INTERVIEW - Hussain Erkan - Turkey strives to build closer links with GCC stock exchanges

Turkey has been building capital market bridges to GCC and South East Asia, and chairman of the Istanbul Stock Exchange, Hussain Erkan, has been a leading architect in establishing dialogue, hosting events, and facilitating cooperation and coordination with his counterparts for both Islamic and conventional finance. In this interview, Erkan shares his thoughts on the challenges and progress of Islamic finance in Turkey, among various other issues. He is hopeful that the improvements made should be able to attract investors from the GCC. 

 

Gulf News: Would you kindly explain the role of Istanbul Stock Exchange in providing opportunities for those interested in Islamic finance?

Hussain Erkan: Islamic countries have a huge potential to create wealth in the economy with their rich resources and are capable of achieving more by improving their capital market structure. Since 2005, under the activities of Standing Committee for Economic and Commercial Cooperation of the Organisation of the Islamic Cooperation (COMCEC), Istanbul Stock Exchange (ISE) has been working on creating this awareness and developing the exchange industry in Islamic countries by acting as the coordinator of the Organisation of Islamic Cooperation (OIC) member states’ Stock Exchanges Forum. We also cooperate with other international institutions such as IIFM (International Islamic Financial Market)? on developing an appropriate structure to create solutions for increasing the liquidity of Islamic capital market instruments. (source)

MALAYSIA - EVENTS - Islamic bankers to meet next week Discuss slowdown and craft crisis measures - turn to Turkey, Oman and Kazakhstan

emirates247.com - Islamic finance officials will gather in Kuala Lumpur next week to debate the industry's future path and craft crisis measures, as banks' limited capital base and liquidity management ability render them vulnerable to a global slowdown. (source)

IDB urged to make trade financing more competitive

Behind the resolutions, the statements and the rhetoric of the Board of Governors of the Islamic Development Bank (IDB) at the recent 36th Annual Meeting which was held in Jeddah on June 29-30, were some commendable suggestions from member countries aimed at speeding up the efficiency and effectiveness of the bank. (source)

CAPITAL MARKETS - Shariah-Compliant Hedging Derivatives Start in Malaysia: Islamic Finance

Standard Chartered Plc and Bank Islam Malaysia Bhd. plan to offer Shariah-compliant derivatives in Malaysia that will allow investors to hedge against interest rates and commodity prices.

Standard Chartered, the U.K. bank that earns most of its profit from emerging markets, will begin selling contracts in the first quarter that provide protection from fluctuations in the cost of items such as rice and oil, according to an e-mailed reply to questions yesterday. Bank Islam Malaysia, the country’s oldest Islamic lender, will offer swaps that allow two parties to exchange different forms of payments from an underlying asset.

BANKING - Sharia banks may get hedge funding tool next year

Member countries of the International Islamic Financial Market (IIFM) may soon enjoy a hedging facility to reduce risks of financial transactions, officials say.

The IIFM’s Board of Directors agreed on Monday to implement a hedging facility for the sharia banking industry in the first half of next year amid global currency concerns.

Bank Indonesia’s director for sharia banking, Mulya Siregar, said that IIFM member countries would sign a master agreement, called a tahawwut agreement, to accommodate the hedging facility.

LEGAL - 'Islamic finance industry is under regulated'

RIYADH: The total assets of Islamic finance sector in the six-nation Gulf Cooperation Council (GCC) countries, which exceed $600 billion, have prompted the calls for regulating the Islamic finance industry and for imparting more training and skills to professionals working in this area. This was one of the findings of a major survey conducted by Deloitte's Islamic Finance Knowledge Center (IFKC), which was shared by Deloitte's experts, Tuesday.