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.

 

New government in Yemen plus cut in fuel prices

11 Egypt policemen killed in Sinai bomb blast

US army back in Somalia

Paris, Riyadh 'finalising' $3bn Lebanon arms deal

Sudan orders Iran to close cultural centres

Syria arrests pro-regime activists over criticism

Libya pro-Islamist figure presents rival cabinet lineup

Israel faces mounting criticism over Palestinian land grab

Saudi Arabia arrests 88 suspected extremists in 'anti-terror' drive

New UN chief for South Sudan faces ‘huge challenge’

US air strikes target senior Shebab officials in Somalia

‘Scourge of terrorism’ pushes Africa to intensify cooperation

Relatives of missing Iraq soldiers storm parliament in Baghdad

IS accused of 'systematic ethnic cleansing' in Iraq

UK announces tougher measures against Britons planning jihad

Algeria hosts new round of Mali peace talks

US launches new round of air strikes around Iraq dam

Turkey summons US charge d'affaires over Snowden claims

Turkey new PM promises peace with Kurds

Will UN Human Rights Council investigate IS abuses?

Iran convicts Ahmadinejad's vice president for embezzlement

Fierce clashes shatter uneasy calm near armistice line in Golan Heights

Turkey detains dozens of police in new nationwide raids

Libya loses control of Tripoli to Islamist-led militias

Thousands of Huthis defy UN in new show of strength

Iraq presses fightback against jihadist-led militants

Wounded Gazans need long-term care

Britain to go tougher on jihadist suspects

Libyan Islamist militiamen control US embassy compound

Israel shoots down drone over occupied Golan Heights

Yemen army suffers heavy losses in new wave of Qaeda attacks

Turkish army breaks silence on Kurdish peace talks

Islamic State offers grim inspiration to African extremists

Shebab target intelligence HQ in Somalia

Israel expropriates 988 acres of Palestinian land in West Bank

Iraq recaptures Amerli from Islamic State in biggest success so far

Saudi King calls for ‘strong and rapid action’ against jihadists

Jihadists distribute Yazidi women as spoils of war to fighters

Gulf countries resolve six-month dispute with Qatar

Egypt reduces Badie death sentence to life in prison

AU forces liberate former Shebab stronghold in Somalia

Philippines enters war in Syria!

Kurds put aside old rivalries to battle jihadists in Iraq

Iran says new sanctions cast doubt on US sincerity

US imposes new sanctions on Iran