Abidjan, 20 Jan 2021 (AIP) - In view of the establishment of a regulatory framework dedicated to Islamic finance within the regional market of the West African Monetary Union (WAMU), an exchange workshop is taking place on Thursday 20 January 2021 in Abidjan Plateau.

Organized at Seen Hotel by the Regional Council for Public Savings and Financial Markets (CREPMF), in partnership with IFAAS and Kramer Levin, this workshop is justified by the enthusiasm of the eight WAMU States and investors for Islamic finance, according to crepmf secretary general Ripert Bossoukpé.

Indeed, more than 864 billion CFA francs have been raised on the regional financial market of the Union through Sukuk through the regulatory framework of the Common Funds for Securitization of Receivables (FCTC) set up in March 2010, recalled the SG. However, in this community area, which has an estimated population of 110 million inhabitants, about 60% of whom are Muslims, Islamic finance remains underdeveloped while it is growing rapidly in other regions of the world.

Thus, this framework should not only allow the regional financial market to diversify the sources of financing and investment but above all to explore the opportunities offered by Islamic finance. It should also allow the emergence of new types of specialized players in the Islamic finance segment as well as new types of products, including Sukuk, Islamic UCITS and the establishment of indices on the regional financial market relating to Islamic financial products, .

"It will also have to contribute to broadening the investor base, especially those who wish to invest in products that meet the principle of Muslim law or who are sensitive to the criteria of ethical and responsible investment," Bossoukpé added.

The work to set up a regulatory framework, which should be completed during 2021, will be conducted in three main phases, namely the diagnosis (which is reflected in this workshop), the development of a draft regulatory framework adapted and specific to the regional financial market, and the promotion of the Islamic capital market.

According to the Islamic Financial Services Industry Stability 2020 report, the total amount of Islamic financial assets in the three main segments (banking, financial markets and insurance) amounted to US$2.44 trillion in 2019 compared to US$2.19 trillion in 2018, with significant growth in the banking and financial markets segments.

In the WAMU area, more than 12,234 billion CFA francs have been raised since 1998, including 864 billion in the form of Sukuk. In 2020, nearly $2,018 billion was raised despite the COVID-19 crisis, after a record $1.62 trillion recorded in 2019; CFAF 8,428 billion in assets under custody; 129 securities listed on the BRVM for a total market capitalization of CFAF 10,419 billion; 233 players approved for assets under management valued at more than CFAF 664 billion.