A recent international meeting on Islamic finance examining the advantages of Malta acting as a centre for Shariah-compliant finance in the region concluded the country was strategically well-positioned to act as the "Bahrain in the Mediterranean".
Malta, the international experts present agreed, could be the ideal centre from where Islamic finance institutions may reach and penetrate the European Union and North African markets.
The event, held between October 12 and 16 at the Radisson Blu in St Julian's, was organised by the Malta Institute of Management in collaboration with the Malta Union of Bank Employees and the Malta Employers Association. It was made possible through the co-funding of the European Union funding programme Grundtvig and the collaboration of Bank of Valletta, Path Solutions, Newtech of Demajo Group and Erremme Business Advisors.
The five-day event, based on daily workshops, attracted world renowned speakers such as Mohammed Nedal Alchaar, Hussein Hamid Hassan, Abdulla Al Shami, Reuben Buttigieg,
**Nazmi Camalzaman and Oliver Agha. The delegates hailed from Italy, Luxembourg, Latvia, the UK, Turkey, Malta and Slovenia.
The first session concentrated on an overview of Islamic Finance and its potential in Europe and the Mediterranean. The other four days addressed different pillars of Islamic finance, including insurance, banking, funds and sukuk (asset-backed Shariah-compliant bonds) and Islamic capital markets.
During the workshops, various structures were considered, particularly with regards to Italy, Malta and Spain. The Malta formula was seen as a potential vehicle to assist Muslim communities and investors in these countries to have the alternative financing they require. The opportunity of 'Borzamed' as a Mediterranean platform for Islamic capital markets was also discussed.
Malta's legislation was also analysed and it emerged that the main issues are tax-related and not legislative as the perception in some quarters may be.
It was concurred that had Islamic finance been predominant in the world, the financial crisis would probably not have happened.
The Malta Institute of Management has been invited to organise a similar event in Italy and in Spain, following the success of the Malta event.