Dubai to create centralized legal framework by end of 2013 (By IFN)

Dubai to create centralized legal framework by end of 2013

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UAE: Dubai is going full throttle with its mission to become a global Islamic finance hub, with the Islamic Economy Higher Committee announcing today that it intends to create a centralized legal framework to oversee Shariah compliant products and transactions within the region. The framework, which is meant to boost the growth of the emirate’s Islamic finance industry, is expected to debut by the end of this year, Sami Dhaen Al Qamzi, director-general of the Department of Economic Development of Dubai told Gulf News. He said: “What we are looking for is to unify this base under a legal authorized body, which would be able to regulate the Islamic business products and grow with this sector by increasing demand on its products.” Sami also said that the rules set by the committee will first be optional to financial bodies operating Islamic finance in Dubai, while not specifying whether it will be made mandatory later on. Another factor in boosting Dubai’s Islamic finance industry, experts say, is an increase in trade. As at the end of 2012, Dubai’s non-oil trade totaled at AED1.24 billion (US$337.6 million), growing from AED1.1 billion (US$299.5 million) in 2011. The increase was attributed to a 47% surge in exports, and a 12% accretion in imports. Commenting on these figures, the Dubai Crown Prince Sheikh Hamdan Mohammed Rashid Al Maktoum said: “With plans to turn Dubai into the world’s Islamic economic capital getting under way, the gaining pace of trade will be a key factor in such a strategy.”