First Published: 2010-04-18

 
Islamic finance restores 'transparency' to banking
 

Islamic banking offers 'accountability', to become 'more acceptable' in non-Muslim countries.

 

Middle East Online

Tun Musa Hitam, head of World Islamic Economic Forum

BRUSSELS - The missing ingredients of "responsibility, transparency and accountability," glaringly absent throughout fraudulent Greek reporting to the EU, were instead to be found in Islamic finance, the head of the World Islamic Economic Forum has said.

"The methodology of Islamic banking will become more acceptable, even without being in Islam," Former Malaysian deputy prime minister Tun Musa Hitam said.

He cited a surge in the numbers of specialist economic religious ulama, who re-interpret Sharia law for expansion throughout non-Islamic territories.

Sharia prohibits interest on money and re-distributes added value based on goods not paper.

Moody's Investors Service said earlier this month that the Islamic finance industry had a market potential of at least 5.0 trillion dollars -- more than five times its actual 2009 value.

"Seen from the east, from developing countries, we're laughing because they're not doing what they taught us," Tun Musa said of the EU's decision to protect Greece rather than sending Athens to the International Monetary Fund.

"You find that a European nation has adopted anything but good practice, which has resulted in a disaster (and) now the name and the prestige of the European Union is at stake, but more importantly, its economies," he added.

"The normal way of resolving these issues is to go to the IMF. Developing countries do that, but not the EU.

"It's yes, no, maybe every day," he said.

Tun Musa maintained that the Western system where "anything goes in terms of lending and conduct" lay behind the Greek fiscal disaster.

A host of countries, led by Britain but stretching from Italy to Japan and Russia, are planning joint Islamic finance ventures, seen as filling a perceived vacuum in confidence.

The march of Islamic finance will form a major plank of the WIEF's sixth annual conference in Kuala Lumpur next month.

Tun Musa even blamed default in Dubai on the penchant in the Middle East to "look West". A heavy hit endured by Singapore during the Asian financial crisis of a decade ago, was due to the same problem, he added.

"Malaysia was hit least because we did not put our money in the West," he insisted.

Tun Musa said the onus was on Europe to find the political will to face down anti-immigrant, anti-Islam extremists.

Turkey's long-stalled talks on EU accession represented the perfect test if Western and Islamic financial and economic models were to be successfully fused post-crisis.

Europe was "going to lose a huge stabilising community that is playing a very important role as a bridge between the Muslim and the Western world," he warned of a move, led by German Chancellor Angela Merkel, to pull back from full membership talks.

"There will come a time that the Turks say 'enough is enough, we're going our own way'", he stressed.

 

Push on IS capital Raqqa gathers momentum

Israel to deny Human Rights Watch visas for being ‘biased’

Iraq forces look to build floating bridge in Mosul

Boosting presidental powers will 'stabilise' Turkey, says PM

Bethlehem fetes Arab Idol singing hero

Shia leadership struggle ahead after Khamenei and Sistani

Morocco to withdraw from Western Sahara tension zone

The huge risks of Trump’s call to ‘take’ Iraqi oil

Trump set to zero in on Hezbollah in bid to curb Iran

Time bomb of unemployment among Arab youth

Woman journalist says targeted by hardliners in Sudan

Iran's Ahmadinejad writes open letter to Trump

Iran's Rouhani to run for re-election

Kurdish reporter killed while covering Mosul battle

Libya govt secures ceasefire after Tripoli clashes

Saudi Foreign Minister in landmark visit to Iraq

Iraqi forces push deeper into west Mosul

Suicide attacks kill 42 in Syria's Homs

Top US commander in secret Syria trip

UN considers Syria sanctions over chemical attacks

Saudi Comic-Con slammed as ‘sin’ in online backlash

Jordanians protest government price hikes

Baghdad coordinated anti-IS airstrikes with Damascus says source

New Hamas Gaza leader makes first public appearance

Palestinian protestors clash with Israeli soldiers in West Bank

Jordanian F-16 crashes in Saudi, pilot survives

Suicide bomb attack on rebels kills 51 near Al-Bab

Iraqi PM says air force strikes IS targets in Syria

Iraqi forces enter IS-held west Mosul

UN slams light sentence for Israeli soldier

Saudi king seeks investment on rare Asia tour

UN Syria peace talks begin in Geneva

Saudi minister discusses hajj with Iran

136 Turkish diplomats, soldiers seek German asylum since coup

New Hamas ‘strongman’ could spell fresh Israeli conflict

Suicide car bomb kills eight outside Yemen army base

Fired Turkish academics protest ‘unjust’ dismissals

Iraqi forces jovial after Mosul airport entry

Syrian rebels announce capture of flashpoint town from IS

Iraqi forces enter IS-held Mosul airport

Swedish citizen jailed for IS Facebook post

Somalia names new prime minister

Netanyahu backs pardon for Israel soldier who shot Palestinian

UN envoy meets Syrian rivals, hopes of breakthrough slim

Yemeni government forces pin back rebels on coast