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New Model for Future of Islamic Banking Planned June 21, 2007

Posted by islamicfinanceaffairs in Uncategorized.

New Model for Future of Islamic Banking Planned

Saleh Kamel, president of Dallah Albaraka Group and chairman of the
General Council of Islamic Banks and Financial Institutions (GCIBFI),
has called for a streamlining of the Shariah Council system to help
deal with the different interpretations of Shariah compliance across
the Islamic world.

In an exclusive interview with Oliver
Cornock, country editor for Oxford Business Group (OBG), which was
released yesterday — the authoritative UK-based publishing,
research and consultancy services company —  Saleh expressed
his concern that some institutions tended to simply rebrand
conventional financial tools without understanding the meaning of true
Shariah compliance.

“The challenge is whether the owners,
directors and employees truly understand what Islamic banking means. At
GCIBFI we are working with key partners to implement a new model
whereby fatwas would be issued by a single entity,” Saleh said.

“I hope that this would assist in helping to define the concepts
and problems of the differing interpretation of Shariah
compliance,” he said. The plan is that the GCIBFI, Islamic
Development Bank and ISFB want to have a central Shariah council for
issuing fatwas, in addition to a Shariah council for each bank, for
further control.

Saleh outlined his vision for addressing such
factors with intentions for an Islamic mega bank involved with all
aspects of the sector on a global scale.

represents 130 banks in 40 countries and we are developing a new model
to enable us to work with all of them in every Islamic country,”
its chairman said.

“The Dallah Albaraka Group will be
looking to invest between $100 million and $200 million in the
management portion of this new model.”

The president of
Dallah Albaraka Group explained the broader concepts of Islamic economy
and the emphasis it places on developing society.

yet we have not adequately emphasized the development of our countries
and the earth — this is one of the most important tenets of the
Islamic economy. At the Dallah Albaraka Group, we aim to work in any
sector that doesn’t harm humans or the earth and we also look to
how many jobs can be created through our projects.”


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