1. Islamic Finance in New Zealand Reasons and Approach
Dr. Zainab Radhi
SMART Start Business Ltd.

2. Introduction Islamic Economic and Financial System
World Bank and Financial Inclusion
Structure of the paper

3. Features of the Islamic Economic System
Economic Freedom
Combating of the hoarding of money
Encouragement of earning money by working
Fair redistribution of wealth
Other features (equality, prohibition of monopolies and oligopolies, fair remuneration of labour, fair business rules…etc)

4. Features of Islamic Financial System
Prohibition of interest
The requirement of underlying assets.
Avoidance of uncertainty and speculations
Prohibition of investing in products which are considered inconsistent with the Shari’a and are considered unethical ie Alcohol, gambling, weapon, pornography…etc.
Risk sharing

5. Reasons for the Prohibition of Interest
Religious arguments
Economic argument
Ethical arguments
Negative economic impacts of interest

6. Islamic Finance and IF tools
Mudarabah
Musharakah
Ijarah
Sukuk
Istisna’
Qard Hasan

7. Islamic Finance and Microfinance
Advantages of IF over Microfinance
Consumption
Dependency
High interest
Risk-sharing
Enforcement
Good investments
Sustainability
Moral Hazard

8. Islamic Finance on the global level
IF around the world
IF in Australia
New Zealand and IF

9. Reasons, Challenges , approach and recommendations
Requirements
Strategies
Recommendations

10. SUMMARY CHALLENGES Identified challenges, are they still there?
REASONS
CHALLENGES
APPROACHES
IES and IFS should be viewed and assessed based on their values, benefits to the economy and society and practicality regardless of their source.
Identified challenges, are they still there?
Existing Banks
IFS and IFT should be introduced by the government as additional financial tools and leaving it to the people to choose the right tool for them.
Establish legal and policies platform to support the new financial products
New financial institutions specialized in the new products
IES and IFS have many good features: encourage investment and people to earn income, prohibition of interest, requirement of underlying assets and risk sharing
Extra risk management measures
Foreign banks windows
IF status on the global level; growing industry, UK, USA and Australia
Marketing
Foreign government coordinating with existing institutions
New Zealand market; IFT should be offered to everyone. It is the only product which already has established market before it is even introduced
Existing Islamic organizations in New Zealand
New Zealand foreign trade and the Muslim countries growing market

11. THANK YOU