Committee
Economy, Energy and Tourism Committee 18 December 2013
18 Dec 2013 · S4 · Economy, Energy and Tourism Committee
Item of business
Access to Finance
I appreciate the difficulty that Scotland Europa has, but the horizon 2020 €77 billion is basically there to marshall new ideas in R and D and to build on innovation. We are also considering the €1.4 billion COSME funding that is planned for access to on-going development capital for businesses that are in place. It is almost a rhetorical question, but is there a danger that we are mixing the two—horizon 2020 and the COSME programme? That might have happened because of the €900 million that was transferred from COSME to horizon 2020. Is it quite clear in the minds of SMEs, universities and Government that there are quite separate SME activities in terms of horizon 2020 and the COSME programme?
In the same item of business
The Convener
Con
Item 2 continues our inquiry into access to finance. I am pleased that we are joined by Omar Shaikh, who is an executive board member of the Islamic Finance ...
Graham Burnside (Tods Murray LLP)
We are happy to do so. My colleague Omar Shaikh will say a bit about Islamic finance in general, to give the committee some of the background picture.I will ...
Omar Shaikh (Islamic Finance Council UK)
Good morning, respected members. My background is that I am a chartered accountant. I used to work with Ernst & Young and I used to head its Islamic finance ...
The Convener
Con
Thank you for that introduction. To get things started, will you tell us what the domestic market opportunities are for Islamic finance in Scotland and perha...
Omar Shaikh
We look at that from two perspectives, one of which involves the domestic retail and small and medium-sized enterprises markets. In the Islamic retail space,...
The Convener
Con
Mr Brodie has one.
Chic Brodie (South Scotland) (SNP)
SNP
I keep it in the garage.
Omar Shaikh
That is probably a wise decision, given the current weather.
Chic Brodie
SNP
It is right next to the Ferrari.
Margaret McDougall (West Scotland) (Lab)
Lab
On his mantelpiece.
Omar Shaikh
I should not have dropped in the reference to Aston Martin.
The Convener
Con
I think that we will stick to Islamic finance.
Omar Shaikh
We are looking at projects in the Olympic village as well. Hundreds of millions of dollars per transaction are being brought into London from direct structur...
Hanzala Malik (Glasgow) (Lab)
Lab
Assalamu alaikum, Omar. In 2010, the Islamic Bank of Britain suffered mounting losses, which led to it being bailed out by Qatar. If the Scottish Government ...
Omar Shaikh
Fundamentally, there was no bail-out. I was at Ernst & Young and we were appointed to do a refinancing. It is normal to recapitalise a business as it grows. ...
Hanzala Malik
Lab
Do you see any opportunity for Scottish banks to engage with you in a positive way that would allow you to work hand in glove? Is anything worthy of consider...
Omar Shaikh
Absolutely. What we did in London was successful because Eddie George, the late governor of the Bank of England, got up and did something and because the the...
Hanzala Malik
Lab
As a closing remark, I say that Scotland is open for business.
Omar Shaikh
That is great, but it has to be proved and has to be said to investors. You guys need to be out there saying that to them, but not a single minister from Sco...
Hanzala Malik
Lab
We will change that.
Omar Shaikh
For me, as a Scot, the situation is disappointing.
Graham Burnside
To follow up on an earlier question, it was in the press just yesterday that, earlier this year, the Islamic Bank of Britain carried through its first commer...
Chic Brodie
SNP
Good morning, gentlemen. Interestingly, I looked at the Al Meezan deal on commercial property.I understand the aim and objective of involving non-profit and ...
Graham Burnside
Do you mean would funding be provided to non-Islamic organisations?
Chic Brodie
SNP
If Chic Brodie Enterprises goes along and says to the Islamic Bank of Britain, “I want—
Graham Burnside
Absolutely. Yes, it is available. In fact, one of the purposes of the IFC is to try spread the word that Islamic finance is emphatically not just for Muslims...
Omar Shaikh
You should also ask what Scottish Coal thinks of that, because it received Islamic funding from the Bank of London and the Middle East.
Chic Brodie
SNP
That is encouraging. In trying to wrestle with the idea of the deal, I was somewhat confused by the objectives and aims as established by the bank. The idea ...
Graham Burnside
Yes. I will not go into the technical details of how the deal that I was involved in was structured. To pick up on what Omar Shaikh said earlier, the fundame...
Chic Brodie
SNP
I understand that, Mr Burnside. However, although there might be no return on the money, there could be a return on other assets. That is what I struggle with.