE. The branch will cater to the banking and financial needs of a wide cross-section of the population. The bank’s customer-friendly style will once again be in evidence at this new location, which will offer a diverse array of retail products including 24-hour ATMs (Cash and Cheque Deposit, and Cash withdrawal). The branch will also offer customers ‘Ethmar’ priority banking services, which will present affluent customers an opportunity to benefit from an array of personalised services and privileges befitting their stature. |SOURCE: AME INFO, 1 JUNE 2009

MANULIFE TO APPLY FOR TAKAFUL LICENCE SOON Insurer Manulife Holdings Bhd will submit an application before the end-October deadline for

Compiled by Zaahira Muhammad

a takaful licence in a bid to tap into the growing Islamic insurance market. The plan by Manulife to seek a takaful licence is in line with the Government’s move to liberalise the financial sector and allow more takaful players into the market. The liberalisation, among others, would see up to two new family takaful licences being granted this year, and allow with immediate effect, the increase in foreign equity participation in insurance companies and takaful operators to 70 per cent from 49 per cent now. Group Chief Executive Officer, Michael Y.L. Chan, said, as a company with a global reach and experience, Manulife was heeding the Government’s call to make Malaysia a regional Islamic finance hub. Having a takaful business fits into the group’s aspirations as currently, it has takaful operations in Indonesia. Chan said it would also be beneficial to the group as the takaful operations could be later expanded to the Philippines, Thailand and China, where Manulife Group had a significant presence. |SOURCE: THE STAR ONLINE, 30 MAY 2009

NIGERIA: ISLAMIC HALAL FUND LISTS ON NSE Lotus Capital has announced the Memorandum listing of its Islamic Halal Investment Fund on the Nigerian Stock Exchange (NSE). According to a statement made available to Daily Trust, NSE has approved the listing of 3,205,725,266 Units of the Halal Fund in accordance with the stock exchange regulations. Lotus Capital is a fully fledged ethical financial institution structured along Islamic law, committed to providing innovative asset management, private wealth management, and general financial advisory services. The company recently held a breakfast forum where “Islamic investments as an alternative to other forms of investment” was discussed. Lotus Capital provides specialist financial advice on how the budget deficits of State governments can be eased through careful

planning and implementation of development projects which make use of Islamic Bonds (Sukuk). Lotus Capital is registered with the Securities and Exchange Commission (SEC) as Fund Managers and Corporate Investment advisers. |SOURCE: ALLAFRICA.COM, 30 JUNE 2009

4TH CONFERENCE OF ISLAMIC BANKS AND FINANCIAL INSTITUTIONS KICKS OFF IN DAMASCUS The 4th Conference of Islamic Banks and Financial Institutions kicked off Monday in Syrian capital Damascus under the theme “Islamic Banking Investment Opportunities and Competition Challenges.” The two-day conference is expected to address challenges facing the Islamic financial industry in light of the recent global financial crisis which is considered a good opportunity to give a push for the Islamic banking system. The conference will also tackle issues of liquidity management, financing companies and individuals, solidarity, insurance, products standards, regulations on e-banking operations, and features of the Syrian Islamic banking market, according to a statement published in the official website of Al Salam for International Conferences and Exhibitions. 800 participants from 20 Arab and non-Arab countries, including presidents of central, Islamic, investment and commercial banks along with businessmen and investors, attended the conference. Governor of the Central Bank of Syria, Adeeb Miyalah, said during the opening session of the conference, that efforts are on foot to establish a fair banking system that is based on the Islamic Shariah. |SOURCE: CHINAVIEW.CN, 1 JUNE 2009

CORE BANKING REPLACED WITH ISLAMIC BANKING Albaraka Bank Limited, the South African subsidiary of Bahrainbased Albaraka Banking Group B.S.C. (ABG), last year, initiated an intensive project to replace its core banking system with the Equation Islamic Banking and Branch Automation

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sk around for the meaning of Halal and the diversity of answers is as wide as the modern day applications of the concept itself, as more and more food manufacturers begin to focus on its benefits and significance. Add to that the concept of Toyyib, which complements the principles of Halal by emphasising the importance of qualities such as wholesomeness and nutritional value, and one ends up with a comprehensive set of guidelines which originated centuries ago, yet remain so relevant to how mankind seeks to nourish itself today. Islam has laws regarding which foods can and cannot be eaten and this is the basis for the concept of Halal food. Be it food that is prepared in strict accordance to Shariah principles or the wholesome, pure, nutritious and safe tenets of Toyyib, Nestlé’s products encompasses them both when it comes to fulfilling the Halal guarantee which comes with all the products it manufactures, imports and distributes in Malaysia. By adhering strictly to the high standards of food preparation to fulfil the requirements set by Halal and Toyyib guidelines, Nestlé ensures the cleanliness, safety and quality of all its products. It all started when Nestlé (Malaysia) Berhad, one of the first multinationals to tap into the Halal market, established an in-house Halal Committee in 1980 to provide peace of mind and assurance to all its Muslim consumers. This was followed by the introduction of the Company’s very own Halal policy in 1992, prior to the implementation of the official Halal logo by JAKIM (Department of Islamic Development Malaysia) in 1994. The early adoption of Halal manufacturing practices put the Company in good stead and gave Nestlé Malaysia the distinction of becoming Nestlé’s Halal Centre of Excellence. A general instruction called the “Guideline for Inter-Company Supply of Halal Food” was later established in 1997 for Nestlé worldwide, to serve as a guideline to help the

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company spends approximately RM6 billion annually on R&D and has one of the largest privatelyowned research centres in the world – the Nestlé Research Centre (NRC). The Company has transformed itself from a successful technology-driven food and beverage company into an R&D and marketing-driven Nutrition, Health and Wellness Group, embarking on continuous innovation and renovation of its products to improve their nutritional and functional value. The world Halal food market has grown exponentially over the past decade and is now a USD600 billion business; accounting for almost 20 per cent of the global food industry. Encouraged by the growing business opportunity and the company’s corporate responsibility to its Muslim consumers, Nestlé is expanding its capacity in line with market needs and the production and export of Halal products have increased following encouraging demand around the world. Halal food is not just about prescribing to religious laws. It is about adhering to very high standards of food safety and quality, which are what the tenets of Halal and Toyyib promise. The adherence

to these standards is not just beneficial to Muslims but to all who consume Nestlé products. Today, the Company is reaping the benefits of its far sighted efforts to produce Halal products. The initiatives, guidelines and policies in place allow Nestlé to ethically meet consumer needs, while fulfilling its promise of Good Food, Good Life. The Halal Journal | sep+OCT 2009

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Islamic finance news

sep+OCT 2009 System from Misys Plc. The multi-million Rand IT solution is stated to be in line with the bank’s holding company’s strategic direction. The bank’s equation project was launched towards the end of 2008, with phase one implementation taking place during the second quarter of this year. Phase two will follow later this year once the core systems have been successfully bedded down. ABG, an Islamic banking group with units in 12 countries and a global branch network of some 300 branches, is rolling it out to select ABG subsidiaries around the world, inclusive of the South African banking operation. With dramatic increases in the cost of doing business during recent years, Albaraka Bank’s migration to the Equation banking system will realise a reduction in business costs through the automation of processes and the attendant positive contribution of operational efficiencies throughout the bank’s business environment. In addition, it is anticipated that the system’s Relationship Management tools will enable staff to enjoy a 360-degree view of customer profiles and dealings with the bank. Albaraka Bank Limited was established in 1989 and has pioneered Islamic banking in South Africa as an alternative to conventional interest-based financial services provision and is the country’s only full-fledged Islamic bank. |SOURCE: CIOL BUREAU, 2 JUNE 2009

IIRA ASSESSES LIQUIDITY POSITION OF THE ISLAMIC BANKS The Islamic International Rating Agency has published a research report on the liquidity characteristics of Islamic Banks. The research was conducted by selecting key Islamic Commercial Banks based in a few countries. The study concluded that Islamic Banks face challenges in managing their liquidity in adverse markets. The liquidity indicators have deteriorated compared to 2007, but for some banks it simply means holding less liquid assets and reserves

compared to the prior year. The liquidity indicators for these banks were extracted from the published financial statements and the measurements as at December 2007 and December 2008 were analysed. The liquidity indicators, albeit down from the previous year, still indicate adequate liquidity for some of the banks while a few face challenges. Since the origin of the credit crisis rests in the diminution of asset values, especially interest bearing asset backed securities, the nature of Islamic banking with its prohibition on interest has served to protect Islamic banks to some extent. That is not to suggest they are entirely immune from the impact of declining real estate values and restricted real estate lending. |SOURCE: AME INFO, 7 JUNE 2009

DUBAI ISLAMIC BANK OFFERS AUTO FINANCE Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, announced that it is offering auto finance at profit rates starting from just 4.50 per cent p.a. Al Islami Auto Finance is available for up to 72 months, with a minimum monthly salary requirement of AED3,000. No down payment or salary transfer is required to avail of this offer, which covers both new and preowned vehicles. This attractive financing demonstrates the bank’s generally positive outlook as well as its strong liquidity position, and is in line with its expansion plans announced earlier this year. By the end of this year, DIB will open 10 new branches, expanding its nationwide network to 64 branches, further strengthening its presence across the UAE, while also offering an overall enhanced customer experience. DIB has the country’s largest team of qualified auto finance professionals, many of whom are available directly at dealer locations. The bank offers an unmatched range of Shariah-compliant auto financing solutions – along with value-added services such as insurance finance and

service contract finance – at extremely competitive profit rates, catering to a broad crosssection of the UAE population. |SOURCE: MENAREPORT.COM, 14 JUNE 2009

ABU DHABI ISLAMIC BANK OPENS AL AIN BRANCH FOR FEMALE CUSTOMERS Abu Dhabi Islamic Bank has opened a new ladies branch in the Oudeh Toubah area of Al Ain. The new branch will provide banking and financial services specifically to female customers. Maryam Al Darmaki will lead the new branch, which will be staffed by UAE nationals ladies team. The branch will offer customised cheque books and debit cards, free internet and SMS banking and special discounts on safe deposit lockers for its customers, in addition to standard banking services such as ATM, cash and cheque deposit machines, according to reports. The new branch is also expected to offer custommade products and services, special discounts, invitations to ladies-only social events and exclusive ladies lounges. |SOURCE: ISTOCKANALYST, 12 JUNE 2009

PLAN TO SET UP ISLAMIC BANK IN TURKEY The prospects of setting up a joint-venture Islamic bank in Turkey with the involvement of some prominent Qatari investors were discussed at a high level meeting held in Ankara. The proposal is to have Qatari and Syrian investors in the proposed Islamic bank in Turkey. The discussions are at the initial stage. Prominent Qatari investor, Dr Sheikh Khalid bin Abdullah bin Thani al-Thani, was in Ankara for talks on establishing the Islamic bank. He was welcomed in Ankara by Tevfik Bilgin, Chairman of the Turkish Banking Regulation and Supervision Agency. The high level meeting discussed the potential of establishing a fullfledged Islamic bank in Turkey. The prospects for Islamic banking in Turkey came up for discussions. The possibility of involving prominent Qatari and Syrian investors, with expertise and skills in Islamic banking, in the proposed project figured

at the meeting. It was mutually agreed upon to continue with follow up meetings on setting up the proposed Islamic bank. Bilgin assured Dr Sheikh Khalid of all possible co-operation and support in establishing a joint-venture Islamic bank in Turkey, which is one of the fastest growing economies in Europe. He also provided an overview of the investment opportunities available in Turkey and the country’s competitiveness as an ‘investment-friendly’ destination. |SOURCE: GULF TIMES, 21 JUNE 2009

SAAD GROUP’S AWAL BANK TO RESTRUCTURE DEBT – CBANK Bahrain’s Central Bank said on Tuesday that Awal Bank, part of the Saudi-based privately held Saad Group, seeks a renegotiation of its debt, and said its issues are not related to the Bahraini banking sector overall. Apparently, the issues connected with Awal Bank are a consequence of events in the wider Al Saad group and are unrelated to the wider Bahraini banking sector, which has otherwise continued to function normally. Bahrain-based Islamic bank Awal is owned by Saudi billionaire Maan al-Sanea, either directly or through Saad Group. The central bank said it continues to monitor closely the situation of the bank and urges its creditors to meet as soon as possible. |SOURCE: REUTERS, 2 JUNE 2009

PAK-QATAR GROUP TO SET UP ISLAMIC BANK Chairman Board of Director PakQatar Family and General Takaful, and member of the Supreme Council of the Royal Family of the State of Qatar, Sheikh Ali Bin Abdullah Thani Al-Thani, has applied to set up an Islamic bank in Pakistan. He revealed this in a meeting with Prime Minister Syed Yousuf Raza Gilani at the PM House. He said he hoped that due formalities for it would be completed soon. He also donated Rs.10 million to the government of Pakistan for the victims of Swat operation. In addition, all the employees of PQFTL have also donated one-day salary to the IDPs. He also visited the

50 The Halal Journal | sep+OCT 2009

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Islamic finance news

sep+OCT 2009 branch office of Pak-Qatar Family and General Takaful Limited in Islamabad and expressed his satisfaction over the presence of Pak-Qatar offices in nine major cities of the country. He expressed his hope of expanding Islamic insurance operations of his company in Pakistan and said that he would urge other Qatari business leaders to follow suit by investing in Pakistan. |SOURCE: DAILY TIMES PAKISTAN, 6 JUNE 2009

PREMIER OFFICE OPENED BY ISLAMIC BANK OF BRITAIN Wealthy individuals living in London can now benefit from a new Premier Banking office, opened recently by the Islamic Bank of Britain (IBB) for High Net Work (HNW) individuals and the better off. Premier customers can finance their more luxurious properties by utilising the IBB’s enhanced Home Purchase Plan. The new Premier Service is available to those from the UK or abroad and has been designed with a combination of flexibility and ethical investments in mind. Those who take advantage of the Premier Banking Service will have a dedicated Personal Relationship Manager and premier banking facilities in the Mayfair office of London staffed by employees who are all multi-lingual. Clients will also benefit from superior property finance, ranging from £250,000 to £5,000,000. However, to be eligible for the new Premier Banking Service, an individual must earn a minimum of £100,000 per annum, have at least £75,000 available for saving/ investing and have at least £250,000 of finance for UK property through the IBB’s Home Purchase Plan (HPP). |SOURCE: BANKING TIMES, 5 JUNE 2009

JAKARTA TO DECIDE ON ISLAMIC BANK TAX BILL Indonesia could decide by September whether to amend double taxation laws that make Islamic financial transactions costlier than conventional deals, a parliamentarian said yesterday. The Indonesian parliament is debating a bill that would change the double taxation law. The tax

hit holds back the expansion in Indonesia of the USD1 trillion global Islamic financial industry, bankers and lawyers say. They will attempt to finalise the rules before the term is over, by the end of September but it was too early to say what the final taxation law would look like. As the world’s most populous Muslim nation, Indonesia is seen as a prime market for Islamic finance and the central bank has set a target for Islamic financial assets to make up 10-15 per cent of national banking assets by 2015. They made up just around 2.1 per cent last year. “Laws in this country take a long time to pass, unless there’s a real push from (President Susilo Bambang Yudhoyono), or the next administration,” said Hanim Hamzah, a Malaysian Islamic finance lawyer. “If they’re really serious about Islamic finance, then they have to push for this kind of law to pass.” Indonesia, Southeast Asia’s biggest economy, has taken some steps to push its fledging Islamic market forward. |SOURCE: THE PENINSULA (QATAR), 11 JUNE 2009

ISLAMIC BANK OF BRITAIN EYES ME CUSTOMERS Islamic Bank of Britain (IBB) has announced the launch of its premier banking service and the opening of its premier banking office in Berkeley Square, London, aimed at catering to customers from the Middle East. The service has been designed to provide a high quality, personal banking service coupled with competitive long term savings options and Shariah-compliant property finance to customers. Driven by low property prices and the current favourable US Dollar/ Sterling exchange rate, the UK is attracting a large number of customers coming from the Middle East and GCC countries looking to purchase property, said Sultan Choudhury, commercial director at IBB. The bank’s premier banking service has been set up to respond to this demand. The premier service is being launched with the immediate

availability of IBB’s flagship product, the Home Purchase Plan (HPP), a Shariah-compliant mortgage alternative which is based on the Islamic financing principles of Ijara (Lease) and Diminishing Musharakah (partnership), he added. |SOURCE: TRADE ARABIA NEWS SERVICE, 6 JUNE 2009

WILL RETAIN STAKE IN BANK ISLAM, SAYS MD BIMB Holdings Bhd does not intend to sell its 51 per cent stake in Bank Islam (M) Bhd, says group managing director Datuk Johan Abdullah. Bank Islam is currently controlled by BIMB with a 51 per cent stake while Dubai Islamic Investment Group owns 40 per cent and Lembaga Tabung Haji nine per cent. Talk was rife earlier in the year of a possible merger between Maybank Islamic and Bank Islam. BIMB has since said it was not in talks to merge Bank Islam with Maybank Islamic but would continue to look for potential partnerships that would be strategic to its business. Bank Islam managing director Datuk Zukri Samat also said yesterday that the bank was still looking for merger and acquisition opportunities. The RM540mil that it would raise by selling preference shares to shareholders would “give a bit more leeway” for this purpose, he said without elaborating. On another matter, Johan said talks between its subsidiary Syarikat Takaful Malaysia Bhd and Abu Dhabi-Kuwait-Malaysia Strategic Investment Corp to dispose the takaful operations to the latter were still “ongoing”. |SOURCE: THE STAR ONLINE, 17 JUNE 2009

QNB AL ISLAMI OPENS A NEW BRANCH IN THE INDUSTRIAL AREA The QNB Al Islami branch network expands to 12 branches, including its international branch in Sudan. QNB Al Islami, the Islamic banking arm of Qatar National Bank (QNB), announced today the official opening of its new branch in the Industrial Area of Doha. With this opening, QNB Al Islami’s wholly-operated branch network now increases to 12 branches, including its

international branch in Sudan. This is complemented by QNB’s local network of 43 branches and offices including three mobile branches, as well as a network of more than 156 ATMs. QNB Al Islami offers a thoroughly modern range of Islamic banking products and services certified by an eminent Shariah Advisory Board. These include retail and corporate services in addition to various other Shariah-approved financing solutions. Among the products available are Current Accounts, Call Investment Accounts, Savings Investment Accounts, Fixed Investment Deposits, and Domestic Murabaha Finance for vehicles and goods. |SOURCE: ZAWYA.COM, 20 JUNE 2009

SAUDI INSURERS GAIN DESPITE TADAWUL INDEX MELTDOWN Riyadh’s Tadawul index lost 1.98 per cent, closing at 5,490.02 points. Market bellwether Sabic dipped 3.44 per cent (closing at SR63). The petrochemical segment (off 3.31 per cent) ended as the top loser among the sector indices. A number of Islamic insurance operators resisted the downtrend: SABB Takaful, which belongs to HSBC group, ended 9.66 per cent higher at SR87.50. Al Ahli Takaful gained even 4.67 per cent (at SR168). Since 14 June, the Saudi stock market posted only one time a small day profit. |SOURCE: AME INFO, 28 JUNE 2009

SABB TAKAFUL OBTAINS CMA APPROVAL OF RIGHTS ISSUE Dr. Yazid Abdul Rahman Al Ohaly, Chairman of SABB Takaful, welcomed the decision by the Capital Market Authority (CMA) to approve its application to increase the company’s capital through a rights issue with a total value of SR300,000,000. Commenting on the decision, Dr. Al Ohaly said: “We thank the CMA for their approval to proceed with a rights issue. Once completed, the funds raised from the rights issue will enable SABB Takaful to continue pursuing its business and growth objectives.” The rights issue offering is being made to registered SABB

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Islamic finance news

sep+OCT 2009 Takaful shareholders at the close of trading on the date of the Extraordinary General Meeting (EGM), which will shortly be announced through local newspapers and Tadawul’s website. The EGM will vote for the increase in capital and the price of offered shares as recommended by SABB Takaful’s Board of Directors. The prospectus for the rights issue will shortly be available on the websites of CMA, SABB Takaful and the Financial Advisor and Lead Manager, Aldukheil Financial Group. |SOURCE: AME INFO, 28 JUNE 2009

Meezan launches Hajj, Umrah facilitating account Meezan Bank Limited has launched “Meezan Labbaik” to facilitate customers desirous to perform Hajj and Umrah and ziarat of holy places at Makkah and Madinah with comfort and peace of mind. This facility will be available through its network of 166 branches in 40 cities across Pakistan. Claiming “Meezan Labbaik,” to be completely Halal and Riba-free, the Meezan Bank

officials on Wednesday said that on opening of this account, the bank will facilitate the customers for all matters related to performing Hajj or Umrah. It was said to provide one-stop facilities including Visa processing, ticketing through a designated travel agent, meet and assist, hotel reservations, ziaraat and other travel arrangements. Meezan Bank sources said the product is to provide comfort to the customers, so that they can perform Hajj and Umrah with peace of mind and at an affordable cost. The especially designed packages said to be well-organized and competitively priced were maintained to ensure convenience and security for pilgrims. Meanwhile, Meezan Bank and Takaful Pakistan have entered into an agreement whereby all customers of Meezan Bank’s Labbaik (Hajj and Umrah) deposit product will be provided Shariah-compliant credit Takaful coverage. As per agreement signed by President Meezan Bank Irfan Siddiqui and Takaful Pakistan CEO Capt Jamil Akhtar all

Labbaik instalment customers performing Hajj or Umrah will be provided credit Takaful coverage at very special rates. In case of natural death, accidental death, permanent total disability or insolvency of a Labbaik customer his/her outstanding instalments will be paid by Takaful Pakistan. There are 25 days and 42 days Umrah and Hajj Packages respectively those availing the first package would be provided with six nights stay in five star quality accommodation in Abraj Al Bait Makkah (ZamZam/Ritaj/ Marwa) with Break Fast; Nine nights hotel stay at Madinah with Break Fast. There will also be a five nights stay at furnished apartment with full board meal; Maktab near Jamrat with sofa cum beds and full board meal at Mina. Arranged tents at Arafat and special meal boxes for Arafat and Muzdalifah; Complete Transport with ziaraat; Training session before Hajj with Qualified and renowned Aalim are also included in the 25 days package. As for 42 days package there will be 21 nights hotel stay in Al-Misyal

Hotel (Eiman inn Properties) at Misfalah Makkah; Nights stay at Dallah Madinah Hotel in Madinah; five Nights Stay at Azizia Furnished Apartment with Full Board Meal. Maktab near Jamrat with Mattresses and Full board meal at Mina; Arranged tents at Arafat and Special meal boxes for Arafat and Muzdalifah; Complete Transport with ziaraat; Training session before Hajj with Qualified and renowned Aalim. | Source: Pakistan Observer, 5 august 2009

visit WWW.HALALJOURNAL.COM FOR MORE ISLAMIC FINANCE NEWS

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The Fundamentals of Mosque Architecture

The Halal Journal

Living

september+october 2009

MOSQUES: ISLAMIC SYMBOL ACROSS CULTURES & BOUNDARIES EXPLORING MANADO RESTAURANT REVIEW: ALOUNAK, LONDON BOOK REVIEW: THE WISH MAKER

The old Produce Market Mosque of Mersin at dawn. Photo by M.Zeynep Dağdevirenoğlu Kubaseck, Turkey

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cover story Islamic architecture carries the symbol of Islam, transcending across geographical boundaries and socio-cultural elements. It reflects the history and the spread of Islam throughout the ages on a global scale.

Words By Zaahira Muhammad

Mosques the symbol of Islam across cultures and boundaries

n the formative years of Islam, the architecture style is often characterised by its simplicity and modesty, with designs developed based on the religion’s requirements. The Mosque, the Tomb, the Palace and the Fort are major Islamic architectural types. However, mosques are considered as a significant Islamic symbol and are very important to the Muslim ummah. A mosque is a sacred building in Islam where not only religious needs of the community are served. Apart from being a place of worship, a mosque also provides services such as host iftar (breaking fast) during Ramadhan, collect Zakat (alms giving), assemble political or social meetings, and act as a learning centre where religious education is taught. Praying, although can be performed anywhere (at home, office, and so on), is considered better when carried out in the halls of a mosque with other Muslims. According to the Sunnah, prayers in the mosque are 20 to 25 times more valuable than those performed elsewhere. As a place of worship and venue for religious or social events, there are rules to be followed when entering a mosque. A person should take off his or her shoes or sandals when entering a mosque. Blessings to Prophet Muhammad (p.b.u.h) and his family must be said while entering the mosque with the right foot first. Anybody who enters the mosque should speak softly so that he or she does not distract other people praying in the mosque. A mosque should be treated with respect because it is a sacred sanctuary of Islam. Although mosques around the world serve the same basic functions, they are designed differently throughout the world, but consist of the same basic elements, for example: a mosque should point to the direction of Mecca; this is called Qibla (a wall surrounded by a mihrab which faces the Kaaba in Mecca). A mihrab, in most mosques, is a niche in the wall that indicates the Qibla. The area in front of the mihrab must be roofed,

The Umayyad Mosque in Damascus, Syria Photo by M Hussain

Ince Minaret Madrasa Konya, Turkey Photo by hüseyin çetin

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All a r o un d th e w o rl d Model of the Umayyad Mosque (Grand Mosque of Damascus) Replica of the MINBAR IN MASJID-I-JAMI ISFAHAN, Iran

Model of the KALYAN (KALAN) MOSQUE, Uzbekistan

The Umayyad Mosque plan symbolises the rise of the Islamic world as a major world power, and the majestic stature of the Umayyad Mosque made it an Islamic architectural prototype for mosques built in all newly established territories at the time. Model of the TENGKERA MOSQUE, Malacca

Photos of mosque models and Minbar replica are courtesy of the islamic arts museum malaysia

and there can be no doors on the wall of the mihrab. On other walls of a mosque, however, there can be as many doors as the builders want. Other elements in mosque architecture will include a minbar, which is a raised, stepped chair where the Khatib (the person who delivers the sermon during Friday or Eid prayers – usually the Imam or prayer leader) addresses the congregation; a courtyard that serves as a space for congregational prayer; a minaret which is a raised structure from where the Mu’azin calls for prayer; and a dome which is a hemispherical enclosure created to provide shelter and a spiritual sense of unity. As the years progressed, other elements developed as part of Islamic architecture which includes a dikka that is a platform raised on slender columns; a kursi, which is a raised chair with a book fold for the recitation of the Quran; and a maidha’ah, which is a water source for the ritual ablution prior to prayers.

Model of the KHODJA AHMAD YASSAVIY MOSQUE & MAUSOLEUM, Kazakhstan Model of the IBN TULUN MOSQUE, Cairo

Mosques were built based on local cultural traditions, climatic conditions of the location, as well as the availability of building materials; and more often than not, the architecture of mosques around the world reflect the local culture. There are, however, three basic designs of mosques that were developed in the Islamic world, one of which is the hypostyle mosque. Pioneered under the Ummayyad dynasty, hypostyle mosques have simple rectangular or square plans featuring an open courtyard followed by a covered sanctuary for praying, arches spring from columns or pillars supporting the prayer area, and form aisles parallel to the Qibla wall. These arcades line the prayer area and often accentuate the position of the mihrab. The Umayyad Mosque, also known as the Grand Mosque of Damascus, is the earliest surviving example of an early hypostyle mosque plan. It was built as a congregational mosque for the city during the reign of Caliph Al Walid ibn Abdul Malik (706-715 AD). The Bait al-Mal (public treasury) is located in the courtyard of the building, which contains a unique domed octagonal structure fully decorated with mosaic work. Mosaics cover the courtyard arcades with images of trees, gardens, rivers and magnificent dwellingplaces. The mosque displays several important features; most notable are the introduction The Halal Journal Living | sep+oct 2009

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cover story of minaret towers and a transept leading towards the mihrab. The Umayyad Mosque plan symbolises the rise of the Islamic world as a major world power, and the majestic stature of the Umayyad Mosque made it an Islamic architectural prototype for mosques built in all newly established territories at the time. Another example of a hypostyle mosque is the Great Mosque of Cordoba (Mezquita de Cordoba) in Spain. The hypostyle mosque has a wide raised central nave leading to the mihrab and the Qibla wall. Elegant columns support double arches with alternating red and white voussoirs (wedge-shaped masonry blocks that form an arch). The second mosque design is the bi-axial four iwan plan, which consists of four large arched vaults, each positioned on one side of the central courtyard to form an integral part of a larger complex. Mosques using the bi-axial four iwan plan can mostly be found in Iran and Central Asia. An example is the previously hypostyle mosque called Masjidi-Jami of Isfahan in Iran, which adopted the four iwan configuration after the mosque caught fire. Masjid-i-Jami is renowned for three particular features: the vaulting system employed in numerous bays of the mosque; the two great domed chambers; and muqarnas1 with Seljuq brickwork patterns. The four iwan plan then became popular in the Islamic world. According to an article by the Foundation for Science Technology and Civilisation (FSTC) on MuslimHeritage.com, “The substitution of the hypostyle plan with the four iwan revolutionised the form and function of the traditional mosque as these iwans were later adapted into study rooms, and the sides of the mosque extended to form separate faculties making the mosque into a proper school or university while still retaining its customary religious function. This idea later evolved into something that is called Madrasa. The iwan plan was also adopted for other types of buildings, especially caravansaries such as the Ribat Sharaf (1114); hospitals such as the hospital of Nur-al-Din in Damascus (1154); and buildings which spread to Anatolia, Syria and Iran respectively.” The third mosque design is the large central dome plan that was introduced by the Ottomans in the fifteenth century, and is a style that is heavily influenced by the Byzantine religious architecture with its use of a large central dome. The large central dome and semi-dome plan developed to provide a spacious congregational prayer area. The central dome usually rests on massive piers centred over the prayer hall, and is structurally supported by small half and quarter domes that exist off-centre (over the prayer hall or throughout the rest of the mosque where prayer is not performed). The open courtyard, which precedes the prayer area, usually forms the base of the corner minarets. Ince Minaret Madrasa in Konya, Turkey, is a good example of a structure that was designed

Mosque = Mosquito? Did you know that the word ‘mosque’ originated from the Spanish word ‘mosquito’? If you don’t it is just as well you keep it that way, because this is not true. Ruzanna Muhammad tells you why. In this technology and worldwide web-dependent era, many Muslims have received at least one email that warns them against using the word ‘mosque’ to describe the Muslim’s place of worship, because it came from the Spanish word ‘mosquito’, reflecting claims that the word was first used during the Christian invasion of Muslim Spain in the 15th century. For me, the first thought that came to mind was the question: “How true is this?” Although it makes perfect sense (to those who has no idea about the origin of the word), to relate these two words together because they sound alike (therefore thinking there could be a possibility that the word ‘mosque’ did come from the word ‘mosquito’). But most neglect looking up the correct etymology of the word. Equipped with a laptop and internet connection, I started researching the etymology of the word ‘mosque’. True enough, I found that the above claim (mosque = mosquito) was incorrect, and there was really nothing wrong with using the English word ‘mosque’ to indicate the Muslims’ place of worship. With worldwide reach of the internet, rumours such as these are easily spread, mostly by Muslims who actually mean well (to share knowledge), but most almost always neglect to verify the facts first. In this case, it was stated in the glossary section of the book, The Complete Idiot’s Guide to Understanding Islam, that the word ‘mosque’ was derived from the Spanish word ‘mosquito’. There were claims that the word ‘mosque’ was first used during the Christian invasion of Muslim Spain in the 15th Century, when the forces of King Ferdinand and Queen Isabella boasted they would swat out Muslim prayer houses like so many mosquitoes, hence the word ‘mosque’ was used. However, when studying the etymology of both words, there are no links between the two words, and the etymology as previously described is incorrect. In explaining the etymologies of these two words, let’s begin with ‘mosquito’. The Spanish word for ‘mosquito’ is mosquito, which literally means “little fly”. This is a case where the English language borrowed the word directly from the Spanish. The word for “fly” in Spanish is mosca, which is derived from the Latin musca. The diminutive suffix “-ito” is attached to it to form the word mosquito or “little fly”. In Spain during the era of Muslim rule – and this was before the time of King Ferdinand – Spanish speakers were using the word mosquito for the insect and the word mesquita for the Muslim place of worship. The two words are not related to one another in any way. The word “mosque” was introduced into the English language in the late 14th or early 15th century from the French. It was derived from the French word mosquée that existed from the period in French linguistic history known as ‘Middle French’, from the old French word mousquaie. The French, in turn, derived the word from the Italian word moschea from moscheta. The Italians got it either directly from the classical Arabic word masjid or from the old Spanish mesquita. The Spanish term for “mosque” is mezquita, derived from the old Spanish mesquita. This word was most certainly derived from the classical Arabic word masjid, which many (then and now) pronounce as masgid in Northern African Arabic1. Comparing the origins of mosque and mosquito, there was no cross reference in their etymology. The word mosque actually does trace back to the classical Arabic word ‘masjid’ which means ‘place of worship’. In conclusion, it must always be remembered that whenever one comes across news or information such as this, one must always verify before distributing, as there is a degree of responsibility when it comes to sharing knowledge. As stated in verse 36 of Surah Al Isra’ and verse six of the Surah Al Hujraat and in the Quran (as translated by Abdullah Yusuf Ali [1934]): “And pursue not that of which thou hast no knowledge; for every act of hearing, or of seeing or of (feeling in) the heart will be enquired into (on the Day of Reckoning).” [Al Isra’ 17:36] “O ye who believe! If a wicked person comes to you with any news, ascertain the truth, lest ye harm people unwittingly, and afterwards become full of repentance for what ye have done.” [Al Hujraat 49:6] References : 1. The American Heritage Dictionary of the English Language, Fourth Edition; © 2000 Houghton Mifflin Company. Online Etymology Dictionary, ETYMOLOGY Moo-Muc 2. http://www.etymonline.com - Mosque: c.1400, moseak, probably from M.Fr. mosquée, from It. moschea, from Sp. mesquita (modern mezquita), from Arabic masjid “temple, place of worship,” from sajada “he worshipped” + prefix ma- denoting “place.” In M.E. as muskey, moseache, etc. http://www.etymonline.com/index.php?search=mosque&searchmode=none - Mosquito: c.1583, from Sp. mosquito “little gnat,” dim. of mosca “fly,” from L. musca “fly,” from PIE base *mu-, perhaps imitative of the sound of humming insects. Colloquial form skeeter is attested from 1839. http://www.etymonline.com/index.php?search=mosquito&searchmode=none 3. The Meanings of the Holy Quran by Abdullah Yusuf Ali [1934] http://www.islam101.com/quran/yusufAli/index.htm 4. http://www.islamnewsroom.com 5. http://www.islamtoday.com Footnote: 1. This pronounciation is still used today in Northern Africa in places like Egypt, where the Arabic letter ‘jeem’ is pronounced as ‘geem’ with a hard ‘g’ sound, as in ‘give’ instead of the sound of ‘j’ as in ‘jam’. For example, an Egyptian Muslim might say (in Egyptian English), “I have to pray gumma in the mosged” (I have to pray jummah in the masjid). • Source: Yusuf Estes (Senior Operations Director of www.shareislam.com, and a retired member of the National Institutional Chaplain)

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The Mihrab of Friday mosque, Yazd, Iran Photo by Mira Pavlakovic

Ottoman style mosque dome Photo by Cenap Refik Ongan

based on the large central dome plan. This new design replaces centrality of the traditional courtyard with a domed space. Different parts of the world have its own unique styles of Islamic architecture. In Malaysia, there are three types of traditional mosque architecture that were developed in Peninsular Malaysia. The timber-raised mosque features a multi-layered roof structure. The stone-built mosque makes use of a pyramidal roof structure while the housetype mosque uses a timber double-tiered gable roof. Built in the 1830s in Kemaman, Terengganu, the Kampung Tuan Mosque, exemplifies the raised timber mosque type. The Kampung Hulu Mosque in Malacca, built in 1728 by Dato’ Samsuddin, a Chinese Muslim, is an example of the second type of traditional mosque. The building was the first mosque that was built with the craft of masonry. The Chinese architectural influence shows in the pagoda-like roof with end floral tails while the minaret tower with its enclosed spiral staircase was inspired by

Minerate with extensive faience tile work, the Wazir Khan Mosque in Lahore, Pakistan Photo by Atif Gulzar

Courtyard of de la Grande Mosquée de Paris, France

Mosques were built based on local cultural traditions, climatic conditions of the location, as well as the availability of building materials, and more often than not, the architecture of mosques around the world reflects the local culture. the shape of lighthouses around Malacca. The Langgar Mosque (1874) in Kota Bharu, Kelantan, represents the house-type style. The mosque does not have a minaret but uses the traditional beduk, a wooden instrument to call the faithful to prayer. Islamic architecture in China shows the combination of Islamic functional requirements and existing local architecture. The first Chinese mosque was established in the 7th century which is the Great Mosque of Xi’an. The mosque does not replicate other mosques in the Islamic world; mosques were not built but existing buildings were modified to become a mosque. These Chinese complexes had been built along the northsouth axis. However, since the complex was adapted for Islamic prayer, the entrance to the mosque can be found facing east, to allow for the proper alignment of the mihrab to the Qibla. The Great Xi’an Mosque is the oldest existing example of the monumental Chinese mosque. Chinese elements such as the pagoda, self-supporting gateways, prayer

halls and the moon pavilion minaret remain part of the local style of mosque architecture. In India, The Taj Mahal (1632-54), is possibly the most well-known Islamic monument in the Indian subcontinent and is considered as one of the Seven Wonders of the World. It was built by Shah Jahan as a mausoleum for his favourite wife, Mumtaz Mahal, and is located in Agra near Delhi. The Taj Mahal is a great example of Mughal architecture with interlaced floral, calligraphy, and geometric patterns. Inscriptions from the Ayat-al-Kursy (Throne of God verse from the Quran) surround the monument while landscaped gardens create an atmosphere hj in significance of the realm of Paradise. References: • Architecture Gallery, Islamic Arts Museum Malaysia (IAMM) • Masjidi-i-Jamis: the Friday Mosque of Isfahan, by FSTC Ltd, on http:// www.muslimheritage.com Footnote: 1. Muqarnas is the Arabic word for stalactite vault, an architectural ornament developed around the middle of the tenth century in North Eastern Iran and almost simultaneously, in central North Africa. It involves three-dimensional architectural decorations composed of niche-like elements arranged in tiers. The two dimensional projection of muqarnas vaults consists of a small variety of simple geometrical elements.

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journey

Manado Exploring

With its volcanic terrain, wildlife, as well as world class diving, this Eastern most tip of Indonesia is fast becoming the place to visit...

deally it is not the perfect situation, when you are bound for a destination and your only point of reference is your port of disembarkation. That was what we found ourselves faced with when we wearily boarded our AirAsia flight bound for Manado in the wee hours of the morning. To be fair though, our lack of preparation was done somewhat on purpose. We knew that Manado was in Indonesia; and it was what most people in the diving community considered to be paradise. With our dive gear packed off on to cargo, we knew that if what we heard was true, we were in store for some pretty good diving. After all, that was one of the main reasons why the low fare carrier decided to fly there in the first place. As we plonked ourselves down in our seats, we picked up a copy of the in-flight magazine to flip to the route map. To our surprise, we noticed that Manado was located at the furthest eastern point of North Sulawesi; so far to the East, in fact, that the next body of land after that point happened to be Papua New Guinea. (Note to self: no more un-researched trips in the future.) Three and a half hours later, we land in Samratulangi Airport in Manado. After negotiating customs we exit the airport and get into our transport bound for Minahasa Lagoon Dive and Tours. Located a little over an hourâ&#x20AC;&#x2122;s drive from the airport, the resort nestled in a lush tropical forest boasts its own private beach and is considered one of the best dive resorts in Manado. Attention to detail is key at the Minahasa Lagoon as the resort boasts just 15 cottages on its rather

hefty 13 hectares of land. Staying true to the cultural influences of Indonesia, the owners of Minahasa Lagoon have tastefully decorated each of the cottages in true Balinese style but complete with modern amenities equivalent to a five-star holiday resort. The grounds boasts its own infinity pool by the beach overlooking Manado Tua Island, a house spa, a coffee house and jungle restaurant as well as its own dive centre. The dive centre is certified by the Professional Association of Diving Instructors (PADI) and offers a full range of dive facilities such as equipment and boat rental, and even Nitrox tanks for Nitrox-certified divers. Being so close to the many dive spots Manado has to offer, Minahasa Resort offers attractive packages complete with meals, dives and accommodation all in one price. The resort offers access to a multitude of dive sites, including its own house reef or to the Bunaken Marine Park located about 30 minutes away by boat. Depending on what you want to see, the diving here offers everything from macro life to pelagic sea creatures like turtles, and Manta Rays. The diving in Manado however did live up to its hype, with spectacular coral gardens, clear water with good visibility, and rich, diverse marine life awaiting each avid diver. Depending on what sort of diver you are, Manado has something for everyone, especially if you are an underwater photographer aiming to add to your collection of elusive underwater creatures. If you are the adventurous sort, then narrow your dives to the Lembeh Straits where a shipwreck awaits, along with a magnificent coral wall to feast your eyes on some 20 metres under water.

Words & Photos By Jaspal Singh

Great diving awaits

Mount Lokon is far from being dormant

The coral wall at the Lembeh Straits

Hot springs are common place in Manado

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Travel Note Getting there... Budget carrier AirAsia operates flights to Manado thrice weekly. Log on to www.airasia.com for flight schedules and information. Where to stay... Minahasa Lagoon Dive & Tours. For more information, rates and reservations email to resort@minahasalagoon.com or log on to www.minahasalagoon.com.

Candlelit dinners overlooking Manado Tua

The Waruga Stone graves

Lake Linow

Spectral Tarsier: The worldís smallest primate

More excursions... • Japanese Cave (Kiawa Village) These caves were built by the Japanese during World War II mainly to use as storage for supplies. You can visit the caves while driving along the road between Kiawa and Kawangkoan, two scenic countryside villages. • Waruga (Stone Graves: Airmadidi Village) 144 beautiful and interesting ancient ‘Waruga’ stone graves (sarcophagi), of Minahasan ancestors dated the Megalithic age, can be found in Sawangan village close to Airmadidi, 24 km from Manado. • Watu Pinawetengan (A megalithic stone) A megalithic stone of the ancestors of Minahasa, its surface is covered with mysterious live drawings and scripts which have never been deciphered. According to Minahasa history, this is the place where the ancestors first divided up the land among the people. • Lake Linow (Lahendong Village) Lake Linow is located near Tomohon and is a beautiful but strange lake, which can change colour from red to green to blue. • Tomohon (The City of Flowers) A quaint little town and the centre of Christian Missionaries lay about 25 km from Manado. Located 700 meters above sea level between Mount Lokon and Mahawu, and with a temperature of about 20 degrees Celsius, it is a place to cool off after the hot air of Manado. The land around the village is covered with flowers. • Volcanoes Lokon and Mahawu (Rurukan Village) Mount Lokon (1.580 m) and Mahawu (1.311 m), both have crater lakes of considerable beauty. It takes a good one-hour trek from Rurukan Village to the top of Mount Mahawu.

Sunsets are beautiful in Manado

Watu Pinawetengan

One of the many boiling mud pits found in Manado

But what if you don’t dive? Well, Manado also offers a host of other land-based activities if you are the non-diving sort. For starters, there is the renowned highland area where you can soak in the local culture or trek up one of the many active volcanoes in the area. Also due to the volcanic geographical nature of the land, the landscape of certain areas of Manado also boasts hot springs, boiling mud pits and sulphuric lakes, which beg to be explored. Manado is also a haven for nature lovers with a wide array of wildlife as well as flora and fauna. At the Tangkoko National Park, which is just a stone’s throw away from the resort, you can get up close and personal with some of the land’s most unique creatures such as hornbills, monkeys and the world’s smallest primate, the Spectral Tarsier. For the more adventurous, you can also opt for a different sort of water-based adventure, one that involves an inflatable raft and shooting some class three rapids on Manado’s Nimanga River. We guarantee that if you are game for some adventure, getting up close with nature or sipping an ice-cold tea overlooking a dormant island volcano, Manado will have done its deed of providing hj you a holiday to remember.

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browsing Restaurant + Foodservice After a morning of shopping at Whiteleys, London’s first departmental store, I walked along

Westbourne Grove in Bayswater in search of a good and hearty lunch. Five minutes from Whiteleys, I saw the words “Halal Cuisine” plastered on a shiny glass door that opens to the welcoming warmth and the smell of baking bread (because of the traditional clay oven for baking bread right at the entrance) that envelopes a cosy Persian interior filled to the brim with people from different cultures and ethnicities. This restaurant is called Alounak, and it serves the finest Persian cuisine.

a Persian in London As narrated by Ruzaimi Sany to Ruzanna Muhammad, who put pen to paper and captured the moment.

(you will be asked to leave them folded up at the entrance). The restaurant can accommodate 50 people in one sitting. Although Alounak is located in Central London, the prices are very reasonable. My lunch cost only £19.90! The average price for a two-course meal plus coffee/tea is at £27; and prices for main course ranges from £6.50 to £35. The restaurant is located at 44 Westbourne Grove, Bayswater, London W2 5SH, and is only 10 minutes walking distance away from the infamous Portobello Market and Notting Hill. The nearest London Underground Station is Bayswater. Alounak operates seven days a week, from 9am to 6pm (Monday to Thursday), 9am to 8pm (Friday to Saturday), and 10am to 6pm on Sundays. For reservations, contact +44 (0)20 7229 0415. You will not regret it!

Iranian Mint Tea

vegetables left nothing but a lip-smacking experience of an exotic fusion of flavours. The second dish was no less delicious. The Chicken Special was a platter of marinated boneless chicken on a skewer and another skewer of minced lamb, also served with grilled tomato, salad, and pickles. The grilled chicken was tender and juicy, and makes a great combo for cholesterol-watchers who do not want to indulge on too much lamb. With a full stomach and thoughts of the cold weather outside this crowded little restaurant, nothing beats having a cup of hot Iranian mint tea. Sipping on hot tea, I noticed my surroundings for the first time since I walked in: the restaurant, albeit it’s cosy Persian interior was a little too crowded and not very childrenfriendly, with no room for strollers or prams

The Chicken Special

Chelo Kabab Koobedeh

I took my seat and a waitress presents me with a menu in two languages: English (naturally) and Arabic. With so many variations of Persian and Mediterranean food: from starters like Mirza Ghassemi, hummus, char grilled tomatoes and aubergines; to the many choices of main course served with rice or freshly baked bread, I decided to skip the starters. I was recommended to try two dishes served with fragrant saffron rice: the first was the Chelo Kabab Koobedeh – two skewers of minced lamb served with grilled tomato, salad and the all-time Persian favourite, pickles. A definite must-try for all lamb-lovers, the minced lamb, mixed with different herbs and spices, was grilled to perfection without stripping the succulent, juicy taste of the meat. That combined with the saffron rice, pickles and

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browsing Music

compiled by Zaahira muhamMad

Book

Book Title: The Wish Maker

Author: Ali Sethi Publisher: Riverhead (2009) ISBN: 978-1-59448-875-7

The Wish Maker is a novel written by Ali Sethi, a young Pakistani writer. The story, set in Lahore, Pakistan, in the 1990’s, tells about a boy named Zaki Shirazi who is fatherless and grew up in a house with outspoken women. This is not only a story of Zaki Shirazi, but also a story of sacrifice, deception and everlasting friendship between Zaki and his cousin, Samar Api. Although the story is a serious one, the author still manages to breathe some wit in each and every page of the book. The Wish Maker is a story about love and family, and because of that, it makes it easier for everyone to relate to the story. It also gives readers a glance into a country that we hear of so much from the media today. The Wish Maker is definitely a book that should not be missed.

Roadsinger by Yusuf Islam

Photos extracted from www.yusufislam.com, www.interviewmagazine.com/music/yusuf-islam/, and www.naanoo.com/live/yusuf-islam-cat-stevens-roadsinger-kommt-im-mai-auf-cd-und-als-download

Yusuf Islam, or formerly known as Cat Stevens, is back with a new album, Roadsinger, an 11-song collection. Roadsinger is his second album since his return to the music industry after his conversion to Islam. The album Roadsinger comprise of songs generally about travelling, soul searching and seeking happiness which are similar to those that Yusuf has been singing about since his Cat Stevens days. However, in this album, these themes are improved by elements of spirituality that make most of Yusuf’s music more interesting to listen to. Tracks include “Welcome Home”, “Thinking ‘Bout You”, “Everytime I Dream”, “Roadsinger” and “The Rain” among others.

Book Title: The Help

Author: Kathryn Stockett Language: English Publisher: Putnam Adult; 1 edition (10 February 2009) ISBN 10: 0399155341 ISBN 13: 978-0399155345

The Help tells an inspiring tale of three women. Skeeterm is an educated, prosperous and white woman with no actual future plans; Aibileen and Minny, two black women hired as help to wealthy, white families reveal their stories in the most interesting manner ever. These three women whose determinations to start a group of their own changes the way women view each other no matter what their professions are or what their roles in life are. This debut novel by Kathryn Stockett is an interesting, funny and a must read fiction. The Halal Journal Living | sep+oct 2009

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on display

Compiled by Zaahira Muhammad

Halal products are those that are good, pure and safe for human consumption. It ranges from food to cosmetics, pharmaceuticals to toiletries. Here are some of the products with the Halal guarantee. eep help k is s that h pertie your skin. T riser r ro e p is g r oistu with healin hly cleanses acial Moistu M l ia d F g c e . nd Fa act is enrich as it thorou radiant skin e it is nonser a s Clean h Gamat Extr ccess sebum ily and more skin. Becau rised and l ia c . e a tu it n y Fa -o is w a n ro e o r o w n e -p a n m alaysia s c e r r acn s in M other, nti-A s clea ping it l Clean Safi A -Acne Facia . It also help ne-free, smo s and BHA fo e, while kee elated store e c ti h-r tie ac Safi An clear of acn gularly for ling proper isture balan s, and healt re sk ea kin mo your s can be used lso rich in h ebum and ermarts, kio a â&#x20AC;&#x2122;s s yp ct produ at Extract is te your skin le in most h , b arbeque la am a u il G g a h v re it a m and b w re lps ith dim su rtified Halal by lso he products a w a n it te , a y is ce oil be e ese that can duct of Vietnam food.com.vn. ed. Th ex ro illi sauce refresh i Sauce cious sweet ch nd lamb. This p .cholim l w il w h w C to a et eli ex Swe ce is a d en, beef n, log on Cholim Sweet Chilli Sau ation with chick ore informatio m x in r e b Fo m m li y. o co it h C al C es an ide Chi Minh and mak mmunity of Ho mato paste, o s, potato, to C ic m la Is e of eggplant to cater for consumers ad m , ew st ef e us Iranian be ial spices, that was mad put the whole e Stew h, is a delicio ec to Maedeh Th uct of Maede rrot, lemon juice, and sp nt meal: you just need ethod by cooking it in od pr a , ew ie m n, ca The St a very conven n use the conventional t have time to cook is saffron, onio l, ew oi St e e bl ta Th no u ca ok. vege deh.com. stew but do ready; or yo ve time to co is ve l ha lo t ea m ho no e w do th le to www.mae d op who ation, log on iling water an is recommended for pe rm bo fo in in r e ne or ai cont Stew . For m w heat. The Rial (in Iran) a pan over lo t, and costs only 16,100 ea to t ou go or fee, o arana, Arabica cof arana Cappuccin that comprises Gu od blo ve pro im Terang Bulan Gu Cappuccino is a premix beverage as h na great benefits suc in Terang Bulan Guara beverage produces tite which results d sugar. This 5-in-1 ent, reduces appe vem mo l we cocoa, creamer an bo nce at RM 25 per box. ha en ced , pri ine are gra ts mi he circulation, reduce Cappuccino 20 sac ny more. Guarana weight loss, and ma Taisun Lychee Jelly Drink hed with hing and natural drink which is enric Taisun Lychee Jelly Drink is a refres your immune system as well as gthen stren will drink the and C and vitamins A, B health drink. t and sour taste makes it a delicious cleanse your body. Its natural swee

Halagel Miswakgel Toothpaste Halagel Miswakgel Toothpaste is produced by the Malaysian company Halagel (M) Sdn Bhd and contains real miswak (teeth cleaning twig from the Salvadora persica tree) extract with Halagel rock salt for daily freshness of the mouth. This toothpaste does not contain bone ash or gelatine and it does not contain fluoride. Sold at only RM5.00 for a 175gm tube, this product can be purchased online at www.halagel.com and is also available in hypermarts such as Tesco in Malaysia.

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masta ad THJ.indd 1

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snap shots

Touring Brunei IHPE 2009: The Monarch and Royal entourage exits the Brunei Halal booth

Brunei Monarch and the Royal family at the 4th Brunei International Halal Products Expo (Brunei IHPE) 2009

The Sultan and Yang Di-Pertuan of Brunei Darussalam His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah officiating the launch of Brunei IHPE 2009

Doa recitation at opening ceremony of Brunei IHPE 2009 with the Sultan and Yang Di-Pertuan of Brunei Darussalam

The Brunei Monarch invited to taste honey from Yemen

Brunei Agriculture Department’s Acting Director, Hjh Normah Suria Hayati, presents the Brunei Agro-Technology Park model to the Brunei Monarch Mr Noel Shield (Consultant to Kerry FSDA, Hong Kong) introduces the Brunei Halal Brand to the Brunei Monarch

Honorary Consuls of Malaysia arriving at Eden Restaurant for an IHI Alliance hosted dinner

Liow Ren Jan (CEO, AYS Sdn Bhd) and Farid Z. Hamid (Vice President of Operations, Halal Industry Development Corporation) at the launch of Sri Kulai’s first Lifestyle Concept Outlet

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The Malaysian pavillion by Federal Agricultural Marketing Authority (FAMA) of Malaysia at the Brunei IHPE 2009

HRH Princess Hajah Masna receives a ‘pesambah’ (souvenir) from Rozi Osman (Senior Manager, Group Market Development, Chemical Company of Malaysia)

Bruneiís Ambassador-At-Large for Ministry of Foreign Affairs and Trade, HRH Princess Hajah Masnah, delivering keynote address at 4th International Halal Market Conference in Brunei

HRH Princess Hajah Masnah with IHMC 2009 speakers and organisers and Brunei government representatives

Looking at a business opportunity at FHM 2009 The Taiwan Pavillion at Food and Hotel Malaysia (FHM) 2009 in Kuala Lumpur Convention centre

Attractive cake decorations showcased at the Culinaire Malaysia 2009

Chefs and visitors mingling at the Culinaire Malaysia 2009 section of FHM 2009

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parting words

What do you know about

Islamic art? After touring the interestingly laid out Architecture Gallery of the Islamic Arts Museum Malaysia (IAMM), and viewing artefacts collected from many parts of the Islamic world, one starts to wonder what Islamic art is. The Halal Journal speaks to Lucien De Guise, Curator of IAMM to gain some insights on Islamic art.

What is Islamic art and what are your personal views on Islamic art? These days most institutions and auction houses and collectors tend to talk about “art of the Islamic world” (out of political correctness) rather than “Islamic art”, and it is a result of people being no longer certain about what Islamic art is. There had been a number of complaints received about something drawn on the cover of a book, which could very well be Islamic design, except there were figural elements on it, and therefore was said to not be Islamic. Actually, the restriction of figural imagery is largely in people’s minds: there is a hadith about it (figural imagery), which to some extent, convicted that if an image is clearly created to be worshipped then it would be completely un-Islamic. What we can coin as “Islamic” and “art” would be like copies of the Quran – calligraphy of all form is highly affiliated with the Islamic world – because of the significance of the written words, as we all know. The Quran itself is an object and at the same time, we know that the people who were producing them were doing something artistic. There are graphic embellishments on the pages around the words in the Quran; there is very much a visual dimension to it. Without a doubt, Islamic art does exist. But the area becomes grey the moment we get into the things that people use – figural or not – but if they were made for a Muslim patron by a Muslim craftsman, I believe that there is nothing wrong in calling it Islamic art. I would say that Islamic art does exist as an entity and it is probably the most useful single expression of a culture. Music, food, poetry and literature of the Islamic world are getting some exposure now, but to me, Islamic art is a physical expression of something tangible. It is a whole Islamic culture expressed in an illustrative manner to start with, which had not been around for very long; but with Islamic artefacts, one can look back over the years and see the evolution of a culture. The very early thoughts of Islamic items should be coins, which tell the story of when Muslims took over other people’s empires and took over their coinage. Through Islamic coinage, you can see the evolution of Islamic calligraphy, and the shedding of figural imagery from the earlier

coins. Through these artefacts, an unadulterated view of the development of a culture can be seen from 1,400 years ago or a thousand years ago. Islamic art is very much a decorative art form, which is used to illustrate eras in the past. Throughout the Islamic world, there is not the same tradition of “fine art”, which is very much a western concept of the Renaissance era referring to art that is meant to be hung on walls. In the Islamic world, there has never really been that concept. The idea is you take an existing object that you need (such as a bowl or a chair) and you do something wonderful with it. So, I think that is really the essence of Islamic art: this practical decorative approach. How is Islamic art different from contemporary/ mainstream art? First of all, the term Islamic art is never used to describe contemporary art from the Islamic world. When the word Islamic art is used, it always refers to something usually pre-20th century. 20th century onwards, it could be something entirely religious or it could be along the lines of calligraphic work done now. There is a big difference in what is called Islamic art and contemporary art of various sorts. I think Islamic contemporary art, if it can become a term, could happen. There is a possibility that collectors will cease to look at artists as coming from a nation, and start thinking of it as coming from a community of Muslims. Until this happens, I think there is no such thing as contemporary Islamic art. Islamic art took to other directions;

its focus on geometry, for instance, which is one way to distinguish Islamic art. 2,000 years ago, the Ancient Romans used geometric designs and the Greeks to some extent, but most non-Muslim societies moved away from using geometric designs. Since this movement of direction, geometric designs have not been featured in any other art forms except Islamic art; repetition of designs in certain ways would immediately be recognised as Islamic. Although repetitive geometrical designs could have been used by Christian Europe or Buddhist Japan, artists producing Islamic art works had chosen different motifs and different ways of expressing things, and very often there is a spiritual basis to it. Geometrical designs allow Muslims to show the idea of God without using figural imagery because mathematics and geometry are such a good way of showing a God that nobody can visualise, and to emphasise the unity and the oneness of God. Some people have mentioned that Islamic art should be valued as an asset. What are your thoughts on this? If it has some religious content, then people should perhaps look at it in a slightly more respectable way, compared to an item of no religious content. Because most Islamic art has inscriptions from the Quran makes it in itself an object that is more highly valued than a car or a chandelier. Do you think it is important to promote Islamic art? Why? It is essential to promote Islamic art as widely as possible. Many of the world’s problems today are caused by lack of understanding about Islamic culture. This does not apply solely to non-Muslims. To understand the true nature of Islam necessitates an appreciation of Islamic culture. The most visible and enduring expressions of this are art and architecture. At IAMM, feedback from the local community about Islamic art is always positive. There are more Muslim than non-Muslim visitors but there is still interest shown among all the different communities; and about half of our visitors are foreigners while the other half are Malaysians. What are the initiatives done by IAMM to promote Islamic art since its inception and what are IAMM’s plans in the pipeline? The message has been disseminated in a quiet manner, mainly through the media. We encourage visitors to the museum to see objects that are otherwise on view mostly in major Western collections. In addition to displaying artefacts, the IAMM holds regular workshops and other interactive programmes for children and adults. Everything from calligraphy classes to photography workshops has been covered. For the future, we will be expanding our education outreach programme hj to widen the potential audience.

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