IslamicFinance.de

Riyadh, Asharq Al-Awsat- For over 30 years, Islamic banking has been operating in the Arab world without being recognized by the Shariaa [regulatory] or supervisory bodies. What is meant by recognition here is operating under legislation, rules, and regulations that are commensurate with the nature of the Islamic banking industry. The Islamic banking industry's chances of competing fairly are small, as it operates under the umbrella of conventional banking laws, and due to the completely disparate nature of the two industries. Therefore, Islamic banking has tried to adapt to this odd state of affairs by duplicating conventional banking products and services in line with the requirements of Islamic Shariaa law. Those in charge of the Islamic banking industry are not aware of the damage that this odd state of affairs has done to this industry's growth and potential for innovation which is based on the [Islamic] principles that this industry is built upon.
These officials have worked tirelessly to get the Islamic Shariaa supervisory and regulatory bodies in the Arab world to change this situation by enacting laws and legislation that is commensurate with the Islamic banking industry, and today one can hardly find a conference, seminar, article, or report on Islamic banking that does not mention the importance of the Shariaa supervisory bodies implementing rules and regulations to govern the Islamic banking industry.