Quotes: 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
 Aug 30 2015 - Arabs spend more than USD25b on health tourismMENAFN
(MENAFN) Health tourism is one of the fastest growing industries with a yearly spend of USD100 billion with Arabs contributing by more than 25 percent of the total world spending in health ...

 Aug 30 2015 - Kuwait- KSE's Consolidated Earnings Up 1.2% In H1Arab Times
(MENAFN - Arab Times) The GCC's corporate earnings fell 2.9%YoY to USD36.0bn in 1H15. This was ascribed to weakness in earnings of KSA (-12.3%YoY), Oman (-4.9%YoY), and Abu Dhabi (-3.7%YoY). The KSA ...

 Aug 30 2015 - Kuwait- Resilience Of Shale And Disappointment Of OPECArab Times
(MENAFN - Arab Times) Almost nine months have passed since the historic OPEC meeting when its swing producer role was abolished and its members were allowed to produce as much oil as they can in ...

 Aug 30 2015 - Kuwait Stocks End In Red After Torrid WeekArab Times
(MENAFN - Arab Times) Kuwait Stock Exchange (KSE) ended last week in the red zone. The Price Index closed at 5,876.51 points, down by 2.91% from the week before closing, the Weighted Index decreased ...

 Aug 30 2015 - Policeman Killed"Amir Denounces Bahrain Bomb AttackArab Times
(MENAFN - Arab Times) His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah sent a cable of condolences to his brother King Hamad bin Isa Al Khalifa, of Bahrain, over the terrorist attack ...

 Aug 30 2015 - Egypt Sentences Jazeera Journos To 3 Years In JailArab Times
(MENAFN - Arab Times) An Egyptian court sentenced three Al- Jazeera reporters to three years in prison on Saturday, in a shock ruling that sparked international condemnation. Canadian Mohamed Fahmy ...

 Aug 30 2015 - IS Hacker Killed In US Strike In Syria Was Recruiter †PentagonArab Times
(MENAFN - Arab Times) The Islamic State group hacker killed in a US airstrike in Syria this week had been recruiting sympathizers in the West to conduct "lone wolf" terrorist attacks, and his death ...

 Aug 30 2015 - Kuwait- Death Of 1,200 Sheep Tied To High Temperature, Bad VesselArab Times
(MENAFN - Arab Times) Relevant authorities at Mina Al-Doha have dealt with the problem of 1,200 sheep which died as a result of high temperature and failure to provide appropriate vessel to transport ...

 Aug 30 2015 - Garbage Trucks Become 'Roaming Workshops'Arab Times
(MENAFN - Arab Times) Due to absence of any kind of monitoring or control, cleaning workers have converted the streets of Hateen residential area into workshops where they sort out the garbage from ...

 Aug 30 2015 - Kuwait- Traffic Warns Of Fines IncreaseArab Times
(MENAFN - Arab Times) Assistant Undersecretary for Traffic Affairs at Ministry of Interior Major General Abdullah Al-Muhanna announced that the fines of traffic violations and charges for traffic ...

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

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

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
Economic Calendar
Financial Glossary


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


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help