The inauguration of the Islamic Banking and Finance Society (IBFS) at the Oxford Union Debating Chamber this month saw leading industry figures speak about the sector and represented another step in the growth of Islamic finance.
The event – titled Islamic Banking: Ethical Capitalism? – looked at the Islamic finance and banking sector and where its future lay. One keynote speaker, Baroness Warsi, senior minister of state and minister for faith and communities, described London as one of the key areas for Islamic finance and one in which the sector could grow.
She noted how far the industry had come in the last two years and pointed out Islamic finance is growing 50% faster than traditional banking in Britain. By the end of 2014, an industry expert previously predicted that the sector will be worth $2 trillion (£1.2 trillion) globally, with London and Dubai competing to become the global hub.
It’s not just Muslims that are driving the growth. The Islamic Bank of Britain, which recently launched the UK’s first Islamic ISA, estimates that around 87% of new applications for fixed term deposit accounts are from non-Muslim customers. Instead, ethical savers and investors are using Islamic banking as a way to ensure their values are reflected in their money decisions.
Islamic and ethical finance are similar in many ways. Sharia principles mean Muslims cannot invest in certain industries, many of which are so-called ‘sin stocks’ such as tobacco, gambling or alcohol. The payment of interest is also banned.
Speaking to Gulf Times after the inauguration, chairman of Islamic Finance Salah Jaidah said, “The base of Islamic finance is definitely the ethical part and most of the conducts with Islamic banking prevent the over-leverage that we have seen in the conventional banking side. Every transaction has to have an underlying asset, so there is value creation for the person who is taking the finance or the person who is extending the assets.”
He added that if these principles and the spirit of profit sharing were ingrained in more financial institutions this would give everybody the responsibility of making sure that due diligence, asset value and potential investments are recognised. As a result it could benefit the whole sector, as everybody would have to take on a portion of the loss if areas failed.
Like our Facebook Page
Harnessing the Sun: The Far-reaching Benefits of Solar Panels
7 Benefits of Purchasing Sustainable Housing
Our Top Five Sustainable Home Renovations For 2023
6 Ways Eco-Friendly Photographers Can Take Beautiful Natural Pictures
Emerging Research In Seagrass Restoration: What Does The Future Hold?
Sustainable Bites: How To Make Your Diet Eco-Friendly
Coffee Farms & Cloud Forests: Colombia’s New Eco Initiatives
Electric Cars: Are They Worth The Switch?
Maximizing the Efficiency of Deliveries: Strategies for Sustainable Businesses
The Rise of Sustainable Cloud Computing
The Future of Sustainability In The Logistics Industry
Can Eco-Friendly Businesses Embrace VPNs to Bolster Cybersecurity?
UK Lags EU in Installing Heat Pumps to Slow Climate Change
Eight Different Eco-Friendly Developments in the Food Industry
5 Key Areas to Look at When It Comes to Business Sustainability
Addressing Leadership Challenges in Green Entrepreneurship
Holding Eco-Friendly Coins is Greener and More Profitable
5 Reasons That Diamonds Can Be Excellent Green Investments
Eco-Friendly Airlines Use Weather Models to Make Safer Flights
Why Should We Invest in Eco-Friendly Homes?
- Features3 months ago
What is the Eco-Friendliest Option to Wash Your Dishes?
- Environment7 months ago
6 Home Improvements You Can Make to Help the Environment
- Environment11 months ago
How to Ensure Your Home’s Eco-Friendly During Construction?
- Business10 months ago
The Pulp & Paper Industry is Reaching its Sustainability Goals