Islamic finance conference to be held in Dubai

Middle East Economic Digest (MEED) is planning to host a conference at the Park Hyatt, Dubai, exploring the complexities and growing opportunities in Shari'a compliant project finance.

Islamic finance conference to be held in Dubai

Eminent scholar Dr Hussein Hamad Hassan, Shari'a advisor to 18 financial institutions including Dubai Islamic Bank, will open proceedings and will be joined on the speaker platform by some of the leading experts and practitioners of this increasing popular form of project finance.

Project activity across the GCC continues to grow at an astonishing pace and increasingly local investors and developers are keen to finance their projects using loan structures that are in line with the Shari'a law, which proscribes the charging of interest.

There are, however, a number of major challenges which need to be overcome if this demand is to be met.

Firstly there is a shortage of liquidity in the region's Islamic banks to provide finance for the many massive projects under consideration. Secondly there is a drastic shortage of qualified Islamic scholars and legal experts able to structure the deals and ensure Shari'a compliance. Finally, project developers themselves often have limited experience of using Islamic financing structures and considerable uncertainty exists around key issues such as liability and risk.

This conference will attempt to bring some clarity to these complex issues and offer a best practice guide to using Islamic project finance successfully.

Discussing how to fill the liquidity gap, major international banks HSBC, Calyon, BNP Paribas and Japan Bank for International Cooperation will explore the challenges faced by conventional lenders as they develop their capacity to lend Islamically.

Tapping into the experience and expertise of the region's leading borrowers, lenders and legal experts, the conference will showcase a range of Islamic project finance deals, including the Al Waha Petrochemicals project and Shuqaiq IWPP, to provide a best practice guide for utilising Shari'a compliant project finance. The range of possible Islamic project finance structures will be explored including Istisna, procurement and Murabaha, plus an investigation of the potential of using Sukuk bonds to fund major projects.

Demonstrating the huge interest in Islamic products on the borrower side, the speaker line-up also includes major project developers, ACWA Power, Basell Polyolefins, Nakheel, Sahara, TAQA, Al Tuwairqi and Zamil Group, who will be sharing their plans and ambitions for using Islamic structures to finance future projects.

With interest running high both across the region and internationally, this conference promises to offer a networking who's who of the Islamic project finance market.

Source: Ameinfo

Last Mod: 04 Mayıs 2007, 18:13
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