By Dr Mozammel Haque
Ireland is ready to embrace Islamic finance and investment, said Minister for Social Protection Joan Burton at an international conference on Islamic finance held in Dublin recently.
The two-day conference – organised by the Irish Business Executive Forum (Ibef), Dr Sheikh Shaheed Satardien of the Muslim Council of Ireland and the International Islamic Forum for Dialogue (IIFD) – also heard from leading financial services executives on the importance of making Ireland a hub for Islamic finance.
“A lot of opportunities” exist for Islamic finance in Ireland, said Tom Woods of KPMG, adding that Ireland has a “well-developed, highly regarded and vibrant” services centre for finance in the IFSC, as well as being an established gateway to the European market.
Woods said factors such as Ireland being English-speaking, having a young, dynamic and well-educated workforce, boasting a single Financial Services Regulatory Authority and being a founding member of the Eurozone are very attractive to Islamic finance.
Other factors, he added, are a lower cost base relative to other markets, and the steady inflow of foreign direct investment – the largest in the world in 2011.
Woods said for over 10 years the country was voted 10th in the world for ‘ease of doing business’.
While Ireland is yet to start operating Islamic finance, the concept is not a new one here, as he said a team specialising in Sharia-compliant funds was established by the financial regulator in 2008.
Woods also referred to the Government’s view of Islamic finance as an area with significant potential for growth in Ireland, as stated last year by Taoiseach Enda Kenny.
Aside from funds, there remains an opportunity for further growth and diversification within the banking and securitisation markets, he said, adding that the Government has indicated its commitment to support the development of the Islamic finance sector in Ireland.
Also addressing the conference was Dr Abdullah Omar Naseef, president of the World Muslim League, who travelled from Saudi Arabia to attend.
