Business | Banking
Islamic banking system has benefits
Global crisis has shown significant advantages, sayssecretary-general of the International Islamic Economic and Financing Organisation.
- By Mariam Al Hakeem, Correspondent
- Published: 23:32 October 28, 2008
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Riyadh: Dr. Abdurahman Al Atram, secretary general of the International Islamic Economic and Financing Organisation, said the Islamic banking solutions have attained significant attention from both the local and international banks, especially in the wake of the global financial crisis.
"The Saudi local banks are seriously thinking about stopping some of the transactions based on the western banking system and instead introduce Islamic ones," he said.
Dr. Al Atram made the remarks in his speech at a conference at the Riyadh Chamber of Commerce and Industry here on Tuesday.
The conference aims to emphasise the role of the organisation in spreading the culture of Islamic economics and finance as a solution to the current econ-omic meltdown.
"Taking advantage of the situation, the organisation has intensified its drive to market Islamic economy more aggressively," he said.
According to Dr. Al Atram, some of the salient features of the Islamic economy, which were hitherto unnoticed, gained special significance in addressing the global crisis.
He said the global financial crisis contributed significantly to highlighting the Islamic economy as the most suitable as it contains the provisions for protecting both wealth and financial interests.
Khaled Al Muqairin, a member of the board of directors of the Riyadh Chamber and head of the committee for stocks, highlighted the significance of supporting the organisation in its drive to promote Islamic economy and market it in various parts of the world.
He commended the efforts of the organisation in crystallizing the idea of Islamic economy as an effective tool in solving the current global turmoil.
Khaled also underlined the need to form partnerships between economists, Islamic jurisprudence and businessmen in carrying out researches, and suggesting practical steps in solving the current crisis.
In another development, Dr. Hassan Al Hajhouj, associate professor of economics at the faculty of administrative sciences and planning under King Faisal University, said the Saudi investments in the foreign capital market exceeded 1.114 trillion riyals (Dh1.09 trillion) last year.
"This represents about 83 per cent of the total volume of Saudi investments abroad, including banking deposits amounting to SR 200.8 billion and other deposits valued at SR 17.5 billion," he said.
Addressing a seminar on "Global financial crisis: causes and expectations," organised by King Faisal University here on Sunday, he said that the number of investment funds in the Kingdom reached 252 in 2007.
"There are 425,085 investors in these funds, in which the volume of local assets amounted to SR 79.89 billion while that of foreign account for SR 25.21 billion," said Al Hajhouj.
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