Working to make the Islamic world strong and competitive

The World Islamic Economic Forum (WIEF), now in its tenth year, is a symbol of the rising economic importance of the Muslim world. There are few places that demonstrate this extraordinary pace of development than the UAE and Dubai, which is hosting the event this week. The UAE is a startling example of what a nation can achieve and underlines the great promise of what we, as the Islamic world, can accomplish if we work together.

This year’s event comes at a time of great uncertainty for the global community. The financial crisis and the ongoing challenges in the international economy have shaken traditional institutions and models of business, many of which were built on entirely western principles of economics and finance. Against this backdrop, the phenomenal and rapid development of the Islamic world presents us with many opportunities.

For Kazakhstan, a Central Asian nation where around 70 per cent of its 17 million citizens are Muslims, there is significant potential in greater economic cooperation with other Islamic nations. Kazakhstan has worked hard to build a peaceful, tolerant and prosperous country in a region not known for stability. Its significant natural resources have allowed its to deliver a 20-fold rise in gross domestic product per capita in little more than two decades of independence. The country aims to join the world’s top 30 economies by 2050 — no small task and one that can only be achieved by building strong economic and trade relations with a broad range of partners.

Kazakhstan also faces significant long-term challenges, including the need to create an innovative, diverse and value-added economy that is resilient and can adapt to rapid changes in today’s fast-paced world. These are challenges shared by many of Kazakhstan’s fellow Islamic nations — challenges that can be overcome if we come together and build mutually beneficial relationships.

It is through initiatives such as WIEF that we can begin to build the economic and political relations to make the most of our natural cultural ties. We must use this opportunity to shape and further develop an economy suitable for our nations and our beliefs. The rise of Islamic finance is an important element of this new world. It already represents one of the fastest growing financial sectors and is predicted to double in size over the next four years. Islamic bond issues around the world have risen by 30 per cent this year alone, but it is not even close to realising its full potential. A quarter of the world’s population is Muslim, yet only around 1 per cent of global financial assets are sharia-compliant.

In Kazakhstan, we are determined to build a financial system where Islamic finance can flourish. Kazakhstan was the first country in the former Soviet Union to introduce Islamic finance rules in 2009 and we are now working closely with the Islamic Development Bank to introduce new, more attractive legislation to enable the sector to develop more rapidly. In 2012, we issued our first Islamic bond in Malaysia.

A concerted effort by all our countries to develop the systems of Islamic finance and build stronger ties between them can open a vast new market for our respective financial sectors — one that will only grow as our nations continue to develop.

But while we have already achieved remarkable economic development in the Islamic world, maintaining, increasing and spreading it throughout society must be a priority. Poverty, inequality and a lack of opportunity offer a breeding ground for instability and extremism, both within our countries and in the international community. Extremism is twisting and perverting the Islamic faith and damaging it in the eyes of many in the international community. It is not a problem with Islam — it is a problem of the economy in general and inequality.

As our countries take on greater prominence on the world stage, it is our duty to step up and confront these issues. Kazakhstan is working hard to play a constructive role across the Islamic world and address the many shared challenges we face. During our chairmanship of the Organisation of Islamic Cooperation (OIC) in 2011-2012, we established the Islamic Organisation for Food Security — an issue that challenges many of our nations, whatever their stage of development. We are also seeking to promote greater understanding of Islam and relations between all faiths through the Congress of Leaders of World and Traditional Religions, which will hold its fifth meeting next year in Astana. With Islamist extremism rising, I believe this congress could not come at a more important time.

Economic prosperity is the key to successful development and overcoming challenges. We can achieve far more, much faster through partnership and cooperation between fellow Islamic countries. The World Islamic Economic Forum can play an important role in building the economic environment for our shared success. But we must also build and progress the political alliances needed to cement and safeguard our collective prosperity and security well into the future.

Erlan Idrissov is the Minister of Foreign Affairs of Kazakhstan.