Islamic Finance – Our Journey
Article Overview
- 1 Islamic Finance – Our Journey
- 1.1 About the Royal Award
- 1.2 Video – The Journey of Islamic Finance
- 1.3 Key Milestones
- 1.3.1 1961 – Establishment of first Islamic Bank. Mit Ghamr Bank, Egypt.
- 1.3.2 1963 – Establishment of Tabung Haji, Malaysia Professor Diraja Ungku Abdul Aziz.
- 1.3.3 1975 – Establishment of Islamic Development Bank
- 1.3.4 1975 – Establishment of First modern Islamic Bank
- 1.3.5 1979 – Establishment of first Takaful Company, Islamic Insurance Company
- 1.3.6 1979 – Establishment of Islamic Arab Insurance Company
- 1.3.7 1981 – Formation of Dallah Al Baraka Group
- 1.3.8 1981 – Establishment of Dar Al Maal Al Islami Trust, Switzerland
- 1.3.9 1982 – Establishment of Islamic Bank International
- 1.3.10 1983 – Establishment of Bank Islam, Malaysia
- 1.3.11 1984 – Establishment of Syarikat Takaful, Malaysia
- 1.3.12 1990 – Establishment of AAOIFI, Bahrain
- 1.3.13 1990 – Issuance of first modern Sukuk.
- 1.3.14 1992 – Introduction of Islamic windows/Islamic Banking Scheme, Malaysia
- 1.3.15 1994 – Issuance of the first Sukuk Mudharaba, Cagamas, Malaysia
- 1.3.16 1997 – First Islamic stockbroking firm in the world. BIMB Securities, Malaysia
- 1.3.17 1999 – Establishment of the 1st Islamic Index, Bahrain
- 1.3.18 2001 – 1st Guidelines on Offering of Asset Backed Debt Securities, Malaysia
- 1.3.19 2001 – Council for Islamic Banks & Financial Institution (CIBAFI), Bahrain
- 1.3.20 2002 – Establishment of Islamic Financial Services Board (IFSB)
- 1.3.21 2002 – International Islamic Financial Market (IIFM), Bahrain
- 1.3.22 2002 – Issuance of the 1st Global Sovereign Sukuk.
- 1.3.23 2005 – Issuance of the 1st Sukuk Musharakah
- 1.3.24 2006 – Issuance of 1st Exchangeable Sukuk, Kazanah Nasional, Malaysia
- 1.3.25 2009 – Establishment of Bura Suq Al Sila, Malaysia
- 1.3.26 2010 – First Sukuk in Singapore Dollars, Kazanah Nasional, Malaysia
- 1.3.27 2010 – International Islamic Liquidity Management Corporation (IILM)
- 1.3.28 2011 – The first sukuk issuance in Renminbi (RMB500 million)
- 1.3.29 2011 – Islamic Interbank Benchmark Rate (IIBR) Thomson Reuters
- 1.3.30 2012 – Bloomberg AIBIM Bursa Malaysia MYR Sukuk Index, Malaysia
- 1.3.31 2014 – First Sovereign Sukuk issued by a non-Muslim nation, UK
See also: A History of Islamic Finance
An excellent video produced by the Royal Award (Malaysia) outlining the main milestones in the modern evolution and development of Islamic Finance.
About the Royal Award
The Royal Award for Islamic Finance (RAIF) is an international award that is held every two years to recognise one exceptional individual who has excelled in advancing Islamic finance globally through outstanding performance and contribution. The Royal Award provides further impetus to deepen the body of knowledge and cross-border application of Islamic finance.
Video – The Journey of Islamic Finance
Key Milestones
1961 – Establishment of first Islamic Bank. Mit Ghamr Bank, Egypt.
Dr Ahmad El-Naggar, an economist who pioneered the formation of the Islamic banking system by setting up Mit Ghamr Saving Association in Egypt.
1963 – Establishment of Tabung Haji, Malaysia Professor Diraja Ungku Abdul Aziz.
Malaysian economist who conceptualised a more structured form of savings by the Muslim community for the needs of performing the Hajj.
1975 – Establishment of Islamic Development Bank
Tunku Abdul Rahman shared his idea for an international Islamic financial institution with King Faisal, and together they brought the idea of IDB to fruition.
1975 – Establishment of First modern Islamic Bank
Dubai Islamic Bank His Excellency Saeed Bin Ahmed Al Lootah founded the world’s first modern Islamic Bank.
1979 – Establishment of first Takaful Company, Islamic Insurance Company
Sudan Islamic Insurance Company (Sudan) contributed effectively in the Islamisation of the insurance sector in Sudan.
1979 – Establishment of Islamic Arab Insurance Company
UAE Islamic Arab Insurance Company. A leading takaful and re-takadul company operating in more than 60 countries.
1981 – Formation of Dallah Al Baraka Group
Saudi Arabia Shaikh Saleh Abdullah Kamel founded the Dallah Al Baraka Group
1981 – Establishment of Dar Al Maal Al Islami Trust, Switzerland
Founded the Dar Al-Maal Islami Trust in Geneva. Acted as parent institution for 55 Islamic Banks. The group comprises three main business sectors which were Islamic Banking, Islamic Investment and Islamic Insurance.
1982 – Establishment of Islamic Bank International
Denmark Islamic Bank International of Denmark was the first Islamic bank in Europe, based in Copenhagen.
1983 – Establishment of Bank Islam, Malaysia
The first Sharia compliant bank in the Asian region
1984 – Establishment of Syarikat Takaful, Malaysia
The first Islamic insurance company offering both general and family takaful
1990 – Establishment of AAOIFI, Bahrain
The Accounting and Auditing Organisation for Islamic Financial Institution (AAOIFI) is an international autonomous non-profit corporate body responsible for the accounting, auditing, governance, ethics and Shariah standards for the Islamic financial industry.
1990 – Issuance of first modern Sukuk.
Shell MDS (Malaysia)
1992 – Introduction of Islamic windows/Islamic Banking Scheme, Malaysia
The Islamic window concept was introduced when Bank Negara Malaysia introduced the interest free banking scheme which allowed financial institutions of offer Islamic banking products and services using their existing infrastructure and branches. This resulted in the rapid growth of the Islamic banking sector.
1994 – Issuance of the first Sukuk Mudharaba, Cagamas, Malaysia
1997 – First Islamic stockbroking firm in the world. BIMB Securities, Malaysia
Introduction of worlds 1st Shariah compliant screening for listed securities, Malaysia
1999 – Establishment of the 1st Islamic Index, Bahrain
Dow Jones Islamic Market Index for investors seeking Shariah compliant stocks
2001 – 1st Guidelines on Offering of Asset Backed Debt Securities, Malaysia
2001 – Council for Islamic Banks & Financial Institution (CIBAFI), Bahrain
The aim of CIBAFI is the develop the Islamic finance industry in various fields including training and HR development. 2001 – Kumpulan Guthrie Barhad. Issuance of 1st Global Corporate Sukuk Ijara, Malaysia.
2002 – Establishment of Islamic Financial Services Board (IFSB)
Malaysia IFSB is an international standard setting body comprising regulatory and supervisory agencies to ensure the soundness and stability of the Islamic financial services industry.
2002 – International Islamic Financial Market (IIFM), Bahrain
An international standard setting organisation focusing on the Islamic capital and money market.
2002 – Issuance of the 1st Global Sovereign Sukuk.
Government of Malaysia
2005 – Issuance of the 1st Sukuk Musharakah
Musyaarakah One Capital
2006 – Issuance of 1st Exchangeable Sukuk, Kazanah Nasional, Malaysia
2009 – Establishment of Bura Suq Al Sila, Malaysia
Bursa Suq Al-Sila is a commodity trading platform dedicated to facilitate Islamic liquidity management and financing.
2010 – First Sukuk in Singapore Dollars, Kazanah Nasional, Malaysia
The largest sukuk issuance at that time.
2010 – International Islamic Liquidity Management Corporation (IILM)
Malaysia Established by monetary authorities and multilateral organisations to create and issue short-term Shariah compliant financial instruments to facilitate effective cross border Islamic liquidity management.
2011 – The first sukuk issuance in Renminbi (RMB500 million)
Kazanah Nasional, Malaysia
2011 – Islamic Interbank Benchmark Rate (IIBR) Thomson Reuters
The first Islamic interbank benchmark rate platform providing a robust indicator of the average expected cost of short-term Islamic interbank marketing funding.
2012 – Bloomberg AIBIM Bursa Malaysia MYR Sukuk Index, Malaysia
Serves as a benchmark for investors of Riggit denominated sukuk in Malaysia.
2014 – First Sovereign Sukuk issued by a non-Muslim nation, UK
The United Kingdom becomes the first non-Islamic country to issue a sovereign Sukuk.
