06.06.2012, Singapore – The President of the Islamic Development Bank Group, Dr. Ahmad Mohamed Ali, Tuesday lauded Singapore for the commitment it has shown towards the Islamic financial industry as illustrated by the issuance of the required laws by the Singapore authorities and by the country’s active membership in the Islamic Financial Services Board (IFSB).
Dr. Ahmad Mohamed Ali made the remarks as the keynote speaker of the 3rd Annual World Islamic Banking Conference underway in Singapore under the auspices of the Managing Director of the Monetary Authority of the country, Mr. Ravi Menon. The two day conference (5 – 6 May) dubbed: “Islamic Finance in the Asian Continent, Strengthening International Connectivity and Capturing Cross Border Opportunities” is attended by delegates from more than 40 local, regional and international banks and financial
institutions.
In his speech, Dr. Ali also praised the continuous cooperation by Singapore authorities with the Islamic Development Bank which led to successful issuing of Singapore Dollars 200 million worth of Sukuk in the year 2009, the first issuance of Sukuk in Singapore Dollars in the history of Singapore financial market at the time. The IDB Group President then stressed that Singapore enjoys the capacity and infrastructure necessary to support the advancement of the Islamic financial services industry.
“The Islamic Development Bank Group has been pioneering in and continues to shape at least two global development fronts: advocating trade as a development instrument and mainstreaming Islamic finance”, underlined the IDB Group President. He added that in the age of globalization, we should beware of the dangers of unproductive mobility of capital across borders.
Dr. Ahmad Mohamed Ali then urged for establishment of organized international markets based on Islamic financial instruments like the “Salam contract” to enhance trade amongst countries and help transparently link producers with consumers without allowing for harmful speculation.
Elaborating on IDB Group performance, Dr. Ali stated that the total amount of development financings by the IDB Group in the year 2011 reached USD 8.3 billion while the total amount of the Group’s financings since its establishment in the year 1975 to date has exceeded US$ 80 billion. He then highlighted that the global financial crisis of 2008 and its subsequent repercussions including the current crisis in the EURO Zone, have left no doubt that the principles of Islamic finance provide an
appropriate framework for launching a more stable, just, transparent and ethical global financial order.
The two day event continues to discuss a number of topics concerning the development of Islamic finance industry on a global scale, and study the best ways and means to provide qualified human resources in the field. It also looks into other relevant topics such as issuance of Sukuk and how to spearhead the development of the global financial industry worldwide.
On the sidelines of the event, the IDB Group President met with Singapore’s former Prime Minister H.E. Goh Chok Tong to discuss ways to strengthen the existing cooperation between the Islamic Development Bank Group and Singapore in general and in particular between the IDB Group and Singapore Management University (SMU) which has shown genuine interest in the fields of Islamic finance and banking and the possibility to make use of IDB expertise in that framework.
While in Singapore, the IDB Group President also held talks with Dr. Yaacob Ibrahim, the country’s Minister for Information, Communications and the Arts (MICA) and Minister in charge of Muslim Affairs. Updates on awqaf development, the Islamic education system in Singapore as well as the potential for collaboration on community projects in the region featured during the discussions.