Islamic Financial Services

Although still in its infancy, the market for Islamic or Shariah-compliant financial forms of financing and banking products is developing at a significant pace, largely driven by the following factors:

• Economic development in the GCC region giving rise to infrastructure and other projects for which Shariah-compliant forms of financing are becoming increasingly popular.
• The emergence of an international market in Sukuk (Shariah-compliant) bonds.
• Globally, Islamic Financial Institutions now number over 300 in total with all forecasting rapid growth.
• The major role being played by the UK Government in making the City of London a global centre for Islamic Finance by extending support wherever possible. In June 2006, the then Chancellor Gordon Brown cited many benefits for operating in the UK and also fully pledged his support to any legislative changes required to ensure a level playing field for Islamic products, and this initiative is clearly visible by the current levels of support from the government.

The FSA (Financial Services Authority) has also taken a keen interest in this area and dedicated specialist resource to monitoring it. The stage is now set for many decades of retail & investment Islamic Finance to develop – the real question though is 'what form will the new generation of Shariah-Compliant products take?'. Will risk-averse Banks ensure they continue to simply mirror conventional products or will Islamic Finance enter a new era of innovation of uniquely Islamic products based on the risk-sharing principles of Musharaka / Mudaraba contracts?

BRAXXON combines extensive practitioner experience in wholesale financial markets with a profound understanding of Islamic Finance. Braxxon works with both new and existing Islamic institutions to develop and implement a comprehensive Shariah compliant infrastructure spanning short, medium and long term requirements. Our proprietary approach encompasses detailed process and data mapping, business impact, risk and cost/benefit analysis as well as infrastructure recommendations and package/service provider selection where appropriate.

Our services include:

• FSA Authorisation

  • Preparation of the application for regulatory approval
  • Identifying requirements
  • Working with FSA case officers

• Systems & Technology

  • Support and due diligence for the selection of a Shariah-compliant core banking system
  • Overall IT architecture design
  • Identification of additional systems and technology requirements
  • System implementation
  • User acceptance testing

• Planning & Project Management

  • Define Procedures
  • Document Process Maps
  • Design Target Operational models
  • Document Policies
  • Identification of all work streams and activities required to start-up
  • Development of detailed plans and budgets
  • Co-ordination of the input provided by legal and other professional advisors
  • Ongoing management of the programme
  • Timely resolution of issues and regular management reporting
  • Staff training and knowledge transfer