TAIF's head criticizes Tunisian government's delay

The head of the Tunisian Association of Islamic Finance (TAIF) Amal Amri criticized the government's delay in tackling the obstacles facing the Islamic banks and putting them within the priorities of reforming the banking sector.
 
"The International Monetary Fund (IMF) has already alerted the Tunisian government to the need to take advantage of the potential of Islamic banks and to develop them legally and technically, based on experiences that proved its successful," Amri indicated.

Amri added, in exclusive statements for Arabs Today, that the studies carried out by the TAIF have proved that Islamic banks have been able to attract a significant percentage of funds traded outside the banking framework, because their owners are not convinced to deal with traditional commercial banks to avoid usury, despite the experience is new in Tunisia, compared to many other Muslim countries.

The head of the association pointed out the need to draft legislative texts to make Islamic banks able to compete with their traditional counterpart, noting that the customers of Islamic banks suffer from exclusion and the lack of benefit from government programs to finance the real estate sector.

Islamic banks in Tunisia aspire to acquire 15% of total bank assets in 2022, compared to 5% in 2016, according to official reports. But these ambitions are facing many obstacles, notably inadequate banking legislation.
 
The current laws do not allow Islamic banks to compete with other banks in vital sectors of the economy and reuse the benefits of savings. According to analysts, the delay in improving the legislative framework of Islamic banks, which have proved successful results in many of the world's economies, misses the country with great opportunities to finance the economy, while Tunisia's domestic economy needs all its potential to recover.

Islamic banks, which are currently active or have applied for a license with the Central Bank of Tunisia, are trying to finance various sectors, particularly agriculture and real estate. Financial authorities do not deny the importance of diversifying financial products, and what Islamic banks can achieve by adding to the local economy.