Diversification of Islamic Financial Insturments
87
efficiency of its sectors and even in the number of Islamic financial institutions. The same
applies on Takaful sector where Takaful and Retakaful assets are significantly lower than many
other smaller jurisdictions. The following Table shows some key financial inclusion indicators
in Sudan for the year 2012.
Table 37: Basic Financial Inclusion Indicators in Sudan (2012)
Low income
countries
Sub-Saharan Sudan
Loan from a
financial institution
11% 5% 2%
Loan from a family
or friends
30% 40% 47%
Credit cards 2% 3% 1%
Saved at financial
institution
11% 14% 9%
Saved using a
saving club
8% 19% 7%
Account at formal
financial institution
(Male)
20% 24% 4%
Female 24% 21% 3%
Source: World Bank Findex database. The indicators represent percentage of population above 15
From above table, it is realized that the Sudanese depends more on other modes of finance
such as family, friends and clubs comparing to other Sub Saharan and low income countries.
Moreover, their savings at banks are less than others. This could be due to the significantly
lower percentage of bank accounts per person which is only 4% for male and 3% for female.
Hence, the weak financial inclusion in Sudan emphasise the importance of a comprehensive
financial development that include banking and non-banking institutions.
3.4.3 ISLAMIC BANKING IN SUDAN
Banking system in Sudan works under the supervision and regulations of Central Bank of
Sudan within the banking business organization act for the year 2004 which clearly states that
“banking business operating in Sudan should not contradicts with Islamic Shariah, and defines
finance as “investing funds according to Islamic contracts”.
The banking sector forms the backbone of Sudan’s financial system and is the primary source
of financing for the domestic economy. Sudan and Iran continue as the two jurisdictions that
operate fully Shariah-compliant banking systems; hence, a 100% Islamic banking market share
for each (IFSB, 2017). According to the Islamic finance development indicator for 2016: “Sudan
came at the 11th place out of 124, although it has followed a “fully” Islamic financial system for
quite a long time. This indicates many challenges that face the financial sector in Sudan, and
large area for improving it”.