Call to promote Islamic economies as alternative to financial order

| Monday, May 6, 2013

At a time when the world economy in general and the European economies in particular are deteriorating and their financial crises are far from over, scholars had better focus on Islamic economics as the best alternative to the ailing international financial order. This was the gist of the speeches of some of the speakers at the second edition of the Oman Islamic Economic Forum 2013 (May 1-2) that began here yesterday under the auspices of Hamoud bin Sangour al Zadjali, Executive President, Central Bank of Oman.

As many as 30 speakers in the event’s line up seek to provide deeper insights into Islamic values to drive business, social and economic growth in the world. In his opening speech, Khalid Hilal Alyahmadi, Chairman, Amjaad Development, said, “As the global economy continues to struggle amid one of the worst financial crises in recent history, the call for an alternative way of conducting financial activity has progressively become louder. In an interconnected world, the financial markets have become somewhat of an international casino for the elite, where millions are made and lost in a zero sum game, paying scant attention to the disastrous effects these speculative activities have on society”.
Addressing a huge gathering of distinguished audience, Alyahmadi said, “the current financial crisis was driven by greed and there is no doubt that there is a need for an alternative financial system, one in which ethics and justice form the foundation. The Glorious Quran and Sunnah have much to offer the world in terms of providing the building blocks of a just and ethical society. Over the past few decades the profound Shariah principles have been re-examined and reapplied in the context of the contemporary Islamic finance industry, which has experienced a phenomenal growth as a result”. During the past two years Islamic banking has seen a worldwide growth rate of 30 per cent, amounting to $ 1.7 trillion, he added.

Oman Establishment for Press, Publication and Advertising (OEPPA) is the main sponsor of the event. Raja Dr Nazrin Shah, Crown Prince of Perak, Malaysia and Financial ambassador of Malaysia International Islamic Financial Centre (MIFC) is is highly opportune time research and shoe how Islamic economic addresses issues of the world economy and lauded Oman’s move towards Islamic banking since May 2011.

Experts at the conference said the global economic order needs drastic changes, underlining the need for Islamic principles to replace capitalist values. The present economic crisis is due to the capitalist system; it is important to see interest rates as the biggest and most fundamental problem of the capitalist system. Economic programmes based on Islamic principles offered the way out because the world is looking for fairer values that conspicuous by their absence in the capitalist system. The world system based on usury is fast collapsing, proving its failure. Islamic economics can guide people to happiness, security, justice and honesty.

In his speech, Hamood bin Sangour al Zadjali, the CBO Chief, underlined the need for Islamic banks to offer finance to small and medium enterprises (SMEs). The SMEs need access to Islamic finance and Oman’s newly established Islamic banks and windows can fill this need, he added. The two-day event, organised by Amjaad Development, will highlight the importance of Islamic investment capital in boosting research and development projects. It will discuss small and medium project ventures and ways to ensure that university institutions develop curricula that create dynamism among individuals in keeping with Islamic principles.

The OIEF 2013 is a gathering of policy makers, scholars and practitioners committed to the promotion of Islamic finance in Oman and the international markets.

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