Islamic Finance Assets Projected to Reach $10 Trillion
The 7th International Conference on Islamic Finance, held in Doha, aims to significantly increase the size of Islamic finance assets from the current $4 trillion to an ambitious $10 trillion. This gathering, organized by the Center for Islamic Economics and Finance at Hamad Bin Khalifa University in collaboration with the Qatar Financial Center, brought together 30 representatives from various financial institutions globally, emphasizing the need to address challenges hindering the growth of the Islamic finance sector.
Discussions at the conference highlighted critical issues such as environmental stewardship, social justice, and the development of innovative Shariah-compliant financial products. Participants explored how Islamic social finance mechanisms, including zakat and waqf, can alleviate poverty and contribute to sustainable development.
Addressing Global Challenges in Islamic Finance
Recep Şentürk, Dean of the College of Islamic Studies, pointed out that the Islamic finance sector faces several global challenges, including the integration of digital currencies and advanced technology. He emphasized the need for solutions to high debt rates, which hinder economic improvement for many individuals. The conference aims to develop strategies that leverage financial technology (FinTech) to enhance Islamic finance's responsiveness to contemporary social and economic needs.
Nasser Al Taweel, Deputy CEO of the Qatar Financial Centre, noted that the current global transformations present both challenges and opportunities for Islamic finance. He stated that the industry has seen a rise in interest as a viable solution to pressing social, economic, and environmental issues, with Islamic finance assets projected to exceed $5.94 trillion by 2025-2026.
Alaa Al-Faqha, Vice-Rector of Hamad Bin Khalifa University, emphasized the importance of renewing Islamic finance's vision to align with future challenges, such as economic disparities and environmental degradation. The conference aims to merge the ethical foundations of Islamic finance with emerging opportunities in a rapidly evolving financial landscape.
Mohammed Hamour, head of Equitas in Switzerland, highlighted the need for an ethical financial industry that fully embodies Islamic values. He discussed the potential for developing a digital equivalent of money, termed 'digital gold,' which would be infused with Islamic principles to address current monetary system challenges.
