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.

 

Turkey detains top generals, prominent journalists in widening purge

Russia ‘far from US positions’ on Syria

Libya demands explanation over presence of French troops

Arab summit in Mauritania cut to single day

Cheers in Abu Dhabi as solar plane completes round-the-world trip

Bahrain refers 138 ‘terror’ suspects to court

Brutal attacks reignite political friction in Germany

Weakened army still faces twin challenges in Turkey

Hamas 'summer camp' trains dozens of young people for war

Palestinians seek to sue Britain over 1917 Balfour Declaration

UN hopes Syria peace talks can resume late August

Israeli authorities destroy 11 Palestinian homes in Jerusalem

ISIS claims attack on French church in Normandy

Erdogan accuses EU of not paying up under migrant deal

Study: Height down in some MENA countries

Iran denies presence of three Al-Qaeda operatives

Iran caps salaries in bid to end scandal

Kerry says US-Russia talks on Syria 'making progress'

Erdogan to visit Russia on August 9

More than 3,000 lost in Mediterranean in 2016

13 killed in Somalia suicide bomb attacks

Panama Papers reveal Italian bribes' paid to Algerian officials

Syria regime advances on rebels in Aleppo

Turkey detains veteran female reporter

ISIS claims second German attack in a week

France calls for immediate humanitarian truce in Aleppo

Dozens dead in 5 days of Yemen fighting

Israel advances plans for 770 settlement homes

Libya conflict keeps 279,000 children out of school

After week of attacks, Germany warns of backlash against refugees

Iraqi charged with having 'trace' explosives in Poland

UN Syria envoy, US, Russian officials to hold talks Tuesday

Kuwait top court acquits IOC powerbroker Sheikh Ahmad

Air strikes, rebel fire kill 19 in Aleppo

12 killed in suicide bomb attack north of Baghdad

Egypt policeman killed in Sinai attack claimed by IS

Turkey cracks down on journalists after coup

Syrian migrant blows self up near German music festival

ISIS suicide bomber kills at least 15 in northern Baghdad

Turkey readies first cross-party rally to condemn coup

Libya loyalists seize ISIS bomb factory in Sirte

Tunisia dissident, Mohsen Marzouk, opens new party congress

Air raids jeopardise much-needed medical care in Aleppo

Saudi delegation in Israel to promote stalled peace initiative

At least 61 people dead as ISIS claims twin blasts in Kabul