Jaseem Ahmed, Secretary General of the IFSB, during the 11th IFSB Summit said that strong growth of Islamic finance over the years, led by the Islamic banking sector, has raised both new opportunities and challenges for the industry. Opportunities include the expansion of the Islamic financial services industry into new markets and frontiers, in particular in Africa, to serve as an alternative form of financing that can contribute towards sustainable economic and social development. “In the aftermath of the global financial crisis”, he emphasized that “the issues of financial and social stability are increasingly viewed as being interconnected”. While highlighting benefits of financial innovation in terms of reducing costs and widening financial and social inclusion, he cautioned that “this underscores the importance of shaping the regulatory perimeter in a way that is proportionate to the risks, so that it allows scope for, and doesn’t stifle innovation”. Observing growing IFSB membership in Africa, he noted that it suggests that a sound and resilient Islamic finance industry could play an important role in Africa’s economic transformation.
The Summit covered areas including legal and regulatory environment of Islamic finance; global overview of the Islamic financial services industry (IFSI): Outlook and Policy Developments; Sukūk, market development and regulation; the Role of Islamic Finance in Economic Development: Promoting Financial Inclusion: Sustaining Innovation, Expanding the Regulatory Perimeter – Striking a Balance; panel discussion on “New and emerging Islamic finance jurisdictions: opportunities and challenges ahead.”