The global Islamic finance industry has over the last decade witnessed a transition into a dynamic, fast growing and competitive form of financial intermediation servicing an increasingly international client base. With the global Islamic banking assets with commercial banks expected to cross the $1.1 trillion mark in 2012, and with the Islamic finance industry now evolving into a progressive, comprehensive and competitive component of the overall financial sector, industry leaders are now, more than ever, stressing the need to strengthen the connectivity between key markets for Islamic finance and mobilize significant cross border deals that will develop the capability for Islamic finance to compete more effectively on a global scale.
The two day WIBC Asia event, held under the official support of the Monetary Authority of Singapore, kicked off today with an inaugural address by Ravi Menon, Governor of the Monetary Authority of Singapore.
The inaugural address was immediately followed by an opening keynote session which featured Dr. Ahmad Mohamed Ali Al-Madani, President of the Islamic Development Bank and Edy Setiadi, Executive Director of the Directorate of Islamic Banking, Bank Indonesia. The session addressed the challenges and opportunities inherent in the increasingly global geographic footprint of Islamic finance and also discussed the national and international initiatives that will ensure consistency and foster greater interconnectedness across key jurisdictions for Islamic finance.
A key highlight of WIBC Asia 2012 was the high profile Power Debate session led by internationally respected CEOs and industry leaders. Moderated by Haslinda Amin of Bloomberg Television, the session analyzed the expanding role of Islamic finance as a conduit for trade and capital flows between Asia and the Middle East and also discussed how Islamic financial institutions can better develop the capacity to structure large-scale multi-currency and cross border transactions. The Power Debate session featured Toby O’Connor, Chief Executive Officer, The Islamic Bank of Asia; Hussain AlQemzi; Chief Executive Officer, Noor Islamic Bank and Group Chief Executive Officer, Noor Investment Group; Muzaffar Hisham, Chief Executive Officer, Maybank Islamic Berhad; Dato’ Jamelah Jamaluddin, Chief Executive Officer, Kuwait Finance House (Malaysia) Berhad (KFH Malaysia); Syed Abdull Aziz Jailani Bin Syed Kechik, Chief Executive Officer, OCBC Al-Amin Bank Berhad; Shamsun Anwar Hussain, Director – Consumer Banking, CIMB Islamic Bank Berhad; and Wasim Saifi, Global Head, Standard Chartered Saadiq, Consumer Banking.
“Asia is becoming an increasingly attractive destination for investments that are Shari’ah compliant. To reap the full benefit of the region’s rapid expansion and robust development, there is a need to press on towards achieving global connectivity and deepening economic cooperation with various key centres for Islamic finance. In order to better facilitate cross-border relationships, more intensive international co-ordination of regulatory approaches, supervisory oversight and industry practices is needed,” David McLean, Chief Executive of the World Islamic Banking Conference: Asia Summit, said.
“As interest in Islamic finance expands across Asia, an increasing number of Middle Eastern investors are looking at opportunities to deploy their capital in the region and Islamic finance is perfectly positioned to act as a catalyst to further bridge capital flows between Asia and the Middle East.”
“An ongoing dialogue between key regulators, industry practitioners and market participants representing the two key centres for Islamic finance, i.e. the Middle East and Asia, is vital to achieve greater international harmonization in the architecture for Islamic finance,” he added.
“In order to ensure an orderly evolution of Islamic finance from a niche segment into the mainstream international financial markets, it is vital to further enhance the industry’s capabilities for cross-border activities, which in turn will encourage innovative product development, robust and standardised regulatory frameworks and the long term stability of the industry. What the industry lacks at the moment is the breadth and depth that investors enjoy in the conventional market. An inter-linkage between the key Islamic financial centres will facilitate investor access to a wider range of Shari’a-compliant products beyond those available in their domestic market,” Hussain AlQemzi, Chief Executive Officer, Noor Islamic Bank and Group Chief Executive Officer, Noor Investment Group, said.
“The annual World Islamic Banking Conference: Asia Summit is becoming an increasingly important platform that facilitates dialogues between the two key centres for Islamic finance – Asia and the Middle East. The theme for this year, “Islamic Finance in Asia: Strengthening International Connectivity and Capturing Cross-Border Opportunities”, highlights the tremendous potential for significant cross-border transactions which the Islamic finance industry must tap into. As a key industry player we are keen on exploring these unique opportunities.”
“The theme for the 3rd Annual World Islamic Banking Conference: Asia Summit (WIBC Asia 2012), “Islamic Finance in Asia: Strengthening International Connectivity and Capturing Cross-Border Opportunities”, highlights a significant opportunity that IB Asia is focused on. We hope that the high-level discussions at this important forum in Singapore will foster new business relationships between key growth markets for Islamic finance. We are once again delighted to renew our partnership as a Platinum Strategic Partner of WIBC Asia,” Toby O’Connor, Chief Executive Officer of the Islamic Bank of Asia, said.
WIBC Asia 2012 continues on the 6th of June and will feature an exclusive keynote address by Jaseem Ahmed, Secretary-General of the Islamic Financial Services Board (IFSB), and a special address by Daud Vicary Abdullah, President and Chief Executive Officer of INCEIF-The Global University of Islamic Finance.