Central Asian and African countries next destination for Islamic finance
The First International Forum of Islamic Banks and Financial Institutions held under the patronage of His Excellency, Dr. Fayez al-Tarawneh, Prime Minister of Jordan has come to end today 29 June in Amman. ‘
The forum was jointly organised by General Council of Islamic Banks and Financial Institutions – Bahrain and Strategy – Jordan. In this forum, different topics like emerging trends of Islamic banking in Arab Countries, legal and taxation matters of Islamic banking, the role of international institutes in Islamic banking and finance and importance of education and awareness of Takaful and Islamic banking etc. were discussed.
A good number of experts and professionals from different countries like Pakistan, Malaysia, Palestine, Indonesia, Bahrain, UAE, Qatar, Saudi Arabia etc. participated in this mega forum.
While addressing to the concluding session, Chief Executive Officer of AlHuda Centre of Islamic Banking and Economics, Muhammad Zubair Mughal said that presently, Islamic banking is growing at a very rapid pace and the Central Asian Countries (Kazakhstan, Afghanistan, Tajikistan, Uzbekistan, Kyrgyzstan, Azerbaijan) and African Countries (Nigeria, Tanzania, Kenya, Ghana, Tunisia, Senegal etc.) are its new destinations of Islamic banking and finance where the rapid increase in the demand of Islamic banking is being observed and majority of these countries are providing shield to Islamic banking and finance industry by bringing alterations in laws through parliaments.
While presenting the review of present Islamic finance industry, he said that the market of Islamic finance has reached to $1.3 trillion, in which the share of Islamic banking is 77 per cent ($1 trillion), share of Sukuk is 14 per cent ($180 billion), share of Islamic funds is five per cent ($64 Billion) and share of Takaful is one per cent ($12 billion) whereas the share of other Islamic financial products like Islamic leasing, Mudarabah companies, Islamic microfinance and Islamic REITs is three per cent ($44 billion).
He said that in comparison with the rate of growth of Islamic banking; the Islamic banking graduates are not being produced accordingly due to which there is a lack of supply of Man Power than the demand of Islamic banking and finance which should be resolved immediately. He said that not only new experts of Islamic banking and finance should be produced to be utilised in the emerging market of Islamic banking and finance but the non-qualified personnel in Islamic banking and staff of conventional banks should be changed into Islamic Financial experts so that Islamic banking could be run by qualified Islamic bankers.
He further said that Islamic banking and finance should not be only for well-off, business personnel or middle class but its benefits should also be disseminated to poor through Islamic microfinance so that they could get rid of poverty and live their lives respectfully through proper employment.