Amania Advisors promotes Islamic Finance in Egypt
At the 2nd round of International Shariah Investment Convention “ISIC II” held in Cairo, Amania advisors and their guests proposed their expectations of the great opportunity of promoting the Egyptian industries, through the application of Islamic Finance principals on the various sectors of investment.
Motaz Eldreny – Partner at Sarie- Eldien company- expressed his opinion about the factors needed for the proper application of Islamic Finance in Egypt, as he said that a legal and regulatory frame work should be provided to support the launch of this industry, as well as promoting the public acceptance of Islamic Finance and creating the culture that emphasizes its role, and he also assured that Islamic Banking should not be considered as a competitor to the Convention Banking, as he clarified also that Islamic Finance should be seen as an “Emerging Industry”, and not just seen from a religious point of view.
Dr.Mohamed Al- Qattan – Scholar in Islamic Finance- noted the importance of Shariah Boards for this new industry, as he said that Shariah boards is the factor that makes investors to gain trust in the Islamic Finance, and e added that there are no reasons for customers to be sensitive of Islamic Finance, as this type of financing will help them to have an ethical investment.
Form her side, Dr Engku Rabiah – Associate Professor and Shariah Scholar at International Islamic University of Malaysia- illustrated the role of Shariah Scholars, as she said that they coordinate between bankers and market needs, besides determining what can be offered by Shariah, in light of risk and profit.
Dr. Mohamed Beltagi – Head of Shariah at Banque Misr- said that the total figure of Islamic Finance, in the banks during the last period has reached 120 Billion EGP, and he expected this number to increase in the future, as customers become more familiar with Islamic Finance, but he also assured that the most important case of Islamic Finance Industry is the value added in the community, not just the number of related investments.
The Head of Islamic Finance at Bank Audi – Walid Hassouna- recommended for Banking and Financing institutions to begin with “Islamic Windows” within their conventional business, rather than starting directly with “Pure Islamic Finance”, and the purpose of that is making the banking customers familiar with Islamic Finance firstly.
Dr. Shahinaz Rashad –Chairperson of Egyptian Leasing Association ELA- listed the key steps of moving the Islamic Finance forward as the following: Increasing public awareness, supporting SMEs, providing legal framework, providing judicial system, reinforcing the role of international bodies, standardizing Islamic finance in terms of product and innovation development, and increasing the number of Shariah Scholars.
Amr Hassanain –from Middle East Rating & Investors services MERIS- talked about the issuance of Sukok – as an Islamic Finance tool- and clarified that the issuance of Sukok in this particular time is totally not connected to the political situation witnessed now, as the calls for Islamic Finance have been globally aroused after the financial crisis in 2008, even in the western countries, as they described Islamic Finance as the safer alternative of the conventional finance.
To be mentioned that all of the scholars and practitioners who presented ISIC have agreed on the idea indicating that transparency is the golden key of spreading Islamic Finance, as it give it the edge of better understanding of risk and profit themes.
