BFX Appoints Ratings Intelligence as Shari’ah Advisor

 

3 August 2010
Source : BFX

The BFX will benefit from the guidance and expertise of the leading and well respected Shariah Scholars - Dr. Muhammad Ali El-Gari, Dr. Abdul-Sattar Abu Ghuddah, Dr. Nazih Hammad, and Dr. Mohammed Amin Ali Qattan who are on the Shari’ah Control Committee of Ratings Intelligence.

The Bahrain Financial Exchange (BFX), the first multi-asset exchange in the Middle East and North Africa (MENA) region, today announced that it has appointed Ratings Intelligence Partners (RI) as its Shari’ah Advisor. RI, one of the world’s leading organizations of its kind, will provide a number of important support services to the BFX leading up to its launch in October of this year; most notably, advisory services to the BFX to ensure the adherence of the BFX’s Murabaha platform to
Islamic principles. RI will also develop a formal structured documentation process for the BFX’s Islamic products.

Commenting on the announcement Arshad Khan, Managing Director and Chief Executive Officer of the BFX and the BFX Clearing and Depository Corporation, said: “We are extremely pleased to work with the most respected Shariah scholars in the development of the BFX’s Islamic products which will support best practices in the Islamic financial sector. Being in the
MENA region, we view Shari’ah-compliant financial instruments as one of the key drivers to achieve our strategic growth plans. Through Ratings Intelligence consultancy services, we are confident that our offerings are in line with the high expectations of the discerning Islamic market.”

In addition to its role as an advisor, RI will also liaise with the Shari’ah Supervisory Boards (SSB) of BFX members across the region to obtain approval for the BFX's Islamic finance products. RI’s eminent and experienced scholars will also give the SSBs a clear understandingof the nature of the BFX’s products and provide answers to any issues raised. The Shari’ah
Control Committee of RI is comprised of Dr. Muhammad Ali El-Gari, who serves as its Chairman, Dr. Abdul-Sattar Abu Ghuddah, Dr. Nazih Hammad, and Dr. Mohammed Amin Ali Qattan.

Dr. Mushtaq Shah the CEO of Ratings Intelligence commented: “We look forward to providing our deep expertise in Islamic finance to the BFX’s innovative product roadmap which will provide the BFX’s customers with reliable and comprehensive Islamic investment solutions that cater to the needs of a varied class of financial institution.”

About BFX:

Bahrain Financial Exchange (BFX) is a pioneering cross border and multi product exchange in the Middle East and North Africa, and will be internationally accessible, to trade cash instruments, derivatives, structured products and shariah‐compliant financial instruments. The BFX is regulated by the Central Bank of Bahrain (CBB) and has an in‐principal approval.

The BFX is a wholly owned initiative of Financial Technologies Group (FT Group), which currently owns one of the world’s largest networks of 10 exchanges connecting fast‐growing economies of Africa, Middle East, India and South East Asia.
The BFX has set up its Clearing and Depository Corporation (BCDC) to clear and settle the contracts it trades.

The BFX Training Institute is an international standard in – house training facility, providing world class
conventional and Islamic financial training and education courses. The BFX is a member of the Futures and Options Association (FOA), the International Islamic Financial Market (IIFM), the Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI), and a member of the Associations of Futures Markets (AFM).

About Rating Intelligence:

Ratings Intelligence is an organization that was set up in 2000, in response to the lack of quality research resources for Islamic investors. Based in the London, Kuwait and in Bangalore, the company is managed by highly experienced and qualified finance professionals.

They provide a comprehensive set of services for investors who wish to invest in stocks, in accordance with Islamic principles. Ratings Intelligence is a unique partnership, consisting of a world class Shariah Committee, western investment bankers, as well as financial institutions in both the Moslem and the non-Moslem world. The Ratings Intelligence Islamic research service will cover the needs of two groups: one group is the private investor and the other group is the institutional investor/fund manager.