Dubai may become global capital of Islamic economy

Experts and scholars in Islamic finance are deliberating ways to enhance Dubai’s Shariah credentials at the three-day Islamic Economy Fiqh Forum.

Supplied photos

Dubai — The corridors of the Islamic Economy Fiqh Forum witnessed a consensus among conference members for the need to develop the tools of Islamic jurisprudence that is consistent with a new economic era and data.

The result declared on the second day came under the guidance and initiative of His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to make Dubai the global capital of the Islamic Economy.

The forum, which will conclude today, is taking place in collaboration with the Department of Islamic Affairs and Charitable Activities in Dubai and the Dubai Centre for the Development of Islamic Economics in order to achieve the economic doctrinal reference to the framework of the Shariah.

The second day of the Forum discussed a number of sensitive issues in light of the third axis — an analytical hub for Islamic Economics. Managed by Dr. Omar Khatib, executive director of Islamic Affairs, the most prominent point during the deliberation of this axis was that sustainability should be the most prominent imprint of the Islamic Economic framework to enhance confidence in this growing sector.

In his research, Dr Salah bin Fahad Al Shalhoub touched upon the subject of filiation. He said such Islamic contracts already exist within and that the subject requires further thought and deliberation.

“A complete study of the subject will only help us achieve the development of a legislative officer system.”

Al Shalhoub also said that the existence of a layer of intermediaries with a high degree of efficiency is vital. He noted that the next stage requires building a solid foundation of Islamic financial institutions and encouraging them to take risk in the banking business after conducting extensive studies of benchmarks to encourage them to establish an Islamic high investment profitability.

Dr. Ahmed Abdul Aziz Al Haddad addressed peace and contemporary applications through his research. Most problems of Islamic economics lies in the absence of a strict application of verification mechanism for legitimate purposes. For example, ‘Bai salam’ means a contract in which advance payment is made for goods that are delivered later. The seller supplies specific goods to the buyer at a future date, in exchange for an advance price fully paid at the time of contract. It is necessary that the quality of the commodity intended to be purchased is fully specified, leaving no ambiguity leading to dispute. The objects of sale are goods and cannot be gold, silver or currencies.

In his research titled ‘Legitimate and Professional Ruling Islamic Finance Industry Standards’, Prof. Dr. Kamal Tawfiq Hattab considered the first practical steps to frame the Islamic Action, that has already begun with the launch of the Forum.

Participants at the Dubai World Islamic Economic capital initiative considered a new platform for researchers and scholars in order to meet their responsibilities in carrying out legitimate duties.

Dr. Hamza Abdul Karim Mohammed Hammad highlighted problems faced by the Islamic Economic work through his research titled ‘Issues of investing money in Islamic banks’. Research points out the implementation of some laws, in addition to a lack of specialised Islamic economics staff as well as the absence of institutional governance.

Through his research, Dr. Mustafa Mahmoud Abdel Aal spoke about the safety of Islamic legitimacy in some Islamic banks. He pointed out that there is a need to assess the subject internally.

— abdulbasit@khaleejtimes.com