Islamic Banking and Finance are not that well known in the West. Is indeed having a significant role in Arab and other predominantly Moslem countries.
“If Islamic banks were to follow this development path they could fill an important role in supporting the Economic Transformation Program (ETP) in several ways. Financing of SME’s would bring capital and advancement to many of the designated NKEAs of the program and development of Islamic finance products itself is also stipulated under the financial services category.
The benefits to society as a whole from Islamic banking can also not be overlooked. By offering an alternative interest free financing route, clear possibilities arise for development in areas such as microfinance for the most needy in the nation, allowing currently struggling families’ access to the initial capital that they may need to begin a meaningful small business.
Islamic Financial Institutes (IFIs) could play a key role in assisting to eradicate poverty and consequentially lifting overall GDP and living standards in the nation.
The more intrinsic values of Islamic banking as being a more morally sound and sustainable form of banking makes it an ideal partner for “Green” investment concepts (Investment only in organizations who contribute internally to sustainability and environmental issues) which have recently started to take a foothold.
A potential ethical banking partnership of the moral based and environmentally sound foundations of the two could even prove to have more convincing buy in capability for socially aware customers in the market.”