Beirut prepares for more Islamic banking

Lebanon is a potentially lucrative market for Islamic banking in view of its diversified community, according to many Lebanese bankers. However, the country still notes a shortage of Islamic financial operations vis-à-vis growing conventional transactions. “In Lebanon, Islamic banking is still new and requires awareness and a marketing campaign,” said Mutasim Mahmassani, general manager of Bank Al Baraka Lebanon, adding that he expects a fast growth for Islamic financial operations in Lebanon. Four Islamic banks are currently licensed to operate in Lebanon: Al Baraka Bank, Arab Finance House, Lebanese-Islamic Bank, a unit of Credit Libanais, and BLOM Development Bank, a unit of BLOM Bank. All four focus mostly on retail banking and concentrate on consumer finance. Al Baraka Bank has been in the market since 1992; Arab Finance House, or AFH, since 2003; Lebanese Islamic Bank opened in 2005 and effectively became operational in 2006; and BLOM Development Bank in