Netherlands Antilles may develop Islamic financing

WILLEMSTAD, Curacao: The Curacao International Financial Services Association (CIFA), Ernst & Young Tax Advisers and Amicorp Inc. have delivered a report on the possibilities of developing Islamic financing in the Netherlands Antilles to the State Secretary of Finance, Alex Rosaria.

According to the feasibility report called "The Netherlands Antilles: A New Mecca for Islamic Financing?", there are certain immediate actions that the local (international) financial centre can take in order to accommodate Islamic financing.

However, the report clearly indicates that if the Netherlands Antilles wishes to become an important player in Islamic financing in this hemisphere, more profound changes and adaptations are needed in the country’s legal and regulatory framework.

The reason for coming up with such a study was given by Rosaria.

“If we are serious about being in the top-ten international financial centres of the world, we cannot, not be involved with Islamic financing,” he said, noting that the Netherlands Antilles is currently negotiating a Double Taxation Agreement with one of the most important players of Islamic financing, the United Arab Emirates.

Islamic financing refers to a system of financing or financial activity that is consistent with Islamic Law (Sharia). Its two central tenets are: no interest can be earned on transactions and all investing must be done in a socially responsible way. The global Islamic finance industry has grown and its total assets are estimated at US$750 billion.

In the coming weeks the overnment will analyse the conclusions and recommendations of the report.

Rosaria said he is well aware of misconceptions that may exist, especially because we live in a post 9/11 world. On the other hand Islamic financing has grown enormously in importance in Western (secular) financial centres such as New York, Singapore, Frankfurt, Mauritius and London.

But most importantly, according to Rosaria, Islamic financing is based on a set of religious beliefs and the Netherlands Antilles strongly adheres to the core value of freedom of religion.