Albaraka Bank

Islamic Finance in Africa to take off in 2012

Islamic finance banking options are progressively being seen as a viable alternative to traditional banking services in Africa and are growing to found not only the African Islamic community but all those searching for an interest-free banking alternative.
Key speakers from Nigeria, Malaysia and Saudi Arabia will join leading South African experts from ABSA, alBaraka Bank, KPMG and other financial institutions in the Islamic Finance Africa Conference that will take place on 21 - 24 February 2012 in South Africa.

Conference Report: The First National Islamic Microfinance Conference in Pakistan on Poverty Alleviation

The first National Islamic Microfinance conference was held on 29th of January 2011 in the Lahore Chamber of Commerce and Industry . The conference was attended by Iftikahr Malik, Vice Presiden Sarrc Chamber of Commerce and Industry, Tahir Malik, Chairman Trafco Group of Companies , Mr. Zulfiqar Khokhar Additional Direcroe Islamic Banking & Finance Department State Bank of Pakistan, Mufty Iftikhar Baig, Sharia Advisoe of Albaraka bank Mufty Mahmood, Sharia Advisor Farz Foundation , Tariq Shafi, Regional Chairman FPCCI.and Ms Humera Awais Shahid, member Provincial Assembly.

New Islamic tax laws ‘will spur investment’

NEW tax laws will level the playing field between Islamic banks and conventional banking, say banking and tax analysts. The new laws are intended to encourage foreign direct investment into SA, says Amman Muhammad, MD for Absa Islamic Banking. Islamic banking is in its infancy in SA. Albaraka Bank and the Islamic Bank were the first Islamic banks to be granted a licence by the Reserve Bank in the 1980s. The proposed amendments to the Income Tax Act take into account three different types of Islamic financing on which one can develop products. First , mudurabah, a form of deposit where the client invests with a bank and, the bank invests deposits in Sharia -compliant enterprises or products. Second , murabaha, which is a mark-up financing transaction offered by a bank so that a client can obtain financing for various assets, such as property and equipment. Third, diminishing musharaka, a partnership arrangement usually used for project financing. Mr Muhammad hopes that the implementation of a sovereign sukuk (Islamic bond) will be the next step by the government.

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