Barclays’ Islamic business gathers momentum (By IFN)

Wednesday 17^th October 2012

GLOBAL: A year since Barclays Bank received approval from the Dubai Financial Services Authority to operate its global Islamic products business via a window in the Dubai International Financial Center, the UK banking group has announced plans to expand its Shariah compliant business, seemingly targeting the African market. Most recently, Barclays Bank of Kenya announced that it will offer Islamic asset financing for its corporate clients; and has allocated US$30 million for the venture. The announcement follows reports that Barclays Bank Egypt is mulling over the possibility of commencing Islamic banking services in Egypt, as it seeks to mirror the success of its Islamic business in South Africa, offered through Absa Islamic Banking. Barclays’ renewed push for Islamic banking comes after a period of relative quiet, possibly as the banking group contended with the financial crisis in Europe and the aftermath of its involvement in the Libor-rigging scandal. Its Islamic business itself saw a setback last year on the departure of Harris Irfan, who headed the operations via Barclays Capital and Barclays Wealth in Dubai. His exit created a period of uncertainty for the group, with the market speculating that Barclays had decided to retreat from the Islamic business. Nonetheless, the business later saw the appointment of Dr Dominic Selwood as the director in charge of its Islamic products and services at Barclays Capital. With its core business mired in scandal and the global financial crisis threatening the profitability of Europe’s banks, Barclays’ move to strengthen its Islamic business could prove to be a tonic for the banking group amid the ailing environment.