Daily Personal Finance Insights – Solving problems
DMCC launching sharia compliant trading platform
The government owned Dubai Multi Commodities Centre (DMCC) is launching a sharia compliant commodity trading platform which Islamic banks in the Gulf could use to manage their short-term fund flows.
Islamic banks cannot use conventional interbank money markets because of Islam's ban on interest, so they have struggled with a shortage of instruments to manage liquidity. The DMCC hopes its platform can be part of the solution to this problem: “We realised that there was a shortage of sharia-compliant money market instruments, which means Islamic banks end up with large concentrations of cash,” Tradeflow director Paul Boots told Reuters.
Banks in the UAE held 15.1 billion dirhams (US $4.1 billion) of Islamic certificates of deposit in December 2012, an increase of 16.2% from a year earlier, according to UAE Central Bank data.
Which UAE school?
A new online service has been launched to help parents (mainly expats) select a school in the UAE. The site, http://whichschooladvisor.com, provides reviews of schools and is unique in that it will also allow reviewers to upload videos of ‘my favourite teacher.’ Additionally the site provides the latest news on schools in the region, details about curriculums, preparation for school, university advice and finance and funding information.
Venture capital for SMEs in Dubai
The Dubai Department of Economic Development (DED) subdivision, Dubai SME, which is mandated to develop the small and medium enterprise (SME) sector, and Noor Islamic Bank have formed a partnership to implement the Credit Guarantee Scheme of the Mohammed Bin Rashid Fund (MBRF).
The MBRF will have three windows of support - seed capital for early stage businesses, credit guarantee for existing and growing businesses, and an equity Venture Capital window for scaling up businesses.
Dubai SME and Noor Islamic Bank will jointly work to create the concept, structure and operating mechanism of the Credit Guarantee Scheme and obtain the necessary approvals. The scheme will be launched by April 2013.
Always a problem to be solved - entrepreneurism
A company in Poland has found success with its nail polish that an Islamic Scholar says complies with Muslim Halal law. According to Annabel Kantaria traditional nail polish prevents water from: “touching the nail surface during wudu, the pre-prayer washing ceremony, meaning that wudu is not properly carried out.”
The new polish developed by Wojciech Inglot, a Polish chemist and entrepreneur, lets air and moisture pass through to the nail. Sales of the breathable nail polish have been extremely high, and a craze is developing, according to the company which manufacturers the product.