OWN CORRESPONDENT, Manama | Monday 11.00pm.
A JOINT Islamic bank may be set up in South Africa in 1999 if negotiations with prospective Gulf Arab partners are finalised, a senior banker said on Monday.
”Talks with prospective Gulf partners reached an advanced stage,” Eric Hirsch, general manager of South Africa’s Absa Bank International (ASAJ.J), said.
”The framework for the launch of an Islamic bank in South Africa is in place and if we get the go-ahead the new bank, under a new brand, will be formulated in January and launched within six months,” he said in a statement.
Hirsch is currently in Bahrain to attend the fifth Islamic Banking and Finance Forum. He declined to name the prospective partners but said ”they have now to go back to their respective boards to get final approval.”
The proposed bank will be the second Islamic bank in South Africa, Hirsch said.
Islamic banks do not deal in interest — the core of the Western banking system — as it is considered by many Muslims as usury, banned by sharia.
There are some 200 Islamic financial institutions globally serving the world’s 1,2 billion Muslims. Bahrain hosts the largest concentration of Islamic banks and financial institutions.
The statement said Absa was seeking joint partners in the Middle East and South African trade financing operations.
”If this works, we would definitely consider opening a representative office in the Gulf though we prefer to go down the joint venture route with a Middle East bank which understands the region and its customer base.
”We currently have very close working relationships with two Gulf banks which would obviously be the first port of call for a joint venture,” Hirsch said without giving details. — Reuters