Islamic Finance began over 1400 years ago, when the general population was mostly trading goods. Islamic banking follows the principles of equality, justice and equity. It therefore offers an ethical alternative applying these principles to the financial activities of its clients with innovative Sharia compliant instruments.
The remuneration going to Islamic banks is justified, and comes either from the sales margin given to the co-owner in the case of murabaha, the share of profit returns earned from the project the bank is financing (profit or loss) in the case of mudaraba or musharaka, previous rental income earnings in the case of Ijara or, lastly, from the making or building of movable or real estate property in the case of Istisn’a, be it through direct bank services or through third parties. In short, Islamic finance is participatory, collaborative and partnership-based.
Islamic finance keeps abreast of all global financial service sector innovations.
According to E&Y, Islamic banks are on a steady growth path, characterized by strong macroeconomic prospects in markets for Islamic finance and growth in asset shares
- A 16% rate of expansion in the sector (2008-2012) and USD 1.6 billion in Islamic assets (2012)
- A natural growth trend in the Islamic finance sector
- Competitive offers
- Sophisticated banking products
- innovative solutions for financing projects
ICD, the Islamic Corporation for Private Sector Development, is the majority shareholder in Tamweel Africa Holding, a private sector institution of the Islamic Development Bank Group (IsDB). It is the leading multilateral financial organization which operates according to the principles of Islamic finance in the private sector arena. ICD supports the private sector in its member countries by financing projects and investments through advisory services in several areas of activity. For example, it advises governments on Sukuk, privatization programs and the establishment of specialized economic zones.