Djibouti is since yesterday the African capital of Islamic finance. This is the head of state himself who opened in the morning yesterday at the Kempinski work of the 4th African Conference of Islamic finance. The summit, organized by the Central Bank of Djibouti, is the fourth of its kind. Many high public figures attended the opening ceremony of the works.

The 4th African Conference of Islamic finance was declared open yesterday Kempinski by President Ismail Omar Guelleh. The opening ceremony was attended, besides the head of state, many public figures including Prime Minister Kamil Abdoulkader and President of the National Assembly, Muhammad Ali Houmed.
Many experts from around the world participate in this conference organized by the Central Bank of Djibouti. Although the continent is mainly composed of Muslim communities, Islamic finance is not yet developed there significantly.

The conference, whose work will be spread over two days, will enable one and all to share their knowledge on Islamic finance while reflecting on ways and means of promoting development in Africa. This will question the need to strengthen economic exchanges between Africa and the Middle East through Islamic finance. Also, the theme this year is devoted to the potential role of institutions and multilateral partners in promoting Islamic finance.

Instead of Islamic finance in Africa …
In his opening speech the work of this conference, President Ismail Omar Guelleh has highlighted the place of Islamic banks in Djibouti: « Islamic banks do, he has said, an integral part of the economic landscape and financial of the country: their cultural proximity and their willingness to support the productive sectors have allowed them to capture 16% of banking sector assets in a few years of activity.  »
For President Ismail Omar Guelleh, who is one of the African leaders who are the most open, the success of Islamic finance is due to its very nature. To illustrate this, the Head of State called for André Comte Sponville bar, in a famous editorial, put forward the following statement: « It is rather the Koran must be read as if our bankers , profitability eager to equity, had respected so slightly sharia, we would not be here.  »
The President explained that to establish and consolidate the expansion and influence of Djibouti’s financial center, the government gave « particular attention to the revision and updating of regulations, the responsibility of the Central Bank, Did he recalled, watches over the fundamental and ratios while ensuring the free convertibility of the Djibouti franc and the freedom of capital movements.  » He said the device was recently completed « by the creation of a National Committee of Sharia, composed of experts in Islamic law and finance, responsible for ensuring the regularity and conformity with Shariah Islamic financial products in the Republic of Djibouti. « 

President Guelleh announced the forthcoming creation of « a training center to strengthen the technical capacity of practitioners of Islamic finance for Djibouti to become truly African center of Islamic finance. » The president added that Djibouti is « the junction where overlap maritime transport, road, rail and air, to serve the trade of the Horn of Africa with the Middle East and Asia « .
The Head of State further indicated that to strengthen this position, his government decided to reverse more than 12 billion USD, to make Djibouti a vast logistics platform encompassing eastern Africa through four new ports, two new rail lines, two new airports, two new interconnections with Ethiopia on water and electricity and a pipeline from Djibouti to South Sudan.

All ways and major projects whose delivery is imminent « Before declaring open the deliberations of the 4th African Conference of Islamic finance, the President said he looked forward to those discussions and he was confident that the reflections and fruitful exchanges of experts will bring the suitable answers to all of these issues for Islamic finance could find its rightful place and radiate in Africa.
Solid performance …

The Governor of the Central Bank of Djibouti, Ahmed Osman, did not fail to wish, meanwhile, the establishment of a platform capable of allowing to significantly increase the level and extent of penetration of Islamic financial assets on our continent.

« Succeeding in this challenge is a challenge to consolidate and further strengthen the dynamism of our economies now booming, » said the Governor. He added that Djibouti, as well as being ideally located in geostrategic terms, also happens to be the link between the Middle East and Africa. « And it is natural, has he said that Djibouti aspires to position itself as relay space and the Islamic finance bursting on African soil. »

In the process, the Governor of the BCD returned to the arrival and establishment in 2006 of 31 financial institutions including 10 banks that have consolidated the performance of the banking sector. Ahmed Osman also did not fail to emphasize that these solids from the national banking sector performance is attributable to the development of Islamic finance in the country.

« In terms of weight, has he said, the assets of Islamic banks reached 50 billion FDJ today and represent 16% of total bank assets, against only 1.2% in 2006 ». Also, according to him, Islamic banks contribute « to improving the supply of banking services, and own 23% of bank branches, 25% of bank accounts and 40% of ATMs. » After this series of opening speeches, the works of the 4th African Conference of Islamic finance began. The Nation will tell you more of it in his next deliveries.