During a keynote speech at the ‘Resilience of Bahrain’s financial sector’ seminar at the Gulf Hotel Convention Centre, KFH-Bahrain (Kuwait Finance House-Bahrain) managing director and CEO Abdulhakeem Alkhayyat highlighted the major advantages of the Islamic banking and finance system and discussed the future directions of the industry.
His presentation opened the first session of the seminar entitled ‘Islamic Banking: Is it the way forward?’
Mr Alkhayyat emphasised that the main elements of the Islamic finance industry are based on real long-term guarantees with an asset-based system and that is the foundation stone of Islamic banks.
“The government needs to issue more sukuk in order to provide short-term liquidity instruments that Islamic finance needs, we cannot look to the private sector to provide this.
“Most financial institutions in the region have sufficient liquidity and have no need to raise money through Islamic bonds so it falls on governments to raise cash if they are to provide the necessary sukuk to allow Islamic financial institutions to hold these instruments.
“Islamic financial institutions by nature utilise funds in development projects that stimulate the economy.
“I strongly believe that a highly-ethical, well-regulated and a transparent Islamic financial system is the way to the future, with effective corporate governance and with better interaction with relevant international, regional and local institutions, will definitely help all those who want to contribute to the welfare of their community and economy.”
KFH-Bahrain was the title sponsor of the event, which was organised by the Bahrain Chapter of The Institute of Chartered Accountants of India and held under the patronage of the Central Bank of Bahrain CBB.
The two-day event attracted almost 400 participants from the financial sector in Bahrain.