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 financing industry.
"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
"If you can't offer the full range of services that you
would like to under one roof, and you have to effectively
create another bank, is it really worth it when you've got
another country knocking on the door offering the ability to
set up now?" said the...