The challenge of Islamic finance in Hong Kong

"How enforcement of Sharia?" I touched on the challenges that Hong Kong government faces in trying to implement the changes required to set aside the playing field between financial products and alternatives presented by shreds of Islamic finance. As experience in the United Kingdom is a valuable example of absolute potential and growth of this niche offering financial services.

The British government made the establishment commendable fiscal and regulatory framework for Islamic finance in the UK with a primary focus in 2003. Since then, the UK government has accomplished the following:


o In 2003 eliminated the double taxation on Islamic mortgages and Islamic mortgages extended tax breaks for businesses and individuals.
or as a financial center of London shouting became softer and trade sukuk, Islamic bonds, ie by reforming the arrangements for the issuance of bonds for income and payments may be treated as if they were flowers.
or UK financial services surveillance, the Financial Services Authority's initiative to introduce regulations to ensure that the treatment of Islamic finance, in accordance with the objectives and general principles of law.

The British government even considered issuing bonds and Islamic retail banking products offered through national savings and investment and conduct appropriate studies. Although it was announced in November 2008 which currently does not offer value for money, the government confirmed that it will closely monitor the situation. At the same time, the British government decided to encourage the development of Islamic finance while ensuring that old and alternative financing are treated equally. The focus is on identifying existing barriers in the market and use the law to ensure that Islamic products can be offered and can compete on equal footing with the most ancient form of finance. A special effort has been made to ensure that the existing tax and regulatory systems in the United Kingdom does not distort the market for investors who want to invest in other products.

With this result, proactive and future-oriented close by the British government can be seen by the results achieved so far. To date, offering Islamic products in the UK include:

Five or totally Islamic bank. Provide an additional 17 through the Sharia "Islamic windows", where they can offer their expertise in Islamic finance for businesses and community members. This is more than any other non-Muslim countries.
o The London Stock Exchange has included a total of 18 sukuk issues, which raised U.S. $ 10 million. That is only surpassed by the Nasdaq Dubai.
or exchange traded funds total of seven according to the sharia, the four launched in the year 2008 alone. Additionally, in 2008 the addition of two new equity funds launched.
o In the case of non-banking products, the first company to offer Islamic insurance, known as takaful, a British official citizen in 2008.
o Support the development of Islamic law 18 financial firms that provide push Islamic finance. In addition, the four major professional services firms providing financial advisory services to Islam.
o Provide educational assistance for over 50 Islamic financial institutions offer an important product of education and training. This is significantly more than other countries around the world.

Let me expose my call to the Financial Secretary, John Tsang. Please, Mr Tsang, be brave, and lifted the fall. implement the necessary legislation as soon as possible. You will not only raise the profile of Hong Kong as a world financial center, but also establish a number of fundamental new jobs, employment in the financial services industry in Hong Kong in desperate need. just in case you need advice on any additional changes are required, a number of local experts who can point residents in the direction of the show. Also, my email address is also displayed in the bottom of this article, and I would be very happy just to sit down and discuss this in more detail with you. Financial services industry and professional support services such as accounting and law, will thank you!

This is a tough act to follow for the government of Hong Kong. Not only because they have to compete with precise rules and solid platforms that the British government has offered, but the British have a head start year six. England has done a respectable job in obtaining the residence as anIslamic finance center in Key West. Given the potential, in particular, East Asia, I hope that the governments of Hong Kong in accordance motivated to build a major change in the context of Hong Kong, as well as moral standards y.