Amwal Al Ghad English - 2013-06-27 08:09:14
Islamic banking experts have called on the Central Bank of Egypt to tailor its policies regarding Islamic banking services to be more in line with those of Islamic banks themselves.
The call came during the fourth annual conference of the Egyptian Islamic Finance Association, during which the association launched its index of shares compatible with Islamic law, measuring the performance of those shares traded on Egypt’s stock exchange by their compatibility with Sharia standards.
Muhammad Al-Beltagy, chairman of the association, said in a statements on Tuesday that such an index was not a new invention and has been used in a number of countries. The association would monitor the release and implementation of the index in accordance with the current circumstances of the market, after spending time reviewing the Quran and Sunnah. Experts in Islamic finance, including Hussain Hamed Hussan, chairman of the Board of Trustees for the Egyptian Islamic Finance Association, would also seek to cooperate with the IFA international investments firm before releasing the index.
Mustafa Ibrahim, forensic audit manager for the National Bank for Investment, said the index was unique in that it was founded upon Sharia standard number 21, released by the Accounting and Auditing Organisation for Islamic Financial Institutions, which spells out regulations related to the trading of securities. Most stock indexes deemed compatible with Islamic law throughout the Arab world are not rooted in this law.
He added that until now, many had been reluctant to invest in Egypt’s stock exchange, however the release of this latest index would encourage them to buy and rent stock. More»