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(Reuters) – Oasis Crescent, one of the world’s largest sharia asset managers, has opened an office in London and launched six funds, hoping to attract business from Britain’s estimated 2 million Muslim population.

The South African firm, which manages 2.5 billion pounds in assets, mostly in South Africa, is launching products – such as bond, equity and property funds – which adhere to Islamic principles including a ban on interest.Achieving scale will be critical, with 70 percent of the 800 Islamic funds globally falling short of $100 million in assets, financial services firm Ernst & Young has estimated.

Also, the size of the industry has only marginally changed in the past two years as fund managers struggle to gain traction and find adequate distribution channels, with returns of minus 3 percent on Islamic funds in 2011 likely to have hit confidence, the UK Islamic Finance Secretariat estimates.

The main competition to Oasis Crescent, which has had an office in Dublin since 2003, will be established British financial services groups that offer some sharia products.

“There is the potential that this could be a 10 billion pound business on a 5-10 year view in the UK,” Adam Ebrahim, founder and chief executive of Oasis Crescent told Reuters.

“This is a real growth story and could turn the UK into a hub for the Islamic space.”

His targets are ambitious in a country which, whilst the largest Islamic finance centre in Europe, is home to less than $1.55 billion out of global sharia fund assets of $58 billion, according to E&Y estimates.These assets are mostly centred on the Middle East and Malaysia and represent only a fraction of the overall mutual fund industry, at $25 trillion, estimates Investment Company Institute.

Oasis Crescent sees potential for the British market to reach 120-160 billion pounds over 10 years.

“As the market broadens and deepens with more institutions entering the Islamic investment space, this will assist in driving market stimulation,” said Ebrahim. “Market penetration for conventional funds is very high in Britain, there is no reason sharia penetration cannot also be as high.”

Ebrahim said there was a “dormant” pool of money from Muslims in Britain who give away any interest they might earn from conventional bank accounts.

The income fund alone is aiming to grow to 1 billion pounds in three years, buoyed by sovereign sukuks from Qatar, South Africa and Turkey expected to launch later this year which will tap into growing appetite for sharia-compliant assets as traditional investments are battered by the global financial crisis.

“The world is increasingly in need of funding and there is a pool of funders who needs assets. So, there is a natural meeting of ways between demand and supply,” said Ebrahim.

Oasis Crescent’s sharia-compliant global equity fund has posted a return of 122 percent since its launch in 2000 to March 2012, against benchmark returns of minus 11.3 percent.

SOURCE:REUTERS

Defiant Mali Islamists pursue wrecking of Timbuktu
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BAMAKO (Reuters) – Al Qaeda-linked Islamists in Timbuktu broke down the door to a 15th century mosque on Monday that locals believed had to stay shut until the end of the world, defying international calls to halt the destruction of holy sites in the UNESCO-listed city.

In a third day of attacks on historic and religious landmarks that UNESCO has called “wanton destruction”, the Islamists targeted the ancient Sidi Yahya mosque as they tried to erase traces of what they regard as un-Islamic idolatry.

“In legend, it is said that the main gate of Sidi Yahya mosque will not be opened until the last day (of the world),” Alpha Abdoulahi, the town imam, told Reuters by telephone.

Yet eight Islamist fighters smashed down the door to the mosque early on Monday, saying they wanted to “destroy the mystery” of the ancient entrance, he said.

“They offered me 50,000 CFA ($100) for repairs but I refused to take the money, saying that what they did is irreparable.”

Islamists of the Ansar Dine group say the centuries-old shrines of the local Sufi version of Islam in Timbuktu are idolatrous. They have so far destroyed at least eight of 16 listed mausoleums in the city, together with a number of tombs.

Ansar Dine and well-armed allies, including al Qaeda splinter group MUJWA, have hijacked a separatist uprising by local Tuareg MNLA rebels and now control two-thirds of Mali’s desert north, territory that includes the regions of Gao, Kidal and Timbuktu.

The size of the area under their control is bigger than France, heightening fears that Mali will become a jihadist haven.

The MNLA rebels criticised the Islamists’ destruction of holy sites, underlining a growing rift between the two groups that had formed an uneasy alliance to take over the north of the country.

“The perpetrators of these heinous acts, their sponsors, and those who support them must be made accountable,” MNLA spokesman Hama Ag Mahmoud told Reuters in an interview in Nouakchott.

“END OF THE WORLD”

Sufi shrines have been attacked by hardline Salafists in Egypt and Libya in the past year. The attacks also recall the 2001 dynamiting by the Taliban of two 6th-century statues of Buddha carved into a cliff in Bamiyan in central Afghanistan.

Mali’s government in the capital Bamako about 1,000 km (630 miles) south has condemned the attacks, but is powerless to halt them after its army was routed by rebels in April. It is still struggling to bolster a return to civilian rule after a March 22 coup that emboldened the rebel uprising further north.

The attacks have been widely condemned inside Mali.

“The 333 saints would be turning in their graves,” the country’s Les Echos newspaper write on Monday, referring to 333 revered Sufi imams, sheiks and scholars buried in Timbuktu.

“Today there are old women, old people in Timbuktu who say that maybe it is the end of the world,” entrepreneur and former Timbuktu resident Male Dioum told Reuters.

UNESCO Director-General Irina Bokova and former colonial power France appealed on Saturday for a halt to the attacks.

The U.N. body seeks to protect places around the world it classifies as world heritage sites, arguing they are of special cultural significance and should be preserved for posterity.

Located on an old Saharan trading route that saw salt from the Arab north exchanged for gold and slaves from black Africa to the south, Timbuktu blossomed in the 16th century as an Islamic seat of learning, home to priests, scribes and jurists.

In recent years, Mali had sought to create a desert tourism industry around Timbuktu. But even before April’s rebellion many tourists were being discouraged by a spate of kidnappings of Westerners in the region claimed by al Qaeda-linked groups.

SOURCE:YAHOO! NEWS

CAIRO (Reuters) – Mohamed Mursi, Egypt’s first freely elected president whose powers have already been curbed by the army, began work on a coalition on Monday after touring his new palace, once home of Hosni Mubarak who banned his movement for three decades.

Declared winner on Sunday a week after a tumultuous run-off vote that pitted him against a former air force chief, the Islamist faces the challenge of meeting sky-high expectations in a nation tired of turmoil while the economy is on the ropes.

But his campaign pledge to complete the revolution that toppled Mubarak last year but left the pillars of his rule intact will come up against the entrenched interests of the generals who are in charge of the transition to democracy.

Shortly before the historic presidential vote, a newly elected Islamist-led parliament was dissolved by the army based on a court order, and the generals issued a decree setting limits on the president’s remit, which cuts into Mursi’s powers to act but exposes him to blame for any failures.

Critics at home and in the West called it a “soft coup”.

One pressing concern – on which many Egyptians are likely to judge his performance – will to be to revive the economy of the world’s most populous Arab nation.

Monday’s stock market rally, at least partly fuelled by relief that the vote and result passed off without violence, may encourage the new president, but he still has to prove to wary longer-term investors that Egypt is on the road to recovery.

Egyptian newspapers welcomed Mursi’s win over Ahmed Shafik, Mubarak’s last prime minister, as a victory for the people, although many more liberal-minded Egyptians worry his conservative group will slowly whittle away at social freedoms.

Further afield, his win has had an immediate impact beyond Egypt’s borders, inspiring Islamists who have risen up against autocrats across the Middle East and swept to power in North Africa. Israel worries its 1979 peace deal with Egypt, never warm, will cool further.

Palestinians in Gaza, however, are delighted.

Iran saw his election as an “Islamic awakening” – though Tehran and the Muslim Brotherhood follow different, often opposing forms of the faith. Iran’s Fars news agency published an interview in which Mursi called for restoring full ties between Cairo and Tehran to build strategic “balance”. A Mursi aide said he gave the interview 10 days ago.

DRAMATIC REVERSAL OF FORTUNES

A security official said Mursi, 60, and his wife took a tour of their new home, once Mubarak’s main residence – a dramatic change of fortunes full of symbolism for a former political prisoner whose group was pursued remorselessly during Mubarak’s 30-year rule.

An aide said Mursi then went to the Defence Ministry for talks with the head of the ruling military council’s Field Marshal Hussein Tantawi and the army-appointed Prime Minister Kamal al-Ganzouri. They discussed forming a new government at the meetings, which Egyptians will see as a sign that real power still lies with the army.

As president, Mursi can appoint the cabinet. His aides say he has already reached out to politicians from outside the Brotherhood such as reformist Mohamed ElBaradei, who has yet to publicly respond. But legislative powers remain with the army while the parliament is dissolved, restricting his power to act.

Egypt’s army-appointed government, led by al-Ganzouri who also served in the 1990s as prime minister under Mubarak, submitted its resignation on Monday but was asked to stay on temporarily until Mursi, who has yet to take the oath of office, put a team together, Information Minister Ahmed Anis said

“The revolution reaches the republican palace,” wrote Al-Shorouk newspaper. Another, Al-Akhbar, quoted from Mursi’s victory speech: “I am a servant of the people and an employee of the citizens”.

It is a sentiment widely spoken: the sense that at last, perhaps, Egyptians have a leader who can be “fired”.

Celebrations in Cairo’s Tahrir Square – theatre of the revolution that overthrew Mubarak – extended through the night. Some Brotherhood followers were still celebrating, surprised by their victory that broke a six-decade tradition of presidents plucked from the military.

“STRENGTH TO NEGOTIATE”

“It was a little surprising that the army acknowledged his win,” said 40-year-old teacher Adel Mohamed who was in the square when the result was declared after a nervous week’s wait since the vote. “The pressure from the street, from the revolution, will give Mursi strength to negotiate.”

From Syria’s opposition who are seeking the downfall of President Bashar al-Assad came word that Cairo was again a “source of hope” for a people “facing a repressive war of annihilation”.

But millions of Egyptians, and the Western powers, looked on with unease at the prospect of the long-suppressed Brotherhood making good on its dream of an Islamic state.

Israel has been particularly nervous, urging its neighbour to respect their peace deal. It worries that the Brotherhood’s win will embolden Palestinian Islamists opposed to Israel.

“Darkness in Egypt,” headlined Israeli paper Yedioth Ahronoth. Israeli Prime Minister Benjamin Netanyahu said he “respected” the result and said he saw future cooperation with the new administration.

An aide to Mursi said during Mursi’s campaign that he would delegate meetings with Israeli officials to his foreign minister, unlike Mubarak who often met top Israelis. Mubarak went to Israel only once, for the funeral of assassinated Prime Minister Yitzhak Rabin.

“Mursi’s victory is most likely to strengthen the hand of Hamas in its fight against Israel because it will give it a moral boost,” said political scientist Mustapha al-Sayyed.

But the army, determined not to see its $1.3 billion in U.S. military aid a year jeopardised, will probably ensure ties are not undermined even if the relationship sours, diplomats say.

Pledging to uphold international treaties, in a gesture to Israel, Mursi said in his first televised address as president-elect that he would work with others to see the democratic revolution through.

“There is no room now for the language of confrontation,” he said, a message addressed not just to the army but to the young, urban revolutionaries who launched last year’s uprising only to see the Brotherhood dominate the political scene afterwards.

One of the most influential revolutionary youth groups greeted Mursi’s win as a victory for last year’s uprising.

“We have defeated the candidate of Mubarak’s military state, the candidate of the corrupt ‘deep state’ that we are fed up with,” said the April 6 Youth movement.

“Starting today we will work as one body for Egypt.”

COMPROMISING WITH THE MILITARY

Western powers congratulated Mursi, who received a phone call from U.S. President Barack Obama, offering help.

The White House said in a statement: “The president underscored that the United States will continue to support Egypt’s transition to democracy and stand by the Egyptian people as they fulfil the promise of their revolution.”

Mursi may have little choice but to compromise with the army, and Brotherhood sources said a package of agreements discussed with generals last week could soon be announced.

The Brotherhood’s political gains, first winning the biggest bloc in parliament and then running for president, had rattled the military. With the help of a Mubarak-era judiciary, the military council dissolved parliament on the eve of the presidential vote, then gave itself the legislative power.

Senior Brotherhood officials say they have been negotiating in the past week to change some of that, though both sides deny any haggling over the result of the presidential vote itself.

“President Mursi and his team have been in talks with the military council to bring back the democratically elected parliament and other issues,” Essam Haddad, a senior Brotherhood official, told Reuters on Monday.

Brotherhood sources told Reuters they hoped the army might allow a partial recall of parliament and other concessions in return for Mursi exercising his powers to name a government and presidential administration in ways the army approves of – notably by extending appointments across the political spectrum.

Military officials have confirmed discussions in the past few days but had no immediate comment on the latest talks.

Brotherhood officials have said they will press on with street protests to pressure the army but this, along with a number of other contentious issues including to whom and where Mursi swears his oath of office, could be settled soon.

The army wants Mursi sworn in on June 30, meeting a deadline it set itself for handing over Egypt to “civilian rule” – although the military’s influence will go on long beyond that.

SOURCE:YAHOO!UK & IRELAND

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