Islamic banking contribute to attracting global funds

2/4/2016 0:00

BAGHDAD - Hussein al-Tamimi Tgb

Continue to search for new financial outlets multiplicity of state revenues and reduce dependence on oil in the management of the financial affairs of the country, come to offer Islamic banking economical treatments achieve the proper balance (according to an international expert).

World Union of Arab Bankers member d. Sadiq al-Shammari said the role of Islamic banks highlights in achieving economic balance sound by linking funding to work and projects that link the funding to work leads to achieve more balance between supply and demand, indicating that contribute to economic stability and growth and development of communities, leading to cash flow and commodity parallel and simultaneous
at the same time.


Al-Shammari said there are many voices in the Western world began to pursue Islamic banking model in the financing of economic activity and has become a cornerstone and an important global banking operations, all of that has become an attraction and attracting a lot of investors and traders in these products and, preferably adopted in Iraq to attract capital and invested in various projects, especially to attract money and savings is one of the most basic Islamic banking goals and in which they can address any liquidity crisis to come might be exposed to the Iraqi economy.

He stressed the need to work on create a favorable environment to attract money through Islamic banking to Iraq, which needs to be the size of a large business in many joints production and service, especially as the country is one of the rich countries the size of the natural wealth and this is one of incentives to work within it.

57 countries

The number of Islamic banks in the world increased to 590 banks spread across 57 countries, equivalent to a third of the countries in the world, as it proved with concrete that Islamic Banking Activity.

Proved presence unrivaled by rising demand for its products by customers and higher profit Islamic banking being more risky, having the higher the risk increased returns.

He noted that the economic balance contributes to reducing the risk of inflation in the prices of goods and services, which is the target nominal financial, public sector and economic policies, in addition to the achievement of the individual and society benefit and happiness and well being of communities and prevent cases of fraud and ambiguity in transactions and there be transparency in determining the profit margins for these Almassat.ofatt to the importance of the financial transactions based on goods and services real flows, any processes that increase added values, which in turn achieve real balance through optimal independence of resources and facilities and the elimination of rampant unemployment and achieve efficiency, effectiveness and economy in administration Financial Institutions .

Shammari said the economic balance to achieve localization of wealth and investment in energy, extraction, land reclamation and desalination fields, rather than trading and gambling in derivatives.

Global banks

He pointed out that Islamic banking services are no longer restricted to banks only specialized Islamic, as it became able conventional banks and investment banks provide these services was not limited to working in the Arab and Islamic banks, but had transgressed to international banks as the these banks to open windows specialized departments for investment banking and Islamic, pointing out that the last period moved cooperation equity instruments Islamic and through the establishment of mutual funds which operate in accordance with the provisions of Islamic Sharia did investment activity is limited in these tools on financial markets in Islamic countries may be this is not a belief in the idea, but to stop deposits leak them into Islamic banks believing their economic feasibility.

Job opportunities

He said al-Shammari said that the Islamic banking business not limited to financing activities, service, or offering retail products, but the departments that eyeing the creation of jobs, by contributing to finding solutions to economic problems inherent such as high inflation and rising deployed in communities unemployment rates, as well as high ratio of public debt to GDP, as well as the poor distribution of wealth or poor distribution of income and the lack of effective education and training mechanisms and the lack of effective market mechanisms in the delivery of the degree of products with high efficiency and urged the departments of Islamic banking that is always going to fund social welfare productive projects (both The small, medium and do not forget micro) projects. Any work is not limited to finance large projects and forget the small and medium enterprises and micro.