AAOIFI chief throws light on principles of Islamic capital markets

ISLAMABAD: Sheikh Ebrahim Bin Khalifa Al Khalifa, Chairman, Board of Trustees, Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Monday reiterated AAOIFI’s overall commitment to the Islamic finance industry of Pakistan.

He was addressing the Pakistan’s First International Conference on Islamic Capital Markets (ICM) which successfully concluded here on Monday.

In his keynote address, he said that the principles of Islamic capital markets foster social and economic development and support sustainable growth, job creation, poverty alleviation, and the overall well-being of communities.

He reiterated AAOIFI’s overall commitment to the Islamic finance industry of Pakistan, as well as its capital market, and assured AAOIFI’s full support for improving the quality of AAOIFI standards implementation in the country, Sh. Ebrahim Bin Khalifa Al Khalifa added.

Pakistan’s First International Conference on Islamic Capital Markets, organized jointly by the Securities and Exchange Commission of Pakistan (SECP) and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), concluded here on Monday.

The theme of the one-day conference was “ICM development with ecosystem completion: innovation, growth, and transformation”. The conference was supported by the Asian Development Bank (ADB), Pakistan Stock Exchange (PSX), National Clearing Company of Pakistan Limited (NCCPL), Central Depository Company (CDC), Almeezan Investments, and other leading industry players in the non-bank financial sector.

The event was a resounding success, bringing together prominent speakers from Bahrain, Turkey, Malaysia, the UAE, and the UK, in addition to local industry experts, scholars, and practitioners. Through a series of panel discussions, and breakout sessions, the participants highlighted growth opportunities in different segments of the Islamic capital market and non-bank financial sectors. There was a broad consensus that a strategic development plan needs to be introduced and implemented for the organized development of Islamic finance across all sectors.

On the topic of Islamic fintech, experts agreed that in the fast-changing dynamics of the market, propelled by technological advancements and the growing demand for innovative products that cater to emerging sectors, tech-based products and services need special focus and facilitation.

Participants unanimously resolved that all stakeholders must work together for the shared prosperity of the Muslim Ummah through the development of a sustainable and efficient Islamic financial system.

In the evening session, SECP Chairman Akif Saeed stated that a calculated approach is needed to transform all segments of the financial system to transform into a complete Islamic ecosystem.

While highlighting key reforms introduced by the SECP in recent years within the sphere of Islamic finance, he assured the audience of the SECP’s complete committed to transform its regulated sectors in accordance with wishes of people of Pakistan as embodied in the Constitution.

He further laid down priority areas of the SECP, which include focus on promoting product development & innovative solutions, implementing international best practices in governance and ethical standards, enhance capacity building through collaborations, and strengthen the legal and regulatory frameworks for Islamic finance, the SECP Chairman added.

Copyright Business Recorder, 2023