Saudi Arabia to develop Islamic finance
Saudi Arabia is well-placed to play a crucial role in the development of Islamic finance since the largest Islamic banking institutes are based in Gulf Cooperation Council (GCC) countries.
According to Ahmad Mohammed Al-Joghaiman, executive vice president and chief financial officer of Saudi Electricity Company, the Kingdom's dominant economy makes it the perfect contender to encourage banking that is carried out with strict adherence to Shariah law.
The practice gained momentum in the 1970s and is now offered by a growing number of financial service providers, including HSBC.
Firms practising Islamic banking are also said to have fared better than others following the 2008 global recession.
Mr Al-Joghaiman suggested a number of measures to develop the practice throughout the Kingdom, such as the creation of a clear and legal framework from the government and specialised courses on Shariah-compliant banking from universities.
"With all such efforts from stakeholders one day, maybe Islamic financing might come into main source of financing rather than as an alternative to conventional financing as currently viewed," he said.
- You don't need to be Muslim to practice? Why Goldman Sachs' sukuk sales worked so swell this around
- Erdogan's ready to smear the banks: is Turkey about to face a financial crisis worse than that of 2001?
- An economic slowdown? The pros and cons of Israel's weakening shekel
- A spectacle of $8 trillion and more: what's the MENA Investment Conference in London all about?
- An odd dynamic? Saudi using desert to emulate Chinese model and attract Chinese investors
- World’s largest Islamic financing transaction announced in Saudi Arabia
- Islamic finance industry growing as Rakbank launches more products
- Bankers urge Islamic banks to develop their own financial reporting standard
- The BMA Organises an Islamic Finance Workshop in Tokyo
- Islamic financial institutions keeping up with the changing world