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Islamic Banking Law |
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Knowledgeable people
Karawani law Firm |
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| Title: | Islamic Banking Regulation in Syria | | Topic: |
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The Islamic Banking law in Syria was issued in a good structure based on the previous experience of other countries in the Islamic banking laws and the amendment they done to their laws. The law included important issues to reach efficient regulations for Islamic banks is Syria, such as:
- The compliance with the accounting standards issued by the AAOIFI Accounting and Auditing Organization for Islamic Financial Institutions.
- The compliance with the capital adequacy standards of the Islamic financial services board ( IFSB) .
- The Law stated clearly the issue of the Shariaa board and the compliance with all Sharia?a principles in providing Islamic services and products.
The Syrian Islamic Banking Law requires a minimum capital of S?5 billion ($100 million), while conventional banks require a minimum capital of S?1.5 billion only. The 49% foreign ownership limit remains the same in Islamic banks as in conventional ones. Soon the foreign ownership percentage will increase allowing more participation of foreign banks in the Syrian market and facilitate banking investment.
The law allowed Islamic banks to own, sell, invest and rent properties and lands, to establish companies and participate in projects under establishment, all in compliance with Islamic rules and principles. |  | Title: | Islamic Banking Law | | Topic: |
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After 40 years of a complete absence of private banks in the Syrian market, Law 28 (for the establishment of private and joint-sector banks) was issued in 2001, permitting private banks to operate. This law had an enormous effect on the market. Many applications have been received, and some banks began operating in 2004. The first three banks to open their doors were Bank BEMO Saudi Fransi, Bank of Syria and Overseas, and The International Bank for Trade and Finance. These three banks are all joint ventures between banks and local and foreign investors. Within months, the banks realized the level of demand for such financial institutions in the Syrian market, and started opening branches throughout the country. Another three banks have recently received approval, and are in the process of completing their registration.
After a couple of years of success in the banking sector, Legislative Decree 35 was issued in 2005, allowing for the establishment of Islamic banks in Syria. Many international institutions were keen to invest in this area. The first Islamic bank expected to open will be the Qatar International Islamic Bank. The Islamic Banking Law requires a minimum capital of S?5 billion ($95.8 million), while conventional banks require a minimum capital of S?1.5 billion. The 49% foreign ownership limit remains the same in Islamic banks as in conventional ones. | |
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Arbitration & Litigation
