Finance

Finance

Proposals prepared on amendments to legislation related to application of Islamic banking in Azerbaijan

02 December 2011 10:24 (UTC +04:00)

In his speech at the session of IV Baku International Banking Conference devoted to Islamic banking, Head of Group Behnam Gurbanzadeh said that IBA started the works related to Islamic banking in 2002 by the support of Islamic Development Corporation, it carried out market investigations and other preparation works, financed several projects. But there occurred necessity of establishment of special section for extension of the scale and now the work is underway in this direction.

â€œThe Group and consultants finished the investigation of legislation last week and it was revealed that application of 6 tools of Islamic banking is possible even in current state of the legislation. In general, state support is demanded for total application of Islamic bankingâ€, said Gurbanzadeh.

Note that, representatives of several world-wide Islamic financial organizations attended the session, they spoke about rapid development of Islamic banking in the world and in the CIS space. According to calculations, the volume of Islamic finance in the world will reach $2 bln in the next 5 years.

Remind that, the tender held for selection of consultant on application of Islamic banking at the IBA was attended by the alliance of Azerbaijanâ€™s â€œEkvitaâ€ company and â€œIslamic Finance Advisory Assurance Servicesâ€, â€œErnst&Youngâ€/â€Baker McKenzieâ€ alliance, â€œPricewaterhouseCoopersâ€, as well as â€œSalansâ€, â€œPinsent Masonsâ€, â€œKPMGâ€ and â€œDar Al Shariahâ€ companies consortium. Consequently, the consortium including â€œSalansâ€, â€œPinsent Masonsâ€, â€œKPMGâ€ and â€œDar Al Shariahâ€ companies won the tender.