Olayemi R. Ibrahim With Agency Report
15 December 2011
Standard Chartered bank has opened discussion with regulators to offer Islamic banking services in Nigeria and Oman now that both countries are revamping their regulatory environments to encourage Islamic finance.
The global head of Islamic banking Wasim Saifi said on Sunday that the company, which already has a strong conventional presence in both markets, was waiting for the countries to finalise their regulatory frameworks for Islamic banking but could offer the services in Nigeria and Oman as early as next year.
He said they are evaluating the possibility of offering Islamic banking in both countries saying that the opportunity is tremendous and they are in discussions with regulators.
Nigeria’s central bank has been pushing to boost Islamic banking in West Africa’s largest economy as the apex bank approved the creation of the country’s first Islamic bank, Jaiz Bank, and Nigeria will seek to launch a debut sovereign sukuk in the next year.
Saifi said that as Islamic banking was growing in sophistication, the gap between conventional and Islamic finance was narrowing and the industry would take more market share from the traditional banking sector.
Standard Chartered Saadiq the Islamic arm of the bank, expects Islamic banking assets within the United Arab Emirates alone to grow to 20 percent of the total sector in 2012 from an estimated 18 percent this year.
He further said that the company was looking forward to increase its offerings in Islamic wealth management, which lags the conventional industry.
“We are working closely with our external vendors on the Islamic side to make sure our offerings are beefed up there.”
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