Islamic Bank Of Asia Interested In Islamic Finance
The Islamic Bank of Asia (IB Asia) has noticed an increase in interest from investors for Islamic finance. Two board members of IB Asia, Shariah, Shaikh Nizam Yaqouby and Dr. Mohammed Daud Bakar, say that they believe changes in the global investment climate drive the demand for Islamic banking. In such a situation, the development of innovative Shariah-compliant products will help the industry grow.
As the Khaleej Times Online reports, investors require more than just debt finance in their products.
Islamic Shariah scholars have led the way in innovation. Investors now demand more than just debt finance (lending and borrowing) in their products. They participate in the assets and this creates real economic value, says Shaikh Yaqouby, an internationally-acclaimed Islamic scholar and teacher of Tafsir (a scientific study that focuses on the interpretation and explanation of the Holy Quran) based in Bahrain.
Shaikh Yaqouby also added.
More investors whether affected directly or indirectly by the sub-prime situation are attracted to investment vehicles which are underpinned by an inherent immunity from risk. As Shariah-compliant banking forbids the purchase of debts, it is therefore one of the options that investors are turning to.
Another IB Asia Shariah board member and the Chairman of the Shariah Advisory Council says that the demand for Islamic investment vehicles in certain categories even exceeds supply.
However, while the current situation in financial market allows investors to become more active, they still take a risk which can bring either success and failure.
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