Islamic Finance in Iraq -Preliminary Thoughts Iraq Finance – 19 September 2012

Potential Role of Islamic Finance in Iraq  Islamic Finance Growing Globally  Need for Islamic Finance Capability to Tap all Potential FDI Markets  Likely to be Significant Domestic Demand  Studies Show that 30% + of Population of Muslim Countries Committed to Islamic Finance

Project / Infrastructure Finance and Sukuks  Sukuks – “Islamic Bond”  Role in Project / Infrastructure Finance  Potential to Tap Muslim Funds  Needs Regulatory Regime  Vital for Enabling Islamic Banking and Takaful in Iraq  Mobilising Diaspora Funds – E.G. Sukuk Issuance to Build Najaf Airport

Financial Inclusion Strategies  Importance of Financial Inclusion  Iraq - Under banked  < 30% of People Have Bank Accounts  Compare with 80% + Ownership of Mobile Phones  Islamic Finance & Banking Can Help to Increase this  A Proportion of Muslims Will only Bank With Islamic Financial Institutions

The Role of Takaful  Critical to Compliment Projects Funded by Islamic Finance  Role in Mobilising Savings  Pension Provision and Investment Linked Takaful  Health and Educational Provision Through Takaful

Harnessing Best Practice  Malaysia – a Good Role Model  Now 20% + of the Economy Serviced by Islamic Finance, Banking and Takaful  Regulatory and Legislative Experience  Securities and Islamic Capital Markets  Good Role Model for Iraq to Emulate

Contact: M Iqbal Asaria Afkar Consulting Ltd