Keynote Presentation: Keynote Presentation: Shariah as Key Pillar in OverallShariah as Key Pillar in Overall

Islamic Financial Industry Islamic Financial Industry

• Rapid expansion with bright growth prospects

• Confront and resolve issues

• Continuously facing issues and challenges

Rapid Expansion

• Greater efforts to develop a comprehensive financial system• Banking, takaful, and financial market

• Growing asset size

• Islamic finance is now globally integrated

• Facilitates cross border trade

• Active involvement of conventional markets in Islamic finance

• Islamic bank is governed by its own set of international

regulatory and prudential standards

•Malaysia Islamic finance initiatives

Operates in more challenging environment ...

Modernize and innovate

Islamic financial system within

Shariah boundary to meet customers’

demand

Continuous adaptation of Islamic financial products - is it sustainable?

Given that... There is this need to... Confront and

resolve issues \

•Fast evolution of Islamic financial system

•Rising competition from well established and emerging financial centres

•Untapped potential in the industry

Continuously review regulatory and legal framework to suit Shariah requirements

Develop and standardize global Islamic banking practices – promote uniformity to facilitate cross border transaction and global convention – equivalent to ISDA, UCP

Conduct in depth research and find solution on Shariah issues relating to risk mitigation, liquidity management and hedging

Address shortage of talents in particular financial savvy Shariah Scholars and Shariah savvy financial practitioners

Issues and Challenges...

“...To each among you, We have prescribed a law and a clear way. If Allâh willed, He would have made you one nation, but that (He) may test you in what He has given you; so strive as in a race in good deeds. The return of you (all) is to Allâh; then He will inform you about that in which you used to differ.”

Surah al-Maidah : verse 48

Thank you

May we have a successful dialogue, InsyaAllah

I hereby officiate the International Shariah Scholars Dialogue 2006