Kuwait Finance House Research (KFH Research), Kuwait, participated at the 11th Islamic Financial Service Board (IFSB) Summit held in Mauritius from 19 to 22 May 2014. The Summit themed “New Markets and Frontiers for Islamic Finance: Innovation and the Regulatory Perimeter” gathered over 300 delegates from all sectors of the financial services industry across the globe.
The Summit, which took place on 21st and 22nd May 2014, was launched with a Keynote Address byDr. The Hon. NavinchandraRamgoolam, the Prime Minister of Mauritius. After the keynote speech, the Prime Minister launched the Islamic Financial Services Industry (IFSI)Stability Report 2014. The Keynote Address was preceded by the welcoming addresses from the host of the Summit, Governor, Bank of Mauritius, H.E. RundheersingBheenick.
The IFSI Stability Report 2014 released forms part of the efforts by the IFSB to engage on topical issues with its stakeholders and for sharing with them findings of recent IFSB research.KFH Research was responsible for authoring Chapter 1 titled “Development of the Islamic Financial Services Industry” and Chapter 3 on “Assessment of the Resilience of the Islamic Financial System”. In addition to the IFSI Stability Report 2014, the IFSB also released the report on “Prospects and Challenges in the Development of Islamic Finance for Bangladesh”, which highlights the country’s prospects and challenges, initiatives and experiences in developing Islamic finance. Managing Director of KFH Research contributed a chapter titled “Global Overview: Issues, Challenges and Opportunities” for the publication.
The Summit also lined up 2-day pre-Summit events on 19thand 20th May 2014 which include Industry Development Sessions by key multilateral organisations among others the World Bank and the Asian Development Bank. Two Business Forum Sessions were also held by the Malaysia International Islamic Financial Centre (MIFC), the Islamic finance promotions unit of Bank Negara Malaysia, and the International Centre for Education in Islamic Finance (INCEIF).
In conjunction with the Business Forum by the MIFC titled “Islamic Finance and African Infrastructure Development”, KFH Research circulated a report titled “Islamic Finance in Africa: Unlocking Opportunities for Growth” with support from Bank Negara Malaysia. KFH Research and MIFC co-branded the report for this event on the request of Bank Negara Malaysia. This report studies the evolution of the Islamic finance industry in Africa and highlights the exciting growth prospects for the various Islamic finance segments on the continent. The report highlighted the promising role of sukuk market in Africa over the medium-run, amidst unprecedented funding needs for infrastructure building across the continent.
Sukuk provides a Shari’a compliant alternative to the conventional capital market, which makes it attractive to potential issuers in Africa and investors alike. In the next few years, Africa is likely to tap the sukuk market to support projects in the power, transportation and other projects.