Islamic banks take position to reap from crisis: Business Daily

Written by James Makau

May 4, 2009: Islamic banks are stepping up their foray into Sub -Saharan Africa, riding on the confidence crisis facing conventional banking models.

This comes as cash laden Islamic states increase trade ties with the continent while African countries turn towards the Middle East for financing deals.

Islamic banks and financing institutions are now positioning themselves in the region while mooting the idea that the way out for global financiers is to embrace the Islamic financing and banking.

“In hindsight, Islamic banks are looking quite attractive,” says Najmul Hassan, the chief executive officer of Gulf African Bank, an Islamic bank operating in Kenya.

During the first Islamic Banking conference for East and Central Africa, Mr Hassan argued that the conventional financial sector has become too far removed from the real economy.

Islamic Financing, Mr Hassan said, has a sound general practice and a detachment for conventional banking procedures that place an emphasis on debt rather than equity.

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