Al Baraka Bank: Licensing should be top priority in Islamic finance

In Azerbaijan, the top priority for Islamic finance should be the establishment of dedicated licensing frameworks, Muhammad Khalid Hasani, a member of the Sharia Supervisory Board of Pakistan"s Al Baraka Bank, said at the 2nd Azerbaijan Halal Business (AZHAB) Forum in Baku, Report informs.

The official highlighted the need to first build an ecosystem, as each segment has its own dimensions: "For example, Islamic finance, takaful (Islamic insurance), the halal industry, sukuk (Islamic bond), and the capital market. As noted by a representative of the Central Bank of Azerbaijan, they are working with the State Bank of Pakistan to improve this landscape and strategic roadmap. In my view, the first priority should be the creation of Islamic finance licenses, because banks hold an anchor position in providing capital and infrastructure for Islamic finance projects."

Hasani added that sukuk structures could then be developed to finance other projects: "After that, we can focus on advancing the takaful sector to enhance the entire Islamic finance system."