Mohamed Hamed Rashid is confident on his investment structure. Already, he has thrown over $100,000 into funding a new alternative energy project, but instead of looking for interest on his savings and start-up capital, he prefers the Islamic banking structure, which he argues delivers more freedom and more security than traditional Western banking.
“When I looked at the possibilities and where to put our money, the Islamic bank was the best option for us,” Rashid told Bikyamasr.com.
He’s not alone. More and more investors and average citizens are turning to Islamic banking as an alternative to Western interest-focused structures.
Abu Dhabi Islamic Bank (ADIB) reported on Sunday that the UAE controls some 30 percent of the global Islamic banking system.
ADIB, in a statement, commended the great role the Islamic banking sector was playing “in boosting and pushing forward development, economic and financial growth of the UAE.”
ADIB’s statement came in Abu Dhabi Report 2011, co-launched with Oxford Business Group.
Islamic banks are largely contributing to funding infrastructure projects in the UAE, in addition to financing real estate ventures and training national workforce, it added.
ADIB’s CEO Tarad Mahmoud said UAE’s Islamic banks played an important role to developing international Islamic banking whose value exceeded USD trillion.
Islamic banking has been attracting a growing number of clients because this industry is based on “moral principles, commitment with transparency and applying the dual benefit method in all of its operations and transactions,” he added.
Mahmoud highlighted the important role of the independent Islamic sharia committees in monitoring and organizing transactions.
Total of assets of Islamic banks in the Middle East and North Africa rose to $416 billion in 2010.
For investors like Rashid it is a step in the right direction and delivers more options to the customer and investor alike.
“I am not a conservative Muslim, but I see the opportunities in Islamic banking and with these banks we won’t be affected by the rising and dropping of international markets,” he added.
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