Finding Islam on the Road to College

By Halimah David

My father raised me on his own and as a Christian. He worked hard to teach me Christian values.

I read the Bible a lot when I was in elementary school (I skipped the words I did not know) and noticed there were some contradictions (i.e. eating pork, Jesus's peace be upon him supposed death).

When I was twelve I knew I did not really believe in Christianity anymore, but I did not know what to think. I continued searching out God and praying to Him for the truth. I sought God a lot and very hard.

I had a lot of questions on my mind: "Everybody, at some time or another, asks themselves the question: "Why do I exist?" or "For what purpose am I here on earth?"

The variety and complexity of the intricate systems, which constitute the fabric of both human beings and the world in which they exist, indicate that there must have been a Supreme Being who created them.

Design indicates a designer. When human beings come across footprints on a beach, they immediately conclude that a human being had walked by there some time previously.

No one imagines that the waves from the sea settled in the sand and by chance produced a depression looking exactly like human footprints.

Nor do humans instinctively conclude that they were brought into existence without a purpose. Since purposeful action is a natural product of human intelligence, humans conclude that the Supreme Intelligent Being who created them must have done so for a specific purpose.

Therefore, human beings need to know the purpose for their existence in order to make sense of this life and to do what is ultimately beneficial for them.

When I was nineteen while calling myself a truth seeker, I traveled a lot looking for other cultures and beliefs to satisfy my need for finding God. I looked into Taoism, Wicca, Buddhism, Rastafarian, Judaism, Free Masonry, Christianity, Hinduism, Animism, etc.

I even looked at one or two pages about Islam but immediately dismissed it as it did not suit my own desire. I saw that Muslims worship Allah, and that Muhammad (peace be upon him) is their Messenger and that they pray five times a day.

Five times a day!?

I thought that sounds like too much work; that could not possibly be the religion Of God the Creator of the Heavens and the earth!?

By time, I returned to theUnited States almost twenty one, I was not satisfied with any of the religions I had looked into. I decided to attend medical school (which was my dream). I filled out entrance exams and papers and was accepted at my delight.

I took a Greyhound Bus from Michigan and headed to Colorado for college. While I was traveling, I met a young guy who was sitting behind me for most of the trip. I asked his name and learned he was Ibrahim from Africa, traveling to college to be an engineer.

We began talking, and he told me he was a Muslim. I asked him what that was and he explained that Muslims believe there is none worthy of being worshiped but Allah alone and that Muhammad (peace be upon him) was the last and final Prophet of the Abrahamic faiths.

I concluded that Jews were behind on two Prophets: Jesus and Muhammad (peace be upon them); and Christians were behind on one Prophet: Muhammad peace be upon him.

I inquired further into the religion Islam, and he shared with me a small book of collected prayers (dua and dhikr) that Muslims make. Inside the first daily remembrance I read was this:

"None has the right to be worshiped but Allah alone, without partner. To Him belongs all sovereignty and praise and He is over all things Omnipotent."

It was then that I knew Islam was quite possibly what I had been looking for. I then looked further into the book for more clarification on who Allah is and focused on these two:

"In the Name of Allah, Who with His Name nothing can cause harm in the earth nor in the heavens, and He is the All-Hearing, the All-Knowing."

"O Allah, whatever blessing has been received by me or anyone of Your creation is from You alone, You have no partner. All praise is for you and thanks is to You."

I then turned to Ibrahim and asked him how I could become Muslim. He told me to say my Shahadah: La ilaha illa llaah Muhammadur Rasoolullah (There is no deity that has the right to be worshiped but Allah alone and Muhammad is His Messenger).

And in believing that and stating it, I became a Muslim right then and there on a Greyhound Bus.

So, after speaking with Ibrahim for fifteen minutes I became a Muslim. This was about seven years ago.

I never went to medical school. I decided to spend my time learning my new religion and moved to Utah. I met a great many Muslims there who warmly welcomed me into the community and spent much time teaching me the religion.

To sum up some of the most important things I have learned as a Muslim would be this:

- There has to have been a Creator due to the fact that there is creation.

- A proof that there is a God is shown through the masses; whom all feel the need to worship and do so through the vast amounts of different religions and beliefs.

Otherwise, where would we have ever gotten the idea from to even worship?

- If there were more then one god there would be complete and utter chaos from them arguing amongst themselves.

- Consequently, every human being is responsible for belief in God, which is imprinted on each and every soul. It is based on this inborn belief that Allah defined the purpose of humankind’s creation in Chapter Adh-Dhariyat (which means): *{I created the jinn and humankind only that they might worship Me.}* (Adh-Dhariyat: 51: 56)

- The laws that we build our societies upon are a proof that there must be a Creator for everything and that we are mimicking Him and His divine laws by creating our own rules and legislation. Unfortunately, societies often make laws and legislation that are contrary to the divine laws of God.

Without these laws there would be complete panic and disorder spread out through the entire world, which would make life very different from the one we live in and experience.

- A religion cannot be properly judged by its' followers but can be properly judged by its' teachings.

- Islam is for all of mankind with complete structure and guidance for every aspect, condition and affliction that mankind ever meets and suffers with and/or from.

- Islam cannot be changed and 'put into a box' in regards to how you want to practice it, you must change yourself and your way of life to meet and fit into Islam.

- Thus, the essential purpose for which humankind was created is the worship of God. However, the Almighty is not in need of human worship. He did not create human beings out of a need on His part.

If not a single human worshiped God, it would not diminish His Glory in any way, and if all of mankind worshiped Him, it would not increase His Glory in any way. God is Perfect. He alone exists without any needs. All created beings have needs. Consequently, it is humankind that needs to worship God.

- Why do human beings need to worship and glorify God by obeying the divinely revealed laws? This is because obedience to divine law is the key to success in this life and the next. The first human beings, Adam and Eve, were created in paradise and later expelled from paradise for disobeying the divine law. The only way for human beings to return to paradise is by obedience to the law.

- Divine laws represent guidance for humankind in all walks of life. They define right and wrong for them and offer human beings a complete system governing all of their affairs. The Creator alone knows best what is beneficial for His creation and what is not.

The divine laws command and prohibit various acts and substances to protect the human spirit, the human body and human society from harm. In order for human beings to fulfill their potential by living righteous lives, they need to worship God through obedience to His commandments.

I am now married with children and am a stay home mother. I write and illustratebooks for children.

I also maintain three websites on the Muslim's belief, character, manners and business ethics.

Source:

Short excerpts above in quotes from The Purpose of Creation by Abu Ameenah Bilal Philips

Apologies over, Obama throws down gauntlet

Barbara Ferguson, Arab News

WASHINGTON: President Barack Obama warned yesterday that failure to act on an economic recovery package could plunge the nation into a long-lasting recession that might prove irreversible, and made a fresh call to a recalcitrant Congress to move quickly.

Last week he struggled to deal with mounting anger regarding the excesses of the wealthy on Wall Street, he criticized “greed and irresponsibility,” then declared that the Wall Street bonuses — $18 billion paid out in Wall Street bonuses last year — were “shameful.”

This week, he announced that companies getting future bailout funds would have to cap executive compensation at $500,000 and place limits on stock options.

Condemning a “culture of narrow self-interest and short-germ gain at the expense of everything else,” Obama said that while “we believe success should be rewarded... what gets people upset, and rightfully so, are executives being rewarded for failure.”

In his first op-ed piece as president, Obama wrote in The Washington Post yesterday that each day without his stimulus package, Americans would lose more jobs, savings and homes.

“This recession might linger for years. Our economy will lose five million more jobs. Unemployment will approach double digits. Our nation will sink deeper into a crisis that, at some point, we may not be able to reverse,” Obama wrote.

His message came as congressional leaders struggled to control the huge stimulus bill that’s been growing larger by the day in the Senate. The addition of a new tax break for homebuyers Wednesday evening sent the price tag well past $900 billion.

Obama, meanwhile, has grown combative since his apologies this week over his administration’s chief performance officer withdrew her nomination because of unpaid taxes, and, on the same day, the president’s choice to be secretary of health and human services withdrew his nomination, also because of his unpaid taxes.

Making matters worse, Tom Daschle and Nancy Killefer pulled announced their resignations just hours before Obama was to hold a host of individual interviews with major broadcast networks.

His sessions with the news anchors turned into a series of ‘mea culpas’: “I messed up,” he told CBS’s Katie Couric.

“I screwed up,” he told NBC’s Brian Williams.

“This is self-induced injury,” he told ABC’s Charles Gibson.

His most thoughtful response was with CNN’s Anderson Cooper: “I campaigned on change in Washington, bottom-up politics, and I don’t want to send a message to the American people that there are two sets of standards — one for the powerful people and one for ordinary folks who are working every day and paying taxes.”

Having apologized earlier this week, Obama has now grown combative. Americans voted for him, not the other guy, he told Americans, and demanded that lawmakers “put aside politics” and start working together — a statement aimed mainly at the Republican lawmakers who prefer tax cuts to a new spending to bounce Americans out of its financial mess.

“In the past few days I’ve heard criticisms of this plan that echo the very same failed theories that help lead us into this crisis — the notion that tax cuts alone will solve all our problems,” the president said at the White House Wednesday.

“I reject that theory, and so did the American people when they went to the polls in November and voted resoundingly for change.”

Senate Democratic leaders hope for passage of the legislation by Friday at the latest, although prospects appear to hinge on crafting a series of spending reductions that would make the bill more palatable to centrists in both parties.

With the Senate preparing to vote on its version of the economic stimulus package, Obama has stepped up his sales pitch to put public pressure on lawmakers to approve it.

His latest plea came on the same day the economy dealt with another dose of bad news: A massive jump in jobless claims and another round of weak retail sales.

Initial jobless claims rose to 626,000, a 26-year high, the Labor Department said. And the number of claims by people continuing to apply for unemployment benefits reached a new record of nearly 4.8 million.

The housing tax break was the most notable attempt to date to add help for the crippled industry and gave Republicans a victory as they work to remake the legislation more to their liking.

City Developments issues S$100 mln of Islamic notes

City Developments (CTDM.SI), Singapore's second-largest developer, said on Thursday it sold S$100 million ($66.45 million) worth of Islamic notes to fund its shariah-compliant businesses. The 3.25 percent Islamic Trust Certificates are due in 2010.

CIMB is the sole dealer for the Islamic note issue. A property pioneer since 1963, City Developments Limited (CDL) is a listed international property and hotel conglomerate involved in real estate development and investment, hotel ownership and management, as well as the provision of hospitality solutions.

With a global presence in gateway cities across Asia, Europe, North America and New Zealand/Australia, CDL has more than 250 subsidiaries and associated companies together with 5 listed companies on notable stock exchanges.

Backed by a track record of over 22,000 luxurious and quality homes to its name, CDL’s properties are synonymous with prestige, good value, outstanding quality and a choice investment.

CDL is one of the biggest landlords in Singapore with over 4 million square feet of lettable office, industrial, retail and residential space. It also owns one of the largest land banks amongst private developers with over 4.5 million square feet that has the potential of being developed into more than 9 million square feet of gross floor area.

CDL strongly advocates a “Safe and Green” culture and has strict adherence to its Environmental, Health and Safety (EHS) policy which was instituted in 2003. CDL was the first private property developer in Singapore to be awarded the ISO 14001 (Environmental Management System) certification by the Building and Construction Authority for its commitment to raising environmental standards in its projects and incorporating eco-friendly features into its developments. CDL also received the OHSAS 18001 (Occupational Health and Safety Management System) certification for establishing an EHS policy to monitor the environmental impact of its operations and improve workplace safety.

In managing its investment properties, CDL was also the first private property developer in Singapore to be awarded the ISO 14001 and ISO 9001 (Quality Management System) certifications for 14 of its commercial buildings.

Millennium & Copthorne Hotels plc (M&C), the London-listed international hotel arm of CDL, is a dynamic hotel group that owns and operates over 110 hotels in 18 countries around the world, with a number of them being located in major gateway cities. CDL also has a dedicated subsidiary, the Hong Kong-listed City e-Solutions Limited, which provides technology solutions for the global hospitality industry.

Beyond its business operations, CDL believes in giving back to the community. It remains committed to an extensive range of Corporate Social Responsibility (CSR) programmes aimed at caring for the needy, raising awareness about the environment, nurturing the youth and promoting the arts. For its sustained commitment and outstanding contributions to the community and the environment, CDL was conferred the prestigious President’s Social Service Award and President’s Award for the Environment in 2007. It has also been listed on the coveted FTSE4Good Index Series since 2002, for meeting globally recognised corporate responsibility standards.

Obama's former Indonesian school basks in his glow

By Jennifer Henderson

JAKARTA (Reuters) - Pupils at Barack Obama's former school in Indonesia skipped classes Wednesday, as a scrum of guests and media invaded the institution where the new U.S. president studied for two years.

Obama spent four years in Indonesia after his American mother, Ann Dunham, married Indonesian Lolo Soetoro following the end of her marriage to Obama's Kenyan father.

"Having Barack Obama as the president will automatically increase the motivation and spirit in pursuing education," said Hasimah, the principal of State Elementary School Menteng 01.

But the intense media interest Wednesday made it hard for pupils to focus on studies.

Sixth-grader Zulkifly said he had been interviewed three times while waiting for his parents at the front of the school.

"There's lots of media here," said the 11-year-old, dressed in a neat white shirt with traditional Indonesian batik patterns.

Indonesians have followed Obama's political fortunes closely and the media has been packed with stories on his old school and the houses he lived in while in the country.

Obama was six years old when he moved to Jakarta, where he went to a Catholic school and then Menteng 01.

The Menteng school briefly become a source of controversy after a U.S. conservative magazine reported on its website in 2007 that it was a radical madrasa, or Islamic school. The school in a leafy suburb is in fact attended by pupils of many faiths.

A former classmate of Obama attending a ceremony at the school to mark the inauguration said she wanted to meet him again.

"If we had a chance we just want to have a chit chat with him, remembering the old days," said Sandra Sambuaga Mangie.

"We don't want to talk about politics or current issues. Just talk about his time in Indonesia, as our classmate," she added.

Classmates and teachers in Jakarta remember Obama affectionately as a child who loved to draw cartoon characters.

Fourth-grader Ceyco said she wished Obama success for the future but had no desire to emulate his path into politics.

"In the future I want to become an international karate athlete," she said. There has been speculation about whether Obama will visit Indonesia, the world's most populous Muslim country.
Obama promised to improve U.S. ties with the Muslim world in his inauguration address Tuesday, after tensions that followed the September 11 attacks and the wars in Iraq and Afghanistan.

A message from Obama was read out on his behalf Tuesday at a ball in a posh Jakarta hotel to celebrate his inauguration.

"My childhood years in Jakarta provided me with many lessons and memories that I carry with me to this day," he said.

(Additional reporting by Lenita Sulthani; Writing by Ed Davies; Editing by Sanjeev Miglani)

By Jennifer Henderson

JAKARTA (Reuters) - Pupils at Barack Obama's former school in Indonesia skipped classes Wednesday, as a scrum of guests and media invaded the institution where the new U.S. president studied for two years.

Obama spent four years in Indonesia after his American mother, Ann Dunham, married Indonesian Lolo Soetoro following the end of her marriage to Obama's Kenyan father.

"Having Barack Obama as the president will automatically increase the motivation and spirit in pursuing education," said Hasimah, the principal of State Elementary School Menteng 01.

But the intense media interest Wednesday made it hard for pupils to focus on studies.

Sixth-grader Zulkifly said he had been interviewed three times while waiting for his parents at the front of the school.

"There's lots of media here," said the 11-year-old, dressed in a neat white shirt with traditional Indonesian batik patterns.

Indonesians have followed Obama's political fortunes closely and the media has been packed with stories on his old school and the houses he lived in while in the country.

Obama was six years old when he moved to Jakarta, where he went to a Catholic school and then Menteng 01.

The Menteng school briefly become a source of controversy after a U.S. conservative magazine reported on its website in 2007 that it was a radical madrasa, or Islamic school. The school in a leafy suburb is in fact attended by pupils of many faiths.

A former classmate of Obama attending a ceremony at the school to mark the inauguration said she wanted to meet him again.

"If we had a chance we just want to have a chit chat with him, remembering the old days," said Sandra Sambuaga Mangie.

"We don't want to talk about politics or current issues. Just talk about his time in Indonesia, as our classmate," she added.

Classmates and teachers in Jakarta remember Obama affectionately as a child who loved to draw cartoon characters.

Fourth-grader Ceyco said she wished Obama success for the future but had no desire to emulate his path into politics.

"In the future I want to become an international karate athlete," she said. There has been speculation about whether Obama will visit Indonesia, the world's most populous Muslim country.
Obama promised to improve U.S. ties with the Muslim world in his inauguration address Tuesday, after tensions that followed the September 11 attacks and the wars in Iraq and Afghanistan.

A message from Obama was read out on his behalf Tuesday at a ball in a posh Jakarta hotel to celebrate his inauguration.

"My childhood years in Jakarta provided me with many lessons and memories that I carry with me to this day," he said.

(Additional reporting by Lenita Sulthani; Writing by Ed Davies; Editing by Sanjeev Miglani)

Obama urges action on Gaza borders

Barack Obama, the US president, has called on Israel to open its borders with Gaza to humanitarian aid and commerce in his first public remarks on the crisis there since becoming president.

Obama, who said he was deeply concerned about the loss of life in Gaza, also reiterated the US view that Israel had a right to defend itself from Palestinian rocket attacks.

"Now we must extend a hand of opportunity to those who seek peace, as part of a lasting ceasefire, Gaza's border crossings should be open to allow the flow of aid and commerce," Obama said.

The US leader was speaking at the state department as he named George Mitchell, former peace negotiator in Northern Ireland, as US special envoy for the Middle East.

Obama also reiterated the US backing for international demands made of the Hamas movement - that it recognise Israel, end violence and agree to recognise previous peace agreements with Israel.

He said the US would support efforts to end weapons smuggling across the Gaza border from Egypt.

However, he called for a complete withdrawal of Israeli forces from Gaza following its offensive, and said the US would provide humanitarian and economic assistance to the millions of Palestinians living in the Gaza Strip.

Osama Hamdan, a Hamas spokesman, told Al Jazeera Obama's remarks seemed to show that the US viewed the situation through "Israeli eyes".

Veteran negotiator
Mitchell, 75, acknowledged there were "many reasons to be sceptical" about the prospects for peace between Israelis and Palestinians.

"The key is the mutual commitment of the parties, and the active participation of the United States government," he said.

He is best known for helping to broker Northern Ireland's historic Good Friday agreement in 1998 which ended decades of bloody conflict.

In 2000, he also presided over a committee investigating the ongoing violence of the Middle East conflict, which recommended Palestinians do more to stop attacks on Israel and an end to Israeli settlement building on occupied land.

Obama also named Richard Holbrooke, a former UN ambassador, as his special envoy to Afghanistan and Pakistan.

Source: Aljazeera and Agencies

India's Financial Tech to launch new boarse in Bahrain

MANAMA, Jan 22 (Reuters) - India's Financial Technologies Ltd (FITE.BO) will launch a new bourse in Bahrain that will provide a secondary market for Islamic bonds, a company executive said.

The new exchange, called Bahrain Financial Exchange, has been licensed by the Gulf state's central bank and plans to start operations in the first quarter of next year, Financial Technologies' director Arshad Khan told Reuters.

Unlike conventional bonds the Islamic bond market, or sukuk, lacks a strong secondary market and most buyers hold the asset to maturity.

"This will be an opportunity to establish a secondary market where the transfer of ownership can keep happening, from buyer to seller," Khan, a director for business development in the Middle East and North Africa, said in an interview late Thursday.

"When a sukuk comes onto the market (today), banks will try to absorb it in their own portfolio, or sell it to their customers", he said.

The exchange will provide a trading platform for both Islamic and conventional products in equities, derivatives, commodities and currencies.

A strong secondary sukuk market could attract other important institutional investors such as pension funds to the sukuk market, Khan said.

"In so far, sukuk has gone to big financial players or high-end individuals, it has not gone to the retail market," he said.

Sukuk volumes dropped dramatically in 2008, hit by the global liquidity crunch. Total sukuk issuance stood at $14.9 billion, down 56 percent from 2007, according to ratings agency Standard & Poors.

Khan said he still sees fundamental demand for sukuk despite the current financial crisis. He said sovereign sukuk issuers, in particular, would be a key driver in reviving the market.

Singapore on Monday announced its first sukuk programme with a volume of $134 million to promote the growth of Islamic finance in the South East Asian city-state.

Islamic banks cater to investors who want to avoid earning or paying interest.

"There's a lot of money being aggregated or collected in Bahrain, but because local investment (opportunities) don't exist, it goes out," he said.

The small island kingdom of Bahrain has established itself as a regional banking centre on the back of Saudi oil wealth that uses Bahraini banks to invest on international markets. (Reporting by Frederik Richter; Editing by Kazunori Takada) (For Reuters content on Islamic finance, click on ISLAMIC)

Obama stimulus plan 'on target'

Barack Obama, the US president, has said a new $825bn economic stimulus plan is "on target" to be approved by the middle of February.

"We are experiencing an unprecedented economic crisis that has to be dealt with, and dealt with rapidly," Obama said as he met leaders from both major US parties at the White House on Friday.

Obama also said that he had been receiving bad news about the state of the economy during his new in-depth daily economic briefing, which he instituted after taking office on Tuesday.

"Frankly the news has not been good - each day brings, I think, a greater focus on the problems that we are having, not only in terms of job loss but also in terms of some of the instabilities in the financial system."
Obama has been hoping to secure a large bipartisan majority for the stimulus package in congress to register a major political success in the symbolic first 100 days of his administration.

But some Republicans have doubts over the size and focus of the package.

"I recognise that there are still some differences around the table and between the administration and members of congress about particular details on the plan," Obama said.

Accountability questions

Obama also warned that the second half of a $700bn bailout of financial firms being debated in congress must ensure more accountability than that implemented by the Bush administration.

He mentioned recent press reports which said some Wall Street executives at companies that had received public bailout money had recently upgraded offices and private bathrooms.

He said politicians must "put in place the kinds of reform elements, oversight, transparency, accountability, that's going to be required in order for the American people to have confidence in what we're doing".

Obama was flanked as he spoke by Nancy Pelosi, the speaker of the House of Representatives, John Boehner, the senior Republican in the House, Harry Reid, the Senate Democratic leader and Mitch McConnell, his Republican counterpart.

Obama's comments came a day after Timothy Geithner, the US Treasury secretary-designate, vowed to reform the US financial system to make it stronger and more able to withstand world market turmoil.
Source: Agencies

Shari'ah compliance issues hit sukuk - Moody's

by Rebecca Bundhun

Shari’ah compliance was a factor in the downturn of Islamic bond (sukuk) issuance in 2008, Moody’s said on Thursday.

Global sukuk issuance slumped by more than 50 percent in 2008, which is largely attributable to the international financial crisis.

But Moody’s said that debates over the Shari’ah compliance of some Sukuk structures, ignited by the Accounting Auditing Organisation for Islamic Financial Institutions (AAOIFI), also had a part to play in the slowdown.

“Early in 2008, the AAOIFI recommended that Islamic finance market participants should refrain from issuing sukuk structures that have a purchase undertaking or a guarantee from the sukuk issuer to repurchase at a specific price at a future date,” said Faisal Hijazi, Moody’s business development manager for Islamic finance.

“This is because AAOIFI believed that this structural mechanism is not compliant with a fundamental principle of Shari’ah, namely profit and risk-sharing,” he explained.

Ijarah sukuk, a form of capital leasing, became the dominant Sukuk structure in terms of issuance volumes in 2008, replacing Mudarabah, which was the dominant structure in 2007, Moody’s said.

A recent report by Kuwait Financial Centre (Markaz) revealed that while both conventional and sukuk markets plunged in the GCC in 2008, sukuk actually managed to grow its market share.

Sukuk’s market share grew to 45 percent of total the value issued by GCC bond markets, from 40 percent in 2007.

Source: arabianbusiness.com

President Yudhoyono calls on businessmen to remain steadfast

Batam (ANTARA News) - President Susilo Bambang Yudhoyono called on business companies operating in the free trade zones in Batam, Bintan and Karimun to remain steadfast in the current global economic crisis.

He made the appeal during a dialogue with Indonesian and Singaporean businessmen at Turi Beach Resort here on Monday evening.

"While the storm is not yet over, it is certain that exports will drop whereas Batam, Bintan and Karimun are relying on exports. So I ask for your understanding that the world market is indeed weakening and shrinking. Well this year we have to struggle to survive, so that in time later we could rise again," he said.

To ease the burden of businessmen, the President said, the government has since September 2008 cooperated with the central bank and some businessmen to issue special policies such as government regulations in lieu of laws, incentives, stimulus and others.

"They are all aimed at calming the market and reducing the burden of businessmen to maintain the real sector," he said.

To maintain the people`s buying power, the business community needs to give their contribution by reducing prices if possible, he said.

"If there is an opportunity to maintain prices or even lowering them, demands will be maintain, and there will also be buyers," he said.

The head of state said the essence of economic recession is declining demands and therefore the only way to solve the problem would be safeguarding demands.

President Yudhoyono also called on the people not to cut their spendings. "Those who can afford to buy things need to keep buying so that products from the real sector are maintained. Let us act like business is as usual in a positive sense," he said.

The President said the general elections Indonesia would hold in the near future would be one of the forms of economic movement.

"Indonesia will conduct general elections. A lot of colourful flags have been raised and in the not too distant future campaigning will be done and in April voting for legislative candidates will take place which will be followed later by presidential elections. They are business. I appeal to parties to raise as many flags as possible, make as many campaign T-shirt as possible and hold as many music performances as possible so that singers get a fortune and economy is moving," he said.

He said the government was ready to lose or to see the foreign exchange reserve to drop so long as people did not lose.

Regarding the country`s economic condition President Yudhoyono said quoting "The Economist" that it was so far so good.

"I think it was issued last week. There was a small article about Indonesia there titled "So far so good". Articles written by the Economist or the Times must have no political motives," he said.

It was said Indonesia`s economy grew 6.3 percent in 2007 and 6.1 percent in 2008. He said it showed that the real economy in 2008 still moved and so if Indonesia could withstand in 2008 it would certainly be able to do it too in 2009.

"Last year we could withstand so I hope the economic growth target that we have already revised could be achieved and I ask for your cooperation for it," he said.

The government has corrected the country`s economic growth to 4.5 and 5.5 percent.

Obama sworn in as US president

Barack Obama has become the 44th president of the United States, during an inauguration ceremony witnessed by at least one million people in Washington DC.

Obama was sworn in as the US commander-in-chief just after noon local time (1700 GMT) on Tuesday, becoming the first African-American to hold the post.

"I stand here today humbled by the task before us, grateful for the trust you have bestowed, mindful of the sacrifices borne by our ancestors," Obama said, minutes after taking the oath of presidential office from John Roberts, the US chief justice.

"Forty-four Americans have now taken the presidential oath. The words have been spoken during rising tides of prosperity and the still waters of peace.

"Yet, every so often the oath is taken amidst gathering clouds and raging storms. At these moments, America has carried on not simply because of the skill or vision of those in high office, but because We the People have remained faithful to the ideals of our forbearers, and true to our founding documents."

Kennedy collapses

Hours after his inauguration, Obama addressed members of the US congress at a special lunch event, which was overshadowed by the collapse of a senator.

The American news channel CNN and other networks identified the victim as Edward Kennedy, the Massachusetts senator who is battling a life-threatening brain tumour.

Television networks reported that Kennedy required medical attention after Robert Byrd, 91, a West Virginia Democratic senator, also took ill.

"It looked like a seizure and it was painful to him [Kennedy]," Orin Hatch, a Utah Republican senator, said.

"But ... as he got into the ambulance he kind of looked over at me and smiled that old Irish smile that I know [meant] that things are going to be all right."

After the lunch, at which Obama paid tribute to Kennedy, the new president walked with his wife along Washington's Pennsylvania Avenue as part of an inauguration parade.

US challenges

Nicolas Sarkozy, France's president, said after Obama's inauguration: "We are eager for him to get to work so that with him we can change the world".

Meanwhile, Gordon Brown, Britain's prime minister, said Obama's ascendancy to the US presidency marked a "new chapter in both American history and the world's history."

Obama acknowledged that the US faces several challenges, from military campaigns in Iraq and Afghanistan to economic concerns at home.

"That we are in the midst of crisis is now well understood. Our nation is at war, against a far-reaching network of violence and hatred. Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age," he said.

"Today I say to you that the challenges we face are real. They are serious and they are many. They will not be met easily or in a short span of time. But know this, America - they will be met.

"On this day, we gather because we have chosen hope over fear, unity of purpose over conflict and discord."

Rob Reynolds, Al Jazeera's correspondent in Washington, said: "Some of the things I thought were stand-out moments included his [Obama's] call for an era of responsibility, which was a theme in the speech.

"He also said, very specifically, in something of a rebuke to the outgoing president, George Bush, that America is ready to lead again.

"Clearly the implication is that America failed to show leadership in the last few years."

'Different track'

Obama's speech was aimed at convincing Americans that he will take a different course from Bush, said Marwan Bishara, Al Jazeera's senior political analyst.

"This speech was not about what he is - a political operator - but who he is. He said it is not about big or small government, but about government that works,"

"Obama didn't say anything about a War on Terror, which we've been hearing about for the last eight years, but he did say we are at war against a network which is far different to what we have heard before."
But Robert Fisk, a Beirut-based journalist for the London-based Independent newspaper, said Obama's speech did not highlight any wholesale shift in US strategy.

"I do not think there was a great difference from the rhetoric of Bush but we didn't get taken through 9/11 again," he said.

Fisk also described the speech as "very long, almost a sermon" and as being "meagre on the Middle East" because it did not reference the Palestinian issue.

"Many people in this region [the Middle East] are going to say 'didn't he see the pictures on TV in the last few days'... it's the Middle East that will come back again and again and I don't think he chose to address it," he said.

Obama and his wife Michelle began inauguration day by attending a service at St John's Episcopal church, which lies a short distance from the White House.

Obama then went to the White House to share coffee with George Bush, the outgoing US president, and Dick Cheney, the outgoing vice-president.

Bush and Cheney later left the White House for the last time, with Bush joining Obama in a motorcade heading to the Capitol for the inauguration ceremony.

After Obama's inauguration, Bush and his wife Laura boarded a helicopter waiting next to the US Capitol, to begin their journey to Midland, Texas.

'Destinies shared'

Central Washington DC was inundated by hundreds of thousands of people keen to witness Obama's inauguration.

"This crowd was hanging on every word Obama was saying. At some moments, he was solemn and the crowd listened carefully. Then he talked about the US becoming strong again, and there was a lot of flag waving," Cath Turner, Al Jazeera's correspondent in Washington DC, said.
Grace Clark, a spectator who had travelled from California, said she had been inspired by Obama's speech.

"It was a new beginning for me, which I was able to share with my daughter here. It gave me the sense that we allhave responsibilities of trying to make changes in the future," she told Al Jazeera.

Torrey Pocock, a self-confessed Republican voter, said he was in Washington to witness a festival of democracy.

"For the country, given its past history [of racism], to put its trust in an African-American president is an incredible thing," he said.

"This is an opportunity to see a bloodless revolution, a opportunity to completely change regimes."

Obama's inauguration came a day after he called on Americans to unite in the spirit of Martin Luther King Jr, the murdered civil rights leader.

"Tomorrow, we will come together as one people on the same mall where Dr King's dream echoes still. As we do, we recognise that here in America, our destinies are inextricably linked," he said in a statement on Monday.

"We resolve that as we walk, we must walk together. And as we go forward in the work of renewing the promise of this nation, let's remember King's lesson - that our separate dreams are really one."

Source: Al Jazeera and agencies

Obama reaches out to Muslim world

by AFP
After being sworn in as the 44th US President, Barack Obama used his inaugaration speech to pledge to seek a 'new way forward' with the Muslim world. But he also warned that the United States will defeat 'terror'.

In his speech upon taking office, Obama also echoed campaign promises for two key Muslim nations by saying the United States will "begin to responsibly leave Iraq to its people, and forge a hard-earned peace in Afghanistan."

Obama has vowed to hit the ground running on his first full day in the White House on Wednesday when the Senate, according to a Democratic leadership source, will vote on his choice of Hillary Clinton as secretary of state, the chief US diplomat.

Faced with a set of daunting challenges across the Muslim world -- from the Palestinian territories to Iran, Iraq, Afghanistan and Pakistan -- Obama set a new tone and promised a fresh balance in using diplomatic, military and other forms of power.
Security in post 9/11 America, he pledged, will not come at the expense of abandoning the US ideals of liberty and the rule of law, which critics worldwide say the Bush administration trampled on in conducting its war on terror.

In a jab at the unilateral military force that Bush used to invade Iraq in 2003, Obama said previous American generations had defeated fascism and communism with "sturdy alliances and enduring convictions" besides resorting to armed intervention.

These generations knew that US "security emanates from the justness of our cause, the force of our example, the tempering qualities of humility and restraint," Obama said, alluding to the accusations of arrogance cast at the Bush administration.

His administration will be guided by such principles as it meet "those new threats that demand .... even greater cooperation and understanding between nations," Obama declared.

"We will begin to responsibly leave Iraq to its people, and forge a hard-earned peace in Afghanistan," he said.

During his long presidential campaign, Obama vowed to mend alliances, in particular with Europe, whose support he seeks to help stabilize Afghanistan where the Taliban has re-emerged as a threat after its ouster by US forces in 2001.

"With old friends and former foes, we will work tirelessly to lessen the nuclear threat," he said.

He was referring to a "new approach" both he and Clinton have promised toward reining in Iran's nuclear ambitions by engaging diplomatically with the Shiite Muslim country.

"And for those who seek to advance their aims by inducing terror and slaughtering innocents, we say to you now that our spirit is stronger and cannot be broken; you cannot outlast us, and we will defeat you," he warned.

As a melting pot nation, "we cannot help but believe that the old hatreds shall someday pass; that the lines of tribe shall soon dissolve," he said.

"To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect," he added.

He made no direct reference to the Palestinian-Israeli conflict which erupted anew on December 27 when Israel launched a three-week military offensive against the Islamist Hamas movement in Gaza only to stall in a shaky truce at the weekend.

Obama and Clinton have vowed to deal with this conflict immediately.

The Washington Post said Obama plans later Wednesday to name former Northern Ireland peacemaker George Mitchell as his new Middle East envoy.

Mitchell, 75, is the son of a Lebanese immigrant mother, and of an Irish father who when orphaned was adopted by a Lebanese family. The choice, if confirmed, appears set to appease Arab and other critics who contend Washington is biased in favor of Israel.

Obama sets agenda on first day

Barack Obama, the US president, has issued his first executive orders amid a flurry of activity from the new US administration on the Middle East, Guantanamo Bay and the economy.

Obama issued orders aimed at freezing White House senior staff pay, placing tighter controls on lobbyists and increasing freedom of information about the presidency ahead of meetings on the economy and Iraq.

Obama told White House staff on Wednesday that "transparency and the rule of law will be the touchstones of this presidency".

The US president had already made requests halting military tribunals at Guantanamo Bay and called both Israeli and Palestinian leaders to express his support for a ceasefire in Gaza.

As Obama's team set a frenetic pace on his first full day in office, Hillary Clinton, the former New York senator and Obama's presidential rival, was confirmed as secretary of state by the US senate.

The president also met his senior team of economic advisers as he tries to implement an economic stimulus plan that could be worth more than $800bn.

Then, Obama was due to call in the Admiral Mike Mullen, Chairman of the Joint Chiefs of Staff, Robert Gates, the US defence secretary and other military advisers at a National Security Council meeting, including David Petraeus, his senior commander in the Middle East.
"The president is going to get an update about what is going on in Iraq," Robert Gibbs, Obama's spokesman, said.

"He will ask for planning to redeploy combat troops within 16 months."

Obama is to focus the US military's efforts on the battle against the Taliban in Afghanistan.

Washington is expected to move about 30,000 more soldiers to Afghanistan as forces are withdrawn from Iraq.

The Taliban, which has fought a bloody war with US and Nato forces since being pushed from power in 2001, said that Obama, should pull his troops out of the country and let Afghans decide their own fate.

"We have no problem with Obama ... [but] he must learn lessons from Bush and before that the Soviets," Yousuf Ahmadi, a spokesman for the movement told the AFP news agency.

Executive orders

Obama said the order on White House pay was necessary at a time when many in the US were facing economic troubles.

"During this period of economic emergency, families are tightening their belts, and so should Washington," Obama said.

As well as introducing tighter controls on lobbyists working in the White House, Obama also banned administration staff from receiving gifts from lobbyists.

Obama also introduced new rules designed to increase access to information about the presidency, meaning that he could no longer deny requests for information without the agreement of US government officials.

Middle East

Obama has been under pressure to focus on the Middle East as Israeli forces withdrew from the Gaza Strip after an offensive that has left more than 1,300 Palestinians dead, nearly a third of them children, and more than 5,000 injured.
Thirteen Israelis, including three civilians, also died in the 22-day offensive.

The new US leader acted quickly to telephone both Mahmoud Abbas, the Palestinian president, and Ehud Olmert, the Israeli prime minister.

"He used this opportunity on his first day in office to communicate his commitment to active engagement in pursuit of Arab-Israeli peace from the beginning of his term, and to express his hope for their continued cooperation and leadership," Gibbs said in a statement.

Obama had already issued a request that trials of al-Qaeda suspects held at Guantanamo Bay be halted for 120 days.

The trial of five suspects accused of planning the September 11 attacks was halted on Wednesday following the request.

Obama began work at the Oval Office early on Wednesday, despite only returning to the White House at 1am after touring at least 10 of the inaugural balls being held in his honour.

The former Illinois senator and his family had attended a prayer service at Washington's National Cathedral earlier in the day that marked the final part of the ceremonies for inauguration as president.

Source: Al Jazeera and agencies

$500mn Sharia Russian property fund launches

Investment bank Fairfax Middle East is hoping there is still some appetite for real estate investment in the Gulf, as it plans to launch a $500 million Sharia compliant Russian property fund.

The new fund is targeting sovereign wealth funds (SWFs) and family trusts in the Middle East and will invest in large scale residential and commercial developments in the major cities of Russia, said James Hare, managing director of Vesta Capital, which conceived the idea and is responsible for promoting the fund in the Gulf.

“There is an endemic supply shortage, which has been there throughout the boom years and continues to be there for specific types of real estate, whether that be residential or commercial in both Moscow and St Petersburg,” he said.

The Shariah Russian Property Fund has entered into a partnership with Sistema-Hals, the LSE-listed property subsidiary of Russian industrial conglomerate Sistema, to co-develop some of its major projects, most of which are in Moscow and St Petersburg.

Sistema will be investing $200 million in the new fund, which is targeting an internal rate of return (IRR) of 30 percent.

The weak ruble and the distressed state of real estate assets in the country will enable the fund to employ its capital very effectively, Hare said.

Indonesian shares to be stagnant next week: dealers

Jakarta (ANTARA News) - Indonesian shares are likely to be little changed next week despite slashes in fuel and electricity prices, dealers said Friday.

"The market will be stagnant but volatile," analyst Suherman Santikno from Batavia Prosperindo told AFP.

"The market is driven by consumption. Good local news like fuel and electricity price cuts locally will promote consumption. But the market still look at Wall Street as a benchmark and global economic news have not been so rosy," he said.

Indonesia cut the price of subsidised fuel from Thursday to boost the buying power of Indonesians. The price of premium petrol was slashed from 5,000 rupiah (45 cents) a litre to 4,500, and diesel was reduced from 4,800 rupiah a litre to 4,500.

"The support level for next week is 1,300 and the resistance level is 1,400," Santikno said.

Dealers said the price cuts would reduce inflation and interest rates, and will benefit the banking and property sectors.

Indonesian shares ended 1.5 percent higher Friday following gains across most Asian markets.

The rupiah ended at 11,225 to the dollar compared with 11,210 the day before.

Hamas offers conditional ceasefire

Hamas and several allied Palestinian factions have announced a conditional, one-week ceasefire in the Gaza Strip, giving Israel seven days to pull out of the territory.

The move, following a meeting of the factions in Damascus, comes a day after Israel announced a unilateral ceasefire, ending its 22-day offensive in Gaza which has left at least 1,203 Palestinians dead.

"We in the Palestinian resistance movements announce a ceasefire in the Gaza Strip and demand that enemy forces withdraw in a week and open all the border crossings to permit the entry of humanitarian aid and basic goods," Mousa Abu Marzuk, deputy leader of Hamas's political bureau, said in Damascus on Sunday.

Besides Hamas, Palestinian factions at the Damascus meeting included Islamic Jihad, Al Nidal, the Popular Front for the Liberation of Palestine (PFLP) and al Saeqa.

Israeli response

The Israel military said on Sunday that troops withdrawals had begun from key positions in and around Gaza City.

However, Israel earlier said that it will not consider a timetable for withdrawing all of its forces from the Gaza Strip until Hamas and other groups halt their fire.

Speaking to Al Jazeera on Sunday, Avital Leibovich, an Israeli military spokesperson, said: "I am sorry, Hamas will not give Israel a deadline to pull out its troops.

"We will pull out the troops if and when we will decide that a permanent safe and secure situation has arrived in our country - which has not [yet]. Since from the morning we were targeted by 16 rockets from Hamas.

"We have to assess the situation every day and then see whether we are heading towards a stable secure situation or [if] we have to continue the operation.

"The operation is not over. This is only a holding of fire."

'Objectives achieved'

Palestinian factions have continued to fire rockets into southern Israel since the beginning of the offensive, killing three Israelis, out of a total of 13 Israelis that have died since the begining of the war.
They have also been fighting Israel's ground forces which enterd the Gaza Strip in the second week of the offensive.

An end to rocket fire from the Gaza Strip into Israel was the stated aim of the Israeli offensive.

Israel declared a unilateral ceasefire on Saturday, with Ehud Olmert, the prime minister, stating that the country had achieved its objectives.

"We have reached all the goals of the war, and beyond," he said. "[But] if our enemies decide to strike and want to carry on, then the Israeli army will regard itself as free to respond with force."

Olmert also said the war boosted Israel's deterrence and that Hamas's actions would decide when the military would withdraw.

"This operation strengthened the deterrence of the state of Israel in the face of all those who threaten us," he said.

"If Hamas completely stops its attacks, we will judge at what moment we will leave the Gaza Strip."

'Symbolic victory'

However, Ayman Mohyeldin, Al Jazeera's correspondent in Gaza City, said some in the Gaza Strip are claiming a victory for Hamas and other Palestinian factions.

"On an operational level on the last day of the war and even after the war Palestinian factions are still capable of firing rockets, no doubt about that.
"In fact, more than a dozen or so have been fired today according to the factions here on the ground.

"On a symbolic level, at the end of the day the Palestinian people remain here on the ground, having paid a very heavy price though.

"Their position was one of steadfast defiance. The fact that they can stay and essentially ... claim that they have been able to stave off this aggression, in terms of the leadership and the command and control structure of Hamas and the government here, is certainly a sign for many here that they have been victorious."

'Extremely fragile'

At least 16 rockets were fired from the Gaza Strip into Israel on Sunday morning after it declared its ceasefire.

Israel responded with air attacks, according to Israeli sources.

Barnaby Phillips, Al Jazeera's correspondent, reporting from near the Gaza-Israel border, said that the situation is extremely fragile.

"This ceasefire ... could go horribly wrong at any moment. There are thousands of troops in Gaza. We did see some withdraw we think this morning, we are not sure of numbers but they are in close proximity to Hamas fighters," he said.

Source: Al Jazeera and agencies

Hillary Clinton recognizes Indonesia`s economic role

Jakarta (ANTARA News) - Senator Hillary Rodham Clinton in her statement when testifying as secretary of state nominee at the US Senate`s Foreign Relations Committee in Washington DC, last Tuesday (jan. 13), recognized Indonesia`s role in dealing with the global economic crisis.

"We know that emerging markets like China, India, Brazil, South Africa, and Indonesia are feeling the effects of the current crisis. We all stand to benefit in both the short and long term if they are part of the solution, and become partners in maintaining global economic stability," she said.

"For too long, we have merely talked about the need to engage emerging powers in global economic governance; the time to take action is upon us. The recent G-20 meeting was a first step, but developing patterns of sustained engagement will take hard work and careful negotiation," she added.

Indonesia`s President Susilo Bambang Yudhoyono attended the G-20 Summit on the global economic crisis which was held in Washington DC, last November 2008.

In her statement Hally Clinton also recalled President-elect Obama`s mother, Ann Dunham, who had worked in Indonesia from late 1960s until early 1990s. Clinton called Ann Dunham as a pioneer in micro finance in Indonesia.

"As a personal aside, I want to mention that President-elect Obama`s mother, Ann Dunham, was a pioneer in micro finance in Indonesia. In my own work on micro finance around the world - from Bangladesh to Chile to Vietnam to South Africa and many other countries - I`ve seen firsthand how small loans given to poor women to start small businesses can raise standards of living and transform local economies," she said.

"President-elect Obama`s mother had planned to attend a micro finance forum at the Beijing women`s conference in 1995 that I participated in. Unfortunately, she was very ill and couldn`t travel and sadly passed away a few months later. But I think it`s fair to say that her work in international development, the care and concern she showed for women and for poor people around the world, mattered greatly to her son, and certainly has informed his views and his vision. We will be honored to carry on Ann Dunham`s work in the months and years ahead," she said.

The Senate is expected to confirm Hillary Clinton as the new US Secretary of State after the presidential inauguration of Barack Obama on January 20, 2009.

children have to "pay war Gaza"

Children are bearing the brunt of Israel's war on the Gaza Strip, the United Nations Children's Fund (Unicef) has said.

More than 300 children have been killed and hundreds more wounded in Israel's aerial and ground assault, Ann Veneman, Unicef's executive director, said in a statement released on Wedneday.

She said: "Each day more children are being hurt, their small bodies wounded, their young lives shattered. This is tragic. This is unacceptable.

"They are bearing the brunt of a conflict which is not theirs.

"As fighting reaches the heart of heavily populated urban areas, the impact of lethal weapons will carry an even heavier toll on children."

Lost childhood

Veneman said the war and bloodshed in Gaza would cause long-term psychological damage to children.
"The crisis in Gaza is singular in that children and their families have nowhere to escape, no refuge. The very thought of being trapped in a closed area is disturbing for adults in peace times," she said.

"What then goes through the mind of a child who is trapped in such relentless violence?"

Israel has said that it is trying to minimise civilian casualties as it targets Hamas fighters and their infrastructure, but Palestinian children are being subjected to harrowing experiences.

"I saw the soldier standing next to the shop. I looked for my mum and then he shot me. One bullet him my hand and the other went through my back and out through my stomach," Samar, a young girl, told Al Jazeera while recovering from her wounds at a Gaza hospital.

Amal, another young girl, wailed: "We have nothing to do with this, we don't fire rockets, we don't know what this war is about."

More than 40,000 pregnant women and their unborn children were also believed to be at risk because Gaza's overwhelmed hospitals were unable to take them in.

Traumatised

Dr Walid Sarhan, a Jordanian psychiatrist, said that if nothing is done to help traumatised children Gaza would begin to see advanced cases of psychiatric problems.
"The main one would be post-traumatic stress disorder, which is expected to rise 60 or 70 per cent among children," he said.

"Also they will have behavioural and emotional problems. They will have difficulties returning to school, going on to achieve in school, and this will not be in small numbers."

Mark Regev, an Israeli government spokesman, said that thousands of children in southern Israel were also suffering because of Palestinian rocket fire.

"Two weeks before this crisis started I went down south with my prime minister, Mr Olmert ... and he was given letters from fourth graders I believe, children who are nine and 10-years-old, who their entire lives have been on the incoming end of these Hamas rockets," he told Al Jazeera.

"You have a whole generation of Israeli children who unfortunately suffering similar trauma."
Source: Al Jazeera and agencies

Indonesian is planning an sukuk or Islamic bond, worth $1 billion

HONG KONG (Reuters) - The start of the year has seen a flurry of deals in Asia's debt and equity markets, and bankers expect similar bursts of activity throughout 2009 as sellers price their offerings attractively to tap pockets of demand.

In less than two weeks, big investors led by Bank of America (BAC.N) and Royal Bank of Scotland (RBS.L) managed to sell $5.7 billion worth of shares in two Chinese banks at discounts ranging from 7 to 12 percent to their last traded prices.

More such sales are expected as strapped investors look to raise cash but much will depend on volatile stock markets.

On the debt side, Export-Import Bank of Korea (KEXIM) this week sold a $2 billion bond that drew $4.4 billion in orders. That followed a $1.5 billion sovereign bond issue by the Philippines that was priced to sell and drew even greater demand.

With plenty of supply coming to market, buyers have the upper hand on pricing. As this week's selldown in stocks shows, demand can be fleeting.

"There are significant refinancing requirements in 2009 and this will generate plenty of transaction flow. Investors are willing to invest but as we have seen on some of the recent block trades, discounts are still wide," said Ken Poon, head of capital markets origination for Citigroup in Asia-Pacific.

"Whenever there is stability in the market you will see activity, but issuers will need to be flexible to take advantage of windows of opportunity," said Poon, whose firm's deals this year include the KEXIM bond as well as a $1 billion commercial paper sale by a unit of India's Oil & Natural Gas Corp (ONGC.BO).

Another lender, state-owned Korea Development Bank, is looking to raise at least $1 billion in a bond issue as early as next week. Indonesia, meanwhile, is planning an Islamic bond, or sukuk, worth $1 billion in February, sources have told Reuters.

BUYERS' MARKET

Thanks to the big block trades in bank shares, equity volumes in Asia so far this year are eight times those in the United States, according to Thomson Reuters data.

The pickup in debt sales is global and driven by highly-rated issuers.

"Investors are hungry, but at a price. There's quite a bit of cash on the sidelines," said Khiem Do, head of the Asia multi-asset group at Baring Asset Management.

"How long can you hold on to Treasury yields that are offering 1 or 2 percent, especially when corporate bond yields and equity yields are very attractive to relative to cash and government bonds?" he added.

KEXIM paid 6.25 percentage points over the midswaps rate, a key pricing indicator on debt deals. Only eight months ago, the state lender paid 1.38 percentage points over the same rate for a 750 million euro-denominated five-year issue.

Even so, a debt syndicate banker at a large bank said market conditions have improved substantially since the end of 2008.

Islamitisch is in financieren tipping point?

By Christopher Watts

Sharia is compatible with the bank quickly move from niche to mainstream, "says Christopher Watts. But while growth seems certain, challenges remain.

In January this year at Sharjah in the United Arab Emirates Electricity and Water Authority (Sewa) need money to build a power and desalination plant in the city Hamriyah, Islamic finance provided Answer: The value of U.S. $ 350 m by the publication of its first sukuk - backed bonds that comply with sharia, the Islamic code, which prohibits interest.

In no way Sewa than venture into the Islamic capital markets. Corporate sukuk issue jump from 0.4 billion in 2000 to $ 24.5 billion in 2006, according to the International Islamic Financial Market (IIFM), an industry association. Completed 122% growth in 2006. "The Islamic finance is no longer a niche market," said David Pace, Chief Financial Officer of Bahrain-based Unicorn Investment Bank (UIB), a house conform to the Shariah. "It is increasingly a mainstream component of the global banking system."
To be sure, the first Islamic bank was founded in 1975, only the last five years, or Islamic finance has increased. Sniffing opportunity banks are now scrambling to activities in accordance with the Sharia, and there is a flurry of al-Islamic business, full-service investment banks to consultants. The products are in the form of loans, insurance and investment funds to take sukuk, hedge funds, swaps and more.

Despite this boom - largely concentrated in the Middle East and Southeast Asia - just the Islamic financial sector is not yet on a global scale. Rodney Wilson, professor of the Institute for Middle East and Islamic Studies at Durham University in the UK, estimates of Islamic banking assets speak for less than 0.5% of the world total. Sukuk and the stock of total debt amounted to 100 billion dollars perhaps - just 0.1% of the global bond market.

But signs of a continuous increase in Islamic finance. Take economic growth: The Middle East and Asia are the two regions with the fastest-growing in the world. Kuwait Finance House in 2007 GDP increased by 6.1% in the GCC countries and 6.2% in Southeast Asia - in contrast to 2.4% in the EU and 2.2% in the U.S. . Oil revenues are behind the boom in the GCC countries and South-East Asia is the "financial discipline in the wake of the Asian currency crisis," said Douglas Clark Johnson, Chief Financial Officer of chalice, another investment consultant in New York.

Sustained growth in the GCC countries and South-East Asia is rapidly creating a prosperous middle class between the regions' combined 410 million strong Muslim population. As the ranks of the "new rich snap up credit to buy houses and cars, and invest in savings and retirement, the demand for Sharia-compliant retail financial services is accelerating. Behind it is consumer demand for Islamic finance institutions.

Consider also the large cash flows in the GCC region and the South-East Asia: The IMF expects that Indonesia and Malaysia just a current account surplus accumulated $ 132 billion for the period five years until the end of 2008, against a deficit of 32 billion dollars in the same period of ten years earlier. And in the GCC countries, the surplus should reach U.S. $ 680 billion, compared to an initial deficit of $ 8 billion.

Encouraged by this money, regional governments are planning ambitious infrastructure programs: Indonesia hopes that USD 110 billion of expenditure in the five years until the end of 2010, and the consultant McKinsey estimates that the GCC will invest 200 billion over the same period. Many of these expenditures are already financed by sukuk - and the volume of the bubble: After the success of sukuk issue Sewa hopes for another U.S. $ 2.7 billion. And in neighboring Dubai, electricity and water authority are considering a first sukuk issue with the plans of USD 2.5 billion.

With foundations increasingly in the Middle East and Asia, Islamic finance is now taking root in London. Prime standalone Sharia-compliant bank opened its doors in 2004 and two others followed, the other is on the road. (Everything is supported by the Middle East settings.) And in April this year, the London Stock Exchange listed her maiden name sukuk should add a lot of depth and liquidity in the market. Another step is for the British government is mulling its sovereign sukuk issue first, perhaps early in 2008.

But problems remain. If Islamic finance is to plunge into the mainstream of global finance, industry needs to improve transparency and strengthen the credibility of the harmonization of standards and practices. Finally, the Sharia interpretation varies according to region and even institutions. Regulation should be strong. These measures - and others - can play a crucial role in broadening the appeal of Islamic finance and bridge the gap between Muslims and conventional financial systems.

The Islamic financial sector needs to work in the field of innovation, too. Shari's products conform May be more complex than conventional ones because each transaction is favorable to a non-negotiation. Many tools are still missing, including corporate treasury and derivatives. As UIB Pace says, "We [the industry] need to change our perception of R & D, and seen as a basic ingredient for success." But at the same time, innovation is hampered by the limited number of Islamic scholars to approve the financial products of Shariah compliance.

For some, industry practitioners are making progress. Earlier this year, the International Capital Market Association and the IIFM agreed to develop standards and best practices for the secondary market for Sukuk and other Islamic instruments. And that can help the global banking giants have their weight in Islamic finance. (Deutsche Bank, Barclays Capital and BNP Paribas are among the top five global sukuk issuers.)

The question whether Islamic finance has reached the critical mass to remain open, of course. But Johnson Calyx Financial is optimistic: "The Tipping Point May already happened," he enterprises. Although Johnson is wrong in his optimism, it seems unlikely the history to prove that it is very wide of the mark.
Source: Economist.com