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Tribune News Network
While the effects of the COVID-19 pandemic may continue for a longer period, Islamic finance can contribute to economic recovery, speakers at the seventh Doha Islamic Finance Conference agreed as the three-day online event came to an end on Thursday.
Islamic finance is seen as an important factor in financial stability as well, as its tools contribute to developing the financial sector, achieving sustainable development and enhancing welfare, they noted.
The conference, held under the patronage of Prime Minister and Minister of Interior HE Sheikh Khalid bin Khalifa bin Abdulaziz Al Thani and the exclusive sponsorship of strategic partner Dukhan Bank, was organised by Bait Al-Mashura Finance Consultations. It was held in cooperation with the College of Sharia and Islamic Studies at Qatar University, the College of Islamic Studies at Hamad Bin Khalifa University and the University of Central Lancashire in the United Kingdom.
During the scientific sessions of the conference, the three main themes were discussed including “The Global Economic Recovery after the Crisis”, “Virtual World Economies” and “Role of Social Finance in achieving Sustainable Development” through the workpapers presented by the involved specialized scholars and academics along with the discussions and interventions that enriched the conference.
The conference put forth the following visions and recommendations:
1. The research discussed showed that the features of the economic recovery began to appear after the pandemic, but the strength of this recovery is still uncertain and shrouded with several challenges, including the high number of pandemic infections, the delay in the distribution of vaccines, and the high levels of debt, while the effects of the pandemic related to development may continue for a longer period.
2. Islamic finance can contribute to the economic recovery through its characteristics, as it is seen as an important factor in financial stability as well as its tools contribute to developing the financial sector, achieving sustainable development and enhancing welfare.
3. Participatory products are the basis on which Islamic banks are based and are the pillars for achieving comprehensive development. “Therefore, we recommend that Islamic banks pay more attention to these products, take into account the authenticity and true representation of sharia principles in these products, take into account development and innovation away from imitating traditional products, seek to discuss potential risks with sharia, legal and technical bodies, and comply with controls to avoid those risks.”
4. The central banks and supervisory bodies shall be called to enact laws supporting participatory contracts in Islamic finance institutions, and protective funds and investment funds shall be established to enhance these products.
5. The Sharia has laid down general principles for the provisions related to financial transactions that do not differ according to time and place but left the details that may differ according to different customs and changing conditions and environments to be subject to jurisprudence and development in light of the objectives of Sharia and the general principles of Sharia.
6. The flexibility of Sharia makes Sharia provisions accommodate the developments of financial transactions, including digital financial transactions, as well as the Sharia controls represent solutions to the problems arising from these transactions, protect clients from fraud and manipulation, and protect the general order of society.
7. The digital world has led to the emergence of a largely anonymous and uncontrolled financial system that has sharia, legal and ethical repercussions, along with the absence of developed and specialized laws to regulate this world’s transactions and address its violations as well as the attempts to implement laws governing traditional transactions on this world. Therefore, we recommend addressing this urgent need for coordination between government agencies and various institutions in the world and contributing to highlighting the importance of ruling Sharia to control this world.
8. It is expected that the digital future of global economy after Covid 19 will be shaped by the rapid spread of digital technologies in the public and private sectors, and the rapid growth of digital markets. The data forms the backbone of this transformation, facing obstacles most notably the attempts of local systems to control and localize data due to concerns of uncertainty. Islamic finance can play a role in dispelling these concerns through Sharia controls for protecting individuals’ rights and the general morals of society.
9. The Islamic economy is characterized by its tools that paved the way for the global agendas in the sustainable development, including the achievements of Zakat and Waqf institutions throughout history in preserving individuals, environment and society. Hence, we recommend seeking to activate the role of social finance institutions and their tools in order to achieve Sharia objectives and social justice.
10. The participatory economy significantly helps in overcoming crises by breaking barriers, alleviating poverty, filling the gaps between supply and demand, and optimal use of resources. Hence, we recommend that government agencies shall enhance opportunities for participatory economy by enacting supporting laws and encouraging innovations that have social and economic impact.
11. The conferees praise the pioneering experience of the State of Qatar in the digital field, e-commerce platforms, and digital Islamic financial technology, and recommend more coordination between private sector institutions and government agencies to support digital transformation in line with Sharia objectives and in order to achieve Qatar Vision 2030.7th Doha Islamic Finance Conference concludes
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