Saturday, June 25, 2011

GERMANY - Dar Al Sharia signs collaboration agreement with German Islamic Institute of Islamic Banking and Finance

Dubai-based Dar Al Sharia Legal & Financial Consultancy, is the provider of Shariah consultancy services globally, has signed a collaboration agreement with the German Institute of Islamic Banking and Finance (IFIBAF). The relationship between these two organisations originates from a highly successful Islamic Finance Trade Mission to Europe conducted by Dubai Exports, an agency of the Dubai Department of Economic Development. (source)


The Islamic Finance Trade Mission sought to increase the awareness of Islamic financial service providers and institutions from the UAE in the European markets. In doing so the trade mission held a number of high level meetings and seminars with government and private sector participants in Europe. In due course, Dubai Exports will announce some of the outcomes from this mission but one success story was inked on Wednesday 22nd June 2011 at the Islamic Finance Forum organised by Dubai Exports with almost 200 participants.

Sohail Zubairi the CEO of Dar Al Sharia commented that, "I strongly feel that the next big thing in the Islamic Finance industry may well be Germany. It is not the matter of why but when the first Islamic bank will start operation in the country."

Zubairi continued to state, "Our feeling is built upon pleasant reveltion as to the high level of excitement and enthusiasm about Islamic finance amongst the bankers, lawyers, consultants and members of the public whom we met and talked to during the Islamic Finance Trade Mission in April."

Dar Al Sharia and IFIBAF intend to work more close especially in the field of capital market transaction for retail and institutional business. Bringing in local market expertise in legal and regulatory requirements combined with Sharia compliant product solutions, IFIBAF will benefit from the expertise of Dar Al Sharia, especially in the area of Sharia advisory and Sharia auditing.

IFIBAF is a German based consultancy that is developing Islamic banking and finance in the German speaking nations and Europe. IFIBAF serves clients in shariah compliant transactions and offers a full chain of services as an on shop system. Furthermore IFIBAF has a strong network and relationship to the German regulator, political Institutions to discuss in working groups how to facilitate Islamic Finance business for Banks and financial institutions. IFIBAF was established in order to be a provider of Islamic finance knowledge and expertise to the largest Muslim population in Europe of 4.6 million with an estimated wealth in excess of Eur35bn.

Mounsif Chtaiti, Director of IFIBAF stated, "This partnership brings together the huge and extensive expertise of Dar Al Sharia in providing Islamic financing and investment solutions to the institutions from around the world with the on the ground knowledge and connections of IFIBAF in Germany."

Chtaiti stated that, "This agreement will help in serving the institutions and clients needing consultancy services for Islamic finance products, training and Sharia audit in Germany and other German speaking nations in the Europe."

The German potential is huge for the Islamic finance world because the growth rate of the population is high as well as being young. Three quarters of the Muslim population in Germany is below the age of 49. In addition to this estimates show that the Muslim population in Germany has a much higher saving ratio of 18% compared to 10% for the country as a whole.

More importantly, a survey in 2010 showed that 72% of Muslims living in Germany are interested in Islamic financial products and services. The survey also found that if such products were to be offered in Germany, 60% of respondents would consider making an investment. An amazing 94% of them stated that they would purchase such products if offered by an Islamic financial institution. Muslim entrepreneurs generated more than Eur50bn in profits last year and Germany is most ideally placed in Europe for the launch of Shariah compliant corporate.

Dr Hussain Hamed Hassan, the world most learned Shariah scholar and Managing Director of Dar Al Shariah commented that, "It is befitting to Dubai being the birth place of Islamic Finance (Dubai Islamic Bank, the world's first Islamic bank was established in Dubai), that such an agreement is signed here which will allow the flow of innovative products from Dubai to Germany."

Dr Hussain added, "I would personally like to thank Dubai Government represented by Dubai Exports Islamic Finance Team, and the German Government represented by AHK for facilitating the Islamic Finance Trade Mission and the agreement which is the direct result of the mission."

Source : http://www.mebankers.net/page.Article.cmc?&A=6&B=1308797157&C=2011&SID=1 - June 23, 2011

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