Keeping an eye out for Islamic finance in Europe (By IFN)

GLOBAL: Recent reports have noted that Kuveyt Türk Katılım Bankası, the Turkish arm of Kuwait Finance House, aims to begin operations in Germany in 2013 in a bid to become the first ever Islamic bank in the country.

The bank is ready to go forward, pending regulatory approval; and has put aside initial capital of EUR45 million (US$58.48 million) for its Germany unit, said Ufuk Uyan, its CEO, in an interview with Reuters.

A move into Germany would represent a breakthrough not just for the bank, but also for Islamic finance as a whole, given the undeveloped state of the industry in the country. The country has however dipped its toe in Islamic finance waters before; with the German state of Saxony-Anhalt issuing a five year, EUR100 million (US$129.66 million) Sukuk in 2004, representing the first Sukuk out of Germany.


Friday 30^th November 2012