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.
- Why Saudi's latest announcement to open up the stock market to foreign investors is a good move
- Saudi expected to emerge as seventh largest capital market and it's a very big deal!
- Time for some serious contemplation: Middle East firms face $91bn refinancing needs
- What's really holding Islamic Banking back?
- The rise of the Chinese renminbi: an unmatched opportunity for Qatar?
- 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