View PDF Edition - Islamic Finance News

country report
TUNISIA
Islamic finance in Tunisia
takes a new direction
By Karim Amous
Islamic finance is certainly a small niche in the global system
as it is a recent phenomenon (only 20 years in Tunisia)
compared to conventional finance, which has more than
four centuries. But that does not prevent Islamic finance
carrying considerable hope for humanity.
2012: A review
Islamic finance has taken a new course in Tunisia. The national
commission of the legal system of Islamic finance, established
in February 2012 as part of the development of Islamic finance
in order to better integrate into the economic and financial
sectors of Tunisia, has presented the results of its work during an
information day held on the 29th September 2012 by the Ministry
of Finance in collaboration with the Ministries of Justice and
Religious Affairs and the Central Bank of Tunisia (TCB).
A new investment structure has recently started its activities. It
is a Tunisian Islamic mutual fund with a budget of TND50 million
(US$31.6 million). Its task is to co-finance Halal high added-value
and complement financing schemes and launched projects in the
areas of regional development. This was announced on the 29 th
June by the head of the fund. This new fund is the result of a
public-private partnership, PPP, with technical assistance from
the IDB, and the support of institutions including the Al Baraka
Islamic investment fund and Kuwait. Our base is still in AL AMANA
constitution with a budget of TND100 million (US$63.2 million).
Several institutions will be present among the participants of this
fund of funds, including the IDB and several renowned Tunisian
industrial groups. The subscription to this fund remains open to
any person or foreign institution wishing to take advantage of the
high rate of return generated by the projects we handle. Tunisia
plans to create hundreds of new major projects in agriculture,
agribusiness, infrastructure, health, tourism and industry.
SMARTECO, the first Tunisian service firm dedicated to assisting
versatile investors and developers, plays a very important role
in linking and people who do not have the ability to interbreed
naturally. SMARTECO recently opened an office in Malaysia with
newly established partnership ISI Corporation, and plans to forge
strong relations between Tunisia and Malaysia.
S&P encourages Islamic finance
In a report on Islamic finance in North Africa, the rating agency
Standard & Poor’s (S&P), highlighted the improvements of the
prospects of Islamic finance in the countries of North Africa,
provided that regulators, policymakers and banks work together
to create a climate of trust.
The legislative framework for Takaful is ready
The acting Minister of Finance, Besbes Slim, recently announced
the completion of the preparation of the new legislative framework
for the establishment of Tunisia insurance plan ‘Al Takaful’ in
accordance with the principles of Islamic law.
The minister of finance noted that this new framework will apply
the Insurance Takaful Al or through the creation of an insurance
company specializing in Takaful or through the offices of classic
insurance companies.
2013: A preview
“A first in Tunisia, the draft budget of the State, under the year
2013, will be financed by Islamic Sukuk amounting to about TND1
billion (MTD) (US$632.55 million),” announced the minister of
finance, indicating that this would be part of the development of a
legal framework for Islamic finance.
A key step forward is the provision of tax incentives for
undertakings for collective investment in transferable securities
and tax benefits to investors, individuals and legal entities, in
addition to the tax exemption of savings invested in the stock
market, through savings accounts in shares and dividend
exemption.
As for transparency, it should be consolidated through incentives
for firms to comply with legal requirements for the publication
of periodicals and occasional information while preserving
consistency, clarity, sincerity and comparability of financial
information.
The governor of the central bank stated that Islamic finance in
Tunisia has not yet achieved the desired objectives. There are
only two banks in Tunisia including Islamic Al Baraka, a nonresident
bank that is expected soon to launch onshore. The
assets of these two banks (Al Baraka and Zitouna) do not exceed
TND1.4 billion (US$885.57 million), or 2.5% of total sector assets.
The governor of the central bank explained this growth of Islamic
finance and its nature, based on risk sharing through the use
of innovative approaches and investment according to customer
needs and requirements, in a recent speech. He also explained
that Islamic finance will encourage conventional banks to be
more competitive.
For his part, the acting minister of finance has indicated that despite
the relatively early introduction compared to our neighboring
countries (as the first Islamic bank was established in Tunisia
in 1983), we have seen many delays in the development of the
industry and Islamic accounts make up only 2.5% of the entire
financial system. “[We have] a lot of work ahead of us. We must
put in place structures to mobilize resources and attract capital,
“said the minister. According to him, until now, Islamic finance is
an opportunity to capture capital currently held in conventional
banks.
Besbes has recommended, in this context, to address the
main challenges preventing the development of Islamic finance
in Tunisia; including the lack of an adequate legal framework.
Once this challenge is raised, much work remains to be done,
particularly through training and job creation. “Do not settle for
a legal framework to stimulate the sector, but also requires that
operators be creative field and provide the public with attractive
consulting www.IslamicFinanceConsulting.com
www.IslamicFinanceEvents.com
products and efficient,” Besbee explained.
www.IslamicFinanceNews.com
www.IslamicFinanceTraining.com
www.MIFforum.com
www.MIFmonthly.com
www.MIFtraining.com
www.REDmoneyBooks.com
Karim Amous is managing partner at Smarteco. He can be
contacted at ka.smarteco@gmail.com.
February 2013 51