Dubai looks to reclaim title of Islamic finance hub (By IFN)

Dubai looks to reclaim title of Islamic finance hub

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UAE: The emirate on the 9th January announced plans to launch a drive specifically tailored to the further development of its Islamic banking sector, stating that the government will promote Islamic banking, inclusive of Takaful, Islamic financial products, arbitration of Islamic contracts and the setting of quality standards for halal food. The drive is the brainchild of Sheikh Mohammed Rashid Al Maktoum, vice president of the UAE and ruler of Dubai. Azhar Nazim, partner at Global Islamic Banking Centre of Excellence at Ernst & Young was quoted as saying that the move now needs to be backed by a solid roadmap and set of actions. “Following the announcement, implementation will be key. Discussions with management and boards of leading Islamic banks suggest that major transformation is happening around Regulations, Risk and Retail Banking. This is to ensure efficient capital planning, risk modeling, mitigating Shariah risk and building customer centric organizations.” The move is also part of the government’s effort to increase inward foreign direct investments to boost economic growth. Dubai has experienced a slump since the dip in its real estate market in 2008, and has only started picking up momentum last year. Perhaps the drive is in line with growing competition in the region between emerging markets such as Qatar and Oman which since last year have been boosting their Islamic banking sectors with high-profile hires and major investment initiatives.