IslamicFinance.de

THE NINTH INTERNATIONAL CONFERENCE ON
ISLAMIC ECONOMICS AND FINANCE (ICIEF)
Growth, Equity and Stability: An Islamic Perspective
10-12 September 2013, Istanbul, TURKEY

The Ninth ICIEF at a Glance

Recovery from the global financial crisis and subsequent economic downturn remains fragile. Persistent risks to financial and economic development include sluggish growth in developed countries – which is now spilling over into developing economies as well; increasing income and wealth inequalities; and still-unrestored financial, economic and political stability in many regions. High poverty and unemployment rates, large macroeconomic imbalances, deteriorations in sovereign credibility, increasing food price volatility and food shortages, and lack of access to basic infrastructure further intensify and magnify these risks – particularly for the underprivileged segments of the world population. As a result, for many countries it has become even more challenging to achieve the Millennium Development Goals (MDGs) set by the United Nations.

Bank of Khartoum's plans include selling Islamic corporate bonds since after an oil deal with South Sudan the economic outlook for Sudan becomes better. This year's profit of the bank is expected to reach record amounts due to strong lending and a substantial windfall from the devaluation of the Sudanese pound. Several sukuks have already been started. According to the bank's general manager, issues worth $100 million in bonds for local companies are a realistic is a realistic goal to be achieved by early 2013.

Read more on: http://english.ahram.org.eg/NewsContent/3/12/56460/Business/Economy/Suda...

Together with The MasterCard Foundation, MIX has launched the “Africa Map of Financial Inclusion for the Poor” aiming to contribute to better understanding by practitioners and policymakers of the access to finance in Africa. Since until recently there was no proper information on financial services for the poor in Africa, thus limiting growth and investment in the sector, now the situation is about to change. Not only did MIX provide raw data from surveys and analysis of the data but also they released a visual map representing the data in an easily comprehensive way.

Despite that since the collapse of the central government of Somalia in 1991 there has been no regular operation of financial institutions in the country, a new law was recently passed. It serves as a framework which enables privately owned institutions to open and operate banks in the region. After the approval of the regional parliament in September, on October 4th the President of Somaliland, Ahmed Mohamed Silanyo, signed the Islamic Banking Bill.

Read more on: http://sabahionline.com/en_GB/articles/hoa/articles/features/2012/10/22/...

A further Sharia-compliant product for corporate customers was recently launched by Barclays bank. It is called La Riba Asset Finance and serves customers to buy assets locally as well as internationally. The product is meant for Muslim clients.

Read more on: http://www.the-star.co.ke/news/article-91394/bank-unveils-sharia-product

Notable growth in the takaful industry from Islamic countries in North Africa is expected due to the changes in the political environment there. Islamic governments in countries like Libya, Tunisia and Egypt will most probably make a huge contribution to the global takaful market. Needless to say, conventional insurance will be overruled. With $11.8 million, the African takaful industry already ranks third worldwide.

Barclays Bank of Kenya Ltd. announced the beginning of Shariah-compliant asset-finance product offer for corporates companies. This way it attempts to meet the growing demand of those companies. Barclays set aside $30 million for the so-called Corporate La Riba Asset Finance product. The latter includes fixed pricing and repayment periods of up to five years.

Read more on: http://www.bloomberg.com/news/2012-10-16/barclays-kenya-to-offer-shariah...

Gambia shares experience with Nigeria regarding the preparations to developing Islamic banking in Nigeria. It happens rarely that 'little brother' Gambia gives advices to 'big brother' Nigeria, but there is no doubt about Gambia's courageous and proactive leadership by introducing the law for Islamic finance, from which Nigeria can draw upon.

See more under: http://allafrica.com/stories/201210021083.html

Contact Group on Islamic Banking had used the 12th Bank of Uganda annual eid party as an opportunity to discuss with bank governor of the Uganda's central bank the introduction of Islamic banking. Uganda's Muslims believes that the country should introduce other forms of banking systems due to their unique characteristics, especially Islamic financing, which is putting emphasis on worthiness, fairness and profitability.

See more under: http://www.observer.ug/index.php?option=com_content&view=article&id=2088...

Sudan and South Sudan have agreed, as a part of peace discussions, to cooperate on banking and monetary policy, which could help boost trade between both countries after decades of civil war. According to the official statements, any commercial bank will have access to other country's banking market through foreign bank license, and also both central banks will cooperate more tightly in order to stabilize monetary policy and keep inflation under control.

See more under: http://english.ahram.org.eg/NewsContent/3/12/54350/Business/Economy/Suda...

On Monday Movement for Islamic Culture and Awareness donated a set of orthopedic surgical equipments to the department surgery, Lagos State University Teaching Hospital.

The items are automatic, used for most open reduction/internal fixation and implant procedures, for deformity correction procedures and others.

More on: http://www.ngrguardiannews.com/index.php?option=com_content&view=article...

According to a new report published by Standard & Poor's, supportive socio-political factors and economic incentives should accelerate the growth of Islamic banking activities in North Africa from current low levels.

Islamic banking started its emergence in North Africa in the 1970s. However, the sector is still branded as a niche market in the region, with an overall market share well below 5% of total banking assets. As the report says, the change in political landscape following the Arab Spring should rekindle the development of Islamic banking in the region.

More on: http://in.reuters.com/article/2012/09/27/idINWNA625620120927

It is a common opinion that Africa offers excellent opportunities for the global development and expansion of Islamic finance. The bank's managing director, Alhaji Mohammed Mustapha Bintube, explained that the bank has made steady progress regarding number of accounts opened, number of deposits, and numbers of proposals that received on a daily basis. The bank offers various products in the field of retail such as Jaiz Home Finance, Jaiz Auto Finance, Jaiz Home Appliance Finance etc. After the approval of the shareholders, the bank plans to increase its capital base from N7bn to N12bn.

More on: http://www.theislamicglobe.com/index.php?option=com_content&view=article...

Nigaria's financial minister, Dr. Yerima Ngama, stated that it was necessary to assure greater sensitisation to create better awareness on Islamic banking option in the country. Thus, people would gain some understanding about the operation principles of the system. The minister also pointed out that Islamic financing was not addressed to Muslims only and that therefore the goal is to carry non-Muslims along.

More on: http://allafrica.com/stories/201209190982.html

Barclays and Absa maintain their interest in Africa as a target for Islamic insurance. There are plans to introduce the Takaful offering to the African continent. With a Muslim population of over 500 million, Africa represents a very good market perspective. The experience of Barclays and Absa in Africa shall be used in order to provide financial products that are suitable for each country.

More on: http://www.iol.co.za/business/companies/absa-africa-target-for-islamic-i...

Alhaji Mohammed Mustapha Bintube, the Managing Director of Jaiz Bank Plc, stated that even though the bank started on a low key, it has been making steady progress in terms of number of accounts opened, deposits, and numbers of proposals received every day. Of course, there are some challenges the bank is facing which it intends to adress by relying on several publicity initiatives. The goal of these initiatives is to teach Nigerian people confidence about the new kind of banking model.

More on: http://allafrica.com/stories/201209210292.html

According to its Managing Director/Chief Executive - Mallam Mohammed Bintube - Jaiz Bank Plc is ready for the acquisition of a a national banking license in the following year. The required minimum capital is already raised usong private placement. Mallam Mohammed Bintube pointed out that it took as little as three months for all shares on offer to be fully subscribed.

More on: http://www.thisdaylive.com/articles/jaiz-bank-to-acquire-national-bankin...

A microcapital event on November 6 – November 8, 2012 has been announced: 8th International Microinsurance Conference. It will take place in Dar es Salaam, Tanzania. The event serves practitioners, policymakers and academics to exchange experience to convey challenges, trends, and the current state of the microinsurance industry. Some of the topics included are failures in microinsurance, strengthening training institutions, process mapping and performance indicators. The event is organized by the Munich Re Foundation.

Barclays and Absa keep their focus on Africa and plan to accept the group’s Islamic Insurance offering - Takaful. Due to the huge number of Muslim population in the continent - over 500 million people - there are excellent market opportunities for Islamic finance and, in particular, for Absa.

International Finance Corporation (IFC) proposed an equity investment in Gulf African Bank (GAB) worth $5 million. The investment is expected to improve the bank's strength and provide additional capacity for growth. under IFC’s Global Trade Finance Program (GTFP), an additional $3 million trade line will be made available by IFC to the bank.