Can Islamic banks save the world?

Islamic banking could help Europe and the world survive the global financial crisis, a leading spokesman has said.

Dr Ahmed Mohamed Ali, president of the Islamic Development Bank (IDB), said that stabilising global markets is a priority for East and West alike.

He told bankers and financiers at Mansion House that a principle of Sharia law is that money should measure rather than create value.

And he noted that Islamic banks control £720 billion worldwide, have grown by 10% to 15% growth in the past few years and already have close ties with London.

Meanwhile, efforts by UKTI and other Government agencies to nurture Islamic banking are recognised by the Top 500 Islamic Financial Institutions report, which rates the UK as the number-one western destination for Islamic finance.

Dr Ahmed Mohamed said that the global crisis makes it “even more vital for policy interventions to promote financial inclusion and enhance access of the poor to financial services.”

UKTI Islamic Finance specialist Richard Thomas said: “The principles underpinning Islamic finance have seen it relatively unscathed by the global financial crisis, and there is also much information to share on international financial stability.”

The Lord Mayor of the City of London, Ian Luder, said: “The growing partnership between London and financial centres across the Muslim world shows the importance of the sector in assisting the world's many Muslims to engage with the global financial system in ways compatible with their faith, particularly at this time of global economic downturn.

--ukinvest