By Ron Chen, Correspondent ASEAN Region

A webinar was held today jointly by the Islamic Corporation for the Development of the Private Sector (ICD)  and Afghanistan Banks Association (ABA), in collaboration with Da Afghanistan Bank (Central Bank). The webinar was organized with the support of the Islamic Development Bank Group Business Forum “THIQAH” (a function under the umbrella of ICD), with the theme “The Transformation of the Islamic Finance Industry in Afghanistan”. The event was attended by many delegates from the Central Bank, government entities and Islamic and conventional banks in the country.

The event was officiated by Regional Head – Asia, ICD Ahmed A Khalid and followed by the welcoming remarks from Director-General, Islamic Banking and Financial Services Department of Da Afghanistan Bank Dr. Muhammad Yusuf Saleem and Executive Director, Afghanistan Banks Association, Najibullah Amiri.

The webinar aims to support the Central Bank of Afghanistan’s initiatives on the transformation of the Islamic finance industry in the country by showcasing ICD’s products and services  available for banks and non-banks financial institutions in Afghanistan. The webinar provided a platform for constructive and fruitful dialogue between the various constituencies and addressed topics of common interest to identify concrete ways and effective solutions to support the development of Islamic finance in the country.

As a member state of ICD, Afghanistan views Islamic finance as a mean to stimulate growth in key economic sectors, as well as a gateway for the country to build stronger ties in trade and investment with other member countries of ICD.

“Moving forward, ICD and ABA with strong support from the Central Bank of Afghanistan will continue to work closely to heighten awareness and understanding of the Shari’ah system for the banking sector, and iron out issues which may arise. To date, ICD has extensive experience in providing financial advisory and sound technical solutions to banks and non-banking financial institutions interested in converting to Shariah-compliant outfits. We believe that our support, in addition to the clarity in the government regulations, will further develop the Islamic banking industry in Afghanistan and subsequently, attract overseas investors from ICD’s member countries,” said the CEO of ICD, Ayman Sejiny.

Director-General of the Islamic Banking and Financial Services Department at the Central Bank of Afghanistan Dr. Muhammad Yusuf Saleem stated that, “One of our responsibilities is to develop the Islamic banking industry in Afghanistan, as it is still far from its potential. This webinar is a platform for us to give detailed explanations on the support and role of the Central Bank and ICD to the financial institutions to further develop their Shari’ah compliant business. We hope this webinar has provided valuable insight to delegates and sparked interest among the country’s private sector players to consider transitioning into Shariah-compliant outfits to leverage on the ICD’s Line of Finance that can support many private enterprises in the country.”

Executive Director, Afghanistan Banks Association Najibullah Amiri stated that “I am confident that ICD-IDB, ABA and DAB close coordination & cooperation in the banking sector, particularly Islamic banking, is direly needed just because that Afghanistan’s people are staunch Muslims and are desperate to implement Shariah based banking practices.”

Through this webinar, ICD and ABA aimed to impart the know-how related to the implementation of Shari’ah standards and the conversion of banks which already have Islamic units to become full-fledged Islamic banks. It is worth mentioning that ICD has successfully completed several conversions in CIS countries, such as Uzbekistan and others along with opening of Islamic windows for several conventional Banks. ICD also established an Islamic window for Afriland First Bank in Cameroon as a transitory step toward full conversion.