11 November 2003
AJMAN - Economists, financial experts and executive bankers discussed the urgent need for establishing an Islamic Financial Institute in the UAE to back the worldwide Islamic banking thrust at an economic forum organised yesterday by Ajman University of Science and Technology Network.
Participants at the forum explained that more than US$140 billion with an annual growth of 15 per cent are being managed by the Islamic Financial Institutions. Dr Hussain Hamid, chairman of Sharia Legal Directorate at Dubai Islamic Bank, said: "The Islamic banking institutions in the region have advanced so well in the last two decades to achieve great success and introduce new legal framework for the Islamic banking in the world".
Mohammed Abdullah, general manger at Sharjah Islamic Bank, explained that there are several hurdles that slow the rapid progress of the Islamic banking worldwide. "The amount of work accomplished is huge and have double effort to show impact in the global economy.
Some of these hurdles are the acceptance of the new changes by the concerned authorities when transforming from traditional banking to Islamic banking," he noted.
"The Islamic bankers are needed to put in a huge effort in the coming few years to promote the Islamic banking and try hard to build strong base and foundation for the Islamic banking in the globe," Mr Abdullah said.
He noted that the key of success in creating a strong Islamic institutions is the qualified bankers who are well aware of the Islamic and Sharia rules that govern the banking transactions and have an experience in the traditional banking system.
Dr Saeed Salman, president of AUST University, said : "UAE is one of the pioneers in the Gulf region in terms of implementing Islamic banking, it dates back to the establishment of the first UAE Islamic bank in the region in 1975 by Saeed Lootah.
The bold move though faced strong challenges in the beginning had been received with great enthusiasm among scholars and businessmen seeking an Islamic portfolio and Islamic financing vehicle for their business.
Dr Salman pointed out that the Islamic banking has achieved an immeasurable and excellent presence and has impacted the business environment in number of countries around the world.
"Our role as an educational institution is to help raising awareness and educate people of the significance of the Islamic banking through organising forum," he added.
BY A STAFF REPORTER
© Khaleej Times 2003
