Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Islamic Finance Poised To Develop In North Africa  Join our daily free Newsletter

MENAFN - Arab Times - 01/03/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab Times) After tremendous global success over the past decade, with total assets estimated at about 1.4 trillion, Islamic finance could develop in North Africa, says Standard & Poor's Ratings Services today in a report titled "Islamic Finance Could Make Inroads Into North Africa.

Large current account deficits and declining conventional financing sources have prompted governments from Arab spring countries to look at opportunities offered by Islamic finance.

"Sharia-compliant banking previously presented an attractiveness that was at best exotic for regulators and banks active in these markets. Now, the perception is changing and public awareness is increasing," said Standard & Poor's credit analyst Mohamed Damak



Policie

We have observed this development in the North African countries where we rate banks-Egypt, Tunisia, and Morocco. These sovereigns have recently taken steps to implement policies to support the development of Islamic finance: Tunisia plans to issue sukuk to attract new class of investors; Egypt implemented new regulatory frameworks for sukuk issuance; and Morocco is laying the legal foundation for Islamic banks

Nevertheless, we believe that Islamic finance in this region has yet to demonstrate its economic added value beyond enabling products abiding with Islamic law. Such added value could materialize through creating access to a new class of investors or by offering Sharia-compliant products at costs comparable with their conventional counterparts. The stiff price competition in some of the North African markets indicates that customers in these regions are relatively more sensitive to the costs associated with banking products





"Islamic finance in North Africa remains underdeveloped but regulatory changes are laying the groundwork for its growth," said Damak. "However, we believe that success will depend on their ability to offer products at a cost competitive with conventional banking activities.

We also believe that Islamic finance can be a good fit for infrastructure and project finance, as banks lack long-term funding capability required by these projects. Several projects in renewable energy, transport infrastructure, and communication are ongoing or expected to be launched in the future in North African countries. Using sukuk to finance some of these projects could help diversify investor bases and tap additional pools of resources

 


Arab Times




  MENA News Headlines
 Oct 20 2014 - Saudi stocks buck trend with healthy gainsArab News
(MENAFN - Arab News) Saudi Arabia's benchmark Tadawul All-Share Index bucked the three-day prevailing downward trend and logged a sharp gain of 2.39 percent on Sunday.The index opened with a largely ...

 Oct 20 2014 - Saudi- NCB pledges conversion to Islamic bank after pressure from scholarsArab News
(MENAFN - Arab News) RIYADH: National Commercial Bank (NCB) has responded to criticism of its operations from Islamic scholars by pledging to convert itself into a full-fledged Islamic bank within ...

 Oct 20 2014 - HE Prime Minister Inaugurates Milipol Qatar 2014Qatar News Agency
(MENAFN - QNA) Under the auspices of HH the Emir Sheikh Tamim bin Hamad Al-Thani, HE Prime Minister and Minister of Interior Sheikh Abdullah bin Nasser bin Khalifa Al-Thani inaugurated the 10th ...

 Oct 20 2014 - HE Prime Minister Meets Commander of Turkey's Aegean ArmyQatar News Agency
(MENAFN - QNA) HE Prime Minister and Minister of Interior and Minister of Interior Sheikh Abdullah bin Nasser bin Khalifa Al-Thani met Monday with Commander of Aegean Army General Abdullah Atay and ...

 Oct 20 2014 - HE Prime Minister Meets Iran's Police ChiefQatar News Agency
(MENAFN - QNA) HE Prime Minister and Minister of Interior Sheikh Abdullah bin Nasser bin Khalifa Al-Thani met Monday with Chief of Iran's National Police Forces Commander Ismael Ahmadi and the ...

 Oct 20 2014 - Israeli Forces Arrest Four Palestinians from Bethlehem and HebronQatar News Agency
(MENAFN - QNA) Israeli forces arrested early Monday four Palestinians from Bethlehem and Hebron districts, said security sources. Large Israeli troops raided the town of Taqou‘ to the east of ...

 Oct 20 2014 - 20 million to vacation abroad by 2030Arab News
(MENAFN - Arab News) The number of Saudi vacationers spending their holidays abroad will increase sixfold by 2030 a local study revealed.The study carried out by a company specializing in travel ...

 Oct 20 2014 - Student's death in US: Cousin reveals detailsArab News
(MENAFN - Arab News) Several relatives of Abdullah Alkadi the Saudi scholarship student in the US whose body was found late on Thursday more than a month after he went missing are flying to Los ...

 Oct 20 2014 - King orders free treatment for people with special needsArab News
(MENAFN - Arab News) Custodian of the Two Holy Mosques King Abdullah has instructed the Ministry of Social Affairs to pay the treatment costs of people with disabilities at rehabilitation centers. ...

 Oct 20 2014 - S. Korea's Int'l Airline Traffic Grows 9.12 in Q3Qatar News Agency
(MENAFN - Qatar News Agency) Seoul October 20 (QNA) - South Korea's international airline traffic rose 9.1% from a year earlier in the third quarter partly on a rise in the number of flights to and ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help