By Betul Yuruk
By Betul Yuruk
ISTANBUL – Islamic Economist Prof. Humayon Dar says crises in the Muslim world have no negative or positive effects on Islamic banking and finance as it does not have any political agenda.
Crises in the Muslim world have no negative or positive effects on Islamic banking and finance as it does not have any political agenda, said Islamic Economist Prof. Humayon Dar referring to the turmoil in Syria and Egypt.
Dar told the Anadolu Agency correspondent following the 9th International Conference on Islamic Economies and Finance which began in Istanbul on Monday that there have been a lot of crises but over the past 30 years Islamic banking and finance has progressed and grown on a very smooth kind of curve and has not been badly affected by such crises.
“I do not think regional crises will have any negative or positive impacts on Islamic banking. Because Islamic banking and finance has no political agenda it will not chance the sentiment of people either to increase their business with Islamic banking or decrease,” Dar said. “Given this neutrality of Islamic banking and finance to politics there will not be any effects on the role of Islamic banking .”
Dar said with a global size of about $1.6 trillion, the diversification in the global Islamic financial services industry is significant enough to remain unaffected by any movements or crises of certain commodities including oil.
He said when shareholders have some kind of political aspirations, their businesses may be badly affected by the turmoil and added “Shareholders involved in Islamic banking and finance all over the world are very neutral and business oriented people and they are looking for pure business opportunities.”
– Islamic banking and finance not just an oil driven phenomenon
Dar said many people perceive that Islamic banking and finance is an oil driven phenomenon, which is only partially true.
“This is true in the case of Saudi Arabia and some other oil rich countries. But it is definitely not the case in the countries such as Malaysia, Indonesia, and Pakistan where oil does not have a very significant role,” Dar said.