الرحيم الرحمن الله الرحيم بسم الرحمن الله بسم

The international Conference on prospective of Islamic Banking and

Finance in Afghanistan

The Sudanese Islamic Banking The Sudanese Islamic Banking and Finance Experienceand Finance Experience

Prof.Prof.Al/Siddig Talha Mohamed RahamaAl/Siddig Talha Mohamed Rahama

The National Ribat UniversityThe National Ribat UniversitySudan - KhartoumSudan - Khartoum

Sudan is an African and Arab Sudan is an African and Arab Country has roots in Islamic Country has roots in Islamic

IdeologyIdeology

Sudan is Pioneering in Sudan is Pioneering in establishing Islamic Banks establishing Islamic Banks and Financial Institutionsand Financial Institutions

• Sudan is a biggest African and Sudan is a biggest African and Arabian Country.Arabian Country.

• ItIt’’s Area about one million sq. miless Area about one million sq. miles

• ItIt’’s pop Is about 40 millions pop Is about 40 million

Sudan is a large fertile agriculture land.

Sudan has huge economic potential.

The Sudan Cross different The Sudan Cross different historical political development historical political development

Islamic movement etc.Islamic movement etc.

- TurkishTurkish- IslamicIslamic

1.1. The coming of ArabThe coming of Arab2.2. The Funj Islamic SultanateThe Funj Islamic Sultanate3.3. Turco Turco –– Egyptian Regime Egyptian Regime4.4. The mahadist StateThe mahadist State5.5. Anglo Anglo –– Egyptian Condominium Egyptian Condominium

1899-1955.1899-1955.6.6. The Republic of Sudan 1956The Republic of Sudan 19567.7. Army coup and military 1958-1964Army coup and military 1958-1964

• In 1977 Faisal Islamic Bank started In 1977 Faisal Islamic Bank started by the a peal of Sudi Prince/ by the a peal of Sudi Prince/ Mohamed Al Faisal Al Saud.Mohamed Al Faisal Al Saud.

• The new Islamic Bank Face by a rush The new Islamic Bank Face by a rush to Subscribe to the issued shares to Subscribe to the issued shares –– the Capital increase two times. the Capital increase two times.

The bank expand its service horizontal The bank expand its service horizontal and vertical.and vertical.

The bank compete other traditional The bank compete other traditional Banks.Banks.

FIB establish subsidiary compromise:FIB establish subsidiary compromise:1.1. Islamic Insurance Co. 1st . Is compant in the world.Islamic Insurance Co. 1st . Is compant in the world.

2.2. Islamic Tr. & Ser Co.Islamic Tr. & Ser Co.3.3. Real State company.Real State company.4.4. Exchange company.Exchange company.

The successful of F.I.B let 6 new Islamic banks Staui.

Tadamon Islamic Bank. The West Islamic Bank. Al Braka Bank. The North Islamic Bank. Comparative development Islamic Bank.

F.I.B establish Shariah Supervisory Board F.I.B establish Shariah Supervisory Board (S.S.B) to check all operation according (S.S.B) to check all operation according to Islamic shariah, issue a lot of Fatwa to Islamic shariah, issue a lot of Fatwa training of the staff & add stander training of the staff & add stander contact of the mode of investment.contact of the mode of investment.

The success of these Islamic Bank let the The success of these Islamic Bank let the government to order to adopt Islamic bank government to order to adopt Islamic bank widows.widows.

The Sudanese Islamic Bank drawn a very large The Sudanese Islamic Bank drawn a very large number & share number & share –– holders from Arab & holders from Arab & Moslem world for the specialized bank:Moslem world for the specialized bank: Agriculture.Agriculture. Industry.Industry. Real StateReal State

• Then weave many delegates from Then weave many delegates from different Islamic country visit Sudan different Islamic country visit Sudan & study the experiment.& study the experiment.

On Sep. 1983 the Sudan government On Sep. 1983 the Sudan government issue judicial rules Actissue judicial rules Act New Code of Civil Procedures.New Code of Civil Procedures. New Code Traditional 1983. New Code Traditional 1983.

• New circular from Bank of Sudan to New circular from Bank of Sudan to directed all Sudanese Banks to directed all Sudanese Banks to Islamic mode.Islamic mode.

• Immediately shift to use Islamic Immediately shift to use Islamic mode of finance. mode of finance.

On 1989, full conversion of the banking system in the whole of the country to Islamic system.

Establishment of the High Shariah Board for the banking system and financial institutions belong the C.B.

Revision of all laws pertaining to banking through Islamic model.

Revision Bank of Sudan Act -1959.Revision Bank of Sudan Act -1959.

The sale of mortgaged property Act 1990.The sale of mortgaged property Act 1990.

The Banking Business Regulation Act The Banking Business Regulation Act 1991. 1991.

• Establish new institutions to support Establish new institutions to support the Islamic Banking systemthe Islamic Banking system

– Khartoum Exchange 1995.Khartoum Exchange 1995.

– Bank Deposit Security Fund 1986.Bank Deposit Security Fund 1986.

– Sudan Financial Company 1998. Sudan Financial Company 1998.

A new comprehensive banking policy A new comprehensive banking policy (1999 -2002).(1999 -2002).

Main Islamic Mode:Main Islamic Mode:

• Morabah.Morabah.

• Partnership (Musharaka).Partnership (Musharaka).

• Mudarabah.Mudarabah.

• Salam sale for agricultural production Salam sale for agricultural production

• Istisna.Istisna.

• Lease finance.Lease finance.

Banking services:Banking services:

Current account service account only no interested Current account service account only no interested role.role.

Saving account.Saving account.

Investment account Morabah model.Investment account Morabah model.

Modaraba level:Modaraba level:Client Client the Bank. the Bank.Labour Labour Capital Capital

►Consortium of the commercial banks:Consortium of the commercial banks:

To finance agriculture corporation To finance agriculture corporation according Islamic model. according Islamic model.

New Instrument for monetary policy:New Instrument for monetary policy:

1. Central Bank Musharaka Certificate (CMC).1. Central Bank Musharaka Certificate (CMC).

2. Government Musharaka Certificate (GMC).2. Government Musharaka Certificate (GMC).

3. Government Investment Certificate (SARAH).3. Government Investment Certificate (SARAH).

No Treasuring BillsNo Treasuring BillsNo Central Bank Bonds.No Central Bank Bonds.

• Takaful Takaful –– Islamic Insurance: Islamic Insurance:

• The 1The 1stst Islamic insurance compontion Islamic insurance compontion the World Started in Sudan the World Started in Sudan –– 1979. 1979.

• Islamic Insurance = Co operative Islamic Insurance = Co operative InsuranceInsurance

Ministry of Finance (2004) established a Ministry of Finance (2004) established a new department for sukuk organization, new department for sukuk organization, the sukuk include:the sukuk include:

Salam sukuk.Salam sukuk.

Leasing sukuk.Leasing sukuk.

Janah sukukJanah sukuk

Thank You

CENTER OF ISLAMIC BANKING & ECNOMICS

Head Office: 192- Ahmad Block, New Garden Town , Lahore, Pakistan Ph: +92-42-35913096-8, 35858990, 38407850 Fax: +92 -42-35913056E-mail : info@alhudacibe.comWeb: http://www.alhudacibe.com