The presentation implies sharing the high-level information on Risk issues in regards to the Islamic products and their capital requirements. Furthermore, some information on the alternate solution for conventional financing will follow. There will be a reference to the regulations related to capital implications for Islamic banks.

• Risk Management in Islamic Banks
• Assessment and Quantification of Risk specific to Products
• Internal Capital Adequacy Assessment Process
• Optimizing Techniques for Capital
• Application of IFRS 9 in Islamic Banks

With assets in the GCC worth over $600bn and well over $1.1 trillion for the wider region, Islamic Banking proves its effectiveness in tackling increasing regulatory requirements, growing investments into new products & Fintechs, increasing its geographical network and more. What can we do further?   

• Standardization of product structures and documentations (IIFM, New Sharia’ Governance Module in Bahrain)
• Investments into innovation and digital solutions (e.g. the board of most of the important Islamic banks regionally placed $15-50mn over the next 3 years for digital initiatives that could cost up to 50% of their retail revenues)
• Compliance with the new regulatory requirements (i.e. increasing capital to comply with Basel III requirements, DIB raising AED 3.2 bn, QIB QAR2bn, Sharjah Islamic Bank of $500m in Sukuk, and more showing the appetite in the market and the competency of Islamic Banks in this region)
• Expanding the geographical network (e.g. interests in Africa and Asia)
• Focusing on various business lines (e.g. transactional banking, trade finance activities, credit cards)

The presentation will provide the audience with the expert view on and evaluation of the foremost cases and confronting issues that Sharia compliant banks and financial institutions are currently experiencing on a global scale.

• Inclination towards Ethical Banking rather than Islamic Banking
• Islamic banking barriers in non-Muslim countries
• Absence of Sharia harmonization
• Legal and framework challenges
• Exclusion of asset classes
• Different risk profile compared to conventional banks
• Compliance challenges with regulations primarily issued for conventional banks
• Technological challenges like blockchain

The presenter will showcase a way forward to move towards digital banking keeping traditions and emotions intact. A way forward will be shown to audience that is more practical and business oriented rather than technology and bits and bytes directive. New ways of enhancing Islamic banking experience by streamlining processes through business remodelling and restructuring.

• Utilizing technology to improve Islamic banking
• Re-branding and recreating
• Marketing Islamic banks in digital space
• Using bots and AI for streamlining processes
• Blockchain for digitizing
• Datamining and Analytics to improve customer interactions