09 April 2012
Muscat: Al Hilal Banking Services, the Islamic finance arm of ahlibank, proposes to launch five branches. "We will reassess the potential for opening more branches for Islamic banking operations and if necessary plan more," Hamdan Ali Nasser al Hinai, chairman of ahlibank, said exclusively to Times Business.
"In terms of infrastructure, we have implemented a Core Banking IT System (iMal) to support our Islamic banking activities, and identified premises and refurbished the same to create dedicated branches for providing Islamic banking services at five different locations across the regions and plan to propose more. In terms of products, we have identified the product range to be offered and have had the same configured in our system," Hamdan Ali Nasser Al Hinai said.
"The system has since been tested and is ready for launch. Internally we have identified staff to support our initiative and they have been trained as Certified Islamic Bankers. We have also recruited new staff who are undergoing training and our emphasis is to have a knowledge-based faculty of staff who will be able to add value to our Islamic banking initiative.
We have in place our policies and procedures which are currently under review for shariah compliance. We have plans to raise our capital and dedicate the new capital being raised at par to the Islamic banking activities," he added.
It may be recalled that ahlibank after been informed of the introduction of the Islamic banking in the country instituted a Steering Committee to work on the Islamic Banking Project.
Hamdan Ali Nasser Al Hinai said, "We are fortunate to have a strategic partner Ahli United Bank who have wealth of experience in managing Islamic banking throughout the Gulf Cooperation Council (GCC) countries and the UK, their experience have contributed in speeding up the process."
"The start-up included us submitting an approach paper to the Central Bank of Oman indicating our model and associated plans for which we received an in-principle approval. The Islamic Banking Framework advised by the CBO brought more clarity and since then, we have accomplished a number of our stated objectives in preparation for the launch," he added.
Elaborating about the current status of the Islamic banking services of the bank, he said, "We have in place the Corporate Governance structure with the constitution of the Shariah Board, the Shariah Compliance and Audit Unit, our Board of Directors approved organisational structure for the Islamic Banking services that would be provided under the brand name of "alhilal" and the logo for which necessary approval are in place."
"To keep pace with developments in the domain of Islamic Finance the bank has been conducting and sponsoring conferences and seminars on Islamic financing involving Shariah scholars, academicians, practitioners, professionals and students along with regulators and the general public. ahlibank is committed to launch a knowledge-based service in the Sultanate. We are now awaiting the rules from the Central Bank of Oman to fine tune our business plan for final submission to the CBO for their approval," he added.
Sharia board
ahlibank has already constituted its Shariah Supervisory Board whose members include Dr Ali Mohiyudin Al Quradaghi (chairman and executive member), Sheik Aflah Ahmed bin Hamad Al Khalili (member), Dr Fareed Mohammed Hadi (member) and Prof. Abdul Aziz Al Qassar (member).
On being asked how much money have been allotted for Islamic Finance operations, Hamdan Ali Nasser al Hinai said, "The board of directors have approved our initial business plan for the launch of Islamic banking activities and have allocated expenditure for information technology infrastructure, branches refurbishment, product launch, brand building, recruitment and a significant amount is allocated for training and development of staff."
"There is no fixed amount and depending on the proposed projects for the launch, we are able to get the necessary approvals from our Board," he added.
Muscat: Al Hilal Banking Services, the Islamic finance arm of ahlibank, proposes to launch five branches. "We will reassess the potential for opening more branches for Islamic banking operations and if necessary plan more," Hamdan Ali Nasser al Hinai, chairman of ahlibank, said exclusively to Times Business.
"In terms of infrastructure, we have implemented a Core Banking IT System (iMal) to support our Islamic banking activities, and identified premises and refurbished the same to create dedicated branches for providing Islamic banking services at five different locations across the regions and plan to propose more. In terms of products, we have identified the product range to be offered and have had the same configured in our system," Hamdan Ali Nasser Al Hinai said.
"The system has since been tested and is ready for launch. Internally we have identified staff to support our initiative and they have been trained as Certified Islamic Bankers. We have also recruited new staff who are undergoing training and our emphasis is to have a knowledge-based faculty of staff who will be able to add value to our Islamic banking initiative.
We have in place our policies and procedures which are currently under review for shariah compliance. We have plans to raise our capital and dedicate the new capital being raised at par to the Islamic banking activities," he added.
It may be recalled that ahlibank after been informed of the introduction of the Islamic banking in the country instituted a Steering Committee to work on the Islamic Banking Project.
Hamdan Ali Nasser Al Hinai said, "We are fortunate to have a strategic partner Ahli United Bank who have wealth of experience in managing Islamic banking throughout the Gulf Cooperation Council (GCC) countries and the UK, their experience have contributed in speeding up the process."
"The start-up included us submitting an approach paper to the Central Bank of Oman indicating our model and associated plans for which we received an in-principle approval. The Islamic Banking Framework advised by the CBO brought more clarity and since then, we have accomplished a number of our stated objectives in preparation for the launch," he added.
Elaborating about the current status of the Islamic banking services of the bank, he said, "We have in place the Corporate Governance structure with the constitution of the Shariah Board, the Shariah Compliance and Audit Unit, our Board of Directors approved organisational structure for the Islamic Banking services that would be provided under the brand name of "alhilal" and the logo for which necessary approval are in place."
"To keep pace with developments in the domain of Islamic Finance the bank has been conducting and sponsoring conferences and seminars on Islamic financing involving Shariah scholars, academicians, practitioners, professionals and students along with regulators and the general public. ahlibank is committed to launch a knowledge-based service in the Sultanate. We are now awaiting the rules from the Central Bank of Oman to fine tune our business plan for final submission to the CBO for their approval," he added.
Sharia board
ahlibank has already constituted its Shariah Supervisory Board whose members include Dr Ali Mohiyudin Al Quradaghi (chairman and executive member), Sheik Aflah Ahmed bin Hamad Al Khalili (member), Dr Fareed Mohammed Hadi (member) and Prof. Abdul Aziz Al Qassar (member).
On being asked how much money have been allotted for Islamic Finance operations, Hamdan Ali Nasser al Hinai said, "The board of directors have approved our initial business plan for the launch of Islamic banking activities and have allocated expenditure for information technology infrastructure, branches refurbishment, product launch, brand building, recruitment and a significant amount is allocated for training and development of staff."
"There is no fixed amount and depending on the proposed projects for the launch, we are able to get the necessary approvals from our Board," he added.
© Timber Design & Technology 2012
