Corruption and laziness challenge Islamic banking

Arshad Ahmed, a partner in the Californian legal firm Ahmed and Moghul, said, 'Transparency is the only way to combat the widespread misperception that the Islamic World is among the most corrupt, and an intense level of intellectual discussion.'

He claimed that full disclosure of all the details of Islamic corporate governance was the only way to overcome this cultural impediment and to overcome false perceptions about the nature of the industry. 'There is no need to be fearful of the Truth,' he added.

The 250 delegates also heard criticism about basic information about Islamic banking in a presentation by Oasis Group CEO Shaheen Ebrahim. He pointed out that a study of 13 different independent sources showed a very wide range of estimates about the size of Islamic banking worldwide.

'It is very difficult to get an accurate picture,' he said, noting growth estimates of 10-15% per annum and an industry size placed between $200 billion and $230 billion.

Nonetheless, the lively and openness of the debate between delegates was a healthy indicator that the dynamism of the Islamic banking sector is clear enough. Expansion in all directions was the general message from the forum with greater and greater involvement of the traditional banks in the sector.

The International Islamic Finance Forum is organized by Dubai based IIR Holdings and is now established as the premier event in Islamic Finance. The forum is organized in association with Dow Jones Indexes and Kuwait Turkish Finance House. The major sponsors are National Commercial Bank of Saudi Arabia and Noriba of Bahrain. The forum concludes today.