Partnering to create a stronger Islamic financial sector

| Tuesday, December 8, 2009

UK Trade and Investment is leading an 18 strong delegation of UK Islamic finance organisations to the 16th Annual The World Islamic Banking Conference. While financial markets have been tested this year UK Islamic financial organisations remain positive that business continues and they remain committed to strengthening their partnerships with the Gulf region more than ever.

The UK's relationship with the Gulf is well regarded, given its historical trade relationship and the depth of experience found in its financial centre. In 2009, a Lord Mayor of London's visit to the United Arab Emirates discussed the pressing topic of regulation during the financial crisis, in addition to public-private partnerships.

At a time when the Islamic finance world is working towards global co-operation in establishing frameworks for regulation and dialogue on harmonising Islamic rules and structures, UK firms are deeply involved.

UK-based lawyers are playing a valuable role in helping to re-establish the legal frameworks for some Gulf sukuk bond structures, for example, following the frailties revealed by the economic crisis. English Common Law's flexibility has made it more suited to use in Islamic finance than some more prescriptive forms of law. Such work is reinforcing sukuks' legal and regulatory foundations.

"Modern-day sukuk are based on traditional Islamic principles and they have re-emerged as financial instruments only relatively recently. It is still a young industry and therefore it is all the more important that those structuring sukuk properly consider the legal consequences of what happens when things go wrong,"

says Muneer Khan, Head of Islamic finance at international law firm Simmons & Simmons.

The UK is also at the forefront of education when it comes to Islamic finance. Since the London-based Chartered Institute for Securities & Investment (CISI) launched its Islamic Finance Qualification two years ago, more than 700 students have achieved this global benchmark qualification.

The Chartered Institute of Management Accountants (CIMA) have also recently completed a groundbreaking education initiative by signing a contract with the Jordan-based organisation TAGI Training to translate and deliver the CIMA Certificate in Islamic Finance in Arabic and English throughout the Arab speaking world.

"There is a lot of enthusiasm for more of these sorts of partnerships," says Richard Thomas, Chief Executive of Gatehouse Bank. "Quite a lot of new institutions in the Gulf are looking to do more business with Western markets. Their domestic markets are relatively small and it is through strategic partnerships that their next stage of growth will be reached."

Link: http://www.ameinfo.com/217927.html

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