Mutasim Mahmassani, Board Member and General Manager of Al Baraka Bank Lebanon, said that the size of the Islamic finance industry in Lebanon does not exceed $1 billion. Mahmassani said Islamic finance in Lebanon is still very small and represents less than one per cent of the size of the banking sector in general.
He pointed to the lack of appropriate legislation to help the growth of the Islamic finance sector. Islamic banking in Lebanon currently functions under Law 520, issued in 2004, which defines the minimum capital of Islamic banks in Lebanon or for branches of foreign Islamic banks licensed to operate in Lebanon.
There are currently four Shari’ah-compliant banks in Lebanon: Al Baraka Bank Lebanon; Lebanese Islamic Bank; Arab Finance House; and BLOM Development Bank. Lebanon does not permit Islamic windows to function.
Originally published on www.cpifinancial.net