Qatar Central Bank (QCB)’s decision to force
international banks to separate their conventional and Islamic
finance lending entities may hurt the wider shariah -compliant
"This may be a setback for the industry as a whole," said
Samer Eido from Simmons & Simmons in Doha. "Instead of
encouraging people to come to Islamic banking … this
will scare away people and reduce the market share of Islamic
The ban may also damage Qatar’s reputation as a
financial centre. One bank counsel said that if the bank is
looking to expand into new markets, decisions such as this
don’t help the country’s cause.
"If you can’t offer...