Muslim World League releases Declaration of Peace in Afghanistan

The Muslim World League (MWL) sealed an agreement on 17 June that creates a roadmap for resolving the decades-long conflict in Afghanistan. The Declaration of Peace in Afghanistan was signed following a conference in Makkah. Supported by the KSA government, the agreement establishes the parameters to achieve peace and reconciliation in Afghanistan in line with Islamic principles.

MWL Secretary General Sheikh Dr Mohammad bin Abdulkarim Al-Issa led the effort, and Noor-ul-Haq Qadri, Federal Minister for Religious Affairs and Interfaith Harmony of Pakistan, and Mohammad Qasim Halimi, Minister of Hajj and Religious Affairs of Afghanistan, signed the accord.

"This brotherly meeting was characterised by determination, love and harmony, and reflected the strong resolve of our brothers in the meeting to advance peace in Afghanistan," Dr Al-Issa said. "Brotherly peace which is characterised by strong faith, sincere determination and responsibility, and this agreement was reached in the most sacred place on earth by religious scholars. There can be no stronger declaration of peace, and it will prove successful, God willing."

Highlights of the declaration include:

- Condemns all acts of violence and extremism, regardless of the perpetrator or motivation, and judges all attacks against civilians as a violation of the fundamental principles of shari'ah.

- Rejects any attempt to justify violence on the basis of religion, nationality, civilisation or race.

- Recognises the unique role of religious scholars to ensure peace and reconciliation in Afghanistan.

- Leverages the influence of the religious scholar communities in Afghanistan and Pakistan to ensure compliance by all parties to the conflict.

- Reflects the status of reconciliation as the optimal resolution for conflicts and disputes as laid out in the Quran.

"Saudi Arabia has always been there for Afghanistan and is leading the effort to ensure we achieve peace," Qadri said. "Our religion teaches us how to be united and harmonious with one another, and advocates for international cooperation in all charitable work. Islam focuses on protecting the nation, encouraging development and progress, promoting peace and preventing subversive acts."

"We are truly fortunate for the unity and accomplishment of this declaration, and its potential for ending the bloodshed that has lasted for years," Halimi said. "The obstacles to reconciliation in Afghanistan have been removed completely and there are none now."

Pakistani and Afghan scholars, many of whom participated virtually from their home countries, thanked the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and Crown Mohammad bin Salman for KSA's support for peace and stability in Afghanistan. They also commended the kingdom's efforts to bring together scholars from both countries and build bridges that unite Afghans.

Strides made in Islamic economy as a result of the 12th WIEF

The 12th World Islamic Economic Forum (WIEF), which was held in Jakarta from 2 to 4 August 2016 facilitated developments that bolstered regional cooperation and business ties.

At the event, the country leaders highlighted that growing inequality continues to defy solutions for inclusive development and that centralised development tends to overlook or even marginalise large sections of society in many countries. They also pointed out that the unintended consequence of innovative technology often was the enrichment of a few; that the potential of the young population of the developing world has not been effectively utilised; and that enhancing media strategy to improve global perception of Islamic world investments and business potentials is important.

Sri Mulyani Indrawati, Minister of Finance of Indonesia affirmed that WIEF recognises these challenges through its theme of Decentralising Growth, Empowering Future Business, and a complementary forum programme. The forum, while focused on the development of micro, small and medium enterprises (MSMEs), also discussed topics relating to the expansion of the global halal ecosystem, enhancing the inclusiveness of Islamic finance, the support of startups and the development of the creative industry.

In addressing the issues of decentralisation to enable inclusive economic growth, the 12th WIEF recommended:

• Promoting and supporting an enabling environment including access to finance, for the development and corporatisation of MSMEs and cooperatives to address job creation, income generation and to unlock economic opportunities in rural communities; 
• Harnessing the use of innovative training to provide youth with modern skills to enhance their economic exchange value as well as to infuse corporate social responsibility for promoting wider social benefit from the application of innovative technology; 
• Expanding the use of Islamic finance to grow the halal ecosystem, modest fashion industry, infrastructure development and social finance; 
• Harnessing the use of disruptive technologies for the wider benefit of a more inclusive society; and 
• Developing strategies to enhance the potential of creative industries to spread economic growth.

The positive outcome of the 12th WIEF will be further strengthened by the implementation of 10 projects for which memoranda of understanding (MoUs) were signed and exchanged in keeping with what Malaysia PM Dato’ Sri Najib Razak said at the 12th WIEF, “We look forward to opportunities to collaborate with other jurisdictions, as well as with industry and academia, to expand international connectivity, strengthen talent and capabilities, and grow the global Islamic capital market for the benefit of all.”

Totalling US$899.6 million, the 10 agreements involved 13 Malaysian, eight Indonesian and two Japanese corporations and are expected to have a significant impact on the economy of ASEAN and neighbouring regions:

Malaysian property developers Sime Darby, SP Setia Indonesia and I&P Group signed an agreement worth US$862 million with Indonesia’s PT Hanson International to jointly develop affordable housing in the Maja area in West Jakarta, Indonesia.

Another significant collaboration was the tripartite agreement amounting to US$12 million made between Kumpulan Perubatan Johor and two Japanese companies, Sojitz Corporation and Capital Media Company for the setting up of an Oncology Centre at Rumah Sakit Medika Bumi Serpong Damai in Tangerang, Indonesia.

Malaysia’s Majlis Agama Islam Negeri Johor (MAINJ) signed an agreement with UMLand J-Biotech Park to spearhead the development of Johor Halal Park, envisioned to become the first premium bio-halal industrial park in Malaysia with world-class facilities and a halal ecosystem.

In the field of education, Brainy Bunch inked an agreement with PT Brainy Bunch Indonesia giving the Indonesian company the rights to set up Brainy Brunch Islamic Montessori preschools in Indonesia.

Bursa Malaysia and Indonesia Stock Exchange signed a pact to develop Islamic capital markets in both countries with the goal of establishing Malaysia and Indonesia as a leading Islamic capital market hub in the world.

In closing, the Chairman of the WIEF Foundation, Tun Musa Hitam stated that the agreements between national and regional corporations proved that the WIEF has been a strategic platform for important business and economic collaborations to strengthen and connect the Muslim nations with their regional and global counterparts.

“This reflects our confidence, courage and decisiveness in responding to our current economic challenges, in which collaborative model that enables joint value creation is important and necessary in order to create a levelled playing field between the Muslim and non-Muslim world,” he said.

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Malaysia, Indonesia deepen financial integration

Bank Negara Malaysia has signed a bilateral agreement with Indonesia's Otoritas Jasa Keuangan under the ASEAN Banking Integration Framework (ABIF). The agreement was signed by Muhammad bin Ibrahim, Governor, Bank Negara Malaysia and Dr Muliaman Hadad, Chairman of Board of Commissioners, Otoritas Jasa Keuangan, in conjunction with the 11th Meeting of the Annual Consultation between the President of the Republic of Indonesia and the Prime Minister of Malaysia.
The agreement, which seeks to operationalise the earlier Heads of Agreement in 2014, will provide greater access and operational flexibility for Malaysian and Indonesian qualified ASEAN Banks operating in the respective jurisdictions. The commitments in the agreement form part of the ASEAN Framework Agreement on Services.

Following the official launch of ABIF and establishment of the ASEAN Economic Community in 2015, the agreement represents a significant milestone towards achieving greater banking and financial integration within ASEAN.

With the implementation of the agreement, Bank Negara Malaysia looks forward to the establishment of Indonesian qualified ASEAN Banks in Malaysia. Under the agreement, it is envisaged that both Malaysian and Indonesian banks will have a greater role in facilitating cross-border trade and investment between both countries. The increased banking and financial integration will further deepen the potential for mutually reinforcing growth and greater shared prosperity between both countries and within the region.

To promote adequate safeguards in a more integrated environment, Bank Negara Malaysia and Otoritas Jasa Keuangan have also signed a memorandum of understanding (MoU) in April 2016 to further enhance supervisory cooperation. The MoU covers areas of supervisory cooperation and coordination, including exchange of information, facilitation of consolidated and cross-border on-site supervision, financial crime and crisis management in accordance with the principles set out in the Core Principles of Effective Banking Supervision and the Insurance Core Principles.

IFSB, INCEIF renew cooperation agreement

The Islamic Financial Services Board (IFSB) and INCEIF – The Global University of Islamic Finance have renewed an agreement to facilitate international cooperation between the two organisations to provide relevant activities relating to capacity building and awareness promotion in Islamic finance. The Memorandum of Understanding (MoU) was signed on the sidelines of the 12th IFSB Summit in Almaty, Kazakhstan on 19 May.

This mutual co-operation aims to strengthen the efforts of the two institutions in promoting an exchange of information, undertaking research, development, training and education in the Islamic financial services industry. More specifically, the MoU identifies the following areas of cooperation between the IFSB and INCEIF: 

• Jointly exploring and undertaking various research issues concerning Islamic financial services industry. 
• Providing reciprocal staff development and exchange programmes. 
• Building awareness among the industry players through jointly conducting learning and awareness programmes including among others: conferences, seminars, workshops, roundtables, trainings (including custom-designed learning and training programmes). 
• Cooperating in providing technical assistance to facilitate the implementation of the IFSB standards and to assist in building the necessary financial infrastructure for development of a sound and stable Islamic financial services industry. 

Under the first MoU, signed in 2012, the IFSB and INCEIF successfully held a series of six Executive Forums (EF) covering topics in Islamic finance. The IFSB-INCEIF Executive Forums on Islamic Finance aim to provide a platform for industry’s global leaders to discuss emerging issues facing the global Islamic financial services industry with an emphasis on issues related to supervision and prudential regulation at the national and international levels.

The next Executive Forum on Islamic Finance, themed Building Momentum for Islamic Liquidity Management, will be held 3 to 4 June 2015 in Kuala Lumpur, Malaysia.