Awareness Programme

This IFSB-INCEIF Executive Forum on Sound Governance Practices: Promoting Stability in Islamic Finance offers a platform for high level deliberations and exchanges of views among participants – global leaders from among practitioners, regulators and academics – on a holistic overview on the key trends and momentum of corporate governance initiatives in the global and Islamic finance industry. Among others, the two-day Executive Forum will see the sharing of experiences and discussions of speci­fic issues facilitated by experienced speakers from among regulators, industry leaders and academics. The participants will bene­fit from delivering views of counterparts and peers of different backgrounds and geographical locations. To date, the following speakers are confirmed to speak at this Executive Forum: Dr. Bashir Aliyu Umar, Secretary of the Financial Regulation Advisory Council of Experts of the Central Bank of Nigeria Mr. Ramesh Pillai, Chairman, Board of Governors, Institute of Enterprise Risk Practitioners, Malaysia Prof. Dr. Mohamad Akram Laldin, Executive Director of International Sharī`ah Research Academy for Islamic Finance (ISRA) Dr. Hatim El Tahir, Director, Islamic Finance Group, Deloitte Middle East Ustaz Mohd Nazri Chik, General Manager, Sharī`ah Division, Bank Islam Malaysia Berhad Prof. Dr. Syed Abdul Hamid Aljunid, Professor of Corporate Governance and Ethics, INCEIF Assoc. Prof. Dr. Younes Soualhi, Chairman, Sharī`ah Board, HSBC Amanah Malaysia Berhad Assoc. Prof. Dr. Azman Mohd Noor, Deputy Chairman, Sharī`ah Board, Al-Rajhi Bank Malaysia Dr. Abdelgadir Warsama Ghalib, Senior Legal Adviser, Bank of Bahrain and Kuwait (BBK), Bahrain For more information on the Executive Forum, please email Mr. Hamizi Hamzah at [email protected] Programme - Event Session(s) Date Time Topics Day 1 09/12/2014 08:30 - 09:30 Morning Coffee and Registration 09:30 - 09:45 Opening & Welcoming Address 09:45 - 11:00 Session 1: Building Momentum for Effective Corporate Governance Recent Key Developments in the Global and Islamic Finance Industry Recent Initiatives and Impact on the Behaviour of Market Participants and Industry Players Gap Analysis and Ongoing Challenges on Corporate Governance 11:00 - 11:30 Group Photo and Coffee Break 11:30 - 13:00 Session 2: Risk Governance and Internal Controls: The Initiative from Within Top Management and BOD Functions as Providing Overall Direction over Enterprise-Wide Risk Management Initiatives Internal Control Structures, Tools and Mechanisms Exclusive for IIFS Challenges of Risk Governance 13:00 - 14:00 Lunch and Prayers 14:00 - 15:30 Session 3: Board Roles and Structure: Sound Governance Starts From the Top Present and Evolving Roles and Structure of the BOD and its Committees Recent Developments in Local and International Legislations as well as Supervisory Initiatives Tools and Mechanisms Available to the BOD in Discharging their Duties in Institutions Offering Islamic Financial Services (IIFS) 15:30 - 16:00 Coffee Break 16:00 - 17:30 Session 4: Sharī`ah Governance Framework: Achieving Greater Credibility Across Borders Sharī`ah Governance Practices Across Different Jurisdictions Infrastructural and Other Factors Contributing to Differences in Sharī`ah Governance Practices Adoption of Best Practices by IIFS Operating Across Jurisdictions Day 2 10/12/2014 08:30 - 09:30 Morning Coffee 09:30 - 11:00 Session 5: Aligning Corporate and Sharī`ah Governance: Understanding the Common Objectives Alignment of Corporate and Sharī`ah Governance Objectives Identifying and Addressing Potential Overlap between Corporate and Sharī`ah Governance Can Maqāsid al-Sharī`ah Contribute to Formulating Rules, Policies and Procedures on Corporate Governance in IIFS? 11:00 - 11:30 Coffee Break 11:30 - 13:00 Session 6: Towards Greater Market Discipline: Enhancing Disclosure Requirements for Islamic Financial Institutions Cost-benefit Analysis on the Need for Greater Market Discipline and Enhanced Disclosure Existing Disclosure Practices Amongst IIFS The Role of Supervisors in Enforcing Market Discipline and Enhanced Disclosure 13:00 - 14:00 Lunch and Prayers 14:00 - 16:00 Session 7: Panel Discussion - Evolving Issues and Challenges in Corporate and Sharī`ah Governance Giving Voice to Investment Account Holders (and Takāful Participants) – The Role of Governance Committee and Trust Structures Board of Directors and Sharī`ah Board Accountability – Practices and Challenges Achieving the Right Balance Between Conformance and Performance – The Way Forward for the Islamic Financial Services Industry 16:00 - 16:30 Closing & Certificate Giving Ceremony 16:30 - 17:00 Coffee Break Downloadable Document(s) 1.) Event Session(s) - PDF Format 2.) Brochure - EF6 3.) Lanai Kijang Reservation Form

The IFSB organised its 12th Islamic Financial Stability Forum (12th IFSF) on 8 December 2015, in Jeddah, Saudi Arabia. The 12th IFSF was held in conjunction with the 27th Council Meeting of the IFSB, hosted by the Islamic Development Bank. Programme - Event Session(s) Date Time Topics Day 1 08/12/2015 14:30 - 14:40 Chairman’s Remarks H.E. Agus D.W. Martowardojo, Governor, Bank Indonesia 14:40 - 15:40 Presentation on Promoting Consistency in the Implementation of Prudential Standards Speaker: Mr. Marc Farag, Member of Basel Committee on Banking Supervision Secretariat (MPhil), Basel Committee on Banking Supervision Discussants: 1. Mr. Mohd Zabidi Md Nor, Director of Prudential Policy Department, Bank Negara Malaysia 2. Mr. Suliman Aljabrin, Banking Supervisor, Saudi Arabian Monetary Agency 15:40 - 16:00 Discussion and Q&A Session 16:00 - 16:30 Coffee and Networking Break End of Forum Downloadable Document(s) 1.) Event Session(s) - PDF Format

The Roundtable Discussion : IFSB Exposure Draft on Guiding Principles for Retakāful (Islamic Reinsurance) was held on 10 January 2016, in Manama, Bahrain, which was hosted by the Central Bank of Bahrain. The IFSB has issued an Exposure Draft, ED-18: Guiding Principles for Retakāful (Islamic Reinsurance) on 5 November 2015 for public consultation, aimed to provide the regulatory and supervisory authorities (RSAs) and market players of the Takāful industry guidance relating to Retakāful. ED-18 identifies and sets forth a set of basic principles and best practices pertaining to Retakāful activities of both Takāful and Retakāful Operators (TOs and RTOs). This Roundtable aimed to invite greater engagement and garner feedback and comments from key industry stakeholders on the Exposure Draft prior to its final submission to the IFSB Council. The Roundtable also saw active involvement from the key industry stakeholders, acted as chairperson and speakers for the Roundtable as well as 28 registered participants from among the IFSB member and non-member organisations. Programme - Event Session(s) Date Time Topics Day 1 10/01/2016 IFSB MEET THE MEMBERS AND INDUSTRY ENGAGEMENT SESSION (VENUE: AMBASSADOR ROOM (MEZZANINE FLOOR) ROUNDTABLE DISCUSSION : IFSB EXPOSURE DRAFT ON GUIDING PRINCIPLES FOR RETAKāFUL (ISLAMIC REINSURANCE) VENUE : AL RIFAA BALLROOM (GROUND FLOOR) 08:30 - 09:00 Registration 09:00 - 10:10 IFSB MEET THE MEMBERS AND INDUSTRY ENGAGEMENT SESSION 10:10 - 10:30 Coffee Break & Networking Session 10:30 - 15:30 ROUNDTABLE DISCUSSION : IFSB EXPOSURE DRAFT ON GUIDING PRINCIPLES FOR RETAKĀFUL (ISLAMIC REINSURANCE) 10:30 - 10:45 Opening Remarks 10:45 - 11:10 Presentation on the Exposure Draft of the Guiding Principles for Retakāful 11:10 - 11:30 Session 1: Understanding Retakāful and Its Underlying Contracts (Introduction to Retakāful, the Concept and the Principal Structures) Introduction to Retakāful, the Concept and the Principal Structures 11:30 - 11:50 Session 1: Understanding Retakāful and Its Underlying Contracts (Retakāful Core Principles, Categorisation, and Special Issues) Retakāful Core Principles, Categorisation, and Special Issues 11:50 - 11:30 Session 1: Understanding Retakāful and Its Underlying Contracts Open Discussion 12:30 - 13:30 Lunch & Prayers 13:30 - 13:50 Session 2: The Guiding Principles for Retakāful (Principle I: Governance of Retakāful Undertakings & Principle II: Compliance with Sharī`ah Principles) Principle I: Governance of Retakāful Undertakings Principle II: Compliance with Sharī`ah Principles 13:50 - 14:10 Session 2: The Guiding Principles for Retakāful (Principle III: Prudential Framework, Principle IV: Transparency and Disclosure & Principle V: Supervisory Principle III: Prudential Framework Principle IV: Transparency and Disclosure Principle V: Supervisory 14:10 - 14:50 Session 2: The Guiding Principles for Retakāful Open Discussion 14:50 - 15:00 Chairman's Summary 15:00 - 15:30 Coffee Break End of Roundtable Discussion Downloadable Document(s) 1.) Event Session(s) - PDF Format

The IFSB Industry Engagement Session is an initiative by the Secretariat to provide an interactive platform for communication between the key players of the Islamic financial services industry (IFSI), from among the IFSB member and non-member organisations, and the IFSB Secretariat. For any queries, please contact Mr. Ifran Tarmizi at [email protected] Programme - Event Session(s) Date Time Topics Day 1 28/01/2016 09:00 - 09:50 Networking Coffee 10:00 - 10:10 Opening Remarks 10:10 - 10:30 Global Outlook of Islamic Finance: Stabilty, Resilience and The Role of The IFSB 10:30 - 10:50 Stakeholders Engagement in Supporting The Islamic Financial Services Industry's Sound Development 10:50 - 11:30 Interactive Session 11:30 - 12:30 Lunch Downloadable Document(s) 1.) Event Session(s) - PDF Format

Theme: Towards an Effective Legal Framework for Islamic Finance: Asset Securitisation and Insolvency The 2nd Seminar on Legal Issues in the Islamic Financial Services Industry will focus on two subjects of immediate relevance, sukuk and insolvency. Experts in Shari`ah, law and industry will give presentation on these subjects as they grow increasingly important for the future of Islamic finance in general and the treasuries of Islamic financial institutions in particular. Programme - Event Session(s) Date Time Topics Day 1 14/03/2006 09:00 - 09:45 Opening and Keynote 09:45 - 10:45 Session 1: A General Survey of Legal Issues in Islamic Finance The scope of Islamic banking laws The relationship of legal infrastructure to product development and risk management Islamic banks in takaful and capital markets Preconditions for effective bank supervision Sukuk structures and the capital markets Islamic bank insolvency and default The objectives of the conference The conduct of the conference 11:00 - 12:00 Session 2: Case Study 1: Sovereign and Inter-Governmental Organizations Sukuk Securitization Structure: Shari’ah Issues Legal Structure Market Acceptance Outcome 12:00 - 13:30 Session 3: Case Study 2: Sovereign and Inter-Governmental Organizations Sukuk – Analysis Syndication and Funding Credit Enhancement Rating Risk Secondary Market Potential Shari’ah-related Considerations Jurisdiction-related Considerations 15:00 - 16:00 Session 4: Case Study 1: Corporate Sukuk Securitization Structure: Shari’ah Issues Legal Structure Market Acceptance Outcome 16:15 - 17:30 Session 5: Case Study 2: Corporate Sukuk – Analysis Syndication and Funding Credit Enhancement Rating Risk Secondary Market Potential Shari’ah-related Considerations Jurisdiction-related Considerations Day 2 15/03/2006 09:00 - 10:20 Session 6: The Future for Sukuk Expanding Enabling Legislation Dealing with Restrictions on Foreign Ownership Expanding Enabling Infrastucture: Trusts and SPVs Cross Border Issues Islamic Money Market Instruments and Liquidity Management Risk Management and Monetary Policy Product Innovation Ratings and Shari`ah Risk 10:45 - 12:00 Session 7: Insolvency in Islamic Financial Institutions: A Survey of Relevant Legislation GCC Islamic banks Eastern Islamic banks Western Islamic banks The concepts of iflas and hajr al-madin and their consequences Responsibilities of IFIs to investment account holders and equity owners Responsibilities of IFIs to debtors 14:30 - 16:00 Closing Session: Panel Discussion on Preconditions for Effective Supervision and Stability Key Conclusions of the Conference Components of an Effective Legal Framework for Islamic Finance Supervision, Risk Management, and International Standards Downloadable Document(s) 1.) Event Session(s) - PDF Format

The IFSB Annual Meetings 2016 is hosted by the Central Bank of Egypt. The 28th Meeting of the Council, 14th General Assembly of the IFSB, 13th Islamic Financial Stability Forum and Welcome Dinner is by invitation only. For more information on the meetings and dinner, please email the following Secretariat in charge: 1) Council Meeting, General Assembly and Welcome Dinner: Ms. Nur Khairun Nissa Md Zawawi (email: [email protected]) 2) 13th Islamic Financial Stability Forum: Ms. Yazmin Aziz (email: [email protected]) The following Side Events will also be held in conjuction with the IFSB Annual Meetings 2016. 1) IFSB Seminar on Islamic Capital Markets: Mrs. Ida Shafinaz Ab. Malek (email: [email protected]) 2) 8th IFSB Public Lecture on Financial Policy and Stability: Mrs. Ida Shafinaz Ab. Malek (email: [email protected]) 3) Meet the Members and Industry Engagement Session: Mr. Ifran Tarmizi (email: [email protected]) Event Snapshots The IFSB organised four Side Events in conjunction with the IFSB Annual Meetings 2016 on 10 – 12 April 2016 in Cairo, Egypt, hosted by Central Bank of Egypt. The first event was a Seminar on Islamic Capital Market, held on 10 April 2016. Themed “Supporting Development through Sukūk: Prospects and Initiatives”, the Seminar aimed to provide an interactive environment enabling speakers and participants to explore the prospective role of Sukūk in social and economic development through the aforementioned roles. The Seminar offered perspectives of Sukūk that revolved around the key challenges. Mr. Gamal Negm, Deputy Governor, Central Bank of Egypt and Mr. Jaseem Ahmed, Secretary General of the IFSB delivered the opening and welcoming speeches respectively. The keynote address was delivered by H.E. Sherif S. Samy, Chairman of the Egyptian Financial Supervisory Authority. Fourteen chairpersons and speakers from among regulators and market players sector discussed the following issues at the Seminar:- Development of the Sukūk Sector: Legal and Regulatory Considerations Panel Discussion – Sukūk for Budgetary and Financial Sector Support: Structures and Country Examples Sukūk for Infrastructure Financing: Prospects and Case Studies Panel Discussion on Building Synergies for Sukūk Issuances Over 100 delegates from 16 jurisdictions among the IFSB member and non-member organisations – representatives from market players, regulatory bodies, international agencies as well as academia and other interested parties from the public attended this Seminar. On 11 April 2016, the IFSB organised its 8th Public Lecture on Financial Policy and Stability. The Lecture, delivered by Dr. Sami Al Suwailem, Head, Financial Product Development Center, Islamic Development Bank carried the theme, Morality, Rationality and Financial Stability. Mr. Jaseem Ahmed and Mr. Tarek Fayed, Sub Governor, Central Bank of Egypt delivered the opening and welcoming speeches. The Lecture saw the attendance of 100 participants from among the IFSB members, regulatory and supervisory bodies, as well as the government, private, legal and educational sectors in Egypt. The Public Lecture was followed by a Members and Industry Engagement Session which aimed to provide a platform for the IFSB members and greater financial community an insight and update into the work of the IFSB, its relevance to the development of the global industry, and the role the stakeholders (members and non-members) can play in this development. The session was attended by 50 participants consisting of the IFSB members and the Egyptian local financial community, where Mr. Tarek Fayed delivered the Opening Remarks. The Opening Remarks was followed by a presentation titled, Global Outlook of Islamic Finance, by Mr. Jaseem Ahmed, Mr. Zahid Ur Rehman Khokher, Assistant Secretary-General of the IFSB also delivered a presentation titled, Stakeholders Engagement in Supporting the Sound Development of Islamic Financial Services Industry. The 13th Islamic Financial Stability Forum was held on 12 April 2016, after the IFSB Council and General Assembly meetings. The topic of this year’s IFSF was Consumer Protection in Islamic Finance. Professor Volker Nienhaus, Former President, University of Marburg, Germany, and IFSB Consultant was the speaker of the 13th IFSF and presented the topic, Consumer Protection in Islamic Finance. His presentation, which is based on an IFSB Working Paper series, Financial Consumer Protection in Islamic Finance stated that most of the issues in consumer protection covers both conventional and Islamic segments of the financial system. The discussants were Ms. Nariman Abdulla Kamber Al Awadhi, Chief Manager, Consumer Protection Unit, Central Bank of the United Arab Emirates and Mr. Khairul Nizam, Chief Operating Officer, Finance Accreditation Agency, Malaysia. Programme - Event Session(s) Date Time Topics Day 1 10/04/2016 SEMINAR ON ISLAMIC CAPITAL MARKET (OPEN SESSION) 08:30 - 09:30 Registration 09:30 - 10:30 Welcoming Remarks and Keynote 10:30 - 11:00 Coffee break 11:00 - 12:15 Session 1: Development of the Sukūk Sector: Legal and Regulatory Considerations As one of the fastest growing segments of the Islamic financial services industry, the Sukūk market poses important legal and regulatory challenges. One of the most important legal issues of the Sukūk market is the different legal treatments for asset-based and asset-backed Sukūk structures and their effects on risks, particularly legal risk, that are endogenous to a particular Sukūk issuance. Furthermore, in view of the potential multi-national investor base and the global appeal of these instruments, the standardisation of the structures and processes along with the legal and tax treatment in different jurisdictions, the set-up of effective mechanisms for dispute resolution, and enforceability of the Sukūk contracts are also important issues that feature as determinants of the attractiveness of the instrument and jurisdiction. Apart from the legal issues, the provision of a sound regulatory and supervisory regime is critical in order to ensure that the Sukūk instruments comply with key consumer protection aspects as well as operate in an environment that limits the exposure to system-wide risks. 12:15 - 13:30 Session 2: Sukūk for Budgetary and Financial Sector Support: Structures and Country Examples Since the GFC, the share of Sukūk issued by sovereigns, quasi-sovereigns (Ministries/Central Banks, etc.) and government-related entities (GREs) has risen noticeably from 2009 onwards, accounting for more than two-thirds of issuances in the primary market. These funds have been raised to support a variety of state budgetary needs including to fund development expenditures, as well as to support a smooth functioning of the country's Islamic financial system. Moreover, a steady supply of Sovereign/GRE Sukūk has had the complementary advantage of providing much-needed Sharī`ah-compliant investment avenues to various Takāful and Islamic fund management institutions. Furthermore, sovereign or quasi-sovereign Sukūk

Programme - Event Session(s) Date Time Topics Day 1 12/04/2016 15:00 - 15:10 Chairman’s Remarks H.E. Tarek Hassan Ali Amer, Governor, The Central Bank of Egypt 15:10 - 16:10 Presentation on Consumer Protection in Islamic Finance Speaker: Professor Dr. Volker Nienhaus, Former President of the University of Marburg, Germany, and Consultant to the Islamic Financial Services Board Discussant: Ms. Nariman Abdulla Kamber Al Awadhi, Chief Manager, Consumer Protection Division, Banking Supervision Department, Central Bank of the United Arab Emirates Mr. Khairul Nizam, Chief Operating Officer, Finance Accreditation Agency, Malaysia 16:10 - 16:30 Discussion and Q&A Session 16:30 - 17:00 Coffee and Networking Break End of Forum Downloadable Document(s) 1.) Event Session(s) - PDF Format

In line with the IFSB due process for the development of Standards and Guiding Principles, a Public Hearing will be held for the IFSB Exposure Draft: Technical Note on Stress Testing for Institutions Offering Islamic Financial Services (IIFS)   For more information on the Public Hearing, please email to Ms. Nazarina Abdul Majid at [email protected] Programme - Event Session(s) Date Time Topics Day 1 25/04/2016 IFSB EXPOSURE DRAFT:TECHNICAL NOTE ON STRESS TESTING FOR INSTITUTIONS OFFERING ISLAMIC FINANCIAL SERVICES (ED TN-2) 09:00 - 09:30 Registration 09:30 - 09:30 Opening Remarks by Assistant Secretary-General of the IFSB 09:35 - 10:30 Pesentation by the Project Manager 10:30 - 11:15 Questions and Answers Downloadable Document(s) 1.) Event Session(s) - PDF Format

The IFSB will be organising the IFSB Regulator's Forum, on 10 May 2016, in conjunction with the Global Islamic Finance Forum (GIFF 5.0) on which will be held on 10 - 12 May 2016, in Kuala Lumpur, Malaysia. With the theme "Islamic Finance in 2016 and Beyond: Challenges, Opportunities and Evolving Regulatory Focus", the IFSB Regulator’s Forum is designed to encourage broad interaction among the delegates to explore the implications on the Islamic financial services industry (IFSI) from the evolving global regulatory reform agenda. In the light of the current global macroeconomic conditions, the Forum seeks to raise awareness on the emerging challenges in the resilience and stability of the IFSI while discussing the regulators’ role in mitigating such vulnerabilities. The Forum welcomes participants from regulatory and supervisory authorities, international organisations, multilateral development banks, institutions offering Islamic financial services (IIFS), academics and any other interested parties. For participation and queries, please register online or email Mr. Ahmed Barakat at [email protected]. Programme - Event Session(s) Date Time Topics Day 1 10/05/2016 08:30 - 09:30 Registration & Networking 09:30 - 09:50 Welcoming Remarks 09:50 - 10:00 Special Presentation 10:00 - 11:15 Session 1: Panel Discussion on the Outlook and Opportunities of the Islamic Financial Services Industry (IFSI) in 2016 and Beyond: Sustaining IFSI Growth and Resilience Amid Challenges This session aims to highlight: Emerging risks to the global economy and knock-on effects on Islamic finance Macroprudential framework and policy tools for the enhanced supervision of Islamic financial institutions. Appropriate stress testing frameworks for Islamic finance Emerging issues in Islamic finance regulation i.e. anti-money laundering (AML) and consumer protection 11:15 - 12:30 Session 2 : Global Regulatory Reforms: The Islamic Finance Response This session aims to highlight: The global surveillance framework and Islamic finance Enhanced liquidity and capital buffer requirements and implications for Islamic finance National regulators' experiences in developing prudential frameworks for the Islamic financial services industy (IFSI) Market players' response to the evolving regulatory reforms Progress on developing Sharī`ah-compliant financial safety-nets 12:30 - 14:00 Networking Lunch End of Forum Downloadable Document(s) 1.) Event Session(s) - PDF Format

For queries, please contact Mrs. Ida Shafinaz Ab. Malek at [email protected] Event Snapshots   The IFSB organised the Seminar on Islamic Finance which was supported by Banco De España in collaboration IE Business School. The Seminar themed The Real Economy and Financial Sector was held on 24 May 2016, in Madrid, Spain. The Seminar is part of the IFSB European Forum Series. The Opening Remarks were delivered by H.E. Luis M. Linde, Governor, Banco De España, Mr. Jaseem Ahmed, Secretary-General, IFSB and Mr. Guillermo de la Dehesa Romero, Chairman, IE Business School. The Seminar was designed to encourage broad interaction among the delegates to explore the potential re-alignment of economic policy frameworks in a manner that strengthens the linkages between the real economy and the financial sector as well as offering some perspectives of Islamic finance principles, and financing modalities, which directly relate to the real sector from both the viewpoints of risk and return. The sessions discussed the following issues: Panel Discussion - Islamic Finance: Legal and Regulatory Considerations Sukūk – A Growing Alternative Asset Class to Fund the Real Sector Equity-based Financing and its Effects on Macroeconomic Resilience Banking the Unbanked: Enhancing Financial Inclusion using Risk-Sharing Instruments The Seminar was attended by over 80 delegates, with a line-up of 15 chairpersons and speakers from among regulators, academics and Islamic financial sector experts and practitioners from among the European as well as global financial community. An Introductory Seminar on Islamic Finance was also held on 23 May 2016. This half-day event aimed to provide a better understanding, especially to the local delegates, on Islamic Finance. Over 60 delegates attended the Introductory Seminar. Programme - Event Session(s) Date Time Topics Day 1 23/05/2016 SEMINAR ON ISLAMIC FINANCE: AN INTRODUCTION 14:00 - 15:00 Registration and Networking 15:00 - 15:10 Welcoming Remarks 15:10 - 16:10 Session 1 - Islamic Finance: Facts and Figures Over the last decade, Islamic finance has gained much acceptance in the global arena with estimates indicating the presence of more than 600 Islamic financial institutions operating across nearly 70 countries. The industry has approximately USD2 trillion worth of assets having expanded from offering basic banking services in the 1990s to become a holistic financial sector offering Sharī`ah-compliant capital markets, asset management as well as insurance products and services. The stakeholders of the industry include both Muslim majority and non-Muslim majority jurisdictions as well global multilateral development banks and international organisations. In Europe, Islamic financial transactions are actively undertaken in some countries including in the United Kingdom, Luxembourg and Germany. This session aims to: Highlight the growth and development of the global Islamic financial services industry (IFSI) across diverse regions globally. Detail out the progress made in each of IFSI’s three main segments – Islamic banking, Islamic capital markets and Takāful (Islamic insurance). Discuss the regulatory developments in Islamic finance, and the role and work of the IFSB. Discuss the initiatives and prospects for Islamic finance in Europe. 16:15 - 17:15 Session 2 - Challenges and Opportunities for the Implementation of Islamic Finance in Spain Islamic finance provides a new and alternative source of funds for families, companies and public institutions. Although this system has originated from the Middle East and Asia, it is gaining traction globally during times when many are deliberating viable alternatives to the traditional financial systems in the Western countries. In Spain, a particular segment that experiences difficulty in steady availability of credit is the Small and Medium Enterprises (SMEs). Islamic finance principles propose a risk-sharing and equity-based financing mechanism that potentially provides a more viable modality for financing entrepreneurs, SMEs, as well as corporations and the whole society in general. Nonetheless, there will be challenges in the implementation of Islamic finance in Spain. This session aims to: Explore the value proposition for Islamic finance as an alternative financing modality for Spanish businesses Explain key features and models of Islamic finance Discuss the opportunities for Islamic finance in Spain, and its implementation challenges 17:15 - 00:00 Coffee Break and Networking Day 2 24/05/2016 SEMINAR ON ISLAMIC FINANCE: THE REAL ECONOMY AND FINANCIAL SECTOR 08:30 - 09:30 Registration 09:30 - 10:00 Welcoming Remarks 10:00 - 10:30 Coffee break 10:30 - 11:45 Session 1: Panel Discussion - Islamic Finance: Legal and Regulatory Considerations The rapid growth of Islamic finance in recent years has spurred increasing interest in the subject including in Europe. Estimates indicate the size of Islamic finance assets in Europe range between $60 billion and $70 billion as of end-2014. Almost 40 banking institutions have Islamic banking operations across the European continent, while in the Islamic capital market segment, a total of 294 Islamic funds were domiciled in Europe (as of Sept 2014). Similarly, Sukūk has been used as a fund-raising instrument across the United Kingdom, Luxembourg, Germany and France with the former two having floated debut sovereign Sukūk in 2014. Fundamental to sustaining the growth of Islamic finance growth in Europe is, among other factors, an enabling environment with an appropriate regulatory and supervisory framework, and supporting legal basis, that provides for a level playing field. The scope and implementation of the needed legal and regulatory reforms can differ across jurisdictions but contain certain core elements that can draw from international core principles and standards with a view towards strengthening real sector linkages. 11:45 - 13:00 Session 2: Sukūk - A Growing Alternative Asset Class to Fund the Real Sector In the backdrop of global macroeconomic challenges and financial pressures in major markets, the fast expanding global pool of Sharī`ah-compliant capital has become an attractive source over the years for various sovereigns, government-related entities and corporates to tap into in order to meet their financing needs. In particular, Sukūk instruments have gained widespread acceptance among stakeholders as economically viable tools to achieve funding diversification and offer tailored financing (especially for infrastructure investments). In the past five years, global Sukūk outstanding has been the fastest expanding asset class in the Islamic financial services industry, achieving a compounded annual growth rate of more than 19% (2009-2014). Nonetheless, several key imperatives remain in order to expand the