CAPITAL GUARANTEE IN ISLAMIC EQUITY FINANCE ?

1. In an equity financing deal (Mudharabah / Musharakah), which is only with sharing in profit & loss by risk sharing principles, the capital / profit / income can not be guaranteed therein. Thus, a bank / fund manager / fund custodian in the above type of deal, is not allowed to provide any capital / profit / income guarantee to the customer / fund owner concerned.

2. But, if the bank / fund manager / fund custodian wishes to take a takaful coverage to protect the managed capital (owned by the customers) against the deficit risk in the undertaken capital itself (but not on profit / income per se), is allowed.

3. If the Central Bank of a country concerned / IDB / Re-takaful, is arranged to provide partial or full guarantee (by way of donation / Qardh Hasan /re-takaful against the deficit risk in one's undertaken capital itself (but not on profit / income), is also allowed.

4. the abovementioned-Guarantee is a cooperation for the noble cause of providing greater benefit not only for the industries, but also for the customers, which eventually contributes to the development of Islamic financial system for the benefit of the Ummah in general.

Thus, it is justified by the Qur'anic principle".... cooperate each other in righteousness & piety, but do not cooperate each other in sin & rancor..." (5:2).

FRANCHING ISLAMIC FINANCIAL SYSTEM? some thoughts....

ISSUE 1:

The most profitable businesses exhibiting success under franchise are those that have an excellent record of profitability and those that can replicate Islamic financial services and products successfully. Some thoughts on the success of franchising in Islamic financial system.

SOLUTION:

Franchising is a holistic culture of mutual cooperation towards noble cause of progress & prosperity in the spirit of corporate brotherhood for the socio-economic benefit of all, which is justified by the Qur’anic principle “…..help each other in righteousness and piety, but do not cooperate among you in sin and rancour….” (5:2).

Considering the contemporary phenomena in the rapid growth by 18% p.a. with global appreciation of the Islamic financial system, it may be the right time to enrich the franchising culture within the Islamic financial system for a common greater achievement by sharing the acceptable Shari’ah standard in terms of policies, system, talent, technologies, products, operation & culture.

Hence, with the dynamic slogan of “progress & prosperity in Islamic financial system for the common benefit of all by waiving the issue of one’s religion, race, culture, status, gender or nationality”, unjustifiable & unacceptable completion within the Islamic financial environment shall be avoided, which shall be replaced by justifiable cooperation with utmost wisdom, mutual respect, care, share & concern. This noble paradigm may successfully be facilitated by a Shari’ah compliance of Franchising culture among the Islamic financial industries across the world.

ISSUE 2:

Key franchising sectors in the Islamic finance and its future.

SOLUTION:

Prime franchising sectors in the Islamic financial engineering may include the followings:

(i) Policies & Guidelines.
(ii) System.
(iii) Talent.
(iv) Technologies.
(v) Products.
(vi) Operation.
(vii) Corporate Culture.

By the enrichment of the Shari’ah compliance of the franchising culture within the Islamic financial environment, may help the industrial growth of the Islamic financial system with greater significant results not only for the corporate players, but also for the customers including the innocent beneficiaries.

ISSUE 3:

The first step to franchising in acquainting regulators, operators, players, participants & customers with the Shari’ah principles.

SOLUTION:

There are ten components of the first step to franchising of Islamic finance in acquainting every involved one (be one regulator, decision maker, operator, player or customer with equal requirement from the respective counter part of the franchisor & the franchisee) with the basic relevant principles of Shari’ah, not only in mind but also in action, namely:

(i) Exclusive division (Shari’ah compliant / Islamic Finance).
(ii) Conceptual understanding of Shari’ah (Maqasid al-Shari’ah) affecting franchising of Islamic finance.
(iii) Regulatory frameworks (relevant Shari’ah rulings) governing franchising of Islamic finance.
(iv) Shari’ah approved Documentations (policies, guidelines, forms & procedures).
(v) Technical-know-how (with the Shari’ah standard) facilitating the franchise objective affecting Islamic finance.
(vi) Operational mechanisms (with Shari’ah compliance) for an effective management of franchise objective of Islamic finance.
(vii) Customers’ rights, obligations & behaviours as per approved by the Shari’ah principles in participating in, contributing to, cooperating with & benefiting from franchised Islamic financial operation.
(viii) Public awareness plan with franchising of Islamic financial system.
(ix) Establishment of a Shari’ah secretariat (Shari’ah compliance division with R & D). (x) Establishment of a Shari’ah council (for advising & decision making).

EGYPT REVOLUTION & its eco-way ahead.

In response to a recent friendly concern raised by Mr. Mohammad Fadeel of Egypt (Actuarist) is, the revolution of Egypt & some thoughts towards its socio-economic achievement for the interest of the country & its people is as follows:

(i) the process & the achievement was great & people of Egypt deserve enjoying prosperity & progress with dynamism.

(ii) Egypt is a country, which has the right to hold its pride with its uncompromised identity "Islamic Nation" ever since from the ancient history of Islam thus, no alternative, but only "Islamic" in its belief, system, operation & achievement.

(iii) The revolution opens up the opportunities for Egypt to clear its undesirable haze and march ahead with its new economic model besides socio-political & cultural orders by complying and respecting the Shari'ah principles while adapting the modern operational mechanisms to reform Egypt as an "Islamic Modern State" to wake up along with the Globalization.

To achieve the dynamic goal, the following avenues may be recommended in the master plan:

1. Increase Islamic Barter Trade (among G2G, B2B, G2B or B2G).

2. Implement Islamic Cooperative Micro-finance (on asset based with risk sharing) as opposed to Micro-credit (on debt based with risk transferring).

3. Creating an Enterprising & Entrepreneur based nation.

4. Increase issuance of SUKUK to help modern development of Egypt.

5. Develop Islamic Micro-credit (al-Rahnu) to enrich Entrepreneurs nationwide among all levels.

6. Develop sustainable Islamic MLM to fight the retrenchment while creating more job / income opportunities especially among the young generation / junior families / fresh graduand / low income group / unemployed.

7. All level of risks shall be minimized by appropriate Takaful operation.
8. Rating in all sectors (Government or Private, Commercial or otherwise) shall by by prioritying the public interest over corporate or otherwise interests.

"World Islamic Trade Centre (WITC)" in mind....

Due to rapid growth of Islamic trade, finance & business sectors with greater appreciation from the contemporary world of advance eco-technology, it is utmost essential to touch the right time to unify with global standardization of the Islamic / Shari'ah compliant trade sectors by the establishment of "World Islamic Trade Centre (WITC)" towards further advancement of Shari'ah compliance affecting the global trade / barter trade (commodity, asset, equity and or others) be one G2G, B2B, G2B or B2G.

With the establishment & successfull operation of the WITC may contribute to globalize the Shari'ah compliance of trade sectors in terms of general policies, guidelines, mechanisms & communication besides attributing towards a greater friendship with the universal holistic spirit of brotherhood among the traders, producers, players, marketers, policy makers, trade professionals, Shari'ah scholars & the consumers.

By the establishment of the WITC may help to curb the common virus hindering the global trade sectors namely; money laundering, misappropriation, unlawfull gain, unhealthy competition, self-orientation & dishonesty.

The WITC may eventually boost the world economy by fighting the malpractices in the global trade environments while discovering the dynamic way forward for all humanity (Ummah) regadless of one's religion, race, color, status or nationality in their respective trade missions & practices.

To establish the WITC, the following steps are recommended:

(i) Identification of the entity location.
(ii) Office & its supports.
(iii) Data base (global traders / manufacturers).
(iv) System (Shari'ah compliance).
(v) WITC Policies & Guidelines and Plan (Shari'ah standard).
(vi) WITC Shari'ah board.
(vii) Communications & networks.
(viii) "world islamic traders' summit" for the global awareness.
(ix) Resolution among the Gs.
(x) Commencement of Operation as per plan.

First "ISLAMIC JUNIOR (Children) SAVING BANK" in mind....

Underaged children are exposed to neumerous unpridicted risks due to losing of parents, domestic negligence, parental seperation, financial catastrophe and or other factors, resulting of which innocent infants are victim of circumstances against safe & security of their lives, education, health care, shelter and the bright future, which ultimately weaken the backbone of the nation in general.

To save the future of our children with national pride, it may be among the significant move by designing and duly establishment of a saving bank for the benefit of the children (junior) so to facilitate them with a basic financial security especially during one's minority or unsecured age.

Though, some facilities for the minor are avaiable in certain financial institutions, which are under the control & perhaps for the benefit of the guardian, but no track-record of any exclusive saving bank so far available yet for securing the interest of children in the contemporary world of eco-environment.

An Islamic saving bank (in mind) is to provide an opportunity to create a matured culture with safe deposit in view of legitimate income over the principal by way of risk sharing technique in the light of the Qur'anic teaching 5:2 "... help ye one another in righteousness & piety...". Therefore, an Islamic saving bank may be in a pragmatic position to contribute towards a better eco-safe guard for the junior (children) group to face the contemporary socio-economic reality.

Hence, it is the right time to establish "Islamic Junior (children) saving bank", which may initiate by designing and offering the following products & services:

(i) saving account with Halal attractive investment opportunities.

(ii) every account shall be packaged with appropriate Takaful coverage.

(iii) financing facilities for the account holders on education, healthcare, shelter & bread winer / guardian (with justification of relevancy).

WORLD ISLAMIC CORPORATE HUMAN CAPITAL DEVELOPMENT HUB ? its essence & prospects....

Applied Islamic financial sectors have developed into a global dimension, which is highly dynamic and growing rapidly with utmost appreciated by all. There are almost 600 Islamic financial institutions worldwide with assets estimated at more than US$ 1.3 trillions, financial investments above US$900 b. and a growth rate is estimated to be around 18% p.a. Among the master players of Islamic finance in the contemporary world are the Middle East, Malaysia, Iran, Indonesia, Brunei, Singapore, North America, Pakistan, Bangladesh, South-West Africa and Europe. The cliental of Islamic financial institutions are not confined to Muslim countries, but are spreaded over Europe, U.S.A, South Asia, South East Asia, Asia Pacific and the Far East. Providers are not confined to local institutions as global players increasingly playing major roles in the industry today by aiming the global appreciation from all regardless of the issue of one’s religion, color, culture, nationality or status.

It is widely accepted that the adaptation of the Shari’ah compliant financial paradigm is one of the fastest growing areas of the banking, finance & corporate reality across the world. The forecasts predict that, there will be significant growth in this sector over the next five to seven years. However, this growth is dependent on successful professional development, risk management, professionalism, product innovation, regulatory frameworks, marketing strategies, research & discovery and customer satisfaction that all professionals, regulators, practitioners, customers and participants of the banking -financial industry must attend to. All these may be achieved only through an Islamic Corporate Human Capital development plan & its effective operation.

Thus, considering the above needs & prospects, it is timely to establish a first ever “World Islamic Corporate Human Capital Development Hub” to centralize an effective movement of Shari’ah standard of corporate professional development with a global coverage. The establishment of the hub may resolve the skill & professional crisis faced by the contemporary global Islamic financial & Corporate industries and environment. This may eventually contribute towards dynamic growth with sustainability and greater achievement in the Islamic corporate & financial sectors of the world.

WORLD ISLAMIC MANUFACTURERS' HUB ? its establishment plan.

to be published soon......

World Islamic Investors' Club? its rationality & prospects...

Because of so dominant debt based financing with risk transferring mechanisms, which eventually fail to ensure a sustainable achievement in the advance economic reality, resulting of which the fund owners (investors) of different sectors of the world had been suffering with uncertainty of the future of their respective funds.

Alternatively, many investors are kin to adapt asset backed financing with risk sharing techniques (recognized by the Divine principles of Shari'ah as a holistic package), aiming to achieve their integrated goals with utmost safe & security.

Investors from different background (with no issue of race, religion, gender, nationality & color) have been participating in the Shari'ah structured investment sectors (equity & capital markets) on their own micro-arrangements (mostly through introducers) by having no accurate access to sectorial data (investment groups with different goals, preferred projects, parties, management groups, locations & prospects), which ultimately may slower the growth of Shari'ah structured investment industries.

Thus, it may be the right step in uniting potential Islamic investors / fund owners accross the globe under a common but standard platform in view of establishing a strong investors' cooperation to drive the common vehicle in team with the spirit of brotherhood & soliderity towards miximizing their goal in reality.

Hence, to initiate the above thought it is timely to establish a first ever " World Islamic Investors' Club" to move rationally with a team spirit among the Islamic Investors of the contemporary world towards undiscovered goals & gains EnSha Allah (swt).

All are friendly invited to share your intellectual / professional thoughts, views, comments & recommendations for the common benefits of the global Ummah (humanity) through the following Link:

http://www.linkedin.com/groups/World-Islamic-Investors-Forum-WIIF-4052375?gid=4052375&trk=hb_side_g

Islamic Corporate Governance? a thought in reality.

ISSUE 1:

With whom does ultimate responsibility to comply with Islamic Shari’ah rules lie? Management/the Shari'ah Board or Shareholders?

SOLUTION:

• All 3 (the Management, the Shariah Board and the Shareholders) are equally but respectively responsible for the Shari’ah compliance of all aspects of the company of Shari’ah products and services. Hence, a further illustration to the effect is as follows:

(i) It has been an ongoing confusion among the i-eco-legal environment that, whether the Shari’ah Board is an employee of the management or anindependent authority? To resolve such a puzzle among the corporate Ummah it is submitted that, in no situation the Shari’ah Board shall be treated as an employee (to follow, fear, favor and please the management or the shareholders or whosoever may be other than to comply the total Shari’ah spirit), but an independent authority to uphold, promote and decide the true Shari’ah standard. Thus, in their capacity as the independent authority the Shari’ah board is, accountable (to themselves, to the Management, to Public and ultimately to ALLAH (swt) for the accurate Shari’ah views and Solutions with no fear or favor per se.

(ii) Management shall shoulder an AMANAH (trust) in the total operation / management as per the Shari’ah decisions made by the Shari’ah Board. Thus, the Management is accountable based on the holistic Principles of TRUST (to themselves, to the Board of Directors and ultimately to ALLAH (swt) for the accurate operation of Activities in accordance with the Shari’ah Solutions provided by the Shari’ah Board.

(iii) Shareholders are accountable (to themselves, to Public and to ultimately ALLAH (swt), the almighty GOD) for the accurate observation and decision over the total Policies, products, mechanisms and operation of Activities complying with the Shari’ah rules and spirit.

ISSUE 2:

Should shareholders put Shari’ah compliance processes in place? is this more important if Management or Key Personnel is non-Muslim?

SOLUTION:

• Shareholders should concern over the total Shari’ah Compliance of the Policies and Activities in their capacity as the supreme technical and corporate decision makers.

• As far as the corporate operations are concerned, Shari’ah does not concern on the person, race, background, color or even one’s religion of the operator nor the shareholders, but Shari’ah concern is on POLICIES, SYSTEM, ACTION and ACHIEVEMENT, which shall be in total compliance with the Shari’ah Principles and Divine ethics. Therefore, if any personnel of the Management, BOD or Shareholders is a non-Muslim, which may not prevent one to offer Islamic Products so long one is with justifiably compliance with Shari’ah.

ISSUE 3:

As a Takaful or Re-takaful operator do you publish the activities (fatwa, rulings and guidelines) of the Shari’ah Board?

SOLUTION:

• As for the FATWA / rulings/ guidelines of the Shari’ah board in to day’s Islamic Financial environment, Some are published and some are not depending on the respective company / person / Mufti/ Scholar’s Policy.

• Thus, there is no Shari’ah restriction on Publication or non-publication of any fatwa.

• But, my personal understanding, it is better to publish the Fatwas / Shari’ah decisions for public interest with an objective of Ummatic Skill development with Shari’ah rulings (Fatwa). Such attempt may contribute to better understanding of Shari’ah standard, operations, unity, mutual respect and dynamic growth in the Islamic financial industry with right Maqasid al-Shari’ah.

ISSUE 4:

A practical market raised a personal question to me that, Do you undertake a Shari’ah Review? if so can you provide details on how extensive and often in it?

SOLUTION:

• Yes …. I undertake both Shari’ah Review and Shari’ah Audit as well while some occasions am assigned to be the leader of the Shari’ah Review / Shari’ah Audit team on different products and operations in different jurisdictions.

• Details Mechanisms on Shari’ah Review or Audit exercise with authorities and authenticities may be provided in writing or on face to face dialogue on only by official arrangement so that the professional standard is observed.

ISSUE 5:

Should the Shari’ah board have a say in the moral functioning and activities of the organization to reflect the principles of Takaful?

SOLUTION:

• Shari’ah and ethics are interrelated or rather complement to each other. Thus, a Shari’ah board is not responsible to provide Shari’ah rulings only, but also the Moral as well as spiritual aspects affecting the operators, participants, shareholders, decision makers and the operations.

• But, Shari’ah Board’s responsibility with Shari’ah Rulings is mandatory by contract while the spiritual and moral concern and contributions to Takaful operators or operations is a directory task in general.

ISSUE 6:

In conventional insurance if there is a deficit, the shareholders provide an injection. In Takaful if there is a deficit the operator provides a Qard al-Hasan loan. As a loan it is an asset of the operator's fund, however in the Takaful fund it is accounted for as an injection. Is this the correct treatment?

SOLUTION:

• If the deficit takes place in the risk management (Tabarru’ / Waqf / Hibah / PSA) account of the Takaful Fund, the injection therein by the shareholders shall be a mandatory, which shall be treated as a Qardh al-Hasan (benevolent loan) refundable from the subsequent surplus of the risk management (Tabarru’ / Waqf / Hibah / PSA) account itself with no extra charge.

• But, if the deficit takes place in the investment account of the Takaful Fund, the injection therein by the shareholders shall be an option thus, once the inject takes place, which may either be with an arrangement of a package of Qardh al-Hasan (benevolent loan) refundable from the investment account itself with no extra charge, or as an Equity participation in the fund to enrich it with mutual terms and conditions between the shareholders and the operator for Participants.

ISSUE 7:

In some cases the Takaful operator pays out more in commissions to the direct agent than it has from the received from the Re-takaful operator (and Re-takaful is a high percentage of the risk). Is it fair that other participants pays for this deficit? what is the alternative?

SOLUTION:

• Participants in takaful practices pay the agreed contribution (Premium) but not liable to pay the commission to the agents appointed by the Takaful operator per se.

• Because of the contractual relation (Privity) between the Takaful operator and the Agents the Takaful operator shall be the one liable to pay the commission out of the received contributions to its agents in accordance with the commission payment policy of the operator.

• Meanwhile, the Re-takaful operator pays the commission to the Takaful operator is in fact the internal corporate policy of the Re-takaful operator. It is thus, irrelevant whether the amount of commission paid by the Re-takaful operator is lesser than the practices of Takaful operator. Because, they are two separate legal entities with their own respective policies.

• Furthermore, the commission paid by the Takaful Operator is generated from the agreed Contributions (Premiums) of the Participant. In this arrangement the privity of contract is between the Operator and the Participants over the Contributions (Premium) and, a separate Privity is between the Takaful Operator and the Agents over the Commission. Thus, no legal relationship exists between the Participants and the Agents per se.

• Therefore, if the Participants are required to pay more contributions, which is based on the underwriting policy, but this does not mean to top up the deficit of the fund caused by the extra payment of commission.

ISSUE 8:

For long tailed coverage, is it proper corporate governance for the operator to share in this surplus, when if the reserves are later increased causing losses, the operator will not share in these losses?

SOLUTION:

• There should not be any wrong if the operator share in the surplus as a form of service charge for managing the risk management fund.

• If in the event the contribution / premium rate is increased due to deficit in the risk management account caused by more claims, the operator shall not be liable to top up in the fund despite earlier sharing in the surplus.

• Despite the above phenomena, it is advisable for the operator not to share in the surplus in order to contribute to a sustainable existence of the risk management account while avoiding unexpected future deficit in the fund.

ISSUE 9:

Should the management / shareholders and Shari’ah board be more accountable? could this be done via an annual participants meeting?

SOLUTION:

• Since all three components of the corporate governance namely; the Shari’ah Board, the Management and the Shareholders are equally, but respectively accountable with Shari’ah compliance in all aspects of policies, procedures, technicalities, products, business, operation and management thus, it is utmost important for all to exchange mechanisms and share views in regular dialogues with day to day’s decisions , actions and achievement so to establish an atmosphere of harmonization, compliance, standardization while avoiding confusion and overlapping.

• It is therefore suggested here that,

(i) All three components namely; the Shari’ah Board, the Management and the Shareholders shall respectively on monthly basis hold corporate review or postmortem (muhasabah) session on three fundamental aspects :
(a) What have been planned?
(b) What have been performed? and
(c) What shall be done further?

(ii) Shari’ah board shall hold monthly session on decision making / Shari’ah solution to provide decisions / Shari’ah Solutions on all relevant aspect of the company. The decision shall be made with proper understanding (on relevant Dive Rulings, Shari’ah standard, Fiqh and other relevant policies) in accordance with applied Shari’ah principles and Divine spirit, which shall neither be in fear or in favor per se.

(iii) Shari’ah board shall not only to function in decision making but shall also undertake a monthly audit exercise to ensure the decided solutions have been carried out by the management in accordance with the Shari’ah spirit.

(iv) Shari’ah Board shall prepare a comprehensive annual report on total decisions with relevant facts and phenomena of the year, the Audit report on performance and future suggested plan affecting Shari’ah compliance.

(v) All three components (the Shari’ah Board, the Management and the Shareholders) shall hold an annual review session before the annual report is prepared.

(vi) Two components (the Shari’ah Board and the Shareholders) shall hold a combined annual General Meeting (AGM) with comprehensive postmortem, report presentation and future plan for the company. This shall be witnessed by the selected key Management team.

ISSUE 10:

Should policyholders have a say in the election of the Shari’ah Board? or should it be just a shareholders' decision?

SOLUTION:

• Policy holders may (if so wish) share their views on the selection of the Shari’ah board on a non-binding capacity.

• Shareholders shall have the capacity to decide on the nomination / selection of the Shari’ah Board facilitated by the Management, which shall be finally approved by the Central Bank or the Ministry of Finance or the Insurance Commission depending on the authority with locas standi in respective countries.

• This is because, the Shari’ah Board is not an employee but an independent authority, who is nominated by the company to an ultimate approval by the Regulatory authority of the country concern, to ensure the total Shari’ah compliance of the policies, technicalities, products, business, operations and all other relevant aspects and activities of the company.

• Furthermore, the decision, Shari’ah solution or opinion provided by the Shari’ah Board shall not be meant for the private interest, but for Public interest (Ummatic benefits) without fear or favor per se.

• Thus, neither the policy holders or the shareholders nor the management have the locas standi to elect any Shari’ah Board on their own comfort, but can only recommend, nominate and facilitate to the submission of the selected names to the right authority (Central Bank or alike) for the final approval to create an independent Shari’ah Authority for advising and facilitating the company’s activities in accordance with the Shari’ah Principles and the Divine standard.

ISSUE 11:

Is there a need to have a "participants' advocate" independent of the Takaful operator?

SOLUTION:

• It is not a mandatory but recommended to establish a “Participants’ Advocate” for furtherance facilities not only to participants but also to Takaful operator to enjoy over the Takaful scheme by holistic cooperative spirit.

• To have such a “Participants’ Advocate” may contribute to the followings:

(i) To have a sustainable transparence relationship between the Takaful Operator and the Participants;

(ii) Rights and obligations of all parties involved in the Takaful operations will be correctly observed in reality;

(iii) No unfair advantage nor unlawful gain will be expected over one another;

(iv) Underwritings, management, claims and distributions shall take place accurately (by complying the right Shari’ah spirit) without unjust enrichment;

(v) Contribute to a sustainable growth in the Takaful industry with holistic phenomena;

(vi) The true spirit of Takaful with brotherhood, solidarity and mutual cooperation will be honored in action and achievement.

"NO RISK is a RISK"... Takaful provides safeguard.

Greater risk of an individual, family, community, entity, corporate, or government be against one's life, bodily, dignity, future, wealth or businessis is: "not taking the risk" by ignoring it or its poor management.

It is a wise step for any human, socital, corporate, entity, wealth or government culture to act smartly as per plan, and no plan shall be designed by 'no risk taking'.

Thus, behind every successful life, family, community, nation, entrepreneur or entity is evidentially contributed by smart action with wise plan by incorporating appropriate risk taking against unpredicted catastrophe.

Takaful (Islamic insurance), is a scheme designed in the holistic spirit of Shari'ah principles of mutual cooperation, soliderity, brotherhood, shared-responsibility, utmost care & concern among the Ummatic (humanity) environment across the univers by diminishing the issue of one's race, religion, colour, nationality, gender or status by promoting a theme of "Ummatic globalization".

Thus, Takaful scheme provides a meaningful safeguard against risk (loss, damage, catastrophe or disaster) be on one's life, dignity, future, wealth, business or entity. All Takaful schemes are further cooperated by Re-takaful arrangement. Hence, Takaful stands in its capacity as an "Eco-Peace" for the Ummah (humanity).