Arab Spring countries announce key Islamic finance measures (By IFN)

Tuesday 2^nd October 2012

GLOBAL: Libya and Tunisia, two Arab Spring countries which have captured the attention of Islamic bankers due to their promising potential for the development of the Islamic finance industry, have announced key measures which bring those expectations closer to reality. Saddek Omar Elkaber, the governor of the Libyan central bank, has reportedly said that the authority is looking to implement Islamic banking laws for the country by the end of this year, after the government approved the new laws in May. Authorities are also weighing options for the introduction of Islamic banking in the country, such as allowing conventional banks to launch Islamic windows, allowing conventional banks to convert to Islamic or offering separate licenses for Islamic banks. Meanwhile, Tunisia is also expected to offer its first Sukuk in 2013, with authorities also in the midst of preparing legislation for Shariah compliant finance in the country. Speaking to Islamic Finance news on the sidelines at the IFN Asia Forum 2012, Afaq Khan, CEO of Standard Chartered Saadiq, said that Arab Spring countries represent a key opportunity for the growth of Islamic finance in new markets, particularly in tandem with the countries’ need to rebuild following political upheaval. “Clearly there are opportunities, due to factors such as the countries’ large Muslim population, their proximity to the Middle East and the use of a common language,” he said. Timing of Islamic banks’ entry into Arab Spring countries will however be vital to their success; due to continued uncertainty in the markets. With the Arab Spring countries emerging from recent revolution and showing keen interest and rapid development in Islamic finance, the industry may just have uncovered a new gem to help it chart new growth going forward.