After long hesitation over its integration into Islamic finance, Tunisia has finally acquired its first Council in the matter: the Council of Islamic finance in Tunisia (COFIT), launched under the provisions of Decree No. 88 of 2011. KARIM AMOUS explores the new opportunities in the country.
Formed by a steering committee, an executive board and 12 specialized committees, COFIT is managed by a total of 28 members. This new commission set out its objectives and perspectives which primarily development and identification of opportunities arising from the national economy.
The first objective of this new association is to raise the awareness of the national and regional public of the importance of the Islamic finance industry and provide advice and expertise to companies and stakeholders in the field of Islamic finance.
Only 2% of Islamic finance
The current contribution of Islamic finance in mobilizing the support of the economy in Tunisia is only 2%, which is low compared to other countries that have opted for Islamic finance. By contrast, for the GCC countries the figure rises to 25-30%.
However, we do not detach Islamic finance from the wider Tunisian context. We do not want to export a model but rather to relate the sector to the reality and specifics of the Tunisian economy. Far from wanting to displace conventional finance, it is hoped that Islamic finance will present an additional solution. Islamic and conventional products should complement rather than exclude each other.
Assistance with fundraising
Developing and sustaining its market and consolidating and asserting its competitive advantages are economic issues for companies, which must find the financial means to do. For 71% of entrepreneurs, a lack of financial means is the main obstacle to their development. Through our investment talk: ‘Opportunities from Tunisia and Malaysia’, which will be held at the Matrade Convention Center on the 15th January 2013, we will try to guarantee the raising of funds that will be needed to establish Tunisian projects. A business trip has also been organized by organized by SMARTECO and ISI Corporation to link Tunisian and Malaysian businessmen, chambers of commerce and other organizations. We hope this trip will help and encourage businessmen to invest in Tunisian projects.
The next business trip will be held in Kuala Lumpur by the end of April with the participation of many Tunisian businessmen, and in Sfax in June 2013 we will organize the Tunisia Business Forum, a great event in which high-ranking officials as well as international experts will help participants to discover the new strengths of Tunisia, which reinforce its historic attractiveness and hope to attract foreign direct investment (FDI) and provide the support investors require.
The investment talk in January will form a comprehensive network providing:
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Information on investment opportunities in Tunisia and the main reasons why Tunisia is such an attractive site for FDI;
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Contacts in Tunis and abroad;
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Advice on the conditions that will contribute to the success of initiatives, the best locations, various investment systems, financing means etc;
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Accompanying the investor on exploratory visits to Tunisia and throughout the various implementation phases of the initiative;
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Support to improve the sustainability of a company through personalized monitoring and ongoing assistance with ministerial departments and structures and regional authorities.
The appetite comes with eating
Islamic finance is facing good days. Many great projects are in the pipeline and need investors. Tunisia has great potential for success, especially after events of the Arabic spring. There is no lack of opportunities, and new ideas and a good professional network are the treasure of the Tunisian people.
Karim Amous is the managing partner at SMARTECO Tunisia. He can be contacted at
[email protected]
.