Its volume will exceed 3 trillion dollars .. Experts discuss the future of Islamic finance in a conference in Doha

Mohammed Al-Shayazami-Doha

The International Conference on Islamic Finance, organized by the College of Islamic Studies at Hamad Bin Khalifa University, was launched today in Doha in the presence of a group of banking officials, policy makers, academics and researchers in the areas of Islamic finance and sustainability issues.

The two-day conference will shed light on the development of Islamic banking and the prospects it will reach, the challenges it faces in the context of global fluctuations, and ways to enhance the dynamics of financial institutions and banks to keep pace with modern technological challenges.

The holding of this conference comes in the context of global reports that confirmed the achievement of Islamic banking more than expected growth, as a result of the development of its business in the financial and business world and its rival to the traditional banking, and has proven effective resilience and sustainability since the global financial crisis in 2008, as it was less vulnerable to financial shocks and more flexible in managing Risks are more wary of volatility.

After its geographical scope expanded, Islamic banking entered new markets in Africa, the United States of America, Europe and Russia, and Islamic banking financing recorded rapid growth, and this industry was considered one of the most dynamic sectors in the global financial system.

Al-Jaidah said that Islamic finance has become a large and growing sector, as it is expected to reach $ 3.2 trillion in 2020, and Qatar has been able to achieve an important position in this field. Also, the assets of Islamic banks in Qatar now occupy a third of the assets of the financial system by about 33% of total assets Driven by an annual growth rate of 8% from 2015 to the first half of 2019, amounting to $ 129 billion.

In a report of the Qatar Financial Center for the year 2019, the total Islamic assets with banks amounted to about 107.04 billion dollars, as well as total Islamic funds amounted to about 73.8 billion dollars, while the total Islamic deposits amounted to about 66.2 billion dollars, while the Islamic assets that are within the Qatar Central Bank platform It amounted to about 231 million dollars.

Al-Jaidah considered that Qatar has an advanced position in the Gulf banking field, and this will motivate it to further cooperation with other leading countries in Islamic banking such as Turkey and Malaysia, and to work on partnerships to establish financing centers that respond to the economic development of countries in the region and attract financial institutions to launch their operations there.

And previously, a study of the International Monetary Fund that included 120 Islamic and traditional banks in eight Gulf and Asian countries holding 80% in the Islamic financial market showed that Islamic banks have proven their strength and solidity in the face of financial fluctuations and crises, unlike traditional banks, including their ability to meet the dues.

Growth challenges
The major challenges facing the Islamic finance sector are represented in the obsolescence of established banking models, the slow innovation in financial products, legal and legislative controls, the scarcity of human resources and the traditional nature of banking, in addition to the challenges of globalization, weak cooperation relations between banks and great pressure to keep pace with technological development, as it is not considered The terminology of artificial intelligence and currency technology is an ordinary challenge, but a dangerous shift towards new patterns.

These challenges were among the most prominent recommendations of the Fifth Doha Conference on Islamic Finance, as it called for the necessity of seeking to complete the legislative and legal frameworks for the digital Islamic finance environment, especially since the tremendous and accelerating development in financial technology is not accompanied by an appropriate update of the legislation and laws related to Islamic finance.

In a world of limited resources, the Islamic Finance Conference also examines the development of circular economic systems, against the backdrop of strong global discussions on climate change and environmental degradation and ways to stimulate the circular economy the process of learning from nature, how this emerging concept facilitates the building of responsible societies, and the importance of adopting financial strategies and policies based on Enhance value.

The conference will also offer distinguished Islamic views on circular economy (an economic system that aims to eliminate waste and seeks continued use of resources).

A group of prominent academics, policy makers and specialized practitioners will present a series of papers and critical analyzes on a wide range of closely related issues, among them Islamic principles and teachings associated with the comprehensive scientific base "Al-Mizan" that deals with economic, environmental and social imbalances.

An analysis of the convergence between Islamic finance and the circular economy, specialized case studies and innovative urban procedures and designs will help in examining complementarities and partnerships between Islamic finance and this type of economy that is at the heart of one of the United Nations' 2030 sustainable development goals related to the environment and climate.