Irish Minister Welcomes Islamic Finance to Ireland

Irish Minister welcomes Islamic

Finance to Ireland

Dr. Mozammel Haque

Dublin, Ireland: Islamic finance is welcome to Ireland, said the Irish Minister for Social Protection, Ms. Joan Burton, TD at the International Conference on Co-existence, Islamic Finance & Investment, organised by the Irish Business Executives Forum (IBEF), Dr. Sheikh Shaheed Satardien, President of the Muslim Council of Ireland (MCI) and International Islamic Forum for Dialogue (IIFD, held on 5-6 June, 2012, at Dunboyne Castle Hotel, Dublin, Ireland.

Irish Minister Ms. Joan Burton

Minister for Social Protection of the Republic of Ireland, Ms. Joan Burton, TD, said, “The government has laid the foundation in terms of succession law and regulations to provide for the legitimacy for the Islamic finance to be recognised in the context of the work being done in Ireland per se.”

She also mentioned, “We do have a lot of work to do to develop and to evolve in this country, particularly the countries on the periphery which have difficulties to overcome the difficulties.

“We have had a number of significance programme in relation to regulations of finance and regulation of Central Bank in relation to legislate to financial organisations and the organisations for banks and others who provide financial services,” the Minister Ms Burton mentioned.

Minister Ms Burton is hopeful that the additional regulations should be in future considerable additional assurance to tackle disasters and she also mentioned about “regulations which make provisions for Islamic Financial arrangements.”

Mr. Tom Woods

In 2011, Mr. Taoiseach, the Irish Prime Minister spoke of Government’s view of Islamic Finance as an area where there is significant potential for growth in Ireland, mentioned Mr. Tom Woods, Financial Services, Tax, KPMG Partner, Dublin, Ireland, in his presentation and added, “While the Funds industry in particular has been successful in developing and promoting Ireland as an attractive location for Islamic Funds there remains an opportunity for further growth and diversification particularly within the banking and securitisation markets. Islamic Finance is one of the major growth areas in international finance and the Government has indicated its commitment to playing its role to support the development of this sector in Ireland.”

Speaking about the Islamic Finance developments in Ireland, Mr. Woods mentioned, in 2008, Financial Regulator established a team specialising in Sharia compliant funds in order to expedite approval process. In 2009, Woods mentioned, Irish Tax Authorities issued briefing confirming that Sharia compliant funds, Ijarah transactions and Takaful arrangements were to be taxed on the same basis as that applicable to the comparable conventional financial products.

In 2010, Woods mentioned Irish Tax Legislation was amended to tax Islamic Banking Products and Sukuk issuances on the same basis as their conventional equivalents. This includes Murabaha, Diminishing Musharaka and Wakala arrangements.. Broadly, the return under such arrangements is treated for tax purposes in the same way as interest is. A person elects into the tax regime.

Mr.Woods also said, dedicated team was established to expedite a sharia compliant fund applications; sharia compliant funds and leasing operations established in Ireland. He also mentioned, increasing interest in using Ireland as onshore location for Sukuk issuances; increasing interest in investing in aviation assets and renewable energy projects.

Referring to opportunities, Mr. Woods said, % tax rate for qualifying funds; withholding tax exemptions on lease rentals, interests and dividends; 12.5% corporation tax rate – secure (lowest amongst OECD member countries).

Dr. Sheikh Shaheed Satardien

Earlier, in his inaugural speech, Dr. Satardien, President of the Muslim Council of Ireland and the Executive Chairman of the Irish Business Executives Forum (IBEF) said, “The founder of Islam had huge experience of commerce prior to his revelations from God. The Holy Qur’an states that interest must not charged in lending money. That is the most fundamental aspect of Islamic Finance. From an Islamic point of view an increase in capital without any services provided or risk incurred is forbidden.”

Speaking about how big is Islamic Finance, Dr. Satardien mentioned, “According to Standard & Poor’s Rating Service Islamic finance assets reached at least $400 billion during 2009 with a potential market of $4 trillion. According to Forbes in 2008, there are at least $500 billion in assets being managed according to Islamic principles and that the market is growing at more than 10% per year. Although it may be much smaller than the non-Islamic financial industry, these figures are very significant. Many of the biggest Islamic banks are in Iran, with Bank Melli having assets of over $45 billion. Saudi Arabia, Kuwait, Malaysia and the United Arab Emirates are also big movers in the Islamic finance world.”

In his speech, Dr. Satardien raised a number of questions. “Is it possible to pursue economic growth and still protect our natural and physical environments? How should governments try to raise the finance needed to pay for health and education services and income support programmes? What is the proper role for government in the economy? Would we be better off with much lower taxes but also poorer social services than we presently enjoy?”

Dr. Satardien mentioned, “The current practices in this market, in banking, in investing etc, are not sustainable. They are not sustainable for many reasons, including moral ones, but the sheer boiling anger of the global taxpayer when the full impact of the theft of the State coffers becomes apparent, will be the final sustainable nail in its coffin.”

Naturally, the question is what sort of money market practices can replace the current model? Dr. Satardien said, “Islamic investments, to be fully compliant with our religion, must not be interest based, but must rely on profits for services rendered, for risk-sharing, for profit sharing itself. Islamic Finance should be Islamic in its true sense and not only compliant with certain aspects of Islam. If we do window-dressing with it and not make it Islamic in its essence it will inevitably, like conventional finance, also fail.”

Frank Kaufmann

Frank Kaufmann made a comparison between Islamic banking and Western system of Banking. He said, “The dominant factor that differentiates sharia law from our own Western laws (aside from obvious religiosity) is that of usury. While Christians and Jews did away with this belief long ago, the Qur’an “forbids the charging of interest in exchange for a loan, or ‘riba’” (2). The reason for this, according to the Qur’an, is “because it harms the humane aims of Islam towards mercy, solidarity and cooperation” (3). This is a founding principle that has shaped Islamic banking.

Mr. Kaufmann continued, “Islamic banking itself has the essential belief that money should be used productively and investment activities should be dealt with in partnerships so that risks and rewards are shared by creditor and debtor alike. Also, according to sharia, excess capital (i.e. profits) ought to be put back into the community in the form of zakat (alms). But for all intents and purposes it includes stocks, real estate investments, insurances, and currency swaps that are sharia-compliant (called sukuks). There are limits, though; “sharia law prohibits investing in certain industries or products, including alcohol, tobacco, pork, and pornography” (4). Another popular instrument is the murabaha, "essentially cost-plus financing which involves the sale and repurchase of a commodity to fund a loan” (5).”

Professor Dr. Hamid Ahmad Al-Refaie

Professor Dr. Hamid Ahmad Al-Refaie, President of International Islamic Forum for Dialogue (IIFD) presented a paper on Safe Economy. He spoke about i) The Zakat system; the philosophy of the Zakat system. He said, Zakat is not just alms or benefaction from rich people, it is not just official taxes. Zakat is the divine right which should be pay yearly to the needy from the net income of rich people. Zakat is Islamic philosophy for encouraging of circulating and alternation of money among people in the societies.

Dr. Refaie said, strong economy based on a strong production; and strong consumption. So any defect in this equation certainly will destroy the economy in any country. The crisis which is facing the world societies today is because of the big defect between number consumers and producers. There are only a few producers in front of a big number of powerless consumers; because they do not have purchasing power. Certainly such case is destroyer economic situation.

“Big numbers of incapable consumers surely lead to stagnancy in producing; the thing which will lead to more of joblessness and to more complication in the world economic crisis,” said Dr. Refaie and added, “What is the solution..? Islam legislated the Zakat System to resolve such crisis. Zakat is human economic system aims to give chance to the jobless and needy to start their life as producers and active persons in their societies. But how..?”

He maintained, “By offering money to the jobless and needy to enable them to become producers in the societies and to become positive consumers. Such this doing makes money go into process of circulation among the needy and wealthy in the societies. Such a process of the money's circulation in society certainly will end the case of economic stagnancy and refresh the economic development.”

Dr. Joseph Coughlan

Dr. Joseph Coughlan, Head of School of Accounting & Finance, College of Business Dublin Institute of Technology, gave an Irish perspective of Islamic Finance. He mentioned about Importance of the Islamic Finance market internationally and nationally and Widespread take-up of the instruments because of their specific characteristics

At the same time, he mentioned a lack of knowledge in Ireland and internationally on the key principles. He mentioned what he is doing through the Dublin Institute of Technology. He mentioned the programme of the DIT: teaching Islamic Culture and Organisation; Islamic Economics; Fundamentals of Islamic Finance; Islamic Financial Economics; Risk Management in Islamic Finance; European & Irish Perspectives and Accounting for Islamic Finance Instruments.

He also mentioned about the Award granted by the DIT, such as i) Continuing Professional Development (CPD) Postgraduate Diploma in Financial Services (Islamic Finance); At Level 9 (Masters level) on the National Qualifications Framework and Opportunity to convert to full postgraduate diploma/MSc in time.

Dr. Mozammel Haque

Dr. Mozammel Haque talked about some basic things such as the concept of Islamic Finance, its fundamental principles and its growth world wide and the UK experience. While tracing the growth of Islamic finance in Europe, Dr. Haque mentioned the historical developments of Islamic Finance in the United Kingdom and pointed out some of the milestones of the development of Islamic Finance in the UK:

Dr. Haque also mentioned the role education & training institutions are playing in imparting Islamic Finance and awarding University degrees in Islamic Finance. In this connection, he mentioned, Markfield Institute of Higher Education, Islamic Foundation, Leicester; Cas Business School, City University, London; Bangor Business School, Bangor University, Wales; Henley Business School, Reading University, England and SGIA and DBS, Durham University, England.

Dr. Haque also mentioned the Organizations offering qualifications & training in Islamic Finance; such as Associations of International Accountants (AIA); Chartered Institute of Management and Accountants (CIMA); Securities and Investment Institute (SII) (Islamic Finance Qualification); Institute of Islamic Banking and Insurance (IIBI).

Dr. Haque also mentioned about the Muslim Organizations which are engaged in Islamic Finance, such as The Islamic Foundations, Leicester; Muslim Council of Britain (MCB) and The Islamic Finance Council.

There are two Chairs in Islamic Finance in the United Kingdom, Sharjah Chair in Islamic Law and Finance, Durham University and there would be Chair in Aston University , Birmingham.

Jamal Harwood

Mr. Jamal Harwood in his presentation advocated for the gold standard: which is the future for a stable global currency and he mentioned the Islamic solutions to the present economic crisis. He said, businesses invest based on equity finance that encourages risk sharing and rewards profits; taxation is designated and defined so the government cannot increase and create new taxes. There are no income tax so work is incentivised and disposal income is higher boosting spending. There are no expenditure taxes which lowers prices and increases affordability.” This is the Islamic Economic Solutions-2.

According to Mr. Harwood, the Islamic Economic Solutions -3 are: Taxes are on wealth so the poor don’t pay. There is active redistribution of income via paying Zakat (wealth tax) so the poor and needy are lifted out of poverty. There is active and fast circulation of money through the prohibition of hoarding gold and silver, no interest and a wealth tax of 2.5% which encourages equity finance. The state is prohibited from fixing prices of goods and services or wages allowing prices and wages to fall as well as rise and thereby stimulating the economy even when overall demand is low. There are restrictions on derivatives trading and other harmful business activities.”

AbdulKader Alaoui

Abdul Kader talked about European stock markets vis-à-vis Islamic stock markets. In the light of the recent financial crisis, he said, relatively, the Islamic stock markets were less impacted by the crisis; and that presents an opportunity for those markets to attract international investments that are concerned with international portfolio diversification.

“However, this also presents a challenge for the Islamic stock markets to improve their investment climate through effective financial regulation and prudential actions according to Islamic perspectives in order to attract more Muslims investors or more Islamic international funds,” said Alaoui.



Co-existence, Islamic Finance & Investment Conference in Dublin

Two-day International Conference on

Islamic Finance & Investment in Dublin

Dr. Mozammel Haque

Dublin, Ireland: Ireland is positioning itself as an European hub for Islamic finance; infrastructure in place; greater efficiencies – cost and time; open dialogue between industry and government, said Mr. Tom Woods, Financial Services, Tax, KPMG Partner, Dublin, Ireland, at the Two-day International Conference on Islamic Finance & Investment, organised by the Irish Business Executives Forum (IBEF), Dr. Sheikh Shaheed Satardien, President of the Muslim Council of Ireland (MCI) and International Islamic Forum for Dialogue (IIFD, held on 5-6 June, 2012, at Dunboyne Castle Hotel, Dublin, Ireland.

Dr. Sheikh Shaheed Satardien

In his inaugural speech, Dr. Sheikh Shaheed Satardien, President of the Muslim Council of Ireland and the Executive Chairman of the Irish Business Executives Forum (IBEF) said, “Prophet Muhammad (peace be upon him) married a prominent businesswoman, Khadeejah, when he was 25 and she was 40 and a widow. Prophet Muhammad (pbuh) did not begin to receive revelations from God until he was 40, so he had been a merchant for nearly 30 years before being given his divine mission. He did not begin preaching Islam until he was 43 which he continued until his death at the age of 63. Thus the Prophet was a merchant for a longer period than he was a religious leader.”

“So the founder of Islam had huge experience of commerce prior to his revelations from God. The message he received from God on the subject of economics was thus readily understood by him. The Holy Qur’an states that interest must not charged in lending money. That is the most fundamental aspect of Islamic Finance. From an Islamic point of view an increase in capital without any services provided or risk incurred is forbidden. You may ask, if a bank or other lender, cannot charge interest how can it make a return on its money?” Dr. Satardien said.

Speaking about how big is Islamic Finance, Dr. Satardien mentioned, “According to Standard & Poor’s Rating Service Islamic finance assets reached at least $400 billion during 2009 with a potential market of $4 trillion. According to Forbes in 2008, there are at least $500 billion in assets being managed according to Islamic principles and that the market is growing at more than 10% per year. Although it may be much smaller than the non-Islamic financial industry, these figures are very significant. Many of the biggest Islamic banks are in Iran, with Bank Melli having assets of over $45 billion. Saudi Arabia, Kuwait, Malaysia and the United Arab Emirates are also big movers in the Islamic finance world.”

In his inaugural speech, Dr. Satardien raised a number of questions. He said, “Many of the problems which dominate our lives are economic problems. Why are some countries poor with very low growth rates while a small number of countries enjoy high living standards and high growth rates? What is the role of international trade, and the movement of capital from one country to another, in explaining these global inequalities? Why are some countries so much more successful at creating employment or reducing unemployment than other countries?”

“Within countries, why do some people earn so much more than others, and what are the best ways to tackle and reduce poverty? Is it possible to pursue economic growth and still protect our natural and physical environments? How should governments try to raise the finance needed to pay for health and education services and income support programmes? What is the proper role for government in the economy? Would we be better off with much lower taxes but also poorer social services than we presently enjoy? Dr. Satardien asked all these questions.

Mr. Eunan King

Mr. Eunan King, Director of King Research Ltd, Dublin, spoke on the Irish Crisis is now a Euro Crisis. He talked about the origin of crisis. He has given a picture of the economic boom in Ireland in the 1990s before Euro entry. He said Ireland was growing rapidly prior to Euro entry; low Euro interest rates, strong underlying demand for housing from demographic factors. So this credit boom was driven by low interest rates, rapid growth in household formation and inappropriate tax incentives. So there was credit boom. Strong growth boosted tax revenue. He said public finances appeared very robust as tax revenues surged; Government increased public sector pay and social welfare benefits substantially in and the Government still ran a budget surplus.

Then Mr. King said about boom to bust. How it happened? He mentioned that the bust was sparked by the international credit crunch; the degree of overheating in the domestic property market and the taxes fell sharply and the expenditure (pay/social welfare bills) remained very high. Mr. King also mentioned what happened to Mortgage lending and stamp duty. He said growth in credit fuelled property price inflation and property transaction volumes and taxes related to property sales (stamp duty) ballooned. So Mr. King said, both credit and tax revenue imploded when the bust came.

Speaking about Government debt level and %GDP, Mr. King mentioned large deficits and the socialisation of Bank debt led to a rapid increase in Government debt. The Bank debt assumed by the Government equates to nearly 30% of GDP.

But Mr. King said the case of Ireland is different from all other EU countries; because he mentioned there are large numbers of persons of working age; persons aged over 65 per 100 of working age. He said the IMF/EU provided a Euro 85bn Bailout Fund in 2010 mainly because of emerging banking crisis. The detailed “Blackrock” analysis of Banks’ Capital Requirements in 2011 reinforced the visibility of the bad loan position.

Mr. King said the measures taken to date to solve the Euro Crisis have been piecemeal. Fiscal issues, debt levels and Support for Banking Systems have to be addressed. He also said that a support mechanism for Bank is needed. The EU needs to set up a mechanism to fund Banks directly. The Irish model, in which the Government took on Bank debt, would be a disaster for the EU.

However, he summarises his presentation and concluded by saying, Ireland has managed to survive a major financial crisis. It has still significant hurdles to overcome. It will stay in the Euro: (Referendum “Yes” Vote). The Euro has to survive because the world financial system will be in peril if it breaks up, he said.

 Mr. TomWoods

Under this situation, what the Islamic Finance can do? The next speaker, Mr. Tom Woods, Financial Services, Tax, KPMG Partner, Dublin, Ireland, spoke on the opportunities for Islamic Finance.

He gave a brief overview of Islamic Finance in Ireland. He said, Ireland has a well-developed, highly regarded and vibrant international financial centre (IFSC) and it has aviation, Funds, Securitisation and established gateway to European market.

Mr. Woods mentioned about the positive factors which Ireland has such as, Ireland is a founding member of Euro zone, English-speaking; young, dynamic and well-educated workforce; Single Financial Services Regulatory Authority is and Common law legal system.

He also mentioned, some other factors, such as transparent system, Time zone – East meets West, Lower cost base – significant competitiveness improvement. There is largest foreign direct investment in 2011 for over 10 years and it was voted 10th in the world for Ease of Doing Business, Mr. Woods mentioned.

Referring to opportunities, Mr. Woods said, 0% tax rate for qualifying funds; withholding tax exemptions on lease rentals, interests and dividends; 12.5% corporation tax rate – secure (lowest amongst OECD member countries).

He also mentioned about 66 tax treaties signed including UAE, Bahrain, Saudi Arabia, Malaysia, Egypt, Kuwait, India and Pakistan. There are lot of incentives for foreign employees. He said, 37.5% relief for R&D activities – extends to development in finance.

Speaking about the Islamic Finance developments in Ireland, Mr. Woods mentioned, in 2008, Financial Regulator established a team specialising in Sharia compliant funds in order to expedite approval process. In 2009, Woods mentioned, Irish Tax Authorities issued briefing confirming that Sharia compliant funds, Ijarah transactions and Takaful arrangements were to be taxed on the same basis as that applicable to the comparable conventional financial products.

In 2010, Woods mentioned Irish Tax Legislation was amended to tax Islamic Banking Products and Sukuk issuances on the same basis as their conventional equivalents. This includes Murabaha, Diminishing Musharaka and Wakala arrangements. Broadly, the return under such arrangements is treated for tax purposes in the same way as interest is. A person elects into the tax regime.

In 2011, Woods mentioned, Taoiseach, the Irish Prime Minister spoke of Government’s view of Islamic Finance as an area where there is significant potential for growth in Ireland. While the Funds industry in particular has been successful in developing and promoting Ireland as an attractive location for Islamic Funds there remains an opportunity for further growth and diversification particularly within the banking and securitisation markets. Islamic Finance is one of the major growth areas in international finance and the Government has indicated its commitment to playing its role to support the development of this sector in Ireland.

Speaking about the Islamic finance offering in Ireland, Mr. Woods mentioned, Double tax treaties with UAE, Bahrain, Saudi Arabia, Malaysia, Turkey, Pakistan, Egypt, Morocco and Kuwait. Treaty at concluding stages with Qatar; negotiations underway with Jordon, Libya and Tunisia; bilateral agreements entered into by Irish Regulator with UAE, Bahrain, Qatar and Dubai.

Mr.Woods also said dedicated team was established to expedite a sharia compliant fund applications; sharia compliant funds and leasing operations established in Ireland. He also mentioned, increasing interest in using Ireland as onshore location for Sukuk issuances; increasing interest in investing in aviation assets and renewable energy projects.

Woods also mentioned about the Islamic Chamber of Commerce/Irish Business Executives Forum.

Concluding his presentation, Mr. Woods observed, Ireland is positioning itself as an European hub for Islamic finance; infrastructure in place; greater efficiencies – cost and time; open dialogue between industry and government and proven truck record of delivering, he mentioned.

Earlier, Dr. Abdullah Omar Naseef, President of World Muslim Congress and Dr. Hamid al-Rifaie, spoke at the Conference opening day.

An interview with Dr. Naseef

I had the opportunity to interview Dr. Abdullah Omar Naseef, President of the World Muslim League, who came to Dublin from Saudi Arabia to attend and participate at the conference. He said, “There is no doubt Islamic Finance and Islamic economics in general has been very well developed to share the international finance arena through research and practical investment. All kinds of Islamic investments have become reality and it is now almost all big banks in the west are using it and because of the economic crisis in Europe, there are funds. In recent years, there is a big call that Islam can offer solution to the problem; can introduce still without calling it Islamic which will develop Western economy and try to overcome some of the difficulties they are facing.”

“And all these things are in my mind today because this is to bring better understanding and contacts and better connections between the Western Financial organisations and the Islamic world especially in Ireland because in Ireland Irish people are very much close to the Arabs and they want to develop and they have their own problems of economy. I think I am sure they will find solutions Islamic way of investment and finance, again without calling it Islamic. This is what has been talked today as Safe economy, which is very attending to the needs of the several societies and caring for the poor and so on,” Dr. Naseef said.

Dr. Naseef also recalled, “What I mentioned today that in 1978 or in 1979 there was an Islamic Economics Conference in Makkah about the Islamic Finance and the papers offered at that conference were very very great and very important and it shows now that it was very foresighted conference in Makkah.”

Dr. Mozammel Haque Receives an Award of Excellence at Dublin Conference

Dr. Mozammel Haque Receives Award of

Excellence at Dublin Conference 2012

Dublin, Ireland: Dr. Mozammel Haque, Media Advisor, Islamic Cultural Centre, London and former Editor of the Muslim World League Journal, Makkah, Saudi Arabia, received Award of Excellence at the Dublin Conference on Co-existence, Islamic Finance & Investment, on 6th of June 2012.

Mr. Paul McMohan, Director of the Irish Business Executives Forum (IBEF), Dublin and Dr. Sheikh Shaheed Satardien, President of the Muslim Council of Ireland, Dublin, presented the Award of Excellence to Dr. Mozammel Haque for outstanding services towards the upliftment of Islam & the promotion of Islamic finance.

Dr. Haque attended the Two-day International conference on Co-existence, Islamic Finance & Investment, organised by the Dublin-based Irish Business Executives Forum (IBEF) and the Jeddah-based International Islamic Forum for Dialogue (IIFD, held on 5-6 June, 2012, at Dunboyne Castle Hotel, Dublin, Ireland.

The conference was attended and participated by Banking professionals, academics, Shari’ah scholars, professionals, business executives, investors and practitioners of Islamic finance from all over the world, such as the United States of America, the UK, France, Canada, Saudi Arabia, Libya, Bermuda, etc.

The Conference aimed to create increased awareness among professionals and the wider community to establish a profound knowledge of proven strategies that can potentially change the future of conventional and Islamic banking industry in the country.

The Conference also aspired to assemble the brightest minds in the industry to aid organisations in setting trends and encourage innovation for the banking and investment sector to develop, thrive and connect to the global Islamic economy.

The events featured countless opportunities to network exchange of ideas and encourage dialogue on current issues to respond to the challenges facing the finance industry today.

Dr. Haque presented a paper on “Islamic Finance, the Role of Islamic Development Bank (IDB) and the UK experience at the conference. He spoke on the historical progress of Islamic Finance and Investment in the United Kingdom.

Mass Gatherings: Health, Hajj and Olympic Games

Mass Gatherings: Health

Hajj and the Olympic Games

Dr. Mozammel Haque

In July, the city and communities of London will welcome the world for the Olympic Games. With millions of additional visitors expected in the capital, the event will prove to be an immense logistical challenge for the organisers, public services and the people of London. From transportation to accommodation, health and hospitality, London’s infrastructure will be put to the test.

Mass gatherings and health hazard

Mass gathering have been defined as groups of greater than 1,000 people; however most of the public literature reflects much larger events (25,000). A more inclusive definition is large number of people attending an event that is focused at specific sites for a finite time.”

Dr. Ziad Memish, Professor of King Faisal University, Riyadh, classified Mass gathering into two types: spontaneous and planned which is again divided into Recurrent Events: Different locations (e.g., Olympic, World Cup) and same location (e.g., Hajj, Wimbledon). No doubt, a mass gathering poses unique challenges for maintaining public health.

Hajj, the annual Muslim pilgrimage involving well over two million people required to follow a schedule of movements from one location to another within prescribed times, is perhaps the closes logistical comparison to London’s summer event. Each year the authorities are tasked with the responsibility of moving, catering and looking after millions of pilgrims at the same time, at the same place. There have been success stories, and there have been tragedies.

Before going into the management of the mass gathering during Hajj, let us see first the situation when millions of people will be in London during the Olympics.

Facts & Figures of Olympics

2012 Summer Olympic Games will take place in London, England, the United Kingdom for seventeen days, from 27 July to 12 August, 2012 in which 12,000 athletes, 29 sports, 302 gold medals will participate.

London will become the first city to officially host the modern Olympic Games three times, having previously done so in 1908 and 1948. Organisers estimate that some 8 million tickets would be available for the Olympic Games and 1.5 million tickets for the Paralympic Games. It is estimated that 80% of available Olympic tickets and 63% of Paralympic tickets will be sold. LOCOG aims to raise 375-400 million pounds in ticket sales.

There are criticisms from people in London that the Games will cause chaos, disrupt business and make life more difficult for many people. The organisers of London 2012 are creating 30 miles of Games Lanes for use by the “Olympic family”. The lanes apply to major routes that have two more carriageways and will be used by 4,000 BMWs and 1,500 coaches ferrying around Olympic VIPs, athletes, sponsors and the media. It has created anger about congestion and the preferential treatment of Olympic dignitaries and sponsors over ordinary Londoners. Anyone using the lane without authorisation will be fined heavily.

Facts & Figures of Hajj

Professor Ziad Memish briefly described Hajj, saying Hajj is once in a lifetime obligation. It brings pilgrims from 183 countries. It includes 2 million international pilgrims and one million domestic. Whereas, Umrah is a ‘mini pilgrimage’ which can be done any time of the year. The busiest month is Ramadan and the 3 months before Hajj. Close to 6 million pilgrims arrived from abroad last year for Umrah.

Comparison of Mass Gathering

between Hajj and Olympic

As it was mentioned, Olympic Games is a planned recurrent event at different location, whereas Hajj is also a planned recurrent event, but at the same location. Secondly, Olympic Games take place every four years in different location, whereas Hajj takes place in the same location every year. Thirdly, Olympic Games is sport, whereas Hajj is a religious obligation.

In spite of these differences, there is one common similarity, which is mass gathering and health issue. Let us first see. How the Saudi government planned, managed and running the Mass Gathering during Hajj. Recently, Professor Dr. Ziad Memish, Deputy Public Health Minister of Saudi Arabia, responsible for the Hajj, came to England and delivered a keynote address on “Health Protection during Mass Gatherings: The Hajj Experience” at the Symposium, entitled “Health, Hajj and the Olympics: How Mass Events Medicine Affect Communities” organised by Muslim Council of Britain (MCB) at the London School of Hygiene and Tropical Medicine on 17 May, 2012.

How Saudi Arabia make Mass Gathering

preparedness during Hajj

Professor Memish said, when planning and running Mass Gatherings (MGs), we need to take into account: type of event, duration, size and location, and the effects of hot or cold weather. If the gatherings draw visitors from different nations, regions and cultures the potential for importing infectious disease becomes greater.

Mass Gathering constitutes a unique opportunity to study the public health issues in mobile populations. Speaking about the mass gathering preparedness, Professor Memish mentioned three areas, such as i) Risk assessment: What might happen? ii) Surveillance: How will we know when it happens? And iii) Response: What we will do when it happens?

Speaking about the Preventive Program Framework of Saudi Arabia, Professor. Memish mentioned the Supreme Hajj Committee (At Higher Level); Secondly, The Supervisory Committee for Preventive Medicine Program (At Ministry of Health Level) and Thirdly, The Executive Committee for Preventive Medicine Program (At Makkah Regional Level). The Supreme Hajj Committee consists of HRH Crown Prince and the Minister of Interior.

Professor Memish mentioned of the outbreaks of Meningitogoal Disease related to Hajj (1987-2003); there was large outbreaks in 1974 & 1987 (Serogroup A) and smaller outbreaks in 1992/1993 (mainly Serogroup A from non-Vaccinated); Serogroups W135 outbreak in 2000 and Serogroups W135 outbreak in 2001.

Professor Memish mentioned about “The Jeddah Declaration”, wherein it was resolved: Encouraging research and scientific institutions as well as research funding national and international universities and authorities to include MG health on their priority list; Holding a MG Health Conference periodically every two years and establish “Custodian of the Two Holy Mosques Award for MG Health”

Professor Memish made some concluding remarks. He said, In view of the global public health threats that might originate from MGs, medicine relevant to MGs has become an essential, specialized, and interdisciplinary branch of PH. Agencies outside the realm of public health should be closely involved in MG medicine.

Dr. Memish also mentioned, in the operation and management of an MG, several sectors (e.g. health care, security and public communications) need to know how to interface with public health services and resources quickly and effectively. MGs pose complex challenges that require a broad expertise and a multidisciplinary collective approach.

Ziad Memish obtained his medical degree from the University of Ottawa in 1987. He is Fellow, Royal College of Physicians and Surgeons of Canada and the American College of Physicians. In November, 2007, he was awarded by the Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz al-Saud “The King Abdulaziz Medal from the First Degree” – the highest award on a National level in Saudi Arabia for achievements in the field of infectious diseases and infection control.

Mass Gathering during Olympic Games

As mentioned earlier, this summer, an estimated 10,000 athletes and millions of visitors from all over the world will gather in London for the 2012 Olympic and Paralympic Games. Such mass gatherings present special challenges for public health that need to be prepared for and managed.

8,000 inspirational people will carry the Olympic Flame as it journeys across the UK. The Olympic Flame will travel to 95 per cent of people in the UK, the Isle of Man, Guernsey and Jersey during the 70-day Torch Olympic Torch Relay. It is said that the Olympic Flame stands for peace, unity and friendship. It will be carried by 8,000 truly inspirational Torchbearers and will visit more than 1,000 communities over 70 days.

People are saying that there will be chaos in public transport. Earlier this year, the Network Rail chief executive Sir David Higgins warned that that “bad things will happen” to London’s transport system during the Olympics. The key thing is not to panic, he said. TfL says: “London’s transport network will, at certain times and in certain places, be very busy next summer. People planning to travel in London next summer are advised to visit getaheadofthegames.com to see what steps they can take to avoid transport hotspots and keep themselves, and London, moving."

What plan London has during Olympics

Some of the world’s leading experts in the health and medical issues around global mass gatherings and major sporting events gathered at the London School of Hygiene & Tropical Medicine (LSHTM) to explore relevant issues and engage in a public panel discussion. This panel discussion, jointly organised by Chatham House, the Institute of Global Health Innovation at Imperial College London and LSHTM, held on 18th of May, 2012, examined progress over the past decade in health policies concerning mass gatherings, the development of medical sub-speciality of Mass Gatherings Medicine, and how international collaboration can increase resilience in future.

Participants included senior representatives of the UK Health Protection Agency London 2012, the World Health Organisation (WHO), and the Saudi Ministry of Health.

Dr. Brian McCloskey, London Regional Director and Olympics lead at the Health Protection Agency, UK, said: “In the lead up to the London Olympics we have liaised with public health experts from all over the world, to learn from their experiences with mass gatherings – including previous Olympic Games – in order to provide the best possible protection to the public and Games participants from threats to their health.

“Our risk assessments indicate that there is only a slight increased risk of infectious disease during the Olympics, such as diarrhoea and vomiting, and the reality is that serious outbreaks are relatively rare. Nevertheless, we have worked with public health experts from across the globe to put in place world class systems to monitor and respond rapidly to any outbreaks of infectious diseases or environmental hazards. This builds on existing tested, high quality capacity within the UK public health system.”

Professor David L. Heymann, Professor of Infectious Disease Epidemiology at LSHTM and Head and Senior Research Fellow at the Centre on Global Health Security at Chatham House, said: “Global Mass Gatherings such as at London 2012 present specific challenges, and it is important that the public health risks are recognised and understood. Prevention is both a collective and a personal issue – collective by ensuring that water, sanitation and food are safe, and individual in knowing how to protect against infectious diseases that may be transported by persons who attend or participate in the games.

“Lessons from the Hajj, the world’s largest annual mass gathering, will be shared and have much to teach us about how best to prepare and respond. This is a global issue and it is vital that we collaborate on a global scale to minimise the risks to public health that mass gatherings can pose.”

Olympic Games during Ramadan

As the games fall during the month of Ramadan the occasion will also be a challenge for Muslims choosing to observe the fast – be they visitors or the communities in the UK. The MCB symposium also heard from volunteers and service providers ready to cater for fasting Muslims during the Olympics.

Dr. Muhammad Abdul Bari, former Secretary General of the Muslim Council of Britain, mentioned, London won the Olympic Games bid in 2005 and France was the forerunner. London won the bid for its diversity, youthfulness and of course the legacy.

As a board member of the London Organising Committee of the Olympic Games and Paralympic Games (LOCOG), Dr. Abdul Bari said, from the day one the faith communities, especially the Muslim community, realise that Olympic is happening during the month of Ramadan. “We tried to make sure that the facilities for prayers have been made. Different prayer places, dozens of mosques have been gearing up to massive Iftar gatherings; organised by London city all Muslim organisations.”