In evidenza

Disruption, fintech and CSR the 3 mantras for islamic finance

wibc second day

 

Convened by Middle East Global Advisors – a leading financial intelligence platform facilitating the development of knowledge-based economies in the MENASEA markets and in strategic partnership with the Central Bank of Bahrain, the forum is spurring a series of discussions focusing on “Islamic Finance & Sustainable Economic Growth in the Age of Disruption”, a theme that resonates with the conference’s steady vision to serve as a definitive check point for the global Islamic finance and banking industry.

Islamic finance may play an outstanding role in global economy especially if able to leave its comfort zone, with the help of new technologies in front end (improving customer experience) and most of all in backoffice processes.

Showcasing his support for Islamic finance entities to thrive and grow globally and stressing on the way forward for the industry, the Governor of Central Bank of Bahrain, in his address mentioned, “Islamic finance has followed a fragmented growth pattern since the start with various countries in the Middle East and South East Asia taking the lead. These country specific models have achieved reasonable success as measured by the share of Islamic finance in the respective markets. I would like to argue, however, that the reduced pace of growth suggests that we cannot hope for a new growth paradigm while maintaining the status quo. If the developments in the conventional finance industry are any indicator, it is reasonable to expect that regional and global cooperation can open new doors for the Islamic finance sector. The magic of such global cooperation works when some pre-requisites are in place, namely, leadership, standardization, good governance and risk management & compliance.”

“Shari’ah standards, accounting standards, prudential standards and best market practices, all need to be developed for the Islamic finance industry with the global audience in mind. AAOIFI has been doing excellent work on Shari’ah and accounting standards while Islamic Financial Services Board (IFSB) has developed risk management and capital adequacy standards which conform to global best practices. International Islamic Financial Market (IIFM) has made valuable contribution towards standardizing money and capital market contracts as well as financing contracts. The recent endorsement by the IMF of the IFSB’s proposed core principles for Islamic finance regulation and their assessment methodology for financial sector assessments is a great news for the global acceptance of Islamic finance. What we need now is to convince regulators and market players to adopt AAOIFI, IFSB and IIFM standards in their respective markets”, added Mr. Maraj stressing on the need for standardization to enable global growth.

Commenting on the changing face of financial services due to the advent of digitization, Dr. Sami Al-Suwailem, Head of Financial Product Development Centre, Islamic Research & Training Institute, Islamic Development Bank in his keynote address stated, “The size of e-commerce is about three times the size of the Islamic financial industry. This means that there is an ample room for the industry to invest and to participate in the digital revolution. Moreover, e-commerce will be a very good channel to manage the liquidity of Islamic banks. This is a challenge that has long been waiting for a solution. E-commerce seems to be a promising sphere. With the fintech revolution, online sales can seamlessly meet the requirement of Islamic finance. If Islamic banks invest in this area, they will be able potentially to reap lucrative returns from a growing large sector, manage their liquidly efficiently, and participate in real economic growth and development.”

The conference also played host to an exclusive interview of H.E. Khalid Al Rumaihi, Chief Executive, Bahrain Economic Development Board, which focused on emerging projects and financing, the value added tax which will be implemented in the Kingdom in addition to the benefits and risks of digitization.

H.E. Khalid Al Rumaihi discussed the Government’s integral role in supporting the continuous development of the local economy; encouraging constant collaboration between the public and private sectors, as well as creating an ecosystem that is conductive to the success of startups and entrepreneurs, in order to ensure the Kingdom maintains its lead at the forefront of its competitors in digital transformation across industries. Mr. Al Rumaihi also mentioned the key milestones achieved by the GCC countries during the past three decades, and how they have employed the bilateral cooperation as a factor to promote brotherly countries and unite efforts to succeed in the initiatives and plans set in this regard.

Ahead of the panel session on economic growth & sustainable finance, Adnan Ahmed Yousif, President & Chief Executive, Al Baraka Banking Group, said, “The World Islamic Banking Conference, has, over the last 25 years, established itself as a key global forum for in-depth discussions on the facets of the continued global growth in Islamic finance. The Islamic Financial Services industry has shown tremendous progress as one of the fastest growing asset classes in the world. The industry continues to expand in many emerging and advanced markets and introduce new standards that should further help develop products and attract investors. The industry’s global appeal continues to grow and attract remarkable attention, including from the UK, Europe, Asia, Africa and North America. In order to for Islamic banks to expand their geographical footprints further over the coming years, they must be able to compete more effectively and tackle a number of key challenges facing the industry, including delivering cost efficiencies, building greater talent pools, enhancing corporate governance; leveraging digitization, delivering innovative products that meet genuine market needs; and ensuring risk management systems are up to par. For the Islamic finance industry to build a solid foundation for the next phase of international growth, the industry must undergo transformation in a number of key areas. The 25th Anniversary World Islamic Banking Conference (WIBC 2018) is a key platform for industry leaders to put a spotlight on the challenges, innovations, latest developments and technological solutions essential for further growth of the global Islamic banking and finance sector.”

The conference also saw a Keynote Address by Aziz Elkhyari, Head of Business Development, Casablanca Finance City Authority who spoke about Fostering the development of Islamic finance in Africa and the role of financial centers. This was followed by the joint launch of Casablanca Finance City (CFC)-Thomson Reuters Report – Islamic Finance in Africa: The upcoming frontier that provides an industry landscape of Islamic finance in African countries with an overview of the industry development in 5 African countries including Morocco.

The conference proved to be the ideal launchpad for a number of key financial intelligence reports and also saw the launch of The Global Report on Islamic Finance – 2018: The role of Islamic finance in financing long-term investments by Islamic Development Bank that highlights how Islamic finance could help mobilize long-term funding for development programs.

Other key highlights from the day include the panel discussions focusing on economic growth and sustainable finance, the Fintech Panel on the Digitization Journey of a Global Bank and the Region Round Table focusing on Africa. Leading industry experts analyzed the challenges at hand and focused on coming up with effective suggestions with the ultimate aim of developing a convergence roadmap for the Islamic Finance industry at large.

Annunci
In evidenza

25th WIBC officially kick-started: key insights at the IIFM Awareness Seminar

WIBC 5

 

The 25th Annual World Islamic Banking Conference (WIBC) officially kick-started with a stimulating IIFM Awareness Seminar that covered a broad spectrum of issues, focused on entrenching transparency in advancing sustainable growth in the Islamic Financial Market, on the 26th of November at the ART Rotana Hotel, Amwaj Islands, Bahrain.

With a packed audience of 300 delegates, the 9th annual IIFM pre-conference seminar saw an insightful opening address by Khalid Hamad Abdulrahman Hamad, Executive Director of Banking Supervision, Central Bank of Bahrain and Chairman of IIFM, who discussed IIFM’s 3 Year Strategic Plan (2017 – 2020) and its new initiatives being undertaken in collaboration with other international bodies such as the two Participation Agreements for Islamic Trade Finance that will be launched soon jointly with Washington based Bankers Association of Finance & Trade (BAFT) as well as the master agreements for gold trading being considered with UK based World Gold Council and London Bullion Market Association.

Stressing on the growing need for widespread adoption of standards, Mr. Hamad said, “IIFM has gained much credibility and reached a stage of maturity with sound achievements to date, however, there is still a burning need to get its standards to be used more actively by wider market players which can only happen if there is strong endorsement from regulators, particularly those in Islamic banking markets across GCC and Asia.”

The opening address was followed by an overview of IIFM’s Shari’ah-Compliant Financial Documentation and Product Confirmation Standards. The rest of the day ensued with thought-provoking sessions covering the most pressing issues affecting Islamic financial markets like Trade Finance and the IIFM-BAFT Master Participation Agreements; Developments in the Global Sukuk Market and Gold related Shari’ah-Complaint Documentation & Products Standardization Possibilities.

The seminar concluded with a critical discussion on the latest developments in global financial markets that saw an assessment of Benchmark Rate Reform and the preparedness levels of Islamic financial institutions. The session also discussed the need for digitization of Islamic financial contracts and products and the challenges which Islamic banks have to overcome particularly in adopting smart contracts.

The seminar saw a host of critical insights unfold from Industry Leaders comprising Ijlal Ahmed Alvi, Chief Executive Officer, IIFM; Hammad Hassan, Managing Director, Bank ABC Islamic and Group Head of Islamic Banking, Bank ABCAndrew Naylor, Director-Central Banks and Public Policy, World Gold CouncilLilian Le Falher, Executive Manager, Head of Treasury, FI & Capital Markets, Kuwait Finance House (Bahrain)Omar Mustafa Ansari, Acting Secretary General, AAOIFIMian Nazir, Chief Executive Officer, Dar Al Sharia; Habib Motani, Partner, Clifford Chance LLP; Dr. Hatim El-Tahir, Director, Audit & Assurance, Deloitte & Touche – Middle East among others.

 

In evidenza

The Naked Pitcher at the “25th World Islamic Banking Conference”

We are glad to attend this important event we the aim to give also in this field a contribute in facilitating strategic opportunities,  and connecting international market players, academic and research world, startuppers and institutional investors

In the coming weeks there will be more interesting contents and full coverage during the event days. We also would like to give a special thanks to the organization for making this possible.

25th World Islamic Banking Conference Announces 4th Series of WIBC Leaderboard to Foster Global Islamic Banking

WIBC 5

Top performing Islamic Financial Institutions from Bahrain, Egypt, Indonesia, Jordan, Kuwait, Malaysia, Oman, Pakistan, Turkey, UAE and Saudi Arabia are vying for the WIBC Awards recognizing the Best Performing Banks at the Global and Regional level.

Manama, Kingdom of Bahrain, 22 October 2018: A testament to its vision of advancing the global Islamic banking industry, the 25th World Islamic Banking Conference (WIBC) will continue in its endeavor of enhancing the performance and quality of key Islamic financial institutions by means of the 4th WIBC Leaderboard.

Held under the patronage of HRH Prince Khalifa Bin Salman Al Khalifa, The Prime Minister of the Kingdom of Bahrain and with the strategic partnership of the Central Bank of Bahrain, the World Islamic Banking Conference (WIBC) will take place on November 26th, 27th & 28th at the ART Rotana Hotel in Amwaj Islands, Kingdom of Bahrain. A key highlight of the three-day forum will be the annually anticipated WIBC Performance Awards 2018, whereby industry leaders will be recognized for their excellence at the Gala Dinner on November 27, and the nominees of which have been already announced and can be viewed at: https://wibc2018.com/awards

Introduced in 2015 and forming the basis of the annual WIBC Performance Awards is the WIBC Leaderboard: a first-of-its-kind comprehensive assessment tool aimed at helping the Islamic finance industry to critically appraise the challenges and growth opportunities that lie ahead.

The WIBC Leaderboard ranks Islamic banks as compared to their key competitors at the global and regional levels, based on various robust financial and governance metrics. These metrics comprise: Financial Stability (Total Capital and Tier 1 Capital Ratios, Loan-Loss Reserves (LLR) to Gross Loans Ratio, Loan-Loss Reserves (LLR) to Non-Performing Loans (NPL) Ratio, Non-Performing Loans (NPL) to Gross Loans); Financial Performance (Return on Average Assets (ROAA), Return on Average Equity (ROAE), Cost-to-Income Ratio (CIR), Assets Growth) and Governance and Social Responsibility (Financial Disclosure Index, CSR Disclosure).

In addition to the individual metrics, banks will be ranked on the basis of an aggregate score, which forms the apex of the WIBC Leaderboard. This aggregate index holistically ranks entities on the basis of the aforementioned financial and governance measures. The data employed in creating the assessment framework has been sourced from the ICD Thomson Reuters Islamic Finance Development Indicator (IFDI) and Orbis Bank Focus.

Top performing Islamic financial institutions will be vying for 2 categories of the awards: One Global Award and Three Regional Awards for each of the following world regions: GCC, Asia and Levant. Currently, top performing Islamic banks vying for the Global Award include: Kuwait Finance House (Kuwait); Al Rajhi Bank (Saudi Arabia); Jordan Islamic Bank (Jordan); Kuwait International Bank (Kuwait); Boubyan Bank (Kuwait); Ahli United Bank (Kuwait); Warba Bank (Kuwait); PT Bank Syariah BNI (Indonesia), Maybank Islamic Berhad (Malaysia) & Dubai Islamic Bank (UAE).

Introduced as part of the 2nd WIBC Leaderboard, The Governance & CSR Award (Corporate Social Responsibility) will be a key award constituting this year’s WIBC Performance Awards, the scores of which will be aggregated as per the CSR Index and the Islamic Finance Development Indicator (IFDI). The Governance and Social Responsibility variables are extracted from the Thomson Reuters database. The innovative 25th edition will also see an Award for the Fastest Growing Bank (in terms of asset growth) to recognize an Islamic financial institution that has expanded rapidly over the last year.

Confirmed partners at The 25th WIBC so far include: Casablanca Finance City Authority, Ithmaar Bank, Khaleeji Commercial Bank (KHCB), World Gold Council, Bank ABC, Bank of Khartoum-International, First Energy Bank, Bahrain Islamic Bank (BisB), DWF, Al Baraka Banking Group, Thomson Reuters, Path Solutions, Moody’s Investor Service, Emerico, The Perth Mint, WTS Dhruva Consultants, Baker McKenzie, Eiger Trading, Department for International Trade – British Embassy Bahrain, DDCAP, Fitch Ratings, Sadad & GPS.

The theme for the 25th WIBC – “Islamic Finance & Sustainable Economic Growth in the Age of Disruption” is in line with the conference’s steady vision to serve as a compass for the global Islamic finance and banking industry, with the three-day forum expected to draw participation from over 1300 global industry leaders, policy makers, innovators and stakeholders, all focused on generating breakthrough insights that help navigate through the complexities of the global financial system.

To stay updated on the happenings of the WIBC Performance Awards, visit: https://wibc2018.com/awards

To find out more about the 25th World Islamic Banking Conference, visit: www.wibc2018.com

Join the global conversation on Twitter at: @WIBC2018 #WIBC2018 #25YearsOfWIBC

ABOUT MIDDLE EAST GLOBAL ADVISORS

Connecting markets with intelligent insights & strategic execution since 1993

 Middle East Global Advisors (MEGA) is the leading gateway connectivity and intelligence platform to Islamic finance opportunities in the rapidly developing economic region that stretches all the way from Morocco in the West to Indonesia in the East- The Middle East North Africa Southeast Asia (MENASEA) connection. For 25 years, our exclusive focus on achieving business results for the Islamic finance industry has enabled us to create significant value for the leading players in the Islamic banking, finance and investment markets.

 Visit us at www.meglobaladvisors.com

 ABOUT WORLD ISLAMIC BANKING CONFERENCE (WIBC)

The World Islamic Banking Conference (WIBC) has established its reputation as the world’s largest and most influential gathering of international Islamic banking and finance leaders for over two decades. With the strategic support of the Central Bank of Bahrain, the next generation WIBC will focus on transforming Islamic finance into a global proposition by facilitating strategic opportunities, addressing systematic challenges and connecting international market players and institutional investors to the industry’s catalysts, thought leaders, partners and institutions.

To find out more, visit www.wibc2018.com

© Press Release 2018