Islamic finance the focus of Turkey's G20 presidency

Islamic financial services are one of the top priorities for Turkey's presidency of the G20, a senior Turkish finance official said on Wednesday.

Speaking at a meeting of the Islamic Development Bank (IDB) in Mozambique's capital Maputo, Deputy Undersecretary of the Turkish Treasury Burhanettin Aktas said Turkey believed strongly in the vital role the Islamic finance industry had to play in infrastructure and small-medium-enterprise (SME) financing.

"The Turkish presidency aims to increase the awareness for Islamic finance among G20 members," Aktas said.

"We try to support the integration of Islamic finance with the rest of the global financial system. Certainly, there are various policy and regulatory implications of this new finance structure.

"The Turkish presidency is currently working on this and we have asked the IMF and the World Bank to prepare reports for us.

"In order to utilize this high potential, many countries are setting up an enabling environment for Islamic finance products after the 2008 global financial crisis," he said. "Some of the non-Muslim countries around the world are trying to position themselves as Islamic financial hubs. In addition, the IMF and the World Bank have a real interest in Islamic finance".

According to Aktas, Turkey has one of the highest growth potentials for Islamic financial services among the Organization of Islamic Cooperation countries and has an "ambitious strategic Islamic finance program with the aim of increasing the share of the Islamic financial assets in the banking sector".

Turkey has developed new products, established a state-owned Islamic bank and plans to open two more state-owned Islamic banks.

"I would like to express our sincere appreciation to the IDB for their significant support in promoting Islamic financial institutions and products in Turkey," Aktas said.

"The IDB has become a pioneer institution in promoting Islamic financial services and has a key role in further expansion," he added.

(Daily Sabah Economy / 11 June 2015)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

IDB raises sukuk issuance programme ceiling from $10 billion to $25 billion

Muscat: A decision to raise the current limit of the Islamic Development Bank's (IDB) medium-term sukuk issuance programme from $10 billion to $25 billion has been approved. 

The board of executive directors (BOED) of IDB approved the decision at its 305th session which began on Sunday in Maputo, capital of the Republic of Mozambique, under the chairmanship of Dr Ahmad Mohamed Ali, chairman of the Islamic Development Bank Group. 

On this occasion, the BOED commended the huge success of programme in all its previous issuances since it began in 2003. 

This is a reflection of the high status and confidence the bank continues to enjoy in the international financial arena. The IDB is regarded as one of the few multilateralfinancing institutions that have been rated for more than 12 consecutive years with "AAA" , the highest international credit rating available, by the three major international credit rating agencies – Standard & Poor's, Fitch and Moody's.  This is in addition to the designation of the IDB as 'Zero-Risk Weighted' Multilateral Development Bank by the Basel Committee on Banking Supervision in 2004 and by the European Commission in 2007.  

The bank has decided to reintroduce its medium-term sukuk issuance programme.

 which is in line with the provisions and principles of the Islamic Sharia, with the aim of mobilising and injecting new financial resources from the international money market to meet the growing development needs in member countries. 

The $10 billion raised so far as part of the IDB's sukuk programme have been used to finance various development projects in member countries, particularly in the infrastructure sector. 

This is at a cost that is much lower than what it would have been if they were financed through regular financing institutions.  

The board also approved participation in several development projects in member countries amounting to nearly $450 million.

Approvals included $200 million for an energy project in Mozambique,$70 million for the import of agricultural equipment to Kazakhstan,$71.5 million for twopower projects in Senegal,and $30 million to support the integrated micro-financing programmes in Benin, in addition to $28.5 million towards the Mont Mbapite rural development project in Cameroon, $20.7 million for a road project in Togo, $16.3 million for two projects in Bangladesh, and $12 million for the reconstruction of road project in Kyrgyzstan.

(Times Of Oman / 10 June 2015)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com