| [ummid.com] "Islamic Finance is growing but it needs a regulatory authority to ensure full Shariah-compliance", the panelists observed during a session on Islamic Finance and Banking on the final day of the 11th Jeddah Economic Forum March 22. "The global economic slowdown, witnessed in the past couple of years, was an eye-opener to most of the advanced countries as they felt that they might not have been in such a mess if they had adopted Islamic finance", they added. Taking the discussion further, Jeddah Chamber of Commerce and Industry Chairman felt that Islamic economy had not been treated fairly. “Islamic economy cannot find the place that is due to it unless it is introduced as a subject in schools and universities,” he said. Al-Rajhi Bank CEO also said the challenges include the lack of institutional framework, expansion of market and difficulty in managing short-term liquidity. He adds on that there is wide disparity in the application of Islamic banking principles. “Every Islamic bank has its own Shariah board. That’s why there is contradiction in the number of Islamic products, which reduces the confidence of customers. So, we have to unify Shariah parameters, which now number over 40,” he said, emphasizing the need for a unified Shariah board. |
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