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Islamic Finance to Play a Pivotal Role in Catalyzing Cross-Border Trade and Investment Flows

More than 450 global industry leaders attend the grand opening of the 2nd Annual World Islamic Banking Conference: Asia Summit in Singapore

Singapore: 8^th June 2011: The 2^nd Annual World Islamic Banking Conference: Asia Summit (WIBC Asia 2011) which opened today at the Pan Pacific Hotel, Singapore, saw more than 450 leaders in the international Islamic banking and finance industry engage in critical discussions that will seek to enhance the role of Islamic finance in creating stronger business and investment ties between Asia and other key centres for Islamic finance. Though Islamic banking assets have grown significantly over the past few years, they still only represent less than 1% of the total global banking assets - with more than 50% concentration in the Middle East region. The industry leaders gathered at the event agreed that the future of the Islamic finance industry depends on its internationalization where key players must grow geographically and consolidate their position by operating in a cross-border global market space.

The two day WIBC Asia event, held under the official support of the Monetary Authority of Singapore, kicked off today with an inaugural address by H.E. Lim Hng Kiang, Minister for Trade and Industry Republic of Singapore & Deputy Chairman Monetary Authority of Singapore. This was immediately followed by an opening keynote session which featured H.E. Mohd Rosli Sabtu, Managing Director of Autoriti Monetari Brunei Darussalam (AMBD); H.E. Halim Alamsyah, Deputy Governor of Bank Indonesia; and Tan Sri Zarinah Anwar, Chairman of Securities Commission Malaysia.

Addressing the media present at the event, David McLean, Managing Director of the World Islamic Banking Conference said that "growing at an average annual rate of 20%, Islamic finance represents one of the fastest growing segments in the global finance industry. Today there are over 600 financial institutions operating in more than 75 countries. The increasing presence of Islamic financial institutions in new jurisdictions and the increased international interest in Islamic financial markets represents a tremendous opportunity for cross-border flows that are Shari'ah compliant. With Asia rapidly strengthening its position as a leading hub for significant Islamic finance transactions, we believe that the discussions at WIBC Asia 2011 on 'Enhancing Cross-Border Connectivity and Driving Global Growth' will trigger this next phase of international growth."

He also said that "the Asia Summit of the World Islamic Banking Conference was established last year with the aim of complementing the objectives of the WIBC Global Summit and now in its 2^nd annual edition has already confirmed its position as the most influential platform that will support growth, excellence and innovation in Islamic finance in Asia."

He also added that "the Global Summit of the World Islamic Banking Conference will again be held in Bahrain in November this year."

A key highlight of WIBC Asia 2011 was the Power Debate session led by internationally respected CEOs and industry leaders. Moderated by Haslinda Amin of Bloomberg Television, this dynamic session analyzed the new cross-border growth opportunities and defined the future outlook for Islamic finance in a global industry. The Power Debate session featured Shayne Nelson, Chairman of Standard Chartered Saadiq and Chief Executive Officer and Global Head of Standard Chartered Private Banking of Standard Chartered; Toby O'Connor, Chief Executive Officer of the Islamic Bank of Asia; Badlisyah Abdul Ghani, Executive Director/Chief Executive Officer of CIMB Islamic Bank Berhad; Hussain AlQemzi, Chief Executive Officer of Noor Islamic Bank and Group Chief Executive Officer, Noor Investment Group ; and Muzaffar Hisham, Chief Executive Officer of Maybank Islamic.

Speaking about the importance of internationalization of Islamic finance, Hussain AlQemzi, Chief Executive Officer of Noor Islamic Bank and Group Chief Executive Officer, Noor Investment Group said that "the Islamic finance industry has held itself back and not fulfilled its true potential, partly due to its relative infancy on the international stage and the different flavors and perspectives applied across the various regions. However, we are now witnessing the next stage in the evolution of the industry where greater interaction and discussions are bringing all the global players towards a common ground. This will help the industry achieve the next quantum leap and will allow us to take advantage of strategic opportunities arising in emerging and developed economies."

He also said that "while regulators have their role, the lion's share of responsibility for evolving and pushing towards universally acceptable models lies with us, the practitioners, the industry itself." "This is why we view events like the Asia summit as strategic, and that's the reason why we are here. It presents practitioners and experts East to West with a great opportunity to tackle the stressing issues facing us all", he added.

A similar view was expressed by Badlisyah Abdul Ghani, Executive Director/Chief Executive Officer of CIMB Islamic Bank Berhad who said that "with the increasing internationalization of the Islamic finance industry, it is essential to build deeper relationships between the key markets for Islamic finance and understand the developments in various regions. The World Islamic Banking Conference: Asia Summit provides a collaborative platform bringing together industry leaders from various regions to share their knowledge and experience to facilitate a deeper understanding of how Islamic finance needs to be spearheaded into its next phase of development in the region."

Muzaffar Hisham, Chief Executive Officer of Maybank Islamic was earlier quoted saying that "there is an increasing trade and investment flows between countries worldwide and this offers substantial business opportunities for Islamic finance. Regionally we are actively pursuing opportunities for growth in Indonesia, Singapore and Brunei whilst working closely with regulators to ensure sound governance for the industry in the respective countries."

He also said that "we see our presence in China as an enabler to establish the new "Silk Road" in finance as MIB is also present in the Middle East through the set up in Bahrain and as well as Saudi's Joint Venture with Anfaal Capital and that we see the 2nd Annual World Islamic Banking Conference: Asia Summit as an important global platform to further explore the growing global connectivity of Islamic finance."

Commenting on their participation at the 2^nd Annual World Islamic Banking Conference: Asia Summit, Tan Jeh Wuan Managing Director - Corporate Banking and Capital Markets at The Islamic Bank of Asia said that "with its successful launch last year, WIBC Asia Summit has firmly established itself as an important forum for practitioners and participants in the Islamic Finance and Banking industry to interact in Asia. The Islamic Bank of Asia is delighted to be a Platinum Strategic Partner of the 2nd Annual World Islamic Banking Conference: Asia Summit once again."

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© Press Release 2011