The Tunisian leasing firm El Wifack has signed an advisory services contract and a term sheet with the Islamic Corporation for the Development of the Private Sector (ICD) (http://www.icd-idb.com), the private sector arm of the Islamic Development Bank Group (“IDB”), in order to process and support its conversion to full Shariah compliant Banking operations.
The advisory agreement is designed to develop an advisory process in order to efficiently and effectively deliver full conversion: including to identify challenges and address impediments to this mutual collaboration. The ICD will dedicate seven key teams across the full conversion process: including in the areas of project management, Shariah compliance, treasury, accounting, human resources, information technology, marketing and legal framework.
The partnership agreement is designed to increase the capital and fully convert El Wifack Leasing firm into a fully-fledged Islamic financial institution in order to undertake commercial banking activities in Tunisia, and represents a groundbreaking move in the development of a strong and supportive Islamic financial sector in the country. With authorized capital of at least TND150 million the new bank will be a valuable addition to the Tunisian banking landscape, as well as opening the door to further development of Shariah compliant products and services for the Tunisian population.
“The agreement will be a pivotal step in the development of a robust Islamic financial sector in Tunisia, which is currently in the early stages of progress, and we are pleased to assist El-Wifack in its strategic move towards Islamic operations” commented Mr. Khaled Al Aboodi, CEO of ICD.
“Tunisia is currently working on developing its Islamic banking sector further, and this latest step will be seminal in its ongoing transition to a strong penetration and the provision of a holistic range of products and services to Tunis population,” said Mr. Mohammed Mellousse, the General Manager of El Wifack Leasing Firm.
About the Islamic Corporation for the Development of the Private Sector (ICD)
The Islamic Corporation for the Development of the Private Sector (ICD) (http://www.icd-idb.com) is a multilateral organization, part of the Islamic Development Bank (IDB) Group. ICD was established in November 1999 to promote economic development of its member countries in accordance with the principles of the Sharia through private sector development. ICD encourages the establishment, expansion and modernization of private enterprises through financing private sector enterprises or projects. Projects are selected on the basis of their contribution to economic development considering factors such as creation of employment opportunities and contribution to exports. ICD also provides advice to governments and private sector groups on policies to encourage the establishment, expansion and modernization of private enterprises, development of capital markets, best management practices and enhance the role of market economy. ICD operations complement the activities of the IDB.
Islamic Corporation for the Development of the Private Sector (ICD)