In the global Islamic economy, Australia is best known as a halal food exporter. Last year, it sold $1.45 billion worth of meats to countries of the Organization of Islamic Cooperation, on top of $1.72 billion in cereals, live animals, and dairy. At home, Australia’s domestic Islamic economy will soon get a boost with the launch of the country’s first full-fledged retail Islamic bank.

IBA, which will stand for Islamic Bank Australia, hopes to receive its banking license from the Australian Prudential Regulation Authority (APRA) in early 2021, according to chief executive officer Dean Gillespie. Once licensed, IBA’s banking app will be available on both Android and Apple’s iOS. Users will be able to register with a driving license, passport or other forms of identification.

The lender also plans to open a physical branch in Sydney, New South Wales, where it is headquartered. “We will offer retail term deposits as well as home financing via murabahah and diminishing musharakah,” said Gillespie, who is the former head of loan sales at Commonwealth Bank and head of mortgages at Bankwest. “Longer term, we plan to offer SME financing.”

A long-term aim is to offer managed funds, small business financing and advisory services. Gillespie also said IBA is looking at zakat and waqf in the longer term as these areas are big opportunities.

Source: Salaam Gateway