From Orchids to Edelweiss Singapore makes way for Switzerland to host IIFF Europe as Arab investors worth US$ 800 Billion call for Sharia'a Compliance
Dubai - The 10th International Islamic Finance Forum (IIFF), which concluded last week at the Swissotel in Singapore, has announced that Zurich will play host to the launch of IIFF Europe which is scheduled to take place on 13-16 November 2006. A customised conference programme has been specifically designed to address the relevant issues prevalent to the fledgling European Islamic Finance industry.
IIFF Europe which is being organised by the Dubai-based Institute for International Research (IIR) will focus on the growing demand for Sharia'a compliant wealth management and private banking services. It is estimated that Arab investors have more than US$ 800 billion on deposit in overseas banks, much of which is secured in Swiss banks. Calls for Arab investors to repatriate their wealth in the wake of 9/11, sluggish western stock markets and attractive Mid East property investment opportunities, have seen many hundreds of millions of dollars return to the Middle East. However this has been balanced by the massive budget surpluses created by the high oil prices and overall deposits overseas have remained relatively unaffected.
One striking trend has been the growing demand for Sharia'a compliant banking and with so much at stake, European banking and finance professionals are starting to sit up and take notice. With potentially more to lose than any other Swiss banks are now making concerted efforts to understand, embrace and implement Islamic Finance fundamentals. Indeed UBS, the largest Swiss bank has recently opened an Islamic branch in Bahrain to provide Sharia'a compliant products and services for its wealthy Arab customers.
On the IIFF conference agenda, more than twenty hours of dedicated networking time has been allocated for leading business figures, finance experts and government ministers to discuss the key issues relevant to Europe. Over 40 speakers have been confirmed so far and the forum programme which features in excess of twenty in-depth sessions covering a wide range of topics, including alternative forms of investment and the rapidly changing private banking landscape.
Forum Director, Christianna Tsiterou, commented, "After such an accomplished event here in Singapore and previous overseas successes in Turkey, we are confident about exporting the brand to Zurich. With so much Arab capital deposited in Swiss banks and growing demand for Sharia'a compliance, it is a logical destination for IIFF."
The Singapore Forum, which was opened by Heng Swee Keat, Managing Director, Monetary Authority of Singapore (MAS), attracted over 150 international industry professionals who were addressed by more than 70 expert speakers over three days, with dedicated pre and post conference workshops.
Islamic Finance, which was once considered as no more than an interesting aspect on the periphery of conventional mainstream finance, has emerged as a major global force, which was echoed by Singapore's ambition to become the centre of Islamic finance for the Asia-Pacific region.
Tsiterou commented, "The Monetary Authority of Singapore played an integral part in our preparation for IIFF Asia. Their support was instrumental to the success of the event and clearly underlined the government's aspiration for the future development of Islamic finance throughout the Asia-Pacific region."
The highlight of the conference was undoubtedly when Mr. Heng unveiled a focused three-point strategy to firmly place Singapore in the centre of regional Islamic Finance. This consisted of a structured combination of bridge-building, learning from and supporting other Islamic centres, Islamic product development and implementing sympathetic legislation and regulatory standards.
Highlighting the need for education in Islamic products, Mr. Heng commented, "Forums such as IIFF Asia will contribute significantly towards the further development of the industry throughout the SE Asia region."
The Asia-Pacific region houses the most populous Islamic nation on earth, Indonesia, which is home to over 200 million Muslims and out of an estimated global population of more than 1.5 billion Muslims, approximately 50% live within the Asia-Pacific region.
Mr.Heng stated, "The growth in the Muslim population will definitely provide great potential for the future of Islamic Finance in SE Asia. It is essential that it is not disadvantaged and we provide a level playing field for both conventional and Islamic finance."
Another highlight which was warmly welcomed by conference delegates, was the ground-breaking IIFF initiative to set up a scholarship fund to create more Islamic Scholars. Exponential growth in Islamic Finance over the past five years has led to a shortage of Islamic Finance Scholars who are desperately required to provide policy, product endorsement and overall direction for the burgeoning industry.
The IIFF Scholarship Fund aims to specifically address the shortage of financially literate Islamic Scholars which has risen dramatically following the surge in popularity of Islamic Finance. An increasing number of financial institutions interested in selling their products to potential Muslim investors are searching for Islamic experts who can issue religious edicts or fatwas approving these new Islamic products.
Christiana Tsiterou, Forum Director said "To maintain the current levels of growth, there are simply not enough Islamic Scholars who command the necessary respect to issue fatwas in addition to being recognised and respected throughout the Muslim World. In order to satisfy this need, the International Islamic Finance Forum is proud to announce the launch of the IIFF Scholarship Fund."
A number of awards were also presented at IIFF Asia, to recognise outstanding contributions to the further development of the Islamic Finance industry. The award for 'Contribution to the Development of Islamic Finance Strategy' was presented to the Monetary Authority of Singapore (MAS), which was gratefully accepted by Heng Swee Keat, Managing Director, MAS.
For their 'Contribution to Sharia'a Standards by a Sharia'a Council' Mr. Kanagalingham, Deputy Director Corporate Communications, Bank Nagara accepted an award on behalf of the National Council of Malaysia. Finally, the Dow Jones Citisukuk was given to Rushdi Siddiqui, Global Director, Dow Jones Islamic Indexes, for their 'Contribution to Islamic Capital Market Development'.
Other speakers of note at the forum were, Badlisyah Abdul Ghani, Head, CIMB Islamic, Malaysia; Baljeet Kaur Grewal, Vice President & Chief Economist Investment Banking, Maybank, Malaysia; Haissam Arabi, Managing Director, SHUAA Asset Management, UAE; Khalid Yousaf, Director Islamic Finance, Dubai International Financial Centre (DIFC) and Jacques Bernard, Head of Asset Management, Unicorn Investment Bank (BSC) who addressed the hot topics and key issues prevalent within the Islamic financial community.
-Ends-
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© Press Release 2006
