Ethical approach to finance crucial for sustained recovery, says Al Qemzi

The comments reflect a shift in the way Islamic finance is being positioned in a post-recession global financial system. According to Al Qemzi, when systems fail people start looking for alternatives and Islamic finance with its ethical approach can fill that gap.

Al Qemzi said:

"Ethical financial practices, such as those followed by Islamic banks, could contribute to the world's financial framework. For the development of a new financial structure, where a reversal to ethics can lend a humanist touch, we don't need Islamic finance and conventional finance to co-exist, but rather we need one ethical financial model."

Al Qemzi emphasized that it is in the best interest of the global financial system to start examining ethical means of investing, risk sharing, and regulatory framework that rewards financial institutions for the moral value that they bring to society.

At the 'Leaders in Dubai Forum' which concluded recently, Al Qemzi, along with other top executives and entrepreneurs from the GCC, tackled the vital need for transparency and consistency in communicating corporate messages to the public. The forum witnessed prominent lectures and discussions by renowned speakers such as David Plouffe, Presidential Campaign Manager for US President Barack Obama, who advocated the incomparable power of human connection in shaping an effective organizational culture.

With regards to the growth of Islamic finance globally, Al Qemzi said, "Even though the Islamic retail banking industry is at a nascent stage when compared to the conventional banking model, Sharia'a-compliant products have the capability of not only competing with more conventional products but surpassing them in the post crisis world, as customers seek more ethical and risk adverse solutions to their financial needs."

Hussain Al Qemzi is a noted speaker on Islamic finance and the region's banking sector. In a recent contribution to the Leaders' analytical handbook for the G20 Pittsburgh Summit 2009, he advocated the development of a new comprehensive financial system based on ethical principles such as those found in Islamic finance.

Recently, he was engaged in a lively discussion with a panel of authoritative C-level executives from the region at the World Islamic Retail Banking Conference which took place in October, where they tackled the expansion of regional Islamic banks globally, and reflected on the resilience of Islamic banks during the current crisis. During the address, he highlighted the challenges facing globalization of Islamic finance including economies of scale and capitalization.

Noor Islamic Bank was established in 2007 with a vision to ultimately grow into an international Islamic bank. The bank remains committed to this vision and focuses on promoting ethical practices in the financial community.