Manama, May 8th, 2005
“According to the General council for Islamic Banks and Financial Institutions (CIBAFI) database, the global Islamic Financial Services Industry IFSI includes 284 Islamic Financial Institutions IFIs operating in 38 countries, both Muslim and non-Muslim, around the world and boasts total assets of around US$ 178.5 billion (with the devaluation of the Iranian currency in 2003). This does not include conventional banks’ Islamic window operations estimated to be at least 200 US $ billion. However, the industry is still in an emerging state, with most of the institutions focused on basic retail and corporate banking, and 82% of IFIs with less than US 25 Million $ of paid-up capital, as well as no single IFI with paid-up capital exceeding US 1 Billion $.” Declared Dr. Ezzedine Khoja, Secretary General of CIBAFI.
Khoja also pointed out that CIBAFI has recently launched a 10-year strategic plan aiming at raising the glance toward IFSI forecasted growth within the coming 10 years, intimating that CIBAFI has forecasted IFSI growth through intensive analysis of external and internal strategic factors during the course developing the Strategic Plan.
Conducted by the Consultancy Center at CIBAFI, the Strategic Plan unveils several opportunities and challenges facing the IFSI, an issue that has enabled CIBAFI to formulate strategic alternatives based on combinations of those opportunities and challenges. “CIBAFI has made use of those strategic alternatives to make a diversified range of services which will support the IFSI at a large.”
The forecasted growth in assets to exceed (0.5) trillion US$ by the coming 10 years, the global positive response (especially in Europe), the growth of the emerging markets with Muslim communities, and the accelerated expansion and growth of the e-markets are some of the opportunities for the IFSI. However, “those opportunities impose several challenges with which IFSI godfathers should deal: the need for regulatory and legislative environments, human resources development, benchmark for product development and contract formulation, keeping up with and investing in IT, and media and awareness to disseminate the principles of the IFSI.” Said Khoja.
Having developed a unique statistical model to combine the effects of internal and external strategic factors, “the Consultancy Center at CIBAF has dealt with those factors to provide a real estimation of CIBAFI internal-external power on which it was leaned to make a range of services to support the IFSI.”
CIBAFI Consultancy Center has polled 20 senior managers in the IFSI and treated their opinions statistically. The findings have shown that CIBAFI ability to support the industry is greatly above average (with 3.75 out of 5 scores). “However, this result will not lead us to belittle CIBAFI weaknesses with which it shares all not-for-profit organizations such as: financial human and IT resources.” Khoja added that the polled managers have seen that CIBAFI has, somehow, overcome its weaknesses through several internal strengths such as the skills and competencies of its staff, its unique services, and its global reputation and brand.
In light of the results of the intensive statistical analysis conducted during the course of its strategic plan, CIBAFI has put a set of strategic objectives serving its entity as an organizational umbrella globally representing the IFIs, and supporting their industry through a range of services that includes: financial and administrative information, media and awareness to disseminate the principles of the IFSI, human resources development, consultancy, and R&D.
Information for editing:
The General council for Islamic Banks and Financial Institutions (CIBAFI) is an international not-for-profit organization established in Bahrain under the Ameeri Decree No. (23) in 2001.
CIBAFI Mission is “To support and promote the Islamic Financial Services Industry IFSI in theory and practice by being the organizational umbrella for the Islamic Financial Institutions IFIs that serves their Industry through information , media, research & development, consultancy, and human resources development”
Since the year of establishment, CIBAFI has supported the IFSI by several distinctive services including: the establishment of the International Islamic Center for Conciliation and Commercial Arbitration in Dubai on April 2004, the contribution in establishing a department for Islamic banking in the US Treasury Department in 2002, building a database containing historical administrative, financial and statistical information about IFIs, and launching the Quality Certificate Project for Islamic Financial products….. etc.