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Qatar Islamic Bank wants to enter the Turkish market and is looking into buying other Islamic units in Qatar, its acting CEO Ahmad Meshari said in Doha yesterday.

EIGHTH INTERNATIONAL CONFERENCE ON ISLAMIC ECONOMICS AND FINANCE

SUSTAINABLE GROWTH AND INCLUSIVE ECONOMIC DEVELOPMENT FROM AN ISLAMIC PERSPECTIVE

Doha, Qatar - December 25-27, 2011

CALL FOR PAPERS

The global economy continues to face the perennial problems of poverty, persistent youth unemployment, excessive inequalities of income and wealth, high levels of inflation, large macroeconomic and budgetary imbalances, exorbitant debt-servicing burdens, inadequate and aging public utilities and infrastructure, skyrocketing energy prices, and growing food insecurity. The reoccurring regional and global financial crises further intensify and magnify these problems particularly for the underprivileged segments of the world population. As a result, many countries are at the risk of failing to achieve the Millennium Development Goals (MDGs) set by the United Nations. However, some countries also present optimistic experiences to share, and from which useful lessons can be drawn for shaping the future economic scene in other countries.

Islamic finance has been given the boost it needed in the Gulf by a Qatari ban on conventional banks offering sharia-compliant services.
Qatar's move last month draws a line in the sand between Islamic banks and their conventional peers, which control 83 percent of the region's banking assets.
If Qatar's move to separate conventional and sharia-compliant operations is mirrored by other central banks eager to prove their commitment to the nearly $1 trillion Islamic finance industry, this will be higher.

The International Islamic Liquidity Management Corporation (IILM) is expected to issue the first Shariah-compliant financial instruments by year-end.
The minimum size of the instruments could be US$300 million depending on the market demand.
The IILM was established on October 2010 with 14 founding shareholders, comprising the 12 central banks of Indonesia, Iran, Kuwait, Luxembourg, Malaysia,Mauritius, Nigeria, Qatar, Saudi Arabia, Sudan, Turkey, and the United Arab Emirates (UAE), as well as two multi-lateral institutions, the Islamic Development Bank and the Islamic Corporation for the Development of the Private Sector.

The UAE will not follow Qatar in banning conventional banks from operating Islamic services, as its financial system has a different legal framework. Conventional banks will remain free to offer Sharia-compliant banking products. That is the statement of the Central Bank Governor, Sultan al Suwaidi.
Islamic finance banks based in the Dubai International Financial Centre are required to operate within AAOIFI guidelines.

Abu Dhabi Islamic Bank (ADIB) made an announcement that it had closed Dh250 million syndicated Islamic financing deal for Emirates National Factory for Plastic Industries (ENPI).
ENPI is majority owned by Qatar First Investment Bank (QFIB).

Qatar Charity (QC) has launched a drive to alleviate the sufferings of tens of thousands of people in Libya in the wake of the current unrest in that country.
The target sum of the campaign has been pegged at QR3.5mn. Aid materials, especially medicine and food, would be bought from Egypt.

Qatar Financial Centre Regulatory Authority has authorised Takaful International Company BSC ("TIC") to establish a branch within the Qatar Financial Centre.

Barwa Bank, the Qatar-based Islamic finance house, is thinking about a plan to make its trading debut this year.
Barwa CEO Steve Troop indicated that Qatar’s recent decision to terminate the Islamic finance operations of the country’s conventional banks was an “exciting move”.

The Chief Executive Officer of First Finance Company agrees with the Qatar Central Bank to impose greater regulation on conventional banks offering Islamic services over concerns that "unhealthy competition could lead to over-aggressive practices".
Khalid bin Ibrahim Al-Sulaiti, who is also Vice Chairman of IFS consultancy Bait Al Mushara, told Oxford Business Group (OBG), the global publishing, research and consultancy firm, that the constraints of Qatar's market also highlighted the likelihood of consolidation within the sector.

A long-touted Islamic megabank has received approval from Bahrain and a preliminary green light from Malaysia to begin operations.
Saudi Arabia's Sheikh Saleh Kamel said the venture is still in discussions with Qatar to obtain a licence.

The Qatar central bank appears to see higher risks from conventional lenders operating Islamic units, clarifying a recent ruling which asked commercial banks in the Gulf state to close their sharia-compliant operations. Qatar's central bank earlier in the week asked conventional lenders to close down their Islamic operations amid worries of overlap between the two, in a surprise move that boosted shares of Islamic lenders in the country.

Qatar Central Bank surprised commercial lenders by stipulating that they shut down their Islamic finance activities by year end, affecting banking strategies. The move leaves unanswered questions and big strategic worries for the big Western banks with a presence in the region.
Although the infrastructure around the provision of Islamic finance is onerous, the rewards are great for banks.

Ahmed Meshari, acting CEO of Qatar Islamic Bank (QIB) has said the lender is interested in buying the Islamic banking assets of conventional lenders in the Gulf country, who have been instructed by the central bank to close down their Islamic operations.

Qatar's Doha Bank (DOBK.QA) does not expect a major financial impact from the central bank's decision to separate the Islamic operations of conventional lenders in the Gulf Arab state.
Doha Bank will continue to meet its contractual obligations within its Islamic business and will seek clarification from the central bank when required.
The central bank issued a circular to banks, saying it "has been decided to terminate the activities of the Islamic finance services" offered by conventional banks.
Other Banks effected by the directive include international lender HSBC (HSBA.L), Qatar National Bank (QNBK.QA), Commercial Bank of Qatar (COMB.QA), Al Ahli Commercial Bank AABQ.QA and International Bank of Qatar.

First Finance Company Q.S.C. (First Finance) carries out its financing activities through various Islamic modes of financing including Murabaha, Mudaraba, Musharaka, Musawama, and Istisna. It provides finance for numerous products including cars and vehicles, real estate, construction and building materials, heavy machinery, marine equipment, furniture, education, weddings, jewelry, travel tickets, Istisna, corporate finance, and medical services. The company is headquartered in Doha, Qatar.

Qatar Charity is spearheading a campaign to collect funds to be donated to relief initiatives benefiting flood victims from Australia, Pakistan, Sri Lanka and Thailand.
The “Fight the Floods” campaign was launched offering the people in Qatar the opportunity to directly deposit to the authorised Qatar Charity "Fight the Floods" bank account: A/C Number: 100024470 at Qatar Islamic Bank.

HSBC and Allianz Takaful announced a Bancassurance partnership to promote Islamic insurance products in Qatar.
The bank will promote and sell ‘family Takaful products’ comprising plans for protection, savings, investment and children’s education. The products are denominated in dollars and riyals and are available to both conventional and Islamic banking customers.

Allianz Takaful has entered into Bancassurance partnership to promote Islamic insurance products in the State of Qatar. The company is fully owned by subsidiary of Allianz Group and HSBC Amanah.
The products will be denominated in US Dollars and Qatari Riyal and available to both conventional and Islamic banking customers.

Qatar sold $13.7bn of bonds to local banks as the country seeks to absorb excess cash with lenders.
The bonds, both Islamic and non-Shariah compliant, mature in three years. The conventional bond pays 5% interest.