THE process of Islamisation of economic system appears to be gaining momentum over time as many international conventional banks have started to open branches, which operate in accordance with the Islamic Shariah principles not only in some Islamic countries but other countries as well. It has generated wide spread interest not only on the part of economists in the Islamic countries but also in economic profession at large.
Keeping in view the emerging trends, Riphah Centre of Islamic Business, a constituent of Riphah International University organised an International Conference on “Management Shariah Conforming Business” at which State Bank Governor Yaseen Anwar stated that IslamicFinance is one of the most dynamic areas of financial services today. In fact financial and economic devastation caused by the recent financial crisis in the West has provided further impetus to the healthy growth of Islamic financial system, which is increasingly being looked as a prudent, stable and viable alternative to the conventional system.
The present day economic problems and difficulties can be resolved by the dynamism of Islamic finance and banking. Not only in Banking but also in other financial dealings Shariah compliant products are being offered nowadays. Chairman, State Life Insurance Shahid Aziz Siddiqi in an interview with this newspaper said the SLIC is in the process to offer Shariah Compliant products of Takaful or Islamic Insurance business as an option to the people who desire to get an Islamic Insurance.
World over and particularly in Muslim countries Islamic banking is increasing at a rapid pace. Even a number of USA based banks have started to offer Islamic banking services, especially for their customers in Middle Eastern and Islamic countries. Islamic banks do indeed achieve greater penetration and impact than conventional banks in unbanked and underserved communities in Muslim countries, particularly in low-income communities and those in remote areas to help over come poverty.We would however emphasise that the growth of any industry is subject to overall global environment and so the Islamic banking industry needs to be agile enough to adjust to the ever-changing requirements but at the same time ensuring social and economic justice.
( PakistanObserver, 01 March2012)
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