My feel of Masjid al Haram

My feel of Masjid al Haram

By Abdel Aziz Dimapunong

Imam, Masjid Alkhairi, Manila, Philippines

In the Islamic faith, Masjid al Haram is the holiest place on earth. This is because it houses the Holy Kaaba, a cube-shaped structure. The Kaaba is the focal point of the Muslim annual pilgrimage known as Hajj and the random visitation to the Kaaba known as Umrah. The Hajj pilgrimage is one of the five pillars of Islam.

Masjid al Haram is located in the holy city of Mecca, in the Kingdom of Saudi Arabia. Haram is a holy land area bounded by three sides: three miles on one side, seven miles on the second and nine miles on the third side towards Jeddah. The Holy City of Makkah lies 73 kilometers east of Jeddah. Inside the Haram, it is forbidden to hunt or even bother any living creature. It is not allowed to cut trees, not even grass. It is only permitted to kill dangerous animals such as dogs with rabies and the like of snakes, scorpions, rats, etc.

Mecca to the Muslim world is Makkah, the birthplace of prophet Muhammad, peace is on him. It is also the place of revelation of many chapters of the Muslim scripture, the Holy Quran. Mecca is Bacca in this Holy Quran (3.96 Quran). Bacca is actually the entire valley of Makkah. The Holy Kaaba in Makkah is popularly known as the Masjid al Haram. Actually, the Kaaba is inside the Haram which is also inside the city of Mecca.

Background of the Holy Kaaba

It is believed that the Kaaba was built by the first man on earth, Adam. After it was forgotten for a long long time, it was found and rebuilt by prophet Ibrahim with his son, Ishmael (peace is upon them). That was more than 3,000 years ago. Today, the Kaaba stands in the middle of a complex that is popularly known as Masjid al Haram. To some, the Kaaba itself is also known as Masjid al Haram. It is the place which captures the hearts of more than a billion Muslims all over the world. This number is ever increasing because Islam is the fastest growing religion in the world today.

The Holy Kaaba was the first house ever built for the worship of One and Only God, Allah. That is why it is called “Bait-ul-Ateeq”, meaning the oldest house. It is also called “Bait-Ullah”, meaning House of Allah. Muslims all over the world face towards Kaaba whenever and wherever they offer their five daily prayers and supplications. Muslims have been commanded by the Holy Quran to pay homage to the Holy Kaaba. Suratul Imran, the third chapter of the Holy Quran says of the first House, thus: “Surely, the first House founded for mankind is that at Becca, abounding in blessings and guidance for all peoples. In it is manifesting signs; it is the place of Abraham; and whosoever enters it, enters peace” (3:96-97). Other chapters also mentioned the Kaaba. ”And when We assigned to Ibrahim the place of the House (Kaaba), saying: Do not associate with Me aught, and purify My House for those who make the circuit and stand to pray and bow and prostrate themselves.” (Quran, 22:26). The circuit mention is the Hajj ritual of simply walking around the Holy Kaaba in prayer. The Quran also says of the builders of the Kaaba,”And when Ibrahim and Ishmael raised the foundations of the House (Kaaba): Our Lord! Accept from us; surely Thou art the Hearing, the Knowing.” (Quran, 2:127)

Prophet Ibrahim, peace be on him, founded a community of believers on a valley of a desert land by command of the All-Mighty Allah. He settled on this holy land with his wife, Hajira, and his son, Ishmael. From the progeny of Ishmael would come the greatest prophet, Prophet Muhammad, peace is on him. He was prophesized to be a mercy for all mankind. The teaching that he brought down would be for the whole world and for all times.

Inspite of having no sign of any provisions for food at Becca during the time of settlement by prophet Ibrahim, peace is on him, he settled and relied on the merciful provisions of God-Allah. In due time the provisions for food and water came in abundance. Slowly the place was populated and was called Becca. This was the place where Prophet Ibrahim, peace is upon him, found lost signs of the first House of Allah that was original built by Adam. It was built for the worship of the One and Only God-Allah. It was then rebuilt by Prophet Ibrahim with the help of his son, Ishmael. He fervently prayed to Allah to make this House the Place for humanity. Yet, Prophet Ibrahim's message of the One God was gradually forgotten and pagan idolaters violated the sacred Kaaba. Only few kept the faith until Prophet Muhammad, peace is on him, destroyed the myriad of pagan idols in the Kaaba. The prophet restored order and reestablished the manner of Umrah and Hajj.

Around the Kaaba is referred to as Masjid el Haram which includes the rectangular shape of the Kaaba. Pilgrims offer prayers here by facing towards the Kaaba.

The black stone and Zamzam

There is a black stone in one of the corners of the Kaaba. This stone is popularly known as Hajr-e-Aswad. It was probably part of a meteoroid that fell near Mecca. When he was rebuilding the Kaaba, prophet Ibrahim brought the black stone down and placed it inside the Holy Kaaba as a monument. It was prophet Muhammad, peace is on him, and some members of the family of Quraish who placed the black stone in one of the corners of the Holy Kaaba, the place where it is found these days. Kissing the stone is not required but it is not also prohibited. It is optional for anyone and it is not part of the legitimate rituals while performing the Hajj. The stone has no power and it provides neither benefit nor harm to anyone.

There is a small well to the east of the Kaabba known as the Zamzam. There is a small structure in front of the door of the Kaaba which was used by prophet Ibrahim to stand on to complete the walls of the Kaaba. There were two small hills that were located inside the Masjid al Haram. The small hills were still noticeable when I first visited the Holy Kaaba in 1977. Some big stones were still on the hills. I had stepped on them. In my pilgrimage in 1981, I did not notice the two small hills due to more improvements. In my 1986 pilgrimage, I realized that the two small hills were somewhat smoothened if not flattened for convenience.

My first Umrah (visit to the Holy Kaaba)

My first ‘encounter’ with the Holy Kaaba was in 1977 when I made my first visitation known as Umrah. Coming from home a thousand miles away, I traveled alone to see and feel the magnificence of the Oldest House on earth. Masjid al Haram was then not as developed as it is today. But even then it was very hard to give an account of this monumental edifice. I was told by my guides to Makkah not to take pictures and never use my camera at all. I was told that, anyway, there were available post cards of the Holy Kaaba in the nearby convenient stores. Even then, to describe the Holy Kaaba by the expediency of the camera is at once problematic. The camera cannot capture the ambience and the environmental influence of the Holy Kaaba. A post card of the Holy Kaabba can only, at best, serve as a lifeless impression of this edifice.

It was to the credit of prophet Ibrahim that the Holy Kaaba was rebuilt. The influence of prophet Ibrahim is a monumental one. He was the father of Isaac and Ishmael. The two sons are known to be the forefathers of the three great religions, namely: Islam, Christianity and Judaism. No modern machine, much less a camera can capture this influence on the Holy Kaaba. No post card can best describe this object of Quranic times.

On my first Umrah, I tried to scribble some few lines to describe the Holy Kaaba. However, my first experience can be described in a few words. I was amazed and awed. Something deep inside of me decides that I must come back again. I realized that I was only on a visitation that is Umrah. And even if I had succeeded to put a few lines forward to describe the object, the Holy Kaaba’s awesome position in man’s vision and reality simply reduces my eagerness to an insignificant scribble.

In order to capture the reality of the Holy Kaaba, one must be in a state of purity of purpose. There is such a thing as a “state of Ihram” where one is covered with only two pieces of white cloth, along with a million people or more. One must be under a state of regular ablution and in constant prayer and supplication. In summary, the Umrah and the Hajj proper must be in total surrender to the creator. And the best time is during the Hajj proper. Only the certainty of actual sight, touch and smell, and all the human senses in a state of Ihram and purity of purpose, could capture the experience with the Holy Kaaba.

Furthermore, only during the Hajj proper when millions of Muslims around the world participate in the Hajj congregation, could one realize the pilgrimage experience with the Holy Kaaba. Then I said to myself, I must return.

My second Umrah

In 1981, I made my second Umrah just before the month of Ramadhan. I actually had my month-long fasting in that period in Makkah, spending most of my time inside Masjid al Haram. I was fortunate that my visa was conveniently arranged by two influential friends of mind who were sons of a Minister, a cabinet rank in the Kingdom of Saudi Arabia.

By this time, the Masjid al Haram that houses the Holy Kaaba was improved tremendously. It was already a complex that maintains the Kaaba, the Muqam-e-Ibrahim and the fountain of Zamzam, plus all the expansions made through the years. The expansion of the Haram includes some improvements, redecoration of Masjid al Haram, its courtyards and facilities, so that it can accommodate the largest possible number of worshippers.

In my second Umrah, I had noticed that the most advanced technical innovations have been used to facilitate movement and prayer for pilgrims and visitors to the Haram and access to the cooled, pure water of Zamzam.

My first Hajj pilgrimage

In my second Umrah in 1981, I decided to stay in Makkah and waited for the actual period of Hajj after the Ramadhan fasting. This was my first Hajj pilgrimage proper. On this occasion, I personally felt that the Hajj pilgrimage to the Holy Kaaba is one man’s journey into God-Allah’s domain in an earthly time. The way to and from the Holy Kaaba is a real test of will and endurance … an act of sacrifice … and a unique way of worship to God-Allah. The pilgrimage to the Holy Kaaba, and the Masjid al Haram, is a brief pause, bordering on the eternal and final, from the normal drabness of daily living not merely to seek favors (for life is favor itself) from the Almighty God-Allah but to ask for forgiveness and offer thanks for ones life while still blessed with earthly existence.

I personally felt that the Hajj pilgrimage is a confrontation between man’s body and soul … unfettered by conventions – witness and arbitrated only by God-Allah in His own Way.

My second Hajj pilgrimage

I had another occasion to feel the Holy Kaaba when in 1986 I came back for my second Hajj pilgrimage. This time I spent several months in the Kingdom of Saudi Arabia. I had a visitor’s visa that was sponsored by the Philippine Embassy to Saudi Arabia under the leadership of the late Ambassador Dr. Mauyag M. Tamano. During the period of that visa, I had the occasion to perform my third Umrah with the Ambassador. When my visa expired, I had another one as an official delegate of the Philippines to the International Conference of the World Assembly of Muslim Youth (WAMY). The Youth Assembly sponsored a special flight and travel to the two Holy Cities of Makkah and Medina. Thus, I had the fourth Umrah and a visitation to the Mosque of Prophet Muhammad, peace is on him, in the city of Medina.

I waited for the period of the Hajj pilgrimage, taking advantage of another visa that was sponsored by His Excellency, Dr. Abdul Aziz Al Zowaygh, then Minister of the powerful Ministry of Transportation and Communication in the government of the Royal Kingdom of Saudi Arabia. His Excellency sponsored my visitor’s visa after having met him personally. He granted my visa in my capacity as an Associate Editor of the Majala Al Dawah Magazine. Perhaps my visa was granted in recognition of my published writings about the economic progress of the Kingdom of Saudi Arabia. I also wrote about the late King Fahd bin Abdulaziz, entitled: “A tribute to a world Muslim leader with a vision”. This article was published by the Majala Al-Dawah magazine with the late King Fahd being featured on the front cover. These were in addition to my other articles about Arab personalities, including the banker Sheikh Saleh Abdullah Kamel, the businessman intellectual Sheikh Saleh Jamjoom, among others. His Excellency, the Minister of Information granted my request for visa after having been endorsed by the Secretary General of the World Muslim League, Dr. Abdullah Omar Nasseef.

The period of the Hajj came and I happily performed my second Hajj proper, a kind of prize as a journalist. At this time, my ‘encounter with the Holy Kaaba was … and is…beyond description, that is, what might be called as ‘accurate’. But I vividly recall that on entering the Masjid al Haram, I felt remorseful…”Found guilty!” – And I was forthwith prepared to accept the verdict. I was tried, yes, and I knew that I was guilty. When I caught sight of the Holy Kaaba again for the nth time, a sweet cold and heavyweight…very perceptively … fell on me… rendering me stunned. During my tawaf (walking around the Holy Kaaba) a complete shyness would always overcome me whenever I would cast my eyes upon the simple structure of the Holy Kaaba. It was so simple indeed but astounding in its magnificence.

During every annual pilgrimage, the Kaaba is the focal point of all hajj rituals from beginning to end. On the last days of the Hajj, on the 12th or the 13th day of Dulhajj, the pilgrim returns to the Kaaba and perform a final Tawaf (walking around the Kaaba). This is the farewell walk around the Kaabba. In my case, after having the farewell walk, I then prayed to Allah for forgiveness. Perhaps I had captured the real experience of the Hajj pilgrimage deep inside of me… so I thought … but just maybe. My farewell was so penetrating deep inside of me because I felt then that my 1986 pilgrimage maybe my last one. I may not be able to come back again. I also recalled the very popular “Last Farewell” sermon of Prophet Muhammad, peace on him. The Last Farewell speech is committed to memory by a number of devoted Imam and Islamic preachers.

Further expansion of Masjid al Haram

After my last Hajj, I still follow how Masjid al Haram continues to develop. I understand that work on a new project began on September 1988. The project includes an expansion, an addition of a new part to the Masjid al Haram. The area of the expansion floors totaled 76,000 square meters, accommodating some 152,000 worshippers. The expansion also includes furnishing the mosque’s outer yards for prayer, an area totaling 85,000 sq. meters and accommodating 130,000 worshippers. This raised the Sacred Mosque’s total area to about 365,000 square meters, accommodating 773,000 worshippers on normal days and more than one million during Hajj season and the holy month of Ramadan. A new air-conditioning system has been devised with a total capacity of 13,500 cooling tons. New toilets were constructed covering an area of 14,000 sq. meters. The construction includes 1,440 toilets, 1,091 ablution areas and 162 drinking water taps. Separate toilets have been set aside for women.

The area of the basement expansion totaled 20,000 square meters accommodating 33,000 worshippers. The area of the first floor totaled 47,000 square meters, accommodating 77,000 worshippers, the area of the roof after improvements totaled 42,000 square meters, accommodating 90,000 worshippers. There are now 56 escalators. The Tawaf area was tiled with heat-dissipating marble, doors were renewed and a library was established. There are 55,000 lighting lamps. The connecting cables have a combined length of 3.5 kilometers.

Further expansion areas towards Al-Souq includes: basement area 19,000 square meters, accommodating 35,000 worshippers; ground floor area 19,000 square meters, accommodating 35,000 worshippers and first floor 16,000 square meters, accommodating 27,000 worshippers.

The current structure covers an area of 356,800 square meters including the outdoor and indoor praying spaces and can accommodate up to 820,000 worshippers during the Hajj period.

It’s been eleven years since my last visit to the Holy Kaaba. How I long to perform another Hajj pilgrimage again and visit the Masjid al Haram.

The current Hajj pilgrimage

The Hajj pilgrimage today, part of December 2006 and part of January 2007 could be the largest ever with an estimated three million pilgrims around the world. The Kingdom of Saudi Arabia has reported that around 1.6 million pilgrims came from abroad as reported by officially registered tour agencies.

Last Monday, January 1, 2007, some of the pilgrims performed their last farewell tawaf. My son, Imam Abdul Qahhar Dimapunong, who is performing his second pilgrimage, said he did his last tawaf last Tuesday. Some did it last Wednesday. But there are those who are still doing it today. After having done their last ritual, the pilgrims should now be on their way home.

There has been no report of any untoward incident this year. There was no stampede or anything of that sort. There was no typhoon. No sandstorm. Al hamdulillah, everyone is safe.

Related article.

My previous blog entitled: “Eidul Adha, a global Muslim Holiday” is very much related to this article. It is actually a part of the historical background of the Kaaba inside Masjid al Haram.

Note. In the manner of Islamic speech and writing, the phrase “peace on him” is always said or written after the mention of Prophet Muhammad, peace on him. This is a mandatory requirement for all Muslims. It is one of the signs of being a Muslim when one does it. On the other hand, it is one of the signs of not being a Muslim, when one disregards this salutation.

Eidul Adha, a Muslim holiday

Eidul Adha, a Muslim global holiday

By Abdel Aziz Dimapunong

Imam, Masjid AlKhairi, Manila, Philippines

Today, December 30, 2006, is a Muslim holiday. The exact date is the corresponding date in the lunar Hijrah calendar which is the tenth day of the Islamic month of Dhul Hijjah. This holiday is called Eidul Adha to the Arabs, Eid-e Qurban for Persians and Kurban Bayrami for Turkish. The exact spelling is the corresponding Arabic script. If one has to search the Internet about it, the spelling in English could be Eidl Adha, Eid ul Adha, Eid al-Adha, or Eidul Adha.

In my country, the Philippines, Eidul Adha is recognized officially by the Government as a Muslim holiday. By virtue of a law which was recently signed by President Gloria Macapagal Arroyo, Eidul Adha is now a National Holiday in this country. It is among regular holidays under the Administrative Code. Before the law was signed, Eidul Adha used to be just a holiday for the Muslims only. Witnessed by Muslim legislators and diplomatic personalities from the Organization of Islamic Countries, President Gloria Macapagal Arroyo signed the law last November 13, 2002 at Malacanang Palace. The law also proclaims Eidul Fitr as a Muslim regular holiday in the same way as Eidul Adha. The Eidul Fitr takes its name from the Fitrah which is an obligatory religious Tax (Zakat) to be paid by all financially able Muslims. Fitra becomes due and obligatory upon sighting of the moon of the month of Shawwal and in the Hijrah calendar. Fitra is recommended to be paid before the prayer of Eidul Fitr.

Eidul Adha marks the completion of the annual hajj, the pilgrimage to the holy cities of Makkah and Madinah. On this occasion, I wish every Muslim a great holiday and I congratulate all who perform the annual hajj this year. At the end of the Hajj, Muslims throughout the world celebrate the holiday of Eidul Adha.

Eidul Adha is also known as the Festival of Sacrifice. The sacrifice is called Qurban. It lasts for three days and commemorates Ibrahim's (Abraham) willingness to obey God-Allah by offering to sacrifice his son, Ishmael. It was with a heavy heart that Abraham agreed to sacrifice his son but he was ready to show his loyalty to his Lord. The feeling of Abraham's son, Ishmael, was also the same as that of his father. Both of them were committed to follow the commandment of God-Allah. Abraham drew his knife to slaughter his son but just as the knife drew near, God-Allah intervened and Ibrahim's son was replaced by a sheep. Ibrahim and Ishmael were was so happy that they were relieved when they saw that it was a sheep that was slaughtered. Ishmael was safe. God-Allah had asked Ibrahim to sacrifice his son to test his faith in Islam and when Abraham proved that he was willing to do it, God-Allah did not need him to commit the slaughter of his beloved son. Being obedient to God-Allah, Ibrahim is described in the Holy Quran as follows: "Surely Abraham was an example, obedient to Allah, by nature upright, and he was not of the polytheists. He was grateful for Our bounties. We chose him and guided him unto a right path. We gave him good in this world, and in the next he will most surely be among the righteous." (Qur'an 16:120-121)

The Feast of Sacrifice re-enacts Ibrahim's obedience to God-Allah. It is done by pilgrims and all Muslims by sacrificing a cow, a ram, or a goat. The family eats about a third of the meal and donates the rest to the poor.

During the Hajj, the pilgrims perform rituals in remembrance and in commemoration of the trials and triumphs of Prophet Ibrahim, peace is on him.

Ibrahim’s trial was to face the command of Allah to kill his son, Ishmael, as a sacrifice. Upon hearing this command, he prepared to submit to Allah's will. When he was all prepared to do it, Allah revealed to him that his offer for sacrifice had already been fulfilled. He had shown that his love for his Lord was above all and everything else, that he would lay down his own life or his son in order to submit to God-Allah.

During the celebration of Eid al-Adha, all Muslims commemorate Ibrahim's trial by slaughtering an animal such as a cow, sheep, camel, or goat. The meat from the sacrifice of Eid al-Adha is mostly given away to others. One-third is for the family and relatives, two-thirds for others, especially to the poor. The act symbolizes a Muslim’s willingness to give certain things, in order to follow Allah's commands. It also symbolizes a Muslim’s willingness to give up one’s own bounties in order to strengthen ties of friendship and help those who are in need.

On the morning of every Eidul Adha, Muslims around the world attend morning prayers at their local mosques or any suitable places. Eidul Adha begins with a short prayer (Salat) followed by a sermon (Kutbah) that is delivered by the Imam. For the pilgrims in Makkah, the sermon is delivered from Mount Arafat. For others, prayers are followed by visits with family and friends, and the exchange of greetings and gifts.

The charitable practices of the Muslim community are demonstrated during Eidul Adha by the concerted effort to see that no impoverished Muslim is left without sacrificial food during this day. On his last pilgrimage, Prophet Muhammad, peace is on him, pronounced the final seal on the religion of Islam, coming immediately after the Day of Mount Arafat. The day before Eid al-Adha is the Day of Arafat' or the Day of Hajj when millions of Muslims make the journey to Mecca in Saudi Arabia to perform a pilgrimage of religious rites known as the Hajj.

Virtually all of the rites and rituals of Hajj are based on the actions of Prophet Abraham. These acts were re-implemented by Prophet Muhammad, peace is on him. Even the Kaa'ba, also known as Masjid El Harram, in Makkah was originally built by Abraham and his two sons. Masjid El Harram is now a huge complex. Within this complex Masjid is located a holy plinth to remind pilgrims of Prophet Ibrahim and Ishmael.

During Eidul Adha, Muslims greet each other by saying "Eid Mubarak". On this occasion, may I say Eid Mubarak to everyone.

Eidul Adha, a Muslim holiday

Eidul Adha, a Muslim global holiday

By Abdel Aziz Dimapunong

Imam, Masjid AlKhairi, Manila, Philippines

Today, December 30, 2006, is a Muslim holiday. The exact date is the corresponding date in the lunar Hijrah calendar which is the tenth day of the Islamic month of Dhul Hijjah. This holiday is called Eidul Adha to the Arabs, Eid-e Qurban for Persians and Kurban Bayrami for Turkish. The exact spelling is the corresponding Arabic script. If one has to search the Internet about it, the spelling in English could be Eidl Adha, Eid ul Adha, Eid al-Adha, or Eidul Adha.

In my country, the Philippines, Eidul Adha is recognized officially by the Government as a Muslim holiday. By virtue of a law which was recently signed by President Gloria Macapagal Arroyo, Eidul Adha is now a National Holiday in this country. It is among regular holidays under the Administrative Code. Before the law was signed, Eidul Adha used to be just a holiday for the Muslims only. Witnessed by Muslim legislators and diplomatic personalities from the Organization of Islamic Countries, President Gloria Macapagal Arroyo signed the law last November 13, 2002 at Malacanang Palace. The law also proclaims Eidul Fitr as a Muslim regular holiday in the same way as Eidul Adha. The Eidul Fitr takes its name from the Fitrah which is an obligatory religious Tax (Zakat) to be paid by all financially able Muslims. Fitra becomes due and obligatory upon sighting of the moon of the month of Shawwal and in the Hijrah calendar. Fitra is recommended to be paid before the prayer of Eidul Fitr.

Eidul Adha marks the completion of the annual hajj, the pilgrimage to the holy cities of Makkah and Madinah. On this occasion, I wish every Muslim a great holiday and I congratulate all who perform the annual hajj this year. At the end of the Hajj, Muslims throughout the world celebrate the holiday of Eidul Adha.

Eidul Adha is also known as the Festival of Sacrifice. The sacrifice is called Qurban. It lasts for three days and commemorates Ibrahim's (Abraham) willingness to obey God-Allah by offering to sacrifice his son, Ishmael. It was with a heavy heart that Abraham agreed to sacrifice his son but he was ready to show his loyalty to his Lord. The feeling of Abraham's son, Ishmael, was also the same as that of his father. Both of them were committed to follow the commandment of God-Allah. Abraham drew his knife to slaughter his son but just as the knife drew near, God-Allah intervened and Ibrahim's son was replaced by a sheep. Ibrahim and Ishmael were was so happy that they were relieved when they saw that it was a sheep that was slaughtered. Ishmael was safe. God-Allah had asked Ibrahim to sacrifice his son to test his faith in Islam and when Abraham proved that he was willing to do it, God-Allah did not need him to commit the slaughter of his beloved son. Being obedient to God-Allah, Ibrahim is described in the Holy Quran as follows: "Surely Abraham was an example, obedient to Allah, by nature upright, and he was not of the polytheists. He was grateful for Our bounties. We chose him and guided him unto a right path. We gave him good in this world, and in the next he will most surely be among the righteous." (Qur'an 16:120-121)

The Feast of Sacrifice re-enacts Ibrahim's obedience to God-Allah. It is done by pilgrims and all Muslims by sacrificing a cow, a ram, or a goat. The family eats about a third of the meal and donates the rest to the poor.

During the Hajj, the pilgrims perform rituals in remembrance and in commemoration of the trials and triumphs of Prophet Ibrahim, peace is on him.

Ibrahim’s trial was to face the command of Allah to kill his son, Ishmael, as a sacrifice. Upon hearing this command, he prepared to submit to Allah's will. When he was all prepared to do it, Allah revealed to him that his offer for sacrifice had already been fulfilled. He had shown that his love for his Lord was above all and everything else, that he would lay down his own life or his son in order to submit to God-Allah.

During the celebration of Eid al-Adha, all Muslims commemorate Ibrahim's trial by slaughtering an animal such as a cow, sheep, camel, or goat. The meat from the sacrifice of Eid al-Adha is mostly given away to others. One-third is for the family and relatives, two-thirds for others, especially to the poor. The act symbolizes a Muslim’s willingness to give certain things, in order to follow Allah's commands. It also symbolizes a Muslim’s willingness to give up one’s own bounties in order to strengthen ties of friendship and help those who are in need.

On the morning of every Eidul Adha, Muslims around the world attend morning prayers at their local mosques or any suitable places. Eidul Adha begins with a short prayer (Salat) followed by a sermon (Kutbah) that is delivered by the Imam. For the pilgrims in Makkah, the sermon is delivered from Mount Arafat. For others, prayers are followed by visits with family and friends, and the exchange of greetings and gifts.

The charitable practices of the Muslim community are demonstrated during Eidul Adha by the concerted effort to see that no impoverished Muslim is left without sacrificial food during this day. On his last pilgrimage, Prophet Muhammad, peace is on him, pronounced the final seal on the religion of Islam, coming immediately after the Day of Mount Arafat. The day before Eid al-Adha is the Day of Arafat' or the Day of Hajj when millions of Muslims make the journey to Mecca in Saudi Arabia to perform a pilgrimage of religious rites known as the Hajj.

Virtually all of the rites and rituals of Hajj are based on the actions of Prophet Abraham. These acts were re-implemented by Prophet Muhammad, peace is on him. Even the Kaa'ba, also known as Masjid El Harram, in Makkah was originally built by Abraham and his two sons. Masjid El Harram is now a huge complex. Within this complex Masjid is located a holy plinth to remind pilgrims of Prophet Ibrahim and Ishmael.

During Eidul Adha, Muslims greet each other by saying "Eid Mubarak". On this occasion, may I say Eid Mubarak to everyone.

Christmas Greetings

Greetings to everyone

Merry Christmas and a prosperous new year to all. May the New Year 2007 bring peace, happiness and brotherhood to everyone. May this New Year be the end of all wars on earth. And may this year convey joy to the world. Merry Christmas to Pope Benedict XVI and to all of Christendom.

Imam Abdel Aziz Dimapunong

International Islamic Council

for Civilian Relations

Growing travel restrictions

Growing travel restrictions

By: Abdel Aziz Dimapunong

In a memorandum dated last Friday, November 24, 2006, Justice Secretary Raul Gonzalez of the Philippines said he had received confidential information about illicit human trafficking of Indians using Manila’s international airport. Because of the report, the memorandum ordered all immigration and airport officials to monitor and conduct surveillance on the entry of Indians, Pakistanis and Afghans to this country.

In another airport only four days before the order in Manila, six Imams in USA were investigated by police and airport authorities in Minneapolis-St. Paul International Airport. The six Imams in USA were already aboard Flight 300 of US Airways when they were asked to leave the plane last November 20, 2006. This was a report featured by the Philippine Daily Inquirer last Wednesday, November 22, 2006, with a source from the Associate Press, Minneapolis.

According to the report, police assistance was called upon when the Imams of USA refused to leave when asked to do so by the captain and the airport security. When finally they were taken off the plane, they were investigated before being released. According to Omar Sahin, one of the Imams, they were humiliated “in a very disrespectful ways”.

According to the spokeswoman of the US Airways the incident was triggered by an anxious passenger who slips a note to the flight attendant, only raising (unfounded) concern. After the investigation, nothing wrong was discovered.

The Council on American Islamic Relations in Washington, through its spokesman, Mr. Ibrahim Hooper, expressed anger at the detention. In this same way, the Manila-based International Islamic Civilian Relations officially expressed today its disappointment with the captain and the flight attendants of Flight 300 US Airways.

Only one day before the Minneapolis incident, I wrote a blog about profiling Muslim identities. In that blog I wrote: Was Moses a Muslim? Yes, he was a Muslim. Non-Muslims call him Moses. The Muslims call him Musa Alaihi Salam. Many Muslims bear the name Musa. Many others are named Moses or Moshe. What difference does it make? What is in a name? And then I said that variations matter in some major cities of the world, more specifically inside international airports.

The incident at the airport reminds me of a joke about an immigrant at one of the free ports of North America when it was popularly known as the land of the free.

This is only a joke but I shall not deliver the punch line. At the beginning of its history North America was well known as a land of the free. Entry to this new world was sought after. It was then very easy to become an American citizen (Many Filipinos also became American citizens). In those days (according to this joke), only three questions were asked for an immigrant to enter into the land of the free and be among its citizens. The following is a transcript of one of those interviews. Again this is only a joke without a punch line.

The immigration officer asked an immigrant: “What is your name?” The immigrant replied, “My name is Abram.”

The officer said, “If you can answer just three questions, you become a citizen of North America, the land of the free”

First question: “Who was Christopher Columbus?” Abram replied: “Sir, he was Christoval de Colon, a maritime explorer.” The officer rephrased the question for clarity: Who was Christopher Columbus in relation to America. Abram replied: “Sir, Don Christoval Colon discovered America.” The officer replied: “That’s correct.”

Second question: “Who was George Washington? Abram replied: “Sir, George Washington was the first presidente of North America. He founded the Count”. “That is correct, “the officer said.

Final question. The officer said, “If you can answer this final question, then you are welcome to the land of the free. You become a proud American. You shall have your homestead as far and wide as your eyes can see. You will also have freedom of religion. You can be a Christian, a Mohammedan, a Buddhist, or whatever you choose.

The final question was: “Who was Abraham Lincoln?” Abram replied, “Sir, he is my namesake. He is Ibrahim or Abram for short. In my place, he is known as Abe de Linc.” The officer rephrased the question: “Who was Abe Lincoln to the Americans? Abram replied: “To be specific sir, Abe Lincoln declared on January 1, 1863 that all slaves are forever free. He made the Count free. ”That is correct, said the officer. He hugged Abram who just became a citizen in the land of the free. This is just a joke. It could have been true. Under present condition, it is just impossible to happen.

Who was Abram? It did not and still does not matter.

The Islamic Bank as a chartered bank

By: Abdel Aziz Dimapunong

Chancellor, Islamic Banking Research Institute

I have just uploaded a pdf file of an update (October 2006 Edition) of the Charter of the Amanah Islamic Bank of the Philippines. The file maybe downloaded with the following link.


http://www.keepmyfile.com/download/17ac5f1156861

Because the file is rather long, I am writing below only the introductory portion.


Introduction

Today, we face challenges that are rapidly expanding in the age of information technology. In order to capture the opportunities presented by this changing environment, we need to review and refresh so we can act and respond positively with global reach. The changes that we face today are so pervasive in the way they are taking place. It is driven by a force of extraordinary advances that reverberates globally through the World Wide Web. This is a force in Cyberspace that is transforming banking and commerce from conventional to e-commerce. The wind of change is blowing upon every business entity and regulatory agencies including Central Banks in some countries.

It is for this reason that we in the Islamic Banking Research Institute, and the Islamic Bank (Private) itself have decided to review and refresh the charter of the Al Amanah Islamic Investment Bank of the Philippines.

By way of review we recall that as early as 1993, we had to provide some footnotes to some provisions of Republic Act No. 6848, the charter of the Al Amanah Islamic Investment Bank of the Philippines. The first occasion presented itself when on June 2, 1992; a court order was erroneously issued by then Judge Zosimo Angeles of the Regional Trial Court of Makati, Branch No. 58. This was a Temporary Restraining Order (TRO) in civil case No. 92-1487, a result of a baseless complaint filed by directors of the abolished Philippine Amanah Bank who permanently lost their jobs.

The court order enjoined both parties to the case as cited above to observe the status quo then prevailing. At that point in time, there existed two banks in that legal controversy. They were as follows:

1. One was the defunct Philippine Amanah Bank created under Presidential Decree No. 264 as amended which a board consisting of six (6) members who were to serve until the new Islamic Bank shall have been organized was then managing. The Philippine Amanah Bank was abolished and its charter, PD 264, was repealed entirely by Republic Act 6848, the charter of the new Islamic Bank.
2. The other one was the newly organized Al Amanah Islamic Investment Bank of the Philippines created under Republic Act No. 6848. This bank was organized on April 28, 1992, just one month before the court order. It was being managed by a Board of Directors under the leadership of Abdel Aziz Dimapunong, founding chairman and chief executive officer, and Macapanton Abbas, Jr, Ali Malambut, Grande Mitmug Dianaton who were elected pursuant to the provisions of Republic Act No. 6848.

The court order was wrongfully issued by then Judge Zosimo Angeles. It was ordered lifted by the High Court of Appeals in its Decision in Case No. CA-GR No. SP No. 28445, Abdel Aziz Dimapunong vs. Judge Zosimo Angeles. The Decision was promulgated January 13, 1993. The Judgment was made final and executory on June 16, 1993. Farouk Carpizo appealed it to the Supreme Court in UKD-11290 but the highest court ordered it TERMINATED, there being no merit in the appeal.

Although the court order was issued in error and was lifted one year later by another court order in the form of a Decision, both the lower court order and the high court order had some effects on some provisions of RA 6848. For one, the lower court order that enjoined a status quo prevented a turnover of the assets and liabilities of the abolished Philippine Amanah Bank to the Islamic Bank.

The Decision of the Court of Appeals also clarified the fact that there are private stockholders in the Islamic Bank. Among those named in the Decision were: Macapanton Abbas Jr., Ali Malambut and Grande M. Dianaton. These stockholders were in the minority in 1992. But a few years later, they became the majority and controlling stockholders. On the other hand, the National Government of the Philippines, owing to its mounting deficits, failed to invest subscribe to any shares of stocks of the Islamic Bank.

There were other major occasions when annotations and commentaries on Republic Act 6848 became so necessary. Footnotes were not enough when the Philippine legislature put an end to the Old Central Act, Republic Act No. 267. Needless to say, the end of the Old Central Bank Act washed all the powers of the old Monetary Board away. Congress enacted a new Central Bank Act, Republic Act No. RA 7653. This new law created the Bangko Sentral Ng Pilipinas to replace the old Central Bank of the Philippines. Under this new Central Bank Act, the powers of the Monetary Board were diminished.

On May 23, 2000, the Philippine legislature also put an end to the General Banking Law, Republic Act No. 337. Needless to say, all the powers of the Monetary Board that were derived from the General Banking Law were also washed overboard. Congress enacted a New General Banking Law of 2000; Republic Act No. 8791 which greatly enhanced the powers of the Islamic Bank. Section 71 provides that:

“The organization, ownership and capital requirements, powers, supervision and general conduct of business of Islamic banks shall be governed by special laws.”
So, today, the General Banking Law of 2000 no longer governs the Islamic Bank. The general banking law governed other banks. This means that the Islamic Bank is an autonomous bank, in the same way that its area of responsibility that is the Autonomous Region in Muslim Mindanao (ARMM) is also autonomous by provision of law.

Since the organization of the Islamic Bank in 1992, the Monetary Board, which never had a Muslim member, had been very much remiss in fulfilling its duties to the Islamic Bank. However, since 1992, the Islamic Bank has been gaining powers and exemptions by newly enacted laws in the Philippines.

It is with hope that this writing will shed light to some still lingering issues about the Islamic Bank. And, after we are refreshed with the implementation and development of Islamic banking in the Philippines, we hope to stir more awareness and further interest on the concept of Islamic banking in general.

Ahmad Muhammad Ali, banker par excellence

By: Abdel Aziz Dimapunong
Chancellor, Islamic Banking Research Institute
Founding Chairman, Amanah Islamic Bank

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Dr. Ahmad Muhammad Ali

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There is no doubt, Dr. Ahmad Muhammad Ali (photo above), president of the Islamic Development Bank, is one of the founders of international Islamic banking. He certainly is a banker par excellence. Last year, Dr. Ahmad Ali was a recipient of an award by the King Faisal Foundation. This award was the International Prize for Service to Islam. The award was announced by Prince Khalid Al Faisal, director of the King Faisal Foundation in a ceremony held at the Al-Khozama Center last January 25, 2005. As winner of the award he received a cash endowment of SR750, 000 (about $200,000), a certificate outlining his work and a 22-carat gold medallion to commemorate the occasion. Dr. Ahmad Muhammad Ali was awarded the prize in recognition for his achievements in the field of Islamic banking. As president of the Islamic Development Bank since its inception in 1995, he has synchronized the conformity of banking transactions with Islamic laws and jurisprudence. As one of the founders of Islamic banking, he has set an example of success in Islamic banking and finance on an international level.

The Islamic Banking Research Institute of the Philippines has recognized three founding fathers of international Islamic banking, namely: His Highness, Prince Muhammad Faisal Al-Saud of the Faisal Islamic banking group, His Excellency, Saleh Abdullah Kamel of the Al Baraka banking group, and His Excellency Ahmad Muhammad Ali of the Islamic Development Bank of the Organization of Islamic Conference. In the early 1970s, these three founding fathers of Islamic banking and finance begun conceptualizing, scheming, and constructing what is now popularly known as Islamic banking, investment and finance. Considering their highly educational background and religious commitment to Islam, they may have thought of Islamic banking and finance even in their school days in the 1960s. The Islamic Banking Research Institute has no doubt these three founding fathers of Islamic banking are bankers par excellence.

This issue is focused on Ahmad Muhammad Ali, president of the Islamic Development Bank. The IDB operates on Islamic banking principles. One of the pioneering Islamic banking institutions, this bank was conceptualized in 1973 and actually founded in October 1975 upon the recommendation of the Organization of Islamic Conference and its members which were then 43 member states. Its initial capital was furnished by the governments of Saudi Arabia, Kuwait, Bahrain, Pakistan., Bangladesh, Turkey, and Indonesia. The Bank has financed 387 operations totaling $3.917 billion in 39 member states, and made a profit of $26 million in 1982-83. Since then, IDB and Muhammad Ali have been making steady progress.

Dr. Ahmad Muhammad Ali was born in 1934 at Madina Al Munawara, one of the two holy cities of Islam located in the Kingdom of Saudi Arabia. He obtained his B.A. Commerce degree at the Cairo University, Arab Republic of Egypt in 1957. He obtained his M.A. degree at the University of Michigan, USA. He also earned his degree in Public Administration in the United States in 1962. Thereafter, he earned his Ph.D. degree in Albany, also in USA. He pursued more education and obtained also his degree in Public Administration in the United States in 1967.

Upon completion of studies, Dr Ali was appointed Deputy Rector of the King Abdulaziz University in the Kingdom of Saudi Arabia. He served in this capacity from January 1, 1967 to January 1, 1972. Then he was elevated to the position of Deputy Minister of Education in the Royal Government of the Kingdom, a position he held from January 1, 1972 to January 1, 1975.

Dr. Ali started his first stint as President of the Islamic Development Bank on January 1, 1975 up to January 1, 1993, a period of eighteen years.

He was Secretary General of the Muslim World League based in the Kingdom of Saudi Arabia from January 1, 1993 to January 1, 1995.

Then he made his second stint as President again of the Islamic Development Bank from January 1, 1995 up until the present, a period of twelve years. He, therefore, has served the Islamic Development Bank and performed Islamic banking in a period of thirty years.

Dr. Ahmed Mohamed Ali wrote many articles and working papers on Islamic economics, banking and education. He has an IDB Prize Winners' Lecture Series publication titled “Role of Islamic Banks in Development."

His memberships to prestigious organizations include the King Saud University Council. He was a member in 1980. He was also member of the King Abdulaziz University Council where he was a Rector in 1972. These were in addition to being a member of the Council of the King Fahd University of Petroleum and Minerals. He was also member of the Imam Mohammed Ben Saud University in 1990.

The Islamic Development Bank is a pioneer in the field of Islamic banking. Dr. Ahmad Muhammad Ali is also a pioneer president of the Islamic Development Bank. That makes him among the pioneers in the field of Islamic banking.

The IDB was organized as a multi-lateral financial institution. It is a political organization having been established in pursuance of the Declaration of Intent issued by the Conference of Finance Ministers of Muslim Countries that was historically held in Jeddah on December 1973. The Inaugural Meeting of the Board of Governors took place in July 1975, and the Bank was formally opened on October 1975.

Up to the end of June 1992, the authorized capital of the Bank was two billion Islamic Dinars. Since July 1992, in accordance with a Resolution of the Board of Governors, it became six billion Islamic Dinars, divided into 600,000 shares having a par value of 10,000 Islamic Dinars each. Its subscribed capital also became four billion Islamic Dinars. The board of governors at its annual meeting held in Algeria decided to increase the authorized capital of the Bank form ID six billion to ID fifteen billion and the subscribed capital from ID 4.1 billion to ID 8.1 billion.

The Bank's principal office is a landmark in Jeddah, Kingdom of Saudi Arabia. Two regional offices were opened in 1994; one in Rabat, Morocco, and the other in Kuala Lumpur, Malaysia. In July 1996, the board of Executive Directors also approved the establishment of an IDB Representative Office at Almaty, Kazakhstan. This regional office serves the IDB member countries in Central Asia. The office became operational in July 1997. The Bank also has field representatives in eleven member countries, namely: Indonesia, Iran, Kazakhstan, Libya, Pakistan, Senegal, Sudan, Gambia, Guinea Bissau, Mauritania and Algeria.

The Islamic Development Bank is authorized to accept deposits. It mobilizes these deposits into Shari’a compatible transactions. It is also charged with the responsibility of assisting in the promotion of foreign trade, especially in capital goods, among member countries. Furthermore, it provides technical assistance to member countries by way of extending training facilities for personnel engaged in development activities in Muslim countries to conform to the requirements of Shari’a laws and jurisprudence.

The avowed purpose of the Bank is to foster the economic development and social progress of member countries and Muslim communities in non-member countries in accordance with Shari’a laws and jurisprudence

The official functions of the Islamic Development Bank include participation in equity and venture capital. It also provides loans for productive projects and enterprises. It provides financial assistance to member countries in other forms for economic and social development. The Bank is also required to establish and operate special funds for specific purposes including a fund for assistance to Muslim communities in non-member countries.

As president of a multi-lateral banking institution, Ahmad Muhammad Ali is well abreast of developments in other nations, especially in those countries that are seeking for membership in the bank. Along this pursuit, Ahmad Muhammad Ali led the so-called Tashkent Conference in the Republic of Uzbekistan on September 2003. The Conference was held following the Independence of this new Republic. Dr. Ali noted and stressed in that Conference that for the years of Independence of Uzbekistan, it has achieved acceptable successes in all branches of economy. “We are glad to see the success of Uzbekistan in the sphere of industrial development”, he said “Any development of a country serves the improvement of people’s welfare in the end”, - he added.

Addressing a group of journalist in the Tashkent Conference, Ahmad said “Our bank is working mainly for the realization of concrete projects. When together with Uzbekistan’s partners we determine these or those sphere of cooperation, the Islamic Development Bank will allot the necessary sum for the projects realization. Priority direction of our cooperation will be such spheres as transport communications, the small and medium size business. We are going to take an active part in the construction of the railway, connecting Uzbekistan with Iranian ports”.

On that year, the Republic of Uzbekistan became the 55^th member of the Islamic Development Bank. The present membership of the Bank consists of 56 countries. It is required that the prospective member country should be a member of the Organization of the Islamic Conference. Every member is also required to pay its contribution to the capital of the Bank and be willing to accept such terms and conditions as may be decided upon by the bank.

Ahmad Ali and the Islamic Development Bank respond to disasters and natural calamities. Last October 8, 2005, the world has witnessed a devastating earthquake in Pakistan. On October 24, 2005, Ahmad Ali was in Karachi, Pakistan, a member country. While in Pakistan, the IDB president, along with the Organization of Islamic Conference Secretary General Ekmeleddin Ihsanoglu, met President Pervez Musharraf where the Pakistani president called for setting up a permanent disaster relief fund at the OIC level to deal with natural disasters such as the October 8 earthquake. As president of the Islamic Development Bank Ahmad Muhammad Ali has responded by saying that the bank will give $256 million for the rehabilitation of the earthquake-hit areas of Pakistan. The IDB president said part of the money would be a loan and part of the money would be a grant.

On the next visit of Ahmad Muhammad Ali in Pakistan early this year, the grant and the loan for the rehabilitation of damages caused by the earthquake were raised to $ 500 million as requested by the government of Pakistan. During the visit of Ahmad Ali, the Prime Minister thanked the IDB President for the support and assistance provided by the Islamic Development Bank for the reconstruction and rehabilitation of earthquake affected areas.

Pakistan has been the primary mover and promoter of a genuine and complete banking and insurance system. This is perhaps the reason why the IDB president appreciated the reforms agenda of the government and said that “Pakistan has a special place in the Muslim world and it is playing an important role in strengthening the Muslim Ummah (world community of Muslims).

This year the Prime Minister of Pakistan Shaukat Aziz asks IDB to take part in consortium formed to finance the construction of water reservoirs in Pakistan. The Minister and Ahmad Ali met last May, 11, 2006 during a ceremony of Pakistan Development Forum 2006, at the Convention Center.

Talking to the President of IDB, Dr. Ahmad Muhammad Ali, the Prime Minister appreciated support provided by IDB to Pakistan in its development process saying that IDB has consistently played a vital role in Pakistan’s economic development which is deeply appreciated all across the country. "IDB is our development partner and Pakistan values and welcomes the advice given by the bank", said the Prime Minister.

The Prime Minister also acknowledged the role played by the Islamic Development Bank in the development of Muslim countries. He said the Ummah can take justifiable pride that the IDB has evolved into an internationally recognized and reputable institution under the inspiring and highly competent leadership of Dr. Ahmad Muhammad Ali.

Dr. Ahmad Muhammad Ali assured the Prime Minister of the Bank’s support in the construction of water reservoirs. Furthermore, “the IDB, he said, “is also considering financing projects in railways and energy sector in Pakistan.”

The able leadership of Dr. Ahmad Muhammad Ali as president of the Islamic Development Bank has been very reassuring not only to member countries but to the entire Muslim communities around the Muslim world. Presently, Dr. Ahmad Muhammad Ali, a banker par excellence, is still president of the Islamic Development Bank.

“Ahmad Muhammad Ali, banker par excellence”, by Abdel Aziz Dimapunong is part of a larger book entitled “The world of Islamic banking” by this same author. Mr. Dimapunong is chancellor of the Islamic Banking Research Institute. He is also founding chairman of the Amanah Islamic Bank of the Philippines. The site, www.dimapunong.blogspot.com includes research papers that Abdel Aziz Dimapunong has written in the field of Islamic banking, finance, and investments during his career. Dimapunong is currently working as an independent Consultant/Trainer on Islamic banking, finance, Zakah, Awqaf, Islamic Inheritance,, and other aspects of Islamic transactions. Dimapunong may be contacted by email at abdeldimapunong@yahoo.com.ph. October, 2006. All rights reserved.

Muhammad Faisal, banker par excellence

By: Abdel Aziz Dimapunong
Chancellor, Islamic Banking Research Institute
Founding Chairman, Amanah Islamic Bank

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His Highness, Prince Muhammad Faisal Bin Al Saud (photo above) of the Faisal Group of banks is truly an Islamic banker par excellence. This is the finding of the Islamic Banking Research Institute in its search for personalities who could have been the founding fathers of Islamic banking. The other excellencies in banking are His Excellency, Sheikh Saleh Abdullah Kamel of the Al Baraka Group, and His Excellency, Dr. Ahmad Muhammad Ali, President, Islamic Development Bank.

We shall stand corrected if there is any other founder that we might have missed. We are of the opinion that to be dubbed as among the founders of Islamic banking, the banker should have been involved in the developmental stage of Islamic banking in the 1970s. And it should not be later than December 31, 1979. This is because by the onset of the 1980s, Islamic banking had already taken roots, and some Islamic banks and financial institutions were already stable.

This issue is focused on His Highness, Prince Muhammad Al Faisal Al Saud, son of the late King Saud. Writing about His Highness has been made easy by recent developments in the world of Islamic banking and finance. During the recent 31st Annual Meeting of the Board of Governors of the Islamic Development Bank in the state of Kuwait last May 31, 2006, a ceremony was held to award the IDB Prize in Islamic Banking and Islamic Financial Services for 2005. The recipient of the award was Prince Muhammad Al Faisal Al Saud. It was received for His Highness’ by Mr. Muhammad Abdul Rahman. The Prize was awarded to His Highness in appreciation for his distinctive efforts in the field of developing the concept and business of Islamic financial services.

The recognition of Prince Muhammad Faisal Al Saud by the Islamic Banking Research Institute is reckoned basically by his pioneering effort in the establishment of Islamic banking in the 1970s. That refers to the establishment of Faisal Islamic Bank of Sudan and the Faisal Islamic Bank of Egypt. On the other hand, the prize awarded him by the Islamic Development Bank was specific recognition for his involvement in Islamic Banking and Islamic Financial Services for year 2005. It was also a specific recognition for his role in having firmly established the first Islamic financial institution, namely Dar Al Mal Al Islami.

In the world of global Islamic banking, there is no mistaken that the name “Faisal” refers to His Highness, Prince Muhammad Faisal Al Saud. Furthermore, in this global industry, the name “Faisal” has come closely to the meaning of Islamic financial institution.

After three decades of developments, Islamic banking evolved from one with transparency in ownership into one with fortified layers of stockholdings that provides shields of protection to shareholders. Simply stated, the owner of a bank no longer has to be the chairman. He does not have to be a member of the board. He does not have to be visible. This is partly a result of changing environment in the new millennium. Therefore, in our write up we do not go further into piercing the veil of corporate existence. We are not engaged in accounting and auditing.

Faisal today in Switzerland. What used to be known as Faisal Finance (Switzerland) SA is now known as Faisal Private Bank (Switzerland) SA. This is according to a Press Release of the Faisal Private Bank (Switzerland) SA, dated October 3, 2006. This was made official by a decision of the Swiss Federal Banking Commission that awarded a full banking license to Faisal Finance (Switzerland) and renamed it as Faisal Private Bank (Switzerland) SA, making it the first Islamic private bank in Switzerland.

Faisal Finance (Switzerland) SA used to be a securities dealer duly licensed, regulated and supervised by Swiss authorities. .

According to the press release, the principal shareholder of Faisal Private Bank Switzerland is the Bahrain-based Ithmaar Bank, which is regulated by the Central Bank of Bahrain. It further says that Ithmaar Bank recently launched its public offering on the Bahrain stock exchange last February 2006. As a result, US$360,000,000 worth of shares was issued as fully paid-up capital of Ithmaar Bank. This bank is the former Faysal Investment Bank of Bahrain, a provider and manager of Sharia compliant investment products in the Middle East. Ithmaar acquired 79.6% ownership in Faisal Finance (Switzerland) S.A.

The recent launching of Faisal Private Bank Switzerland is a recent landmark development. It does not belong to the organizational history of Islamic banking and finance. The ownership of the original Faisal Finance has changed. However, the press release claimed that Faisal Private Bank Switzerland is part of the Group which pioneered the Islamic banking and finance industry. According to Marco Rochat, Chief Executive Officer of Faisal Private Bank (Switzerland) SA, Faisal Private Bank Switzerland is “the synthesis of over 15 years of experience in the Swiss private banking arena with a distinctive ethical heritage”. This, he said, “will enable us to continue delivering an innovative platform for an international clientele which trusts our private bankers because they are also accountable for their values.”

Faisal Private Bank Switzerland is being managed by a management team that includes renowned names as PricewaterhouseCoopers, KPMG, DMI, Leman Capital and SGS. The team is headed by Khalid Abdullah Janahi as chairman of the Board. He has expressed his confidence in the success of the Faisal Private Bank which he said will be guided by the principles of the Sharia

Faisal’s Dar Al Mal AI lslami Trust. – The Faisal group has long been based in Geneva. In 1981, Prince Faisal organized Dar Al Mal Islami Trust with $1 billion authorized capital and administered from Geneva. Soon, this amount rose to a $3.5 billion Trust. Prince Faisal had established the Dar Al Mal Al Islami in Geneva as a financial services conglomerate. The objective of Prince Faisal was to foster the spread of Islamic banking across the Muslim world. With its precious metal as part of its business, it made a net profit of $7.9 million in 1982. The operations of Dar Al Mal Islami cover the Bahamas, Bahrain, Guinea, the Isle of Jersey, Luxembourg, Niger, Senegal, Sudan, Switzerland, the United Arab Emirates, and the United Kingdom. The office of Dar Al Mal Islami in Bahrain handles investment in the Gulf area. Its office in the Bahamas handles international operations. By March 1984 the Faisal group had almost $400 million investments.

Faisal in Sudan - Sudan In 1974 encouraged foreign capital investment. Foreign banks were urged to establish joint ventures in association with Sudanese capital. Banking transactions with foreign companies operating in Sudan were facilitated so long as they follow the rulings of the Bank of Sudan. The monetary consideration played a big role. Investors were required to transfer a minimum of £Sd3 million into Sudan. Several foreign banks took advantage of this open door policy, most notably the Faisal Islamic Bank. The principal investor of this bank was the Saudi prince, Muhammad Faisal Al Saud.

Consequently the Faisal Islamic Bank of Sudan was officially established in 1974 pursuant to the Faisal Islamic Bank Act. Some members of the Muslim Brotherhood in Sudan and its political arm, the National Islamic Front played a prominent role on the board of directors of the Faisal Islamic Bank of Sudan. This strengthened the bank’s position in Sudan.

The Faisal Islamic Bank of Sudan enjoyed privileges denied other commercial banks. This includes full tax exemption on assets, profits, wages, and pensions. The investors were also guaranteed against sequestration and nationalization. Moreover, these privileges came under government’s protection from 1983 onward as it begun applying the Islamic doctrines to the Sudanese way of Islamic banking. The appeal of Islamic banking in Sudan coupled with government support and patronage enabled the Islamic banks to acquire about 20 percent of Sudanese deposits. Politically, the popularity and wealth of Islamic Banks have provided a financial basis for funding Islamic policies of the Sudanese government.

By September 1984, there were seven Islamic banks in Sudan that are based on the principles of Islamic banking. Paramount of these was the Faisal Islamic Bank of Sudan.

Faisal in Egypt. In the 1970s. Prince Muhammad Faisal Al Saud had been so busy establishing Islamic banks and financial institutions around the world. I had mentioned in my previous articles about these banks. The pioneers include the Faisal Islamic Bank of Egypt which is now performing very well. This bank now has over half a million investment accounts and its total assets amount to more than 2 billion U.S dollars. It had consistently updated itself particularly in terms of capitalization. It has now an authorized capital stock of US$ 500 million of which US$132 million worth of equity has been subscribed and fully paid up.

Boosting its resources, the Faisal Islamic Bank of Egypt has also built up alliances with several banks like the Commercial International Bank of Egypt. This is a financial institution that is engaged in wholesale banking and financial brokerage. The bank's personal banking services include cash management, direct services, credit and automated teller machine cards, electronic banking and issue management. Its institutional banking services provide corporate, investment, correspondent banking, treasury services and special finance programs, brokerage services cover equities trading, global depository receipt trading, technical analysis and other related services. Also, through its Commercial International Life Insurance Company, the bank offers life insurance products and services.

The Faisal Islamic Bank of Egypt is also in alliance with the National Societe Generale Bank, MISR International Bank, Egyptian American Bank, Housing & Development Bank, Delta International Bank, El Watany Bank of Egypt, Egyptian Gulf Bank, and Piraeus Bank Egypt.

Faisal in the Bahamas. From the Middle East, Prince Muhammad Faisal, crossed the Pacific Ocean, and established firmly the first Islamic financial Institution in the Bahamas. It is known as Dar Al Mal Al Islami. This house of Islamic funds in the Bahamas performed not only Islamic banking but Islamic Da’wah as well. Many employees of this bank, natives of the Bahamas Island, became Muslims as a result of their association with Prince Faisal and their employment in Dar Al Mal Al Islami. I happen to have met some of them some years ago.

Faisal across the Muslim world. In the 1970s, the name Faisal has become a trademark in the area of Islamic banking. This name is borne by Masraf Faisal Al Islami Bahrain, Masraf Faisal Al Islami Niger, Masraf, Faisal de Guinea, Masraf Faisal de Senegal, and the Faisal Finance Institution Istanbul. By 1983, Prince Faisal played a major role in the establishment of more Islamic investment and -insurance companies including the Faisal Islamic Bank in Bahrain, the Kibris Islamic Bank in Cyprus, the Islamic Bank in Vienna, Austria, and other banks in Senegal, Niger, and the Bahamas.

With the establishment of these Islamic banks and financial institutions around the world, from Egypt to Geneva and the Bahamas, there is no doubt Prince Muhammad Faisal bin Al Saud is among the founders of Islamic banking.

In a broader since, Prince Muhammad Faisal also deserves the award of being the Father of Islamic Economics in modern society.

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This article: “Prince Muhammad Faisal, banker par excellence” is part of a larger book entitled: “The World of Islamic Bankers” by Abdel Aziz Dimapunong, Chancellor, Islamic Banking Research Institute and founding chairman of Amanah Islamic Bank of the Philippines. 2006. All rights reserved.

Saleh Abdullah Kamel, banker par excellence

By Abdel Aziz Dimapunong
Chancellor, Islamic Banking Research Institute

The Islamic Banking Research Institute of the Philippines has been on the search for personalities who might have been the founding fathers of Islamic banking that now spans around the globe. Undeniably the name of His Highness Prince Muhammad Al Faisal Al Saud comes to mind. For one he is the founder of the Dar Al Mal Al Islami (House of Islamic Funds). There is also no question about H. E. Sheikh Saleh Abdullah Kamel as being one of the founders. One cannot escape the fact about H.E. Dr Ahmed Mohamed All, President of the Islamic Development Bank, the bank of the Organization of Islamic Conference. Here we are talking about the big leaguers in global banking. It is difficult to find words to describe their ranking in this arena. We just have to settle for the term Bankers Par Excellence. It is awesome to find their achievements in banking and business. They are empire corporate builders.

Sheikh Saleh Abdullah Kamel, banker par excellence.

In this issue we focus our concern on H.E. Sheikh Saleh Abdullah Kamel, banker par excellence. He has been one of the better known philanthropists and bankers in the Kingdom of Saudi Arabia.

Born in Mecca in 1941, Sheikh Kamil owes his success to his extensive preparation and the hard work he has put through the years in a variety of jobs and business pursuits.

After finishing his bachelor’s degree in Commerce, he started as an advisor in the Ministry of Finance. Fired by his enthusiasm to participate in the development process of the Kingdom of Saudi Arabia in another capacity, Sheikh Saleh Kamil went to business in a variety of ways.

Sheikh Saleh plays an important role in the everyday life of Saudi citizens. A prominent figure in the economic and political affairs of his country, his chain of business interests have links across Europe and span the Atlantic oceans to the United States and goes still farther to the Bahamas.

In the Kingdom, Sheikh Kamil’s name is a household word. Outside of the Kingdom, some of his company nameplates are also household words. In my small hometown in Muslim Mindanao, far away from the Kingdom of Saudi Arabia, the names of Dallah AVCO and SAPTCO ring a bell to workers from Saudi Arabia.

Saleh Abdullah Kamel is well known in the banking industry. But aside from being a banker and investment guru, he has also been in various business endeavors. The product lines and services of his various companies affect almost every citizen in the Kingdom. These are in airport maintenance contracts, pre-fab house construction, publishing and printing concerns, marketing, air-conditioning, hotel operations and a host of other establishments.

In Egypt, he was substantially involved in tourism, public information, investments houses and banking. He was a co-founder of the Faisal Islamic Bank of Egypt. This is the bank that could have been the first Islamic bank. Sheikh Saleh Kamel founded the Faisal Islamic Bank of Egypt together with another banker par excellence by the name of His Highness, Prince Muhammad Faisal bin Al Saud.

Faisal Islamic Bank of Egypt may have been the first Islamic Bank. The bank was conceptualized at the beginning of the 1970s although it actually started operations on May 7, 1979. It was His Royal Highness Prince Muhammad Al-Faisal Al-Saud who submitted the idea of Islamic banking before a number of Egyptian businessmen. The idea was welcomed and the Bank was incorporated under Law No. 48 of 1977. Faisal Islamic Bank was updated under law no. (42) of 1981 and under law (97) of 1996. During these years its authorized capital had been raised to 500 million dollars of which 132 million dollars had been subscribed, issued and fully paid up capital. The Egyptian nationals hold 44% of the equity capital while the rest are being held by foreign stockholdings. Faisal Islamic Bank of Egypt now manages over half a million investment accounts, and its total assets amount to more than 2 billion U.S dollars.

In the Sudan and Jordan, Saleh Kamel was also active in Islamic banking institutions, investment and financing firms. He was a founding member of the Faisal Islamic Bank of Sudan.

Sheikh Kamel has been involved in vital trading, financing, and other concerns in Greece, USA, the Bahamas and other countries.

One of the greatest Muslim philanthropists, Sheikh Kamel was a leading associate of the Islamic Solidarity Fund Board and the Organization of Islamic Conference of Foreign Ministers.

His involvement in so many industries and or establishments indicates his deep commitment to the development of the Kingdom of Saudi Arabia and the prosperity of Muslim countries. He has been president of the Dallah Establishment; partner and president of the Dallah AVCO Trans Arabia; owner of Dallah International; chairman of Dallah International Holding Co. Inc. Sheikh Kamel has been chairman of the following companies: Dallah Industries Company, Textile and Ready Made Garment Company, Saudi Irish Dairy Company, Arab Media Company, Saudi Pre-Fab and Precast Co. (SAPRECO), Fast Contracting Company, Dallah –LIL-Mavani Company, The Concrete Company, AMARTECH, The Saudi Air-conditioning Company, The Islamic Arab Insurance Company, Okaz Distribution Company, Food International Company.

Saleh Kamel was also Executive member of the Board of the Saudi Public Transport Co. (SAPTCO),

He was also founding chairman of the Jordanian Islam Bank for Finance and Investments.

He was either founder member or founding chairman of the following companies: Tihama Company for Advertisement, Public Relations, and Marketing Studies, Dar Okaz for Printing and Publishing, Okaz Establishment for Press and Publishing, Okaz Libraries and Company, The Saudi Hotel and Resort Areas Company, The Yemeni Kuwaiti Real Estate Development Co., Sana’a, The Arab Hotels Company, Sana’a, Shobel, Switzerland and England, Arab Investment Company of Egypt, Arab Union Investment Company of Egypt. Eastern Company for Production and Distribution, Sharja.


In the 1990s, Sheikh Kamel was still as active as the beginning of Islamic banking in the 1970s. He was founding chairman of the Al Tawfeek Company for Investment Funds Ltd. This company was incorporated in 1992 with the objective of providing medium and long term finance for emerging companies, investment and infrastructure development projects. It is among the pioneers in Sharia compliant investments.

Al Tawfeek Company for Investments participates in international and Arab based equity portfolios. It is active in financial syndication by acting as agent as well as underwriter. It has an authorized capital US $500 million of which US $304 million has already been paid up and outstanding. It has a record of having issued fund capital amounting to over US$ 1.5 Billion.

In summary, through its many subsidiaries, Saudi Arabia-based Dallah al Baraka Group provides banking, investment, insurance, and lending services to businesses located throughout the Muslim world. Its subsidiary Al Baraka Investment and Development has been an influential fund in Islamic finance for more than 20 years. It has a record of having managed assets exceeding $4.4 billion. All of these are to the credit of our banker par excellence, the Saudi billionaire, Saleh Abdullah Kamel and his family. The Al Baraka Group is the holding company for many businesses involved in trading operations, heavy industry, real estate, media, and finance in more than 40 countries.

As of year end 2004, the Dallah Al Baraka group employs 38,250. The chairman and president is still H.E. Saleh Abdullah Kamel, the banker par excellence.