Islamic banking and finance is currently experiencing rapid growth not only in Islamic countries, but spreading and growing in all the international financial markets. It has almost the same function as the traditional banking system whereby both provide finance and investment, except that Islamic banks operate in accordance with the rules of Al Sharia Al Samha. The basic principle of Islamic banking is the prohibition of interest known in Arabic as “riba.” No interest can be given or received.

New private banks, both conventional and Islamic have been and are still continuing their support in building the Syrian economy. They are very active in financing all kinds of projects, consumer needs, documentary credit, trading and investment. They have also contributed a great deal to the country’s flourishing real estate market, through the continuous need for up-market properties to buy or rent.

Hiring banking staff is another booming area which was created by the need of the new banks. Unfortunately, there is not enough experienced staff in the market. Experience and language proficiency are the main problems facing the banking industry, and international companies in the short term. It appears more recently that the public are looking very favorably upon Islamic banking services, and products.

There are now more than 250 Islamic financial institutions operating around the world. The United States accepted Islamic finance in the mid 1990s at a time when the Islamic Dow Jones was created in accordance with Sharia law. In 2004 the state of Saxony Anhalt in Germany issued $100 million in government Islamic funds.

It must be pointed out that traditional banks both in the Middle East, and across international financial markets, have already set up Sharia compliant divisions or are in the process of doing so.

It is possible that investments in Islamic financial institutions can provide potential profit in proportion to the risk assured to satisfy differing demands of investors with the guideline of Sharia. The concept of profit and loss sharing, as the basis of financial transactions in Islamic finance, would determine the quality and the professionalism of the management team.

It is essential to know that Islamic financial institutions are structured in a clear and deferential way between shareholders capital and clients deposits in order to ensure correct profit distribution in accordance with Sharia.

In addition to Islamic banks, the financial markets are home to a wad of new Islamic related products such as:
- Islamic insurance companies, which are becoming like a new arm to most Islamic banks.
- Islamic investment companies
- Islamic consultancy firms.
- Sukuk
- Hedge funds
- Currency swaps

With sound foundations in Arab and other Muslim countries, Islamic finance is also starting to move into Europe. London was the first European country to allow the opening of an Islamic bank, and in early 2009 the London Stock Exchange listed its first Islamic product (SUKUK). Moreover, there is dialogue continuing in London regarding the UK government planning to introduce its first sovereign SUKUK issue.

Although Syria at present has only two Islamic banking companies, very soon Albaraka Bank Syria will enter the Syrian banking sector. AlBaraka Bank Syria will be managed and operated as a member of AlBaraka Banking Group, headquartered in Bahrain. Albaraka Banking Group is one of the oldest, largest and most distinguished Islamic banks in the world. It has a $1.5 billion capital, and more than 320 branches and representative offices distributed in 20 countries and located on three continents. Recently, three Albaraka branches won the Global Finance Award for the best Islamic banks in three countries, those being Jordan, Algeria and Turkey.

Finally, I would like to say that Albaraka Bank’s mission in Syria is to be amongst the leaders in Islamic banking and offering retail, commercial, and investment banking strictly in accordance with the principles of the Sharia. Albaraka Bank Syria is looking forward to promoting innovative and high quality services, and to support the Syrian economy.

On October 4 last year, Albaraka Syria offered 3.5 million shares, representing 35% of the $100,000,000 capital, for subscription, at 500 SP per share. The IPO was oversubscribed by about 425%, a great success, and achieved an excellent result with the bank expected to be ready for opening the first quarter of 2010, Inshallah.

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• Sam Dalla: Was the Chinese model that good?

• Assad appoints a 29-member Constitutional Committee, for a new constitution by next February
• Sam Dalla: Was the Chinese model that good?