The Franco-American Alliance for Islamic Finance (FAAIF) has announced the Africa Islamic Economic and Investment Forum (AFIIEF) will be held in Dubai, United Arab Emirates (UAE) on March 14-15 next year, aimed at providing a platform for discussions on the potential of Islamic finance and investment in Africa.
FAAIF, a legal and management consultancy firm servicing clients in Islamic banking, finance, takaful, and the halal industries, said the AFIIEF would enable Gulf Cooperation Council (GCC) states and foreign investors to meet African companies and professionals to forge business relationships and stimulate the economic growth of Africa.
The organisers said Islamic finance is gaining momentum around the world with major banks and financial institutions in Asia, Europe, Africa, the United States, and Australia engaging in different modes of Islamic finance, issuing million dollar sukuks, developing takaful (Islamic insurance) companies, and implementing legislation and regulations in order to enable Islamic finance transactions.
“The business leaders of most nations of the world recognise Islamic finance as a valuable business model and form of alternative finance to stimulate economic growth, raise funds for businesses and government projects, and diversify assets, investments, and investor classes,” FAAIF said.
According to the organisation, Africa is embracing large-scale Islamic finance as it seeks to tap cash-rich Middle Eastern investors to finance large infrastructure programs. The Seychelles and Ghana issued Islamic bonds in 2006 and 2007 respectively, with Nigeria following suit in 2013 and Senegal raising US$200 million through a sukuk issuance in 2014.
According to Ernst and Young, the global sukuk market is projected to reach US$900 billion by 2017.
“It is the right time for Africa to engage in Islamic finance to attract funds for infrastructure and government projects as well as raise capital for African businesses,” FAAIF said.
