Syria licenses Islamic banks

Syria's Minister of Finance on Tuesday said the cabinet's decision to build Islamic banks in Syria will play a significant role to bring financial savings and improve banking and finance markets as well back development projects.

In a statement to SANA, Mohammed al-Hussein noted that these banks enjoy a different focus regarding the interest on deposits, which is forbiden by Islam, and would invest deposits to serve Syrians by financing small and private projects.

The Syrian cabinet approved Tuesday the establishing of private Islamic banks in Syria with a capital of about 100 million Syrian pounds each.

Minister of Islamic Trusts, Ziyad al-Ayoubi, considered the step as an important event that has been awaited for by lartge sectors of society.

He called upon Syrians to withdraw their assets abroad and invest them at these banks as to, "contribute in backing development process that Syria is witnessing now." Syria has approved the opening of four private banks in 2004 and a decree has been issued in 2001 which allows the building of such banks.