Islamic financing in Guyana and Suriname, Ally’s memoirs at the Library of Congress, and Guyana’s mineral and water wealth

ISLAMIC Financing in Guyana and Suriname; SWOT; ALLYS’ couple made HISTORY  as a Guyanese American HUSBAND  and WIFE  to have their INDIVIDUAL Diplomatic Memoirs ACCEPTED into the US Library of Congress within the SAME month; and Guyana’s 34 MINERALS and an Abundance of WATER.

Islamic Financing in Guyana and Suriname

“Protect Every Dollar” through ethical, interest-free finance.

Islamic finance, or “Shariah-compliant finance,” is banking without _riba_ – interest. Instead of lending money of interest, banks and investors share risk + profit. For Guyana and Suriname, with growing Muslim populations, oil/gas money, and need for SME funding, it’s more than religion. It’s a tool for development.

GUYANA: Early Stage, High Potential

Current State: No full Islamic bank yet. But demand is growing due to 3 forces:

A. Demographics: ∼ 12 % of Guyana’s population is Muslim, concentrated in Regions 3, 4, 5, 6. MASJIDS in Georgetown, Berbice, Essequibo already run zakat + small interest-free loans for members. It is informal BUT active.

B. Oil Money + Infrastructure Need: Guyana needs $10B+ for housing, agriculture, ports. Traditional banks struggle with long-term, low-income lending. Islamic finance fits because:

Housing: Murabaha/Ijara for low-cost homes WITHOUT  18-25% bank interest.

Agriculture: Musharakah for rice/fish farmers. Bank SHARES CROP RISK  instead of forcing fixed interest payments in severe weather years.

SMEs: GO-Invest under CEO Hon. Peter Ramsaroop wants modern industries. Sukuk could FUND solar farms or agro-processing WITHOUT debt burden.

C. Regulatory Gaps: Bank of Guyana follows Basel rules built for interest-based banks. No “Shariah window” law yet.

Challenges:

1. Tax: In Murabaha, assets are bought + sold = 2x VAT/stamp duty. Needs tax neutrality law like UK/Malaysia did.
2. Supervision: Bank of Guyana needs Shariah scholars on advisory board to certify products.
3. Awareness: Many Guyanese think “Islamic bank = Muslim only”. Reality: Anyone can use it. Ethical finance appeals to Christians, Hindus too.

Who is moving: Republic Bank, Scotiabank have been approached by Muslim groups to pilot “ethical investment accounts.”

GO-Invest has discussed Islamic FDI from UAE/Qatar for housing projects. Nothing has been launched yet, but 2026-2027 is the WINDOW as oil GDP grows.

SURINAME: Further Ahead, DUTCH LINK

Current State: Suriname is 13-15% Muslim, largest % in South America. Islamic finance is more mature here due to Dutch influence.

A. Existing Sources:

1. N.V. Surinaamse Islamitische Spaarbank: Ran from 2000-2018. Offered interest-free savings + Murabaha. Closed due to capital + regulation issues. Proved demand exists.
2. Informal: Javanese Surinamese communities use rotating savings groups. Shariah-compliant by design. Trust-based, no interest.
3. Hajj Funds: Surinamese mosques collect savings for pilgrimage using Wakalah contracts. That’s Islamic finance in practice.

   B. Legal Advantage: Suriname’s civil law is based on Dutch code. Netherlands has “Islamic banking window” rules since 2016. Suriname can copy fast. Central Bank of Suriname has met with IDB Islamic Corp, to discuss training.

   C. Opportunities:
   1. Gold + Mining: Suriname’s gold sector needs ethical financing. Traditional loans charge 20%+ interest. Musharakah partnerships between miners + Gulf investors = profit-share, less debt risk.
   2. Rice + Bananas: Same model as Guyana. Flood/drought risk makes fixed interest deadly for farmers. Profit-share aligns bank + farmer.
   3. Housing for Diaspora: 300K+ Surinamese live in Netherlands. Sukuk bonds could let them invest in Suriname housing projects, get rental return, no interest.

   D. Challenges:
   1. Small market: 600K population = limited scale for big Islamic bank.
   2. Capital rules: Requires high capital for new banks. Islamic banks need even more due to asset ownership.
   3. Political stability: Investors prefer certainty. But recent IMF program is building confidence.

Who is watching: Al Baraka Bank Group and Dubai Islamic Bank have done feasibility studies. They are  waiting on 1 item: Suriname to pass “Islamic Banking Act”. IDB and IsDB offer technical help for free.

5 STEPS for Guyana + Suriname TO LEAD.

1.  Pass Law: Tax-neutral treatment + license for “Islamic Window” inside existing banks. Malaysia did this in 1983 and grew to $200B industry.
2. Train Regulators: Bank of Guyana + Centrale Bank van Suriname (CBvS). send 5 officers to Malaysia/UAE for 2 weeks. IDB pays.
3. Pilot Product: Start with Murabaha for motorcycles/fishing boats. Minimal risk, high demand, builds trust.
4. Shariah Board: 3 respected scholars + 1 lawyer. Certify every product so Muslims trust it.
5. Educate: Friday sermons + GO-Invest seminars: “Islamic finance is ethical finance. For all Guyanese/Surinamese.”

Bottom Line: Guyana has oil + youth. Suriname has Muslim population + Dutch law link. Both need capital without debt traps. Islamic finance isn’t charity. It’s partnership. In a world where debt destroys families, profit-sharing builds them.

Islamic Development Bank, (IsDB) Jeddah, Saudi Arabia ( 57 Nations).

GUYANA: Admitted in May 2016 as the 57th member. Its membership was officially formalized during the Bank’s Annual Meeting in Jakarta, Indonesia.

SURINAME: Admitted in December 1997 as the Bank’s 52nd member. It was the FIRST country from the Americas to join.

Organization of Islamic Cooperation, (OIC):

GUYANA and SURINAME are BOTH Members

FUTURE FUNDING:

THE latest USD $1 BILLION,  partnership  between the IsDB and the Inter-American Development Bank (IDB) to support development in Guyana and Suriname.

GUYANA  SWOT on ISLAMIC FINANCING.

GUYANA STRENGTHS:

1.Oil GDP surge: $200B+ projects need long-term, ethical capital. Islamic banks fit infrastructure.

2. GO-Invest push: Gov’t actively courting FDI. Shariah funds from UAE/Qatar interested in housing/agro.
3. Unbanked rural population: 7-8% Muslim + many non-Muslims distrust 25% bank interest. Alternative needed.
4.  Young population: Under 30s open to “debt-free” finance models.

GUYANA WEAKNESSES: 

1. No law yet: Bank of Guyana has no “Shariah window” rules. Tax = double VAT on Murabaha assets.
2. Low awareness: Many think “Islamic = only for Muslims”. Education gap.
3. No scholars locally: Need Shariah board. Must import expertise first.
4.  Small market: 800K population limits scale for full Islamic bank.

GUYANA OPPORTUNITIES

1. Housing crisis: Murabaha/Ijara for low-cost homes without 20% interest. Gov’t needs 50K homes.
2. Agriculture risk: Musharakah lets banks share crop loss with rice/fish farmers vs fixed loan.
3. Diaspora remittances and Bonds: Guyanese in US/Canada want halal investments back home. Sukuk bonds possible.
4. Copy Malaysia model: “Islamic Window” inside GBTI/Republic Bank = low start cost.

GUYANA THREATS

1. Regulatory delay: If law takes 5+ years, informal lenders fill gap with worse terms.
2. Political risk: Change of gov’t could stall policy. Investors hate uncertainty.
3. Competition: Microfinance already entrenched. Must prove Islamic = better, not simply different.
4. “Extremism” FEAR: Misunderstanding could cause PR issues. Needs clear branding.

SURINAME  SWOT on ISLAMIC FINANCING.

SURINAME STRENGTHS

1. Higher Muslim %:13-15% of 600K population. Largest in South America. Built-in customer base.
2. Dutch Law Link: Netherlands has Islamic banking rules since 2016. Suriname can adapt fast.
3. Proven demand: Surinaamse Islamitische Spaarbank (SISB)  ran 2000-2018. People used it until CAPITAL RULES killed it.
4. Diaspora wealth: 300K+ Surinamese in Netherlands with savings to invest halal.

SURINAME WEAKNESSES

1. Small Economy: GDP $3B vs Guyana $15B+. Less capital, harder for big projects.
2. Bank CLOSURE TRAUMA: SISB failure makes public + regulators cautious. Trust must be rebuilt.
3. HIGH CAPITAL RULES: Centrale Bank van Suriname ( CBvS) requires strong capital for new banks. Islamic banks need extra for asset ownership.
4.  BRAIN DRAIN: Few local finance + Shariah experts left.

SURINAME OPPORTUNITIES

1. Gold sector: Musharakah partnerships vs 20%+ loan sharks for small miners. Gulf investors interested.
2. Rice/banana exports: Profit-share finance handles flood/drought risk better than fixed loans.
3. Hajj + Zakat funds: Masjids already manage millions informally. Formalize into Wakalah investment accounts.
4. IsDB/ICD support: Islamic Development Bank OFFERS FREE TRAINING  + feasibility grants.

SURINAME THREATS

1. 1. Economic instability: IMF program + currency risk scare foreign Islamic investors.
2. Political instability: Elections, policy swings make 10-year Sukuk risky.
3. Brain drain: Best talent migrates to Netherlands. Who runs Shariah board?
4. Competition from Netherlands: Diaspora can bank in Netherlands. Why keep money in Suriname?

BOTTOM LINE FOR BOTH  – “Protect GUYANA and SURINAME Dollar ”Angle*

Shared Win: Debt-free FINANCE for HOUSING, FARMS, SMEs. Aligns bank + customer = less defaults, stronger families.

Shared Barrier: Law + Education. Law gives STRUCTURE. Education kills FEAR. 

Quick Strategy:

1. GUYANA: PILOT “Islamic Window” in 1 bank for HOUSING Murabaha. Use oil money to push law fast.
2. SURINAME: REVIVE Surinaamse Islamitische Spaarbank (SISB) as digital-only “Islamic Microfinance”. Low capital, use Dutch Shariah Board REMOTELY.

Principles

The term “Islamic banking” refers to a system of banking or banking activity that is consistent with Islamic law (Shariah) principles and guided by Islamic economics. The contemporary movement of Islamic finance is based on the belief that “ALL FORMS  of INTEREST are RIBA and hence prohibited”

Islamic law prohibits investing in businesses that are considered unlawful, or haraam (such as businesses that sell alcohol or pork, or businesses that produce media such as gossip columns or pornography, which are contrary to Islamic values). Furthermore, the Shariah prohibits what is called “Maysir” and “Gharar“. Maysir participates in contracts where the ownership of goods depends on the occurrence of a predetermined, uncertain event in the future whereas Gharar describes speculative transactions.

Both concepts involve excessive risk and are supposed to foster uncertainty and fraudulent behavior. Therefore, the use of all conventional derivative instruments is impossible in Islamic banking. In the late 20th century, a number of Islamic banks were created to cater to this particular banking market.

Types of Islamic Lending

Murabahah may be called an Islamic mortgage transaction, instead of lending the buyer money to purchase the item, a bank might buy the item itself from the seller, and re-sell it to the buyer at a profit, while allowing the buyer to pay the bank in installments. However, the bank’s profit cannot be made explicitly and therefore there are no additional penalties for overdue payment. In order to protect itself against default, the bank asks for strict collateral. The goods or land are registered on the name of the buyer from the start of the transaction.

Another approach is EIjara wa EIqtina, which is similar to real estate leasing. Islamic banks manage loans for vehicles in an equivalent way (selling the vehicle at a higher-than-market price to the debtor and then retaining ownership of the vehicle until the loan is paid).

Mudaraba is venture capital funding of an entrepreneur who provides labor while financing is provided by the bank so that both profit and risk are shared. Such participatory arrangements between capital and labor reflect the Islamic view that the borrower must not bear all the risk/cost of a failure, resulting in a balanced distribution of income and not allowing the lender to monopolize the economy.

Islamic banking is restricted to Islamically acceptable transactions, which exclude those involving alcohol, pork, gambling, etc. The aim of this is to engage in only ethical investing, and moral purchasing.

In THEORY, Islamic banking is an example of full-reserve banking, with banks achieving a 100% reserve ratio. However, in practice, this is not the case, and no examples of 100 per cent reserve banking are known to exist.

Financial Accounting Standards

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has been publishing standards and norms for Islamic financial institutions since 1993. By 2010, it had issued “25 accounting standards, 7 auditing standards, 6 governance standards, 41 shari’ah standards and 2 codes of ethics.

The standards issued by AAOIFI are mandatory for Islamic financial institutions in Bahrain, Sudan, Jordan, and Saudi Arabia, and recommended for other Muslim countries and Islamic financial institutions according to Muhammad Akram Khan. Established in Algiers in 1990, its original name was Financial Accounting Organization for Islamic Banks and Financial Institutions. It later moved its headquarters to Bahrain.

Organisations

The “MOST PROMINENT” FOURTEEN (14) , research and training INSTITUTIONS listed in  ALPHABETICAL order, “exclusively DEVOTED to Islamic ECONOMICS and FINANCE” are:

1. Islamic Economic Institute, previously Islamic Economics Research Centre, and before that International Centre for Research in Islamic Economics, King Abdulaziz University, Jeddah, (Saudi Arabia)
2. Islamic Research and Training Institute (IRTI), Islamic Development Bank (IDB) Jeddah, (Saudi Arabia)
3. School of Islamic Banking and Finance, previously International Institute of Islamic Economics, Islamabad, (Pakistan) (IIUI),
4. Institute of Islamic Banking and Insurance, London (UK)
5. International Centre for Education in Islamic Finance (INCEIF), Malaysia
6. Islamic Finance Training, Kuala Lumpur (Malaysia)
7. Ethica Institute of Islamic Finance, Dubai, UAE
8. Islamic Finance Academy, Dubai, UAE
9. Centre for Islamic banking and Finance Training, Kuala Lumpur (Malaysia)
10. Institute of Islamic Finance, London (UK)
11. Islamic Finance Advisory and Assurance Services, Birmingham (UK)
12. Islamic Finance Institute of South Africa
13. Centre for Islamic Finance of Bahrain, Institute of Banking and Finance (BIBF)
14. Centre for Banking and Financial Studies, Qatar