Mar 01 2013
|more articles from|
Dubai can become Islamic finance hub
Friday, Mar 01, 2013
In the wake of the global economic crisis, investors are looking for well-governed financial products and centres to safely put their money. In many ways this is behind the growing international appeal for Islamic financial products, like sukuk (islamic bonds). Islamic finance refers to economic practices that comply with Sharia, which generally prohibits interest, short-selling and certain forms of financial trading. It was this type of opaque, even fraudulent, financial transactions — driven by a desire for short-term, unsustainable profits — that were at the root of the global financial crisis. As a result, investors are turning to products that are well-governed and run to the highest ethical standards.
His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, earlier this year announced plans to make Dubai a centre of the global Islamic economy and finance industry.
In a demonstration of quick and efficient implementation of development programmes in Dubai, on Wednesday, he launched an executive plan to transform Dubai into a centre for Islamic bonds. The initiative will see the creation of a centre for issuing, listing and trading sukuk. It will encourage companies and countries to issue sukuk instead of conventional bonds.
There is a growing market for Islamic bonds. Besides investors who are looking safe havens, there is increasing demand for finance for infrastructure and other investments projects in emerging markets, according to financial experts. Dubai is especially well-positioned to serve the countries of the Middle East and Africa.
As always, Dubai is using its culture, heritage and competitive advantages to become a global leader.
Gulf News 2013. All rights reserved.
© Copyright Zawya. All Rights Reserved.