MENAFN – Arab News) Islamic banking and finance, with a total asset of $1.4 trillion and more than 1,000 institutions operating in many countries worldwide is all set for a big take off, says Professor Khurshid Ahmad, chairman of the Islamic Foundation UK and the Institute of Policy Studies in Pakistan and author of several books on the topic.
Speaking to Arab News after giving a lecture on “Global economic crisis and the role of Islamic Economics” at the Islamic Development Bank headquarters here, Ahmad said Islamic banking and finance makes an annual growth of 10 to 15 percent when conventional banks make less than one percent.
“According to an IMF study, the institutions that were least affected by the global financial crisis were Islamic banks because they engage mainly in asset-based financing,” said Ahmad, who is a winner of King Faisal International Prize and IDB Prize.
Speaking about challenges, he emphasized the importance of Islamic banks to be shifted from a Shariah-compliant position to a Shariah-based position in order to move from a debt-based economy to a risk-sharing and equity-based participatory economy.
Ahmad also urged Muslim countries to reduce their dependence on foreign financial institutions like World Bank and International Monetary Fund. “I do not know of a single country in the world that has made progress after receiving loans from these institutions,” he said, adding that a number of economists have reached the same opinion after conducting studies on 40 to 48 cases.
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source : http://www.menafn.com