9th February 2016, Khartoum, Sudan | The Islamic Research and Training Institute (IRTI) and the General Council for Islamic Banks and Financial Institutions (CIBAFI) in a strategic partnership with Bank of Khartoum
- today launched the Sudan Islamic Finance Report 2016.
Fadi Al Faqih, Chief Executive Officer of the Bank of Khartoum, said "This is a significant and balanced country report which fully reflects the comprehensive state of development of the Islamic finance industry in Sudan. The report provides detailed analysis and key insights on the unique development of the Islamic finance industry in Sudan. Bank of Khartoum is committed to adopting the necessary efforts in making more information available, credible and independent."
With a fully Shariah-compliant banking and financial system, Sudan is considered one of the most resource-rich countries in North Africa. The report shows that the republic's economy is expected to gradually moderate in 2016 and 2017, after experiencing an economic downturn in 2014/2015, caused by the drop in the financial services sector. The report finds that Sudan is still emerging with a stable and flourishing economic outlook, especially in terms of gradually lifting more sanction areas, which if handled well, can lead to the flowing in of foreign investments.
Islamic Finance in Sudan: A Growing Base
The report points out that the financial system of Sudan has maintained a growing base, while depending solely on Shariah-compliant transactions since 2002. Multiple market players including banks, insurance companies and microfinance institutions are expanding, under the governance of the Central Bank of Sudan. Banking assets reached SDG 92 billion (US$ 15.6 billion), showing a compound growth of 16.64% between 2009 and 2014. Total contributions by Sudan's insurers reached SDG 1.1 billion (US4 180.1 million) in 2013. Sudan also, dominates the global sovereign short-term Sukuk market after Malaysia.
The total assets of operating banks in Sudan have increased by 19% from 2013 to 2014, but Sudan still remains under-banked with financial institutions concentrated predominantly in and around the capital, Khartoum. The report proposes that continued government support in microfinance as a means to increasing access to finance is important for enhancing financial inclusion. Sudan has had considerable microfinance initiatives. In 2014, microfinance reached 4.6% of the total banking financing.
Professor Dr. Mohamed Azmi Omar, Director General of IRTI, commented: "The report provides a detailed analysis and the initiatives Sudan is offering to continue to create a stable and business-friendly environment focused on the enhancement of the competitiveness of its economy and the realisation of an inclusive and sustainable socio-economic development."
New pathways to enhance traditional knowledge
The windfalls in Sudan will require new pathways of investments, including investment in human development, economic diversification and private sector promotions, the report notes. Although it is one of the oldest markets, has the only fully Shariah-compliant financial system in Africa, and possesses traditional knowledge in the field, Sudan still lags behind a number of new market entrants in terms of access to data, information and financial inclusion.
Awareness is the biggest hurdle in Sudan, due to the effects of poverty, besides lower banking penetration in rural areas such as Darfur and Kurdufan states (6%) compared to the highest in Khartoum of 41%. Human development remains low, which in turn affects consumer knowledge about financial services and push the country behind in terms of product innovation, customer services skills, competitiveness and advanced techniques in attracting new investors.
The report suggests plans aimed towards mobilising public-private partnerships, in line with government development plans to dedicate greater attention to infrastructure development, agriculture and livestock investments, and expanded microfinancing abilities.
Mr. Abdelilah Belatik, Secretary General of CIBAFI, said: "We are confident this report will bring useful insights to the stakeholders that have interest in this promising market, from inside or outside the Republic. It is a timely contribution which highlights the opportunities as well as the potential challenges facing the further development of a cohesive Islamic finance industry, CIBAFI is delighted to launch this report for the benefit of its members in Sudan and the industry stakeholders at large"
To download the full report version of Sudan Islamic Finance Report 2016: Next Phase of Development, please click this link:
About the Islamic Research and Training Institute
The Islamic Research and Training Institute (IRTI), a member of the Islamic Development Bank Group (IDBG), was established in 1401H (1981). The principal aim of IRTI is to undertake research, training and advisory activities in Islamic Economics and Islamic Finance to facilitate the economic, financial and banking activities in IDB member countries to conform to Shari'ah. A knowledge-based organization, IRTI, is considered to be one of the pioneers and the key centers of excellence around the world in promoting and supporting the development and sustenance of a dynamic and comprehensive Islamic Financial Services Industry (IFSI), which supports the socioeconomic development of IDB member states and Muslim communities across the globe.
Turkhan Ali Abdul Manap
Senior Research Economist
Tel: +966 126466329
About the General Council for Islamic Banks and Financial Institutions (CIBAFI)
CIBAFI is an international organization established in 2001 and Headquartered in the Kingdom of Bahrain. CIBAFI is affiliated with the Organization of Islamic Cooperation (OIC).
CIBAFI represents the Islamic financial services industry globally, defending and promoting its role, consolidating co-operation among its members, and with other institutions with similar interests and objectives.
With nearly 120 members from over 30 jurisdictions, representing market players, international intergovernmental organizations and professional firms, and industry associations.
For more information about CIBAFI, please visit www.CIBAFI.org - Tel: +973 17357300 Email: firstname.lastname@example.org
Bank of Khartoum (Since 1913)
Bank of Khartoum (BOK) is Sudan's leading and largest Islamic Bank offering its customers a full range of innovative financial products and services. It is also the oldest bank in the nation; celebrated its 100th year of serving the Sudanese people in 2013.
BOK offers services to Corporate, Retail, Microfinance, Treasury and Investment Business Segments. It also owns various subsidiaries in Trade, Exchange, Brokerage, Commercial Real Estate and Islamic Microfinance. The balance sheet of the bank as of December 2015 is USD 2 Billion.
Headquartered in Khartoum, BOK has over 1,600 employees. BOK has over 100 branches & cash offices and over 200 ATM /CDMs, the largest branch and ATM network in Sudan.
Apart from offering full Corporate Banking solutions, Cash Management, Treasury and FI, BOK is the only bank to offer full Retail Products and services like Retail Asset Financing which includes Durable Finance, Education Finance, Wedding Finance etc, Loyalty program, 24x7 call centre, mobile banking, internet banking, Point of Sales, ATMs, Cash Deposit Machines, Debit Cards, AL NUKHBA (Premier Banking), SME , Microfinance, and variety of accounts (Current, Savings, Saving Plus, Fixed Term) etc.
Its major shareholders include local and regional businessmen and various institutions such as Dubai Islamic Bank (DIB); Islamic Development Bank, Jeddah; Abu Dhabi Islamic Bank; Sharjah Islamic Bank and Etisalat.
As part of Bank's 2014 - 2016 strategy to expand regionally and in GCC, BOK recently opened its 1st international branch in Bahrain, known as BOK International.
© Press Release 2016