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.

 

Concern and grief as Britain remembers 2005 terror bombings

Iran nuclear talks: Will Ministers score diplomatic success?

Deadly US raids target ISIS stronghold in Syria

After Tunisia beach massacre, tourists switch to other destinations

Near Gaza Strip, Israelis live in fear behind concrete walls

Tunisia declares state of emergency after beach massacre

Erdogan moots possibility of snap election

Coalitions of Syria rebels battle regime forces in Aleppo

Lawlessness in Libya poses real danger for Tunisia

Hezbollah backs Syria army in major assault on border city

Syria mosque explosion kills at least 25 Nusra fighters

Egypt President in Sinai after jihadist attacks on security forces

Yemen Huthi rebels ‘attack’ various areas in Saudi Arabia

No guarantee of success as Iran nuclear talks inch closer to lasting deal

Egypt ‘in state of war’ on second anniversary of Islamist ouster

Ansar al-Sharia denies killing of Abu Iyadh in US air strike

Rockets from Sinai strike Israel

Palestinians arrest 100 Hamas members in West Bank

Erdogan inaugurates public mosque in palace

Islamists form alliance in battle for Aleppo

Top Tunisian jihadist reportedly killed by US strike in Libya

Emir attends joint Shiite, Sunni prayers in Kuwait

Hamas denies involvement in Sinai attacks

4 Qaeda suspects killed in US drone attack in Yemen

'Series of errors' behind Air Algerie crash in Mali

Ankara has no plans for imminent intervention in Syria

21 killed in clashes, strikes in Yemen's Aden

GCC states vow united stand against IS mosque bombings

Palestinians protest one year after teenager burned alive

Egypt vows to wipe out 'dens of terror'

Tunisia arrests eight in connection with beach massacre

Youth in Tunisia 'ripe for radicalisation'

UN sends mission to 'assess' South Sudan atrocities

Syria urges citizens to enlist

AQAP step up campaign to eradicate qat

Iraq Christians train for jihad against IS

British FM: 'No breakthrough yet' in Iran nuclear talks

UN imposes first sanctions on six South Sudan generals

Libya rival governments will not return to peace talks

Fighting rages in Yemen’s Aden

Egypt government adopts anti-terror law

Kurds warn Turkey against any ‘aggression’ in Syria

Kuwait makes DNA tests mandatory after suicide bombing

Kuwait parliament approves deficit budget on oil slide

Pro-Erdogan candidate becomes new speaker of Turkey parliament