Public warned of rising fraud - Oman Daily Observer

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WEDNESDAY, APRIL 10 2013 PERSPECTIVE 23 Economy Understanding opportunities of Islamic economics By Mohammed al Balushi morwared@hotmail.com IN fact, you hardly come across where news channels are free from economic discussions, debates and forecasts. You only ind a few people who dare to come out from their comfort zones and spend nights and nights to implement their economic ideas. Sometimes I permit myself to ask me about the problem facing the economy, and the irst question that I ask myself is that: what if I don’t have something to eat? Alright! You must work. This is the simple answer in which I induce myself. The second question will be that: what if I don’t have work or fail to ind a job? Another simple answer that I give to myself is that: develop your skills and knowledge and try to sell them to get fed. The last question that I ask myself is that: what if all my skills, knowledge are not sold and there is no market or such a policy by the government which support me with my economic vision, then what I suppose to do. Just wait for God’s indication who can better decide for any individual. At this point I always disagree with myself and with others who try to in- luence me to wait and be patient. It doesn’t mean I am faithless. There is no harm to be patient and to wait, but why wait? If it is about the nature, someone could understand like where people wait for seasons of winter, summer, spring and autumn. Life doesn’t mean to wait and see, especially in the world of materialism. Though you have made several efforts and the outcome was not satisfactory, and you are sure that things are already moved from your ends and hands. Rather, life means to grow, to move, to ind new ways, new opportunities and to work till the end. Now let us raise the valid question which is “why Islamic economic could not progress?” and how much the Islamic economics understood by people, and is the topic worth of debate? It has been referenced from the various Islamic books that the period from the 7th century to 13th century was known as the golden age of Islam. During this period Muslim scholars had made signiicant developments in the areas of Mathematics where you ind Algebra, induction and irrational numbers, and there were two famous names (Omar Khayam Al Biruni, and Ibn Khaldun), who had worked on that, and continuing, from the same research which says that, in the ield of medicine, Muslim scholars, made signiicant contributions to the medical profession, affecting many specialists, including anatomy, pathology, physiology and many more. Al Razi, Abul Qasim, and Ibn Sina were most popular names in the ield of medicine at that period. Although, the research said that from the same golden period some economic developments were made, for examples: introduction of common currency with the inclusion of inancial contracts like murabaha, musharaka and sakk. Miserably, this has increased my level of suspicions, that why there were no such names like Adam Smith, and Karl Marx, in the list of Muslim economists. Whenever, there are discussions in Islamic circle, the economic part is missing, that how Islamic economics fulil the demand of consumers. Can Islamic economics provide and supply the demand of people? That question is still there. As an individual you don’t want the economy of Islam or any other economy in the world to tell you or decide on your behalf that this can satisfy your need and demand. In the other word you don’t want someone to impose on you with his ideas and options; rather, you as an individual want from the suppliers (Islamic inance, Islamic banking, Islamic economy and all other economic and inancial institutions) to fulill your demand, if we gossip economically. However, I tried to reopen some more pages about Islamic economics and I found some Islamic economists like Nasir al Din (1201-1274), Al Ghazali (1058-1111), and Asaad Davani (b.1444). How and what did they contribute to economy and why did not the Islamic economy progress after them? I asked myself. Nevertheless, researchers have said that: the 15th through the early 20th centuries saw mostly colonising much of the world, including Muslim nations. By the end of the 19th century, Europe controlled 60 to 70 per cent of the land in the entire world, colonisation continued for several more decades. Every aspect of society, from education to economics, was colonised. Western economics and banking systems were imposed on colonised lands, so capitalism (and its interest–based transactions) took hold. That can be one of the reasons that: why the Islamic economics could not progress. Can the concept and practice of Islamic economy solve the globe economic crisis? Will Islamic banks be better parts and leading players on that? The research says that: between 2006 and 2008 the market capitalisation of conventional banks declined by 42.85 per cent, while the market capital of Islamic banks declined only by 8.5 per cent. Additionally, the total assets of the conventional banks grew 36 per cent, while the Islamic banks’ total assets grew 55 per cent. The proits of conventional banks dropped from a $116 billion proit in 2006 to a $42 billion loss in 2008, while Islamic banks experienced a net proit increase of 9 per cent in the same period. Will Muslim scholars be able to convince positively the Western countries and Europe to practise the Islamic way of economy? Will really the Islamic economy safeguard the world’s wealth from the losses or is it just going to be an idea only? Oil Banking Spills lame Canadian oil debate By Jeffrey Jones Emergency crews work to clean up an oil spill near Interstate 40 in Maylower, Arkansas. — Reuters TWO high-proile oil spills won't stem the now-record low of Canadian oil into the United States, despite the frenzy that the spills triggered among friends and foes of the Keystone XL pipeline to the main US reineries. The fate of Keystone remains undecided, yet Canadian crude will become an increasing part of the US energy mix, despite growing competition from new US production. US thirst for Canadian crude has shot up nearly 30 per cent over the past ive years as reiners opt to buy from the north instead of bringing in more expensive Opec oil, thanks to a boom in production from the vast Alberta oil sands. Midwest reiners have invested billions of dollars to tweak plants to take more of the heavy crude from the region, and a small but growing network of rail routes have sprouted up to augment existing pipelines. So even as environmentalists seized on oil spills last week in Arkansas and Minnesota to warn about the impact of expansion in the tar sands — the world's third-largest crude deposit — it appears only a crash in the price of oil or unexpected regulation will derail the growing energy interdependence. "Short-term, this is not good for producers, it's not good for Canadian oil going south, it's not good for Keystone," John Stephenson, vice-president and portfolio manager at First Asset Investment Management in Toronto said of the two spills. "But I think the reality is this oil is going to make it south of the border, quite likely by rail or one of the other pipelines across the Canadian-US border, so I see it as a short-term hiccup at worst." Canada's black gold has allowed the Obama administration to crow about dwindling reliance on oil from less-friendly suppliers in the Middle East and elsewhere. In addition, a glut of the Canadian heavy oil has tempered higher gasoline prices, especially in the US Midwest. That may trump increasingly bad PR for Canada's oil, much of which is produced by energy- and carbonintensive methods such as mining or steaming, making it a prime target in the battle over policies to ight global warming. Yet the growing role of Canadian crude in the US economy cannot be denied. Overall US oil imports fell to 8.5 million barrels a day last year from over 10 million in 2007, but supplies from Canada jumped to 2.4 million barrels a day, from just under 1.9 million, over the period, according to the US Energy Information Administration. That puts Canadian crude at nearly 29 per cent of foreign supplies in the United States, despite the remarkable increase in US domestic light oil output from regions such as the North Dakota Bakken that has fueled predictions of North American energy self-suficiency in 15 years. In fact, the two types of crude compete little for reinery space, as Canada's heavy crude is being directed at US Gulf Coast plants that are conigured to process heavy oil, which now arrives in dwindling volumes from Venezuela and Mexico. "If that's the case, then Obama's left with not an energy choice -- he's left with a geopolitical choice," said Michal Moore, director of energy and environmental policy at the University of Calgary's School of Public Policy and a former California energy regulator. "Do you want to piss off Canada by not letting oil into the reineries that can handle it most easily? I don't know how he makes that judgment but I will say that this doesn't help." Other reiners have also invested to process more feedstock from Canada, with BP sinking $4 billion into its Whiting, Indiana plant to take more of the heavy, sour oil. In addition to heavy tar sands oil, Canada also exports large volumes of conventional lighter crude. In January, the US imported over 1.5 million bpd of heavy Canadian crude, deined by the Canadian Association of Petroleum Producers as having an API Gravity of less than 27 degrees, and nearly 1.15 million bpd of lighter, easier to reine oil, according to the EIA. Last week's spills both involved oil from Canada. On Friday, Exxon Mobil Corp's aging Pegasus pipeline ruptured in Arkansas, forcing a cleanup of thousands of barrels of heavy Canadian oil that leaked into a suburban neighborhood. The incident followed an oil spill in rural Minnesota after a Canadian Paciic Ltd train derailed. The tankercar leaked several hundred barrels of Alberta crude and reignited concern about oil moving by train as pipeline capacity lags production growth. Producers shipped about 45,000 barrels of Canadian oil into the United States by train last year, up from almost nothing just ive years earlier, based on Reuters calculations of data from Canada's National Energy Board. Current shipments could be as much as 150,000 barrels a day, estimated Steven Paget, analyst at FirstEnergy Capital Corp. The spills are the latest in a string of problems for shippers of Canadian crude that have inlamed the debate over the oil sands. The largest spill was the Enbridge Inc line break in Michigan in 2010, which sent more than 20,000 barrels of Canadian oil into the Kalamazoo River system. US regulators last month ordered Enbridge's US afiliate to do more cleanup at the site, pushing the bill to near $1 billion. TransCanada Corp, backer of the long-delayed $5.3 billion Keystone XL pipeline to Texas reineries from Alberta, and the line's supporters, say oil spills highlight the need for safer energy infrastructure rather than a shift from pipelines. "I don't think it will have an impact (on Canadian exports and the approval of pipelines). Look, it's being seized on by those who oppose hydrocarbon development, but if you follow their logic to its conclusion, what they're saying, I guess, is they don't want to see any pipelines built," Canadian Natural Resources Minister Joe Oliver said of the Arkansas spill. "It's not because of Canadian crude that there was a spill. It was an old pipeline, more than 60 years old." Oliver has led Ottawa's intense lobbying campaign in favor of the 830,000 barrel a day Keystone XL project, which will take Canadian crude to Gulf reineries. Washington is set to decide on the line this summer and it could be in service in 2015. All predictions are for a steady climb in Canadian production, explaining the industry and government's quest for new markets in the United States and non-traditional areas such as Asia, one of the biggest drivers engines of world oil demand growth. Canada's National Energy Board has predicted output will average 3.6 million barrels a day this year, up 12.5 per cent from 2012, putting it nearly 400,000 barrels a day ahead of No 2 Opec producer Iraq's current output. Stress tests make banks more stable By Pedro Nicolaci da Costa FEDERAL Reserve Chairman Ben Bernanke said the central bank's periodic bank stress tests have made the inancial system more resilient. Contrasting the current state of banks to their tattered condition in 2009 after the historic inancial crisis, Bernanke said the sector's rebound was positive for the broader recovery given the importance of credit to economic growth. "The resilience of the US banking system has greatly improved since then, and the more intensive use and greater sophistication of supervisory stress testing, as well as supervisors' increased emphasis on the effectiveness of banks' own capital planning processes, deserve some credit for that improvement," Bernanke said in prepared remarks to a conference on inancial stability sponsored by the Atlanta Federal Reserve Bank. In a speech that did not directly touch on the outlook for the US economy and monetary policy, Bernanke hinted at why the central bank continues to pursue an extraordinarily easy monetary policy. "The economy is signiicantly stronger than it was four years ago, although conditions are clearly still far from where we would all like them to be," he said. Some critics have argued the Fed's stress tests are not suficiently harsh, while banks have complained they do not fully understand the central bank's methodology. The Fed has released scores for major bank holding companies that show how low their capital ratios would fall under proposed plans for dividends and stock buybacks if "severely adverse" economic conditions unfolded over the next two years. Bernanke said providing too many details about the methodology could lead banks to curtail their own internal risk-management systems. He argued US inancial institutions had bolstered their balance sheets by raising more capital. However, he said too many irms still rely too heavily on short-term sources of funding, raising some potential for trouble. "In the area of liquidity and funding, continued improvement is still needed on some dimensions," he said. "Notably, supervisors will continue to press banks to reduce further their dependence on wholesale funding, which proved highly unreliable during the crisis." Bernanke said it was important the stress test scenarios remain severe even as the economy improves so as to not generate complacency. The Fed was widely criticised in the wake of the global inancial crisis for missing the oncoming train wreck and being too lenient on banks that took excessive risks. The crisis led to a series of unpopular bailouts of inancial institutions that tarnished the central bank's reputation. — Reuters
WEDNESDAY, APRIL 10, 2013 24 OMAN Meethaq to promote Zakat national campaign By A Business Reporter MUSCAT — The Ministry of Awqaf and Religious Affairs, in association with Meethaq Islamic Banking, launched a national campaign aimed at encouraging citizens and residents in fulilling the Islamic obligation of Zakat. His Eminence Shaikh Ahmed bin Hamed al Khalili, Grand Mufti of the Sultanate, launched the Zakat National Campaign in the presence Sulaiman al Harthy, Group General Manager, Meethaq Islamic Banking, at the Jurisprudence Symposium yesterday. Sulaiman al Harthy said: “Meethaq is proud to join hands with the Ministry of Awqaf and Religious Affairs to launch the Zakat National Campaign. As the pioneer of Islamic banking in Oman, Meethaq is committed to providing a fulilling banking experience. The Zakat National Campaign will be promoted by Meethaq, facilitating convenient processes to fulil Zakat obligations, thereby adding value to the Islamic banking experience.” Sulaiman al Harthy The initiative comes as part of a Memorandum of Understanding (MoU) signed by the Ministry of Awqaf and Religious Affairs with Meethaq Islamic Banking. The Ministry will operate a bank account with Meethaq, which will facilitate the collection and distribution of Zakat funds by utilising all possible mechanisms and channels, including the Meethaq branch network, ATMs, internet banking, phone banking and Awqaf shares. Meethaq will organise various campaigns to encourage citizens and residents to fulill Zakat obligations and also promote Awqaf shares on behalf of the Ministry. Meethaq will be involved in asset restructuring and related managerial responsibilities for the Ministry. The MoU also includes an annual prize known as Meethaq Prize for Islamic Banking Studies, aimed at encouraging research studies on economy and Islamic banking. The Islamic obligation of Zakat is one of the ive pillars of Islam, and is expected to be paid by all practising Muslims who have the inancial means (Nisab). In addition to their Zakat obligations, Muslims are encouraged to make voluntary contributions (Sadaqat) as an act of piety through which one expresses concern for the well-being of fellow Muslims, as well as preserving social harmony between the wealthy and the poor. BUSINESS ALERT Ford wins ‘10 Best Engines’ awards MUSCAT — The unique efforts of Ford’s automotive experts have once again been recognised and rewarded. Highlighting the fact that Ford vehicles unlike the average vehicles aren’t just designed to look good from the outside, but to perform beyond expectations as well. Ford’s fuel eficient 2.0-litre EcoBoost four-cylinder engine is one of two Ford engines this year to win a highly coveted ‘10 Best Engines’ trophy from the editors of WardsAuto World. The 662-HP 5.8-litre V8 — the world’s most powerful production V8 engine — in the 2013 Shelby GT500 has also won a 10 Best Engines trophy. Each fall, Ward’s editors evaluate the latest powertrains from the world’s automakers in rigorous testing to determine which engines deliver the best blend of performance, value, fuel eficiency and reinement. Ford has won eight 10 Best Engines awards in the last ive years. The 2.0-litre turbocharged, direct-injected engine, produced in Valencia, Spain, is Ford’s global workhorse EcoBoost engine, powering everything from the rear-wheel-drive Falcon sedan in Australia to vans in Europe and the highperformance Focus ST. Last year, the 2.0-litre won a ‘10 Best Engines’ award in the Ford Edge crossover. “The EcoBoost Taurus and Focus ST really show just how versatile and capable the 2.0-litre EcoBoost engine is,” said Joe Bakaj, Ford Vice-President of Powertrain Engineering. “The Focus ST is the irst performance application for EcoBoost, and it really delivers the goods,” he added. “The 2.0-litre EcoBoost in the Taurus replaces a V6 and delivers great all-around performance, along with best-in-class 32 mpg on the highway.” In the Focus ST, the 2.0-litre cranks out 252 HP and 270 lb.-ft. of torque. Magazine reviews have shown Focus 0-60 mph acceleration in the mid-six-second range. Ford vehicles are known the world over for their exceptional safety, luxury and unsurpassed technological superiority. Ford ploughs in millions of dollars into R&D each year to ensure that every Ford offers maximum safety and motoring pleasure for its customers. In Oman, Ford vehicles are marketed by Arabian Car Marketing Co. LLC, a part of the renowned Saud Bahwan Group. They come with 6 years unlimited mileage protection, service and parts network that stretches across the Sultanate, over 98 per cent parts availability and Ford Privilege Card which provides 24 hours on-road assistance from AAA. Bank Sohar Al Mumayaz draw winners NINE lucky Bank Sohar customers were announced as the winners of Bank Sohar’s irst quarter draw of the Al Mumayaz Savings Scheme 2013. As part of the draw seven children won RO 1,000 each, one winner took home the regional draw prize of RO 7,000 and one lucky winner walked away with the quarterly draw grand prize of RO 70,000. Under Bank Sohar’s Al Mumayaz Saving Scheme 2013 programme customers and public were invited to attend a grand function at the at the Sohar Entertainment centre on April 3, 2013. As a special guest for the evening, Oman’s Karting champion, Abdullah Sulaiman al Rawahi, graced the occasion and conducted the draws to reveal names of the seven lucky winners of RO1000 each. The grand draw for RO 70,000 was carried out by a senior member of the Majlis Ash’shura council. The lucky winner was a valued customer from the bank’s Sohar branch, which was well appreciated by the home crowd. Also present at the occasion from Bank Sohar were R Narasimhan, DGM and Head of retail banking; Salim Khamis al Maskari, Senior AGM of branches; Redha al Lawatia, Incharge of Retail Liabilities Business; Mazin Mahmood al Raisi, AGM of Marketing; and Rashid al Maskari, Branch Head of the Sohar Branch. Congratulating the winners and commenting on the draw, R Narasimhan, DGM & Head of retail banking, said "Al Mumayaz Savings Scheme is designed to reignite a savings culture and in turn positively impact the inancial health of our valued customers. We know that our customers work hard to achieve their savings goals, and this is a great way for us to reward them for their loyalty to our Bank. Our hourly prize draws, that ensure our valued clients win prizes everyday in 2013, has been a resounding success. The prizes have so far been evenly distributed among our Bank’s retail branches thereby spreading joy and encouragement across our entire branch network.” The draw was just the irst of four draws that will take place throughout the year as part of Bank Sohar’s Al Mumayaz Savings Scheme 2013. Mars to open hypermarket at Qurum MARS International LLC will launch its new retail outlet with the opening of the Mars Hypermarket in the heart of Qurum, it was announced at a press meet chaired by V T Vinod, Managing Director of Mars International LLC. During the press meet, Naveej Vinod, Executive Director of Mars International shared his views on contemporary trends in retailing. The outlet will feature the entire range of products and a wide variety of services across categories. Serving as a gateway into a whole new and refreshing shopping experience to the residents of Qurum, Mars Hypermarket will celebrate an oficial inaugurating ceremony on April 13. The outlet will be inaugurated by Shaikh Ibrahim bin Yahya al Rawahi, Hon’ble Wali of Bausher. The new outlet in Qurum is structured in three loors with ample parking facilities and convenience. The hypermarket will showcase the best quality products available with a wide variety of sections comprising of FMCG products, electronics, IT products, appliances, stationery and household. Widest choice of high quality branded products from different parts of world will be incorporated in the new outlet. The hypermarket will showcase the fresh food section comprising fruit, vegetables, dairy products, meat, ish and hot food corner. There will be 9 cash counters to ensure hassle free shopping experience to the shoppers including two swift billing counters. “We have tried to create a one stop shopping centre for the customers with a sense of quick shopping. Understanding the previous experiences, we have created an entirely fresh service layout for the new outlet. Now a day, the word shopping has got a dimension of fun & entertainment and our new outlet sticks to it,” said V T Vinod, Managing Director, Mars International LLC. Ahlibank unveils Al Hilal debit card AL Hilal Islamic Banking Services by Ahli Bank Oman, one of the irst Islamic banks in Oman, introduced a chip based debit card for their esteemed customers. The Shari’ah compliant debit card can be accepted worldwide for withdrawing cash as well as at merchant outlets. Based on international banking standards, the Al Hilal debit card is tailored to meet the need of the Islamic banking customers and has been developed in strict accordance with the values of the Islamic faith. Commenting on this commendable achievement Abdullah al Jabri (pictured) DGM and Head of Islamic Banking Al Hilal said .” “Al Hilal Islamic Banking Services from Ahlibank is the irst Islamic Banking Window in Oman to go live with the debit card with full service and transactional facilities for our esteemed customers. Al Hilal debit card can now be used by the customers for their transactions/ cash withdrawals on Omannet, GCC net and the Visa network, our customers can use any ATM machines in the Sultanate without baring any charges or fees. ”. Al Jabri Added “that this milestone is in line with the constant endeavours being made by Al Hilal to ensure that their customers get the best services available. He further reiterated that Alhilal is coming up with various new initiatives in order to ensure the continued momentum for Islamic Banking in the Sultanate of Oman and the high level of customer satisfaction which is the hallmark of the brand.” Al Hilal Islamic Banking Services from Ahlibank offers its customers a wide range of products and services to cater to their banking needs through Sharia compliant products built on the tenants of truth and transparency in Banking. Al Hilal Islamic Banking services currently offers the largest branch network for any Islamic Banking service provider in the country and also offer of the largest selection of inancial products and services available in the Omani banking market. KR supports kids with disabilities THE Khimji Ramdas (KR) group took its commitment to social welfare an extra step further. Oman’s powerhouse conglomerate has been known for its unfailing support to the Association of Early Intervention for Children with Disabilities- among other non-proit organisations - through its regular and generous contributions. But this month, its level of involvement grew when the corporate paid a visit to the Association as a way of gaining a better understanding and appreciation for the efforts of the association. Among the dignitaries included in the visit were — Patron HH Dr Muna bint Fahad al Said; Yahya Bader al Maawali, Under-Secretary at the Ministry of Social Development; Kanaksi Khimji and Pankaj Khimji, Directors, Khimji Ramdas; Rajive Ahuja, Head of Corporate Communications at Khimji Ramdas; and from the association Najat Saif Al busaidi Chairperson of the Association of Early Intervention for Children with Disabilities and Sabah Al Bahlani CEO of the Association. The purpose of this visit was to acquaint the attendees of the ground realities at the association, get to look at the aid and equipment for the children, get a better understanding on the process being followed and to interact with the staff of the association. Patron HH Dr. Muna bint Fahad Al Said, stated, “It is a great honour to visit the Association and to see the good work done. The most important way to help the children is to raise public awareness and to develop their skills so they can make productive contributions to society and the economy. Private schools should play a more proactive role in helping integrate disabled children with the mainstream.” Pankaj Khimji said of the visit, “It has been a pleasure supporting the Association for a number of years. KR regards this as a life time commitment that we will also stand by and offer continuous support. Children with special needs as they grow up should feel as a part of our society. It is crucial to their development that they are integrated into mainstream society. There should be a system where they can visit schools and ofices to make their transition into the real world smooth.” It is worth mentioning that last year the Association faced a inancial crisis that could have set it back signiicantly, KR stepped in to provide timely inancial support. As a part of the company’s role KR intends to sensitise its own staff members by organising orientation trips to the Association to inspire more and more employees and their families to pitch in as volunteers.
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