Al Baraka Banking Group to launch Islamic bank in France

French financial authorities demonstrate great interest in Islamic banking products entering their markets, says Al Baraka's CEO.

Al Baraka Banking Group's CEO, Adnan Ahmed Yousif has revealed plans to launch an Islamic bank in France, adding that the group has submitted its financial requirements and accounting standards to the French authorities.

In an interview with CNBC Arabiya in Dubai, Yousif explained that the French financial authorities have demonstrated major interest in having Islamic banking products enter its market, in light of the five million Muslims currently residing in France.

Speaking on the Group's performance, Yousif noted that in the first quarter of 2009, the bank recorded positive growth of four per cent in its budget, in addition to an increase in the number of branches, businesses, as well as credit and securities issuances.

Yousif also added that the number of the Group's offices will increase in 2009 from 280 at present, reaching 330 by the end of the year, and staff numbers will increase by 800 employees.

On the economic downturn's effects on the Group's operations, Yousif said that there were initial concerns about investing in certain markets and that these concerns have now been “eradicated”, especially in markets like Turkey, Algeria, Egypt and Jordan, which performed very well.

Al Baraka Banking Group has also begun introducing new products in the Turkish market including finance leasing, forward sale and manufacturing contracts (Salam and Istisna) and rent-to-own schemes, adding that demand for Islamic financial products has increased, especially in emerging markets and in some European markets.

Link: http://www.cpifinancial.net/v2/News.aspx?v=1&aid=2196&sec=Islamic%20Finance