New insights into latest mechanisms and innovations in Islamic project finance

H.E Sheikh Abdulla bin Saud Al-Thani, Governor of the Qatar Central Bank commented in his keynote address on how the growth in infrastructure financing has coincided with the growth of Islamic banking all over the world during the last few years.

''In terms of economic growth, for the last three years the world economy has maintained high growth rates with an average of 5.2%. During this period developing economies averaged 7.7% growth while the average growth rate of Middle Eastern economies was around 5.6%. These strong growth rates partially reflect the substantial expansion in the field of governmental expenditure on infrastructure-related projects. For example, the high growth rates in Qatar have been accompanied by a constant increase in expenditure on major infrastructure projects. In 2003/4 this stood at QR 5.3 billion, increasing to QR 18 billion in 2005/2006 and more than QR 20 billion in 2006/2007'', said His Excellency.

The first session focused on the Next Wave of Opportunities and Sources of Finance for Large-Scale Infrastructure Projects, where the Opening presentation was made by Dr. Ali Mohieddin Al-Qurrah Daghi, Deputy Chairman of the Shari'ah Advisory Board for QNB Al Islami. Other Speakers in this session were Dr. Ahmed Jachi, First Vice-Governor, Central Bank of Lebanon, Mumtaz Khan, Chairman & Chief Executive Officer, Emerging Markets Partnership, and Nazim Elzein Omara, Chief Executive Officer, Borouj Capital.

The second session focused on Managing Complex Transactions: Innovation in Islamic Project Finance featured an opening presentation from Doha Bank's Chief Executive Officer, R. Seetharaman. Innovation and the increasing sophistication of Islamically structured transactions, the next generation of Islamic financial solutions and the question of whether Islamic financial institutions are ready for the challenges of increasingly complex transactions were discussed by a panel of experts which included Arul Kandasamy, Head of Islamic Financing Solutions, Barclays Capital, Tarek Bachnak, Assistant Director, Calyon Corporate & Investment Bank, Khalil Shaltout, EGM & Chief Islamic Banking Officer, Al Safa Islamic Banking - Commercial Bank of Qatar. The discussion was lead by Oliver Agha, Global Head of Islamic Finance & Partner of DLA Piper Middle East LLP.

The next session on Partnering with Conventional Financial Institutions to Mobilise Infrastructure Finance had Laurence Monnier, Senior Director , Fitch Ratings, Darshan Biju, Director, Islamic Finance Advisory, KPMG, Arul Kandasamy, Head of Islamic Financing Solutions, Barclays Capital, Rajeev Singh, Lead Partner - Project Finance (Middle East), Ernst & Young, Wael Yehia Abdel-Rahman, Investment Banking Manager, Investment House focused on how effectively Islamic and conventional banks can work together, overcoming the hurdles to successful collaboration, and insights into case study deals.

Highlights of the day also included the Shari'ah & Business Open Forum with panellists Dr. Aznan Hasan, Assistant Professor, International Islamic University & Shari'ah Advisor -Shari'ah Advisory Council of Bank Negara Malaysia, Dr. Muhammad Imran Ashraf Usmani, Shari'ah Advisor, Meezan Bank Ltd & Dr. Mohamed Elgari, Shari'ah Advisor & Professor of Islamic Economics, King Abdulaziz University. The session was led by QNB Al Islami's General Manager, Musadag El Melik.

The session involved a powerful debate on the challenges of Shari'ah-compliant project finance and effectively integrating the Shari'ah board with the business, plus international perspectives and insights.

The first day conference luncheon hosted by Doha Islamic Bank was a suitable opportunity for delegates, exhibitors and media partners to openly discuss topics in a more informal networking environment.

The conference, moderated by Naser El Tibi of CNBC Arabiya, sparked fruitful discussions and led to productive and insightful debate on the next generation of Islamic finance solutions.