The Philippines seeks to establish a partnership with Qatar to develop the country’s Islamic banking system, according to the Department of Trade and Industry (DTI)-Trade Promotions Group (TPG) undersecretary Abdulgani M Macatoman.
Macatoman told the media, “The Philippines has abundant opportunities for partnerships in many sectors, among which is Islamic banking, and we are looking forward to working with Qatar in this particular field. Part of our campaign is to encourage prospective Qatari investors to look at the possibility of venturing into the Islamic banking system in the Philippines”
Macatoman emphasised that Filipinos will benefit from the proposed partnership with Qatar. Also, it will help broaden the scope for new Islamic products and services — driving financial inclusion in the country.
Last year, the Philippines aimed to a regulatory regime that supports the development of the Islamic banking system in the country. The proposed framework will support conventional banks with important requirements that will enhance Islamic banking and finance. The framework would allow foreign Islamic banks to run operations in the Philippines. It can also help increase investment in the domestic Islamic banking segment.
The country is prime for Islamic banking products. Nearly 10 percent of Filipinos belong to the Muslim population in the country. Currently, Al Amanah Islamic Investment Bank of the Philippines is the only Islamic bank operating in the country.
According to Chuchi Fonacier, deputy governor of the country’s central bank, the proposed framework for Islamic banks will be built on the existing licencing framework for conventional banks.