Leaders, scholars and professionals of the Islamic financial industry met on Saturday 25 Shawwal 1429H (25 October 2008) discussed the escalating effects of the financial crisis and the role of the Islamic industry throughout these troubling times.The forum formed a working group of experts and followed up and monitored implications of the economic crisis affecting Islamic banks and the economies of member countries.
Another task of the working group was to produce working papers identifying the position of the Islamic financial industry on how to deal with the current crisis affecting the world today. Furthermore, these papers should be provided to all official forums, meetings and symposia at all local, regional and international levels. The forum also suggested increasing levels of cooperation between Islamic banking institutions in order to meet the challenges being faced and develop visions for the Islamic banking industry. Panelists also invited the forum to establish terms of reference for the Islamic banking industry at the national level and urged central banks to help support the organizational aspects of the industry.
The forum was inaugurated by Islamic Development Bank’s President Dr. Ahmed Mohamed Ali and Chairman of the General Council of Islamic Banks and Financial Institutions and Saudi Chairman of the Islamic Chamber of Commerce Sheikh Saleh Kamel at IDB Group headquarters in Jeddah, both strongly expressed the need for Islamic financial institutions worldwide to collaborate on solutions to help alleviate the effects of the credit crisis.
During the opening statement, the President called for participants to seize this opportunity that has been made available by the global crisis to establish global investment banks and spread the message of Islamic banking, presenting to the world the new vision in asset management and investment and product innovation which will add value to businesses.
Sheikh Saleh Kamel thanked IDB Group’s initiative to launch the forum during such a critical time saying: “it represents an extension of many successful initiatives already launched by the Bank.” He explained that the forum must be engaged in examining Islamic specialized alternatives to be provided for the benefit of all.
The forum also featured several figureheads in the Islamic banking industry who explained the role of Islamic finance at the wake of the crisis, many saying that although Islamic banking is not part of the problem it must attempt to provide viable solutions.
Members of the panelists included, Fajr Capital Executive Director Iqbal Khan and Dr. Umer Chapra Consultant for Islamic Research and Training Institute, part of the IDB Group, who spoke on the reasons for the global financial crisis. Additional sessions included a session focused on the effects of the financial crisis on banking, investments and Islamic capital markets and a session on the impact of the crisis on the insurance industry.
