Islamic finance must transform ethical principles into credible institutions and measurable impact.
PR Newswire
1h ago
Ai Focus
At the fifth AlBaraka Summit held in London, participants stated that Islamic finance needs to implement ethical principles into institutional services, capital allocation, and impact measurement. Mufti Muhammad Taki Usmani said that the current structure of Islamic finance is "just a beginning," and indicated that the most needed change in the industry is "a shift in mindset."
Helpful
No.Help

London, November 5 (Reuters/ PR Newswire ) – At the fifth AlBaraka Summit held in London, speakers, business leaders, scholars, and policymakers unanimously agreed that Islamic finance must translate its ethical principles into practice, from how institutions serve their clients to how they allocate capital and measure its impact.

AlBaraka Forum for Islamic Economy The Secretary-General stated in his keynote speech to over 500 business leaders, scholars, and financial experts that customers choose Islamic banks because they trust the scholars who guide these banks, but they may still not be able to see what difference the services they receive actually entail.

Islamic banking has been established in the UK and continues to grow with the increasing demands of consumers, yet its proportion of total bank assets in the UK remains very small, at only about 0.1%. However, a survey in 2026 indicated that 86% of British Muslims would like to have an Islamic banking service provider, while currently only just over half of them hold accounts with Islamic banks.

Khalawi explained that many bank customers still find it difficult to understand the differences between Islamic banks and traditional banks, and called for Islamic banks to make their ethical principles more visible, including how products are explained, how advice is provided, and how risks are managed.

He said, "When Islamic banks take responsibility and raise their standards, I believe traditional banks will follow suit." He stated that by providing more education and better communication, consumers who agree with the principles of fairness, transparency, and risk-sharing in Islamic finance will be able to access the relevant products and services.

In his keynote speech, Mufti Muhammad Taki Usmani, Chairman of the Fatwa Committee of the Islamic Financial Institutions Accounting and Auditing Organization ( AAOIFI ) and President of the Jamia Darul Uloom Institute in Karachi, outlined two principles of Islamic finance: money should be a medium of exchange, not a commodity in itself; wealth should circulate more fairly, rather than being concentrated in the hands of a few individuals.

He said, "Money is merely a medium of exchange." He believes that finance should be linked to real trade and productive assets. Usmani stated that the current structure of Islamic banks should be regarded as a starting point, and the industry should move towards more cooperative financing methods that allow depositors to share in the returns generated by basic trade.

He said, "This is just the beginning." The broader goal should be to establish a financial system that supports productive activities and distributes wealth more fairly within society.

In the discussions of the following day, Usmani reminded that merely conforming to religious teachings is not enough to address ethical responsibilities; sustained implementation requires effective supervision and strong institutional governance. When asked what changes are most needed in the industry, he replied, "A change in mindset."

The Executive Chairman and social activist Nurul Izzah Anwar Ibrahim believes that the Islamic economy should be shaped around the needs of families and communities, rather than being narrowly confined to the banking sector. Taking Malaysia's Tabung Haji as an example, she mentioned that it is an institution established to help people save for the Hajj without using interest-bearing financing, and stated that Waqf grant funds can also provide another source of long-term support for community services.

In reviewing the experience of implementing Islamic finance globally, Shakeel Ahmed Yousuf Mohamed, the Minister of Housing and Land of the Government of Mauritius, stated that Mauritius is striving to modernize its Waqf framework and to transform the country into a regional center for Islamic donations. He said that effective governance, sound regulation, and institutional accountability are key to building public trust and achieving lasting social impacts.

He said, "Good intentions alone are not enough. Ethics require institutions, and trust must be designed into the system."

The Minister of Budget and Economic Planning of the Federal Republic of Nigeria, Doris Uzoka - Anite, during her speech at the forum, used Nigeria's Sovereign Sukuk program as an example to illustrate how interest-free finance can link investment with clear public needs. She explained that the first three tranches of the issuance raised a total of about 360 billion naira for road projects, and in the third tranche, with an issuance scale of 160 billion naira, investors placed orders for approximately 660 billion naira. She said to the attendees, "Finance is a means to an end, and that end is productive investment and improving people's livelihoods."

Tü rkiye Wealth Fund, the Chief Executive Officer and Board Member, stated that the development of the industry depends on cultivating a new generation of talents and institutions to put Islamic financial principles into practice. He mentioned that Turkey is promoting the development of an Takaful insurance company and integrating participatory banking into a larger structure; he also said that financial centers should direct capital towards productive, long-term investments.

The independent member of Parliament for Leicester South, Shockat Adam, chaired the fifth annual summit's thematic discussions on strategic leadership, policy, regulation, and global direction. He stated that the industry possesses talent, wealth, and goodwill, but these need to be translated into concrete actions.

The guests in attendance discussed the institutions required to achieve this transformation. The Chairman and Independent Non-Executive Director of Hasnita Dato, Hashim, stated that ethical expectations can be incorporated into governance, customer protection, and risk management. The Chairman of Libyan Foreign Bank warned that reforms must be matched with institutional readiness, skilled employees, and effective regulation. The President of the Pakistan Bankers Association, Bank, along with of and Punjab (President and CEO), participated online and outlined the goals set at the constitutional level in Pakistan, which is to make the entire banking system interest-free by 2028; he emphasized that success depends on changing the broader financial ecosystem, not just the banks themselves.

Adam The member concluded, "Putting ethics into action is not just about what we believe in; it's more about what we build." He called for enhanced cooperation among regulatory agencies, scholars, and the industry, and urged the industry to establish trust through the substance of its work.

This summit was held in mid-October at JW Marriott Grosvenor House under the theme of " Ethics in Action : Rebuilding Foundations and Advancing the Global Impact of the Islamic Economy (Putting Ethics into Action: Rebuilding Foundations and Promoting the Global Impact of the Islamic Economy)." The summit brought together government ministers, policymakers, scholars, financial institutions, and business leaders. Five thematic panels and two workshops discussed Islamic banking and capital markets, social finance, Takaful, Waqf, Zakat, entrepreneurship, digitalization, and the next generation of development for the Islamic economy.

The conference on social finance discussed how tools such as Waqf, Zakat, Sadaqah, and Qard Hasan can support financial inclusion, and how to move from immediate charitable assistance towards more long-term development and community resilience. Speakers also discussed how institutions can evaluate the economic and social outcomes of their investments.

The partners and sponsors of the 5th AlBaraka Summit include: the Islamic Chamber of Commerce and Development Organization ( ICCD ) as a strategic partner, Al Baraka Group as a global partner, Anadolu Agency as a global communications partner, Arab Bank Europe as a gold sponsor, and Libya Africa Investment Portfolio as a silver sponsor.

Before the summit, the 6th Global Business Excellence Gala was held at Jumeirah Carlton Tower. The gala brought together business leaders, policymakers, investors, and institutional representatives to discuss cooperation and cross-border collaboration.

The speaker at the dinner reviewed the contribution of shared values to the development of business and communities. Dr. Yahya Hendi from Georgetown University urged entrepreneurs to “compete with each other in doing good, rather than against each other.”

The Chairman of the Board of Directors, Dr. Nabil Qaddoumi of Palestine Taawon Association, introduced the organization's investments in projects such as education, healthcare, youth development, and support for vulnerable groups.

The Vice President of Ibn Khaldun University, Necmeddin Bilal Erdo ğ an, stated that Islamic principles should shape the ways in which income is obtained, the treatment of employees, and how business decisions should maintain human dignity. He said, "We must pay as much attention to whether the income that provides us with food is legal, just as we pay attention to the halal nature of the food on our dining tables." Erdo ğ an also mentioned that Islamic financial instruments should be understood as a way of doing business, emphasizing the role of charitable donation funds and cooperative relationships in transforming ideas into productive projects.

The 6th Global Business Excellence Gala was organized with Albaraka T and rk as official gala partners, Anadolu Agency as the global communications partner, and Arab Bank Europe and Libya Africa Investment Portfolio as senior sponsors.

About AlBaraka Forum

AlBaraka Forum for Islamic Economy is an independent, non-profit, global think tank that focuses on Islamic economics in a broad sense. The forum originates from the profound legacy of its founder, Sheikh Saleh Abdullah Kamel (1941–2020), which encompasses multiple fields of Islamic economic research and development.

This forum is committed to enriching research resources and the knowledge system of Islamic economics, and establishes partnerships and alliances with regional and international entities in order to anticipate contemporary economic challenges and developments, as well as to keep up with the pace of Islamic economics and finance.

Tip
$0
Like
0
Save
0
Views 27
WalletJYS reminds readers to view blockchain rationally, stay aware of risks, and beware of virtual token issuance and speculation. All content on this site represents market information or related viewpoints only and does not constitute any form of investment advice. If you find sensitive content, please click“Report”,and we will handle it promptly。
Submit
Comment 0
Hot
Latest
No comments yet. Be the first!
Related
Voters veto the AI data center due to concerns about resources; why is it difficult to measure water consumption?
This week, voters clearly expressed their desire to impose restrictions on artificial intelligence data centers, with 40 out of 41 proposed voting measures passing. Reports indicate that water and electricity are the issues that residents are most concerned about, but it is difficult to accurately calculate how much local resources data centers consume, as operators typically disclose usage on a company-wide basis rather than for individual sites.
CNBC
·2026-11-05 21:08:30
1
Is there risk in the U.S. stock market? Will the Democratic Party's promotion of AI policy trigger even more selling of tech stocks?
The Democratic Party's victory in the midterms has reignited market concerns regarding regulations on AI and data center restrictions. The article states that tech giants plan to invest over $740 billion in capital expenditures in 2026, and these "seven giants" account for about 34% of the S&P 500 index, making the broader market more sensitive to fluctuations in tech stocks.
Coinpedia
·2026-11-05 21:08:27
2
Brutus Mining plans to acquire Bay, of, and Islands hydrogen projects
Brutus Mining announces that it has signed property option agreements with Benton Resources and Metals Creek Resources, obtaining the right to acquire 100% equity in the Bay of Islands project in Western Newfoundland. The company states that this project is suitable for potential natural hydrogen exploration and plans to conduct soil gas surveys and seismic mapping during the field season in 2027.
GlobeNewswire
·2026-11-05 20:57:53
12
DeFi Technologies's subsidiary Valour launches eight digital assets on Spotlight Stock Market; expands coverage of AI, institutional blockchain, DeFi and community tokens
DeFi Technologies indicates that its subsidiary, Valour, has launched eight digital assets denominated in Swedish kronor on the Swedish exchange Spotlight Stock Market. The underlying assets include Venice, Canton Network, Raydium, Morpho, Maple Finance, Pump.fun, Dogwifhat, and Bonk. The company stated that these products will provide investors with exposure to the price performance of these digital assets through traditional brokerage channels.
PR Newswire
·2026-11-05 20:48:31
19
What Does a Big Victory for Democrats in the Elections Mean for the U.S. Economy?
After the Democratic Party's decisive victory in the midterms, economists believe that there may be changes in policies regarding trade, spending priorities, and artificial intelligence. However, the main forces driving the U.S. economy are not necessarily going to change as a result. Individuals from institutions such as JPMorgan Chase, Morgan Stanley, and Goldman Sachs continue to focus on risks associated with inflation, fiscal deficits, tariffs, and the growth driven by AI.
CNBC
·2026-11-05 20:38:18
21
View More