Dubai Islamic Bank (DIB) has issued a statement claiming it will “shortly launch the world’s first sharia, legal and financial consultancy firm to provide, as a one-stop centre, for the solution of all financial structuring, legal documentation and product development needs of the Islamic finance industry.” I am, however, aware of at least one other institution already providing such services.
In the October 2006 issue of Structured Products magazine we profiled Yasaar Limited, a UK-incorporated company offering sharia compliance and co-ordination services. I have asked DIB if it can still claim to be the world’s first such company and am awaiting a response.
To be honest I’m not too fussed who has the first mover advantage. Rather the press release demonstrates increased competition in the field of sharia compliance. Banks are launching sharia departments and specialist companies, like the one due to be launched by DIB, are becoming more commonplace.
In the January issue of Structured Products magazine we ask David Kemp, Zurich-based director in the UBS Islamic Finance Group, about what 2007 may hold for sharia compliance. He forecasts the market will grow up to 20% in 2007, up from $500 billion today.
I’m sure many will claim to be the first to achieve something in the market, and I look forward to covering these developments as they happen.