South Africa’s National Treasury wants to make the country the hub for Islamic finance in Africa. The country has the most sophisticated and advanced financial,legislative and governance structures and regulations on the continent, and has the potential to be the economic superpower of Africa. This gives the country a unique competitive edge over most African countries in actively capturing and promoting the Islamic finance industry. Within the country, Islamic finance has seen considerable development.
South Africa’s regulators have taken various measures to develop and promote the Industry including amending tax laws to create an equitable and level playing field for Islamic finance. Proposed tax amendments were issued in May 2010. Section 24JA of the ITA, first introduced in the draft Taxation Laws Amendment Bill, 2010, set out the proposed legislation for Islamic financial products. This section provided parity of tax treatment between Islamic finance products versus conventional banking products. Section 24JA of the ITA sets out the tax consequences of diminishing Musharaka, Mudaraba, Murabaha and sukuk.
Sovereign sukuk in the works; Islamic banking assets at 2%
The country currently has one full fledged Islamic bank; Al Baraka Bank was
registered in South Africa in 1989. Other banks such as First National Bank (FNB), Absa Bank and HBZ Bank house Islamic finance windows alongside their conventional banking services. Total Islamic banking assets currently account for 1%-2% of total banking assets, indicating much room for growth, and various Middle East Islamic banks are currently eyeing business prospects in the country.
There are currently 11 asset management companies offering various Shari’a –
compliant investment products. Oasis Asset Management currently manages the largest number of Islamic funds in the country...Read More
What is the meaning of hadith that Islam began as strange and will return to being strange? Also who are the strangers mentioned in hadith?
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
There are two issues of clarification here:
The general connotation of the Hadith
And the interpretation of the word “strangers” in Hadith
1. The Hadith mentioned in reference is as follows:
قال رسول الله صلى الله عليه وسلم: بدأ الإسلام غريبا وسيعود كما بدأ غريبا فطوبى للغرباء
Translation: the Messenger of Allah (peace and salutations be upon him said, “Islam began as something strange and will return as something strange as it began, so give glad tidings to the strangers”.
This narration is authentic and found with slight variations in wording on the authority of Abdullah ibn Mas`ud, Abu Hurairah and Ibn Umar (may Allah be pleased with them all) as recorded in Sahih Muslim (262) ; Sunan at-Tirmidhi (2629) and Musnad al-Imam Ahmad (3814 & 9114).
The narration of Sahih Muslim on the authority of Ibn Umar (may Allah be pleased with him) includes:
وهو يأرز بين المسجدين كما تأرز الحية في جحرها
Translation: It (Islam) will recede between the two mosques just as the serpent crawls back into its hole.
The narration of Sahih Muslim on the authority of Abu Hurairah (may Allah be pleased with him) contains:
إن الإيمان ليأرز إلى المدينة كما تأرز الحية إلى جحرها
Translation: Verily the Iman will recede to Madinah just as the serpent crawls back into its hole...Read More