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

 






  MENA News Headlines
 Aug 1 2014 - India hires masked monkey men to combat macaque menaceKhaleej Times
(MENAFN - Khaleej Times) E very talented group of men has taken to wearing monkey masks imitating their whoops and barks and hiding behind trees to ward off the aggressive animals.India has hired a ...

 Aug 1 2014 - Isolated indigenous make contact with outside world in BrazilKhaleej Times
(MENAFN - Khaleej Times) Azilian experts said the indigenous people likely crossed the border from Peru facing pressure from illegal logging and drug trafficking at home.Isolated native people ...

 Aug 1 2014 - Hopes dim for India landslide survivorsKhaleej Times
(MENAFN - Khaleej Times) Out 160 people were thought to have been living in the dozens of damaged houses.Women mourn a victim of the landslide in Malin village of Pune district in western Maharashtra ...

 Aug 1 2014 - Indian nurses stuck in Libya to be shifted from todayKhaleej Times
(MENAFN - Khaleej Times) Acuation of Indians from the strife-torn Libya will begin on Friday with the first batch of 36 nurses from the southern state of Kerala moving to Tunisia in the morning on ...

 Aug 1 2014 - General Suhag takes over as the new India army chiefKhaleej Times
(MENAFN - Khaleej Times) Neral Dalbir Singh Suhag on Thursday took over as the new chief of the 1.General Suhag assumed charge after his predecessor handed over to him the Chief of Army Staff baton ...

 Aug 1 2014 - European Union formally adopts Russia sanctionsKhaleej Times
(MENAFN - Khaleej Times) E new measures finally agreed earlier this week after months of hesitation target Russias banking defence and energy sectors.The European Union formally adopted broad ...

 Aug 1 2014 - Train hits bus with bridal party in Bangladesh 10 killedKhaleej Times
(MENAFN - Khaleej Times) Lice said the accident occurred at an unguarded railway crossing allowing cars and buses to move freely across the track during the early hours of Friday.A train smashed into ...

 Aug 1 2014 - Gas blasts kill 24 injure 271 in TaiwanKhaleej Times
(MENAFN - Khaleej Times) E explosions believed to have been triggered by gas leaking from underground pipelines were powerful enough to upturn cars and tear open paved roads.Vehicles are left lying ...

 Aug 1 2014 - Friends CC GM score easy victories to enter Al Faraa T20 semisKhaleej Times
(MENAFN - Khaleej Times) The quarter-final matches Friends CC defeated Emistate by four wickets while GM CC coasted to a six-wicket victory over X Eleven.Friends CC defeated Emistate. — ...

 Aug 1 2014 - Romelu Lukaku lost focus as was not first choice says MourinhoKhaleej Times
(MENAFN - Khaleej Times) Joined Chelsea from Anderlecht for 18 million in 2011 but failed to make an impact at Stamford Bridge and spent the 2012-13 season on loan at West Bromwich Albion.Jose ...

more...


 






Google

Click to Apply

 
 

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