Franco Arab Chamber of Commerce

MarcoPolis: Welcome Dr. Saleh Al-Tayar, we would like to ask you a few questions concerning the Chamber of Commerce, the 3rd Forum for Islamic Finance and on Saudi Arabia.

The Franco-Arab Chamber of Commerce
Now you are based in Paris where you exert the function of General Secretary of Franco-Arab Chamber of Commerce. Can you provide us some history about the Chamber and the role that is playing nowadays?

Dr Saleh Al-Tayar, The Franco-Arab Chamber of Commerce: Thank you very much to give me the opportunity to talk about these 3 important topics.

First of all the Franco-Arab Chamber of Commerce is based in Paris since 1970, almost 40 years now. It’s one of the leading mixed Chamber between Arab countries and economic partners in the world. Its main objective is to promote the economic, industrial and all business relationships between Arab countries and France.

MarcoPolis: What are the major events and how do you assess the performance of the Chamber?

Dr Saleh Al-Tayar, The Franco-Arab Chamber of Commerce: We have to promote countries and business opportunities in France and Arab countries, every year we organize seminars, and some conferences lead by key speakers from the concerning countries, like Tunisia or Saudi Arabia, or whatever country who wants to participate.

Last time for example President of Djibouti Mr. Omar GUELLEH came to the Chamber – we don’t make any difference between poor and rich countries. We invited around him about 200 French businessmen for this event, interested in understanding the strategic investment laws. Even before, we invited some leaders of the investment sector from Arab countries like Saudi Arabia, or personalities just as the Minister of Commerce of Egypt to promote and make people understand better about the new regulations and the reforms of their countries.

This is especially true for Saudi Arabia and the Gulf area, this kind of event is a very important exposure to boost investments from and to France.
Our message is addressed to medium and small enterprises, they have been here before us but we need their assistance, and now they need our help, because we can play a political role between them and the decision makers of the country they are interested in. 3rd French Forum for Islamic Finance

MarcoPolis: On 9th December, the Franco-Arab Chamber of Commerce is organizing the 3rd French Forum for Islamic Finance sponsored by Christine Lagarde, the French Minister of Economy, Industry and Employment. What are your expectations and goals in organizing such an event?

Dr Saleh Al-Tayar, The Franco-Arab Chamber of Commerce: We stated that France was very behind other European countries like UK or Germany in the development of Islamic banking. Two years ago in Riyadh, President Sarkozy highlighted in his speech to Saudi businessmen, members of the French-Saudi Council, that France was not only synonymous for tourism or museums, but that it has to be a place of investment.

France has to be competitive with other countries regarding Islamic banking, that’s the reason why we launched the first Forum for Islamic Finance 2 years ago, and we had very positive reactions from the French Government about it. People have to understand that Islamic Banking is wider than helping individuals; this is part of the economic mission of the country.

Last year Madame Lagarde made a promise during her speech. She said that year 2009 will have to see a law regarding Islamic finance which will have to be accepted in the French legislation, because today in France, it is impossible to build up an Islamic bank or branch. There are 3 or 4 Arab groups who already requested a permission to set their Islamic bank in France.

The fact is that in most French banks, there is an Islamic section, but they are working through Arab countries like Bahrain, Dubai, etc. Why spending the money there and not here in France? This is the main problem we are trying to sort out this year.
This 3rd Conference will be in accord with the Islamic Bank of Development (BID) and the Ministry of Economy. The project of the financial law about Islamic banking has to be adopted by the French Parliament, and we really hope it to come out one day soon.
In parallel to that, we have created an institution for the Islamic finance, the first of its kind in France, the French Institute for Islamic Finance under the umbrella of the French-Arab Chamber of Commerce to prove the importance of this kind of tool to build up businesses. We encourage and make people understand the importance of this topic, teaching them how to use this financial tool for the development of their business and country.

More than 5 million French Muslims need their personal projects to be financed. To finance their projects according their own methods, we have to build a legal system and teach bankers how it works and who has to be in it to make this happen.

MarcoPolis: What are the benefits of Islamic finance for western companies and who can effectively be concerned? To what extent this alternative financing tool could be effective for these western companies?

Dr Saleh Al-Tayar, The Franco-Arab Chamber of Commerce: It is very important, because it is not dangerous for the bank or the institutions. Companies would like to invest in their projects worldwide, and they can be financed by the bank through the Islamic sukuk or any other Islamic tool. This is a guarantee for the bank, because it becomes a partner and an intermediary of the company who makes the investment.
In other countries, banks gave loans more than assets, and the crisis is due to the fact that there is no guarantee, as the assets are not covered by the interest of the loan. This shows how an important tool Islamic finance is to help the national economies everywhere.