Saudi based Islamic bank enters India, first branch in Gujarat

executive@coastaldigest.com (CD Network)
June 1, 2016

Ahmedabad, Jun 1: The Saudi Arabia-based Islamic Development Bank (IDB) is set to start its India operations from Gujarat. The international financial institution which has its headquarters in Jeddah has chosen the home state of Prime Minister Narendra Modi to set up its first branch in India. The state will also get 30 medical vans as part of IDB's social sector initiatives.

jeddah

Islamic Development Bank headquarters located in Saudi Arabia's Jeddah.

IDB's main objective is to foster the economic development and social progress of member countries as well as the Muslim community in accordance with principles of Shariah (Islamic law). The bank has 56 Islamic countries as its members.

The developments follow an agreement between India's state-owned Exim Bank and the Islamic Corporation for the Development of the Private Sector (ICD), a private-sector arm of the IDB group, as part of deals signed during Modi's trip to Saudi Arabia in April.

The IDB, a multilateral lender with an authorised capital of $100 billion, counts 56 Muslim nations as its members. Most of these countries belong to the Organisation of Islamic Cooperation.

ISLAMIC BANKING: SOME FACTS 

  • It is a finance system based on the principle of not charging interest, which is prohibited under Islam. Now, it goes by a more formal moniker – participatory banking.
  • Instead of charging interest, the lender shares a part of the profit – or loss – with the borrower
  • It is open to non-Muslims as well
  • By 2020, the global Islamic banking industry profit pool is expected to reach $30.3 billion.

Its India operations will be led by Zafar Sareshwala, a prominent Muslim businessman from Gujarat whom the Modi government appointed chancellor of the Maulana Azad National Urdu University soon after assuming office.

The agreement in Jeddah was signed by Exim Bank regional head Tarun Sharma and ICD CEO Khaled Al Aboodi in the presence of Ahmad Javed, India's ambassador to Saudi Arabia.

To be based in Ahmedabad, the bank will offer interest-free capital to business startups, including small and medium enterprises within India, marking the entry of the Islamic banking – also known as participatory banking – into the country.

According to an Exim Bank statement, the IDB's bigger role will be in the $100 million (about Rs 670 crore) credit line it has pledged “with the aim of facilitating the export of goods and services from India to ICD's member countries”.

“The ICD will be open for business to all Indians, regardless of religious background. In Malaysia, the KFC chain runs on ICD finance although it is owned by a Chinese firm. Some people have this unnecessary issue with Islamic banking, which is actually known as participatory banking across the globe now,” said Sareshwala, who has been named as a director for the bank's India operations.

The IDB has also promised $55m (about Rs 380 crore) for a state-of-the-art rural mobile medical network – the first leg of which will be launched in Gujarat.

The IDB, which complies with global Islamic finance norms, does not charge interest on loans because the religion prohibits it. Instead, it charges a part of the profit and also shares any losses with the borrower.

According to the EY's World Islamic Banking Competitiveness Report 2016, Global Islamic banking assets would have reached US$1 trillion by 2015-end.

Comments

Ahmed
 - 
Thursday, 2 Jun 2016

Poorna Prakash, Mangalore
We have since long following banks
Catholic Syrian Bank
Nakodar Hindu Bank
The Hindu Co-Operative Bank Ltd.

But, you have a problem as soon as we get a Islamic bank.
This is nothing else but, intolerance.

Don't forget another bank: The Hindu Vote Bank.

Rikaz
 - 
Wednesday, 1 Jun 2016

Why feku's state is getting all of those facilities? why don't they bring it to Karnataka....

suresh
 - 
Wednesday, 1 Jun 2016

All the investment only to gujarat? Why? This investment will be mis used by Gujju's as it says if the business in loss it will be shared by both. gujju's are well known how to make them fool. This will create more mallya;s in Gujarat.

moshu
 - 
Wednesday, 1 Jun 2016

Hope one day rss will understand islam well and will follow the rule of Allah

moshu
 - 
Wednesday, 1 Jun 2016

Siddarth mumbai openly backing his hawala racket crooks operating by his modi govt

Naren kotian
 - 
Wednesday, 1 Jun 2016

It is done to curb India's black money outflow and inflow by hawala means ..since 90% of hawala transactions are mostly encouraged by just particular section ...anyways since they have given 100 million credit line ..so we have ample opportunity to export pig related products to 56 Islamic countries ..hahaha ...nia monitoring is must as terrorists are most likely to use this bank ...

muhammed rafique
 - 
Wednesday, 1 Jun 2016

Appreciate Modi's wisdom in realising the importance of Islamic banking

Rizwan
 - 
Wednesday, 1 Jun 2016

Good initiative by P.M , i appreciate his move. Both india and KSA will be benifited by this.

Asif
 - 
Wednesday, 1 Jun 2016

Al Hamdlillah... itrs great news... waiting from a long time... hope it soon opens its branches all over India.

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News Network
April 15,2025

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Jeddah/Dammam, April 15: In a significant legal move, Saudi-based law firm International Justice has served a formal legal notice to Air India Express on behalf of passengers affected by the inordinate delay of Flight IX-886. The flight, originally scheduled to depart from Dammam to Mangaluru on 25 March 2025 at 22:10 hrs, was delayed by over 24 hours—causing severe inconvenience and hardship to passengers, many of whom included senior citizens, children, and individuals with medical conditions.

The legal notice, issued by noted Saudi lawyer and partner at International Justice Law Firm, Adv. Ms. Faten Faiz AlAhmari, outlines the distress and suffering endured by the stranded passengers due to the prolonged delay and lack of adequate assistance from the airline.

The initiative for legal escalation was spearheaded by P.A. Hameed Padubidri, a well-known Indian lawyer and social worker based in Saudi Arabia, who closely monitored the ordeal. Upon receiving numerous complaints and witnessing the passengers’ plight firsthand, he collaborated with Adv. Faten Faiz AlAhmari to ensure the matter was formally addressed through appropriate legal channels.

The legal notice outlines several key grievances:
    •    Unexplained delay and extended detention inside the aircraft
    •    Absence of proper accommodation or official communication
    •    Prolonged waiting hours at the airport without basic support or updates

The notice demands the following actions from Air India Express:
    1.    A formal written apology to all affected passengers
    2.    Full compensation for the physical, mental, and financial distress caused
    3.    A detailed explanation regarding the cause of the delay and preventive measures
    4.    Assurance of strict adherence to passenger rights in future operations

The airline has been given 15 days from the receipt of the notice to respond and take corrective action. Failing this, legal proceedings will be initiated in competent courts in both Saudi Arabia and India, with all financial liabilities resting on Air India Express.

This legal action comes amid rising public dissatisfaction over the handling of flight delays by international carriers, particularly those serving the Gulf-India sector.

Hameed Padubidri remarked: “We expected improved efficiency and passenger care from Air India Express after its acquisition by the Tata Group. However, the continued lapses and negligence—especially on Gulf routes—have deeply frustrated the Indian expatriate community. If the airline fails to respond, we will pursue the matter vigorously in both Saudi and Indian courts to ensure justice for the affected passengers.”

The case is now being closely watched by legal experts and passenger rights advocates, highlighting the pressing need for accountability, transparency, and humane treatment during travel disruptions.

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coastaldigest.com news network
April 18,2025

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Mangaluru: On a scorching summer Friday, April 18, the usually quiet locality of Adyar Kannur in Mangaluru transformed into a powerful symbol of resistance and unity. A massive public protest, led by the Karnataka State Ulema Coordination Committee, witnessed an overwhelming turnout of nearly 3,000 people voicing their dissent against the Central Government’s recent amendments to the Waqf Act. 

The protest wasn’t just an outcry—it was a declaration of solidarity, discipline, and deep-rooted concern over the perceived infringement of religious and institutional autonomy.

Organized under the leadership and guidance of the Khazis from Dakshina Kannada and Udupi, the protest drew people from all corners of the region including Udupi, Dakshina Kannada, Chikkamagaluru, and Kodagu districts. The protest venue, Sha Garden in Adyar Kannur, turned into a sea of people as participants gathered from various towns and villages despite the scorching afternoon sun.

From 2 PM onwards, people began arriving in large numbers. The influx of participants led to significant traffic congestion on the adjoining highways, compelling authorities to reroute vehicles to maintain order. Inside the city and surrounding areas, many shops remained closed, partly due to the event and partly as it coincided with the sacred Jumma prayers.

Security was handled with tight coordination—police personnel were stationed at all major junctions, crossings, and strategic points. Alongside them, volunteer marshals maintained decorum at the protest site, managing the crowd efficiently and ensuring cleanliness by removing empty water bottles and litter.

Chants of “Azaadi” (freedom) echoed through the grounds as protesters raised their voices in peaceful opposition to the Waqf Amendment Bill. Despite the emotionally charged atmosphere, the protest remained peaceful. The organizers consistently appealed to the crowd via loudspeakers to maintain harmony and avoid any provocative slogans.

Drone surveillance and videographers were deployed for complete documentation of the event, enhancing both the security and transparency of the protest. However, the sheer number of participants caused temporary network disruptions, affecting mobile communication in the area.

Adding a patriotic touch, several protestors were seen waving the Indian national flag, reinforcing that the movement was deeply rooted in constitutional values and democratic expression.

Among the dignitaries present were UK Abdul Azeez Darami Chokkabettu, Dr. M S M Zaini Kamil, Abdul Khader Darami Kukkila, Kasim Darami Kinya, Aboobakkar Siddique Montugoli, Mehboob Sakafi Kinya, and Ashraf Kinara. Their presence underlined the seriousness of the gathering and provided moral and spiritual guidance to the demonstrators.

The peaceful protest stood as a clear, disciplined, and democratic expression of the Muslim community’s concern, sending a strong message to the authorities: religious rights and institutional independence are not to be tampered with.

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coastaldigest.com news network
April 10,2025

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Mangaluru, Apr 10: In a profound act of generosity and faith, senior businessman and Congress leader Inayath Ali has donated 1.5 acres of prime land in the heart of Mangaluru for the construction of a Haj Bhavan. The land—strategically located just 1.5 kilometres from the Mangaluru International Airport and adjacent to a major road—is estimated to be worth over ₹8 crore.

The donation, made earlier this week, has captured public attention not just for its magnitude, but for the spirit behind it. At a time when the nation is engaged in an intense debate over the recently passed Waqf (Amendment) Act, this selfless contribution opens a new chapter in understanding the true essence of waqf.

According to sources, the upcoming Haj Bhavan will house a mosque, and offer training and orientation services for pilgrims travelling to Mecca—providing both spiritual and logistical support to hundreds of Hajj aspirants from the region.

What sets this gesture apart is the absolute surrender of rights by Inayath Ali. Despite not being a high-profile industrialist or real estate mogul, he has forfeited all claims over the land. Under Islamic waqf principles, once a property is donated, neither the donor nor their descendants can reclaim or profit from it—making it a permanent endowment for the community.

This timely development is sparking fresh conversations about the spiritual and charitable foundations of waqf, especially amid allegations and controversies surrounding waqf properties in various parts of the country. Critics often claim that waqf lands have expanded disproportionately or were historically acquired from other communities. Inayath Ali’s donation stands as a counter-narrative—one that reflects the voluntary, sacred, and socially uplifting nature of such endowments.

For generations, Muslims—from wealthy businesspersons to humble individuals—have donated land and property to build mosques, madrasas, orphanages, and cemeteries. Elders from the coastal Muslim community affirm that such acts are not merely cultural traditions but are deeply rooted in the belief that sadaqah jariyah (a continuing charity) benefits the soul in both this world and the hereafter.

Inayath Ali’s contribution, thus, is not just a donation of land—it is a message of unity, service, and spiritual vision for generations to come.

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