Mauritius, 21 May 2014 – The Islamic Financial Services Board (IFSB) launched its 11th Annual Summit with a Keynote Address by Dr. The Hon. Navinchandra Ramgoolam, the Prime Minister of Mauritius today. Themed, “New Markets and Frontiers for Islamic Finance: Innovation and the Regulatory Perimeter”, the Summit’s proceedings are taking place on 21 and 22 May 2014 in Mauritius, and hosted by Bank of Mauritius.
The Summit began with an opening address by the Secretary-General of the IFSB, Jaseem Ahmed. It was followed by the welcoming addresses from the host of the Summit, Governor, Bank of Mauritius, H.E. Rundheersing Bheenick.
In his Keynote Address, Dr. the Hon. Navinchandra Ramgoolam, the Prime Minister of Mauritius, reiterated Mauritius’ commitment in promoting Islamic finance as a tool for building a more resilient financial system in line with the country’s ongoing shift from the agricultural and manufacturing-based sectors to a service hub for the Africa. While citing some key lessons learnt from the global financial system, he mentioned that key concepts of Islamic finance that focus on risk sharing and help link the financial system with the real sector bring stability to the financial system. Growing interest in ethical and socially responsible investments is also fueling the growth in Islamic finance. In this respect, Mauritius is putting in place the necessary environment for the development of Islamic financial services industry as an opportunity to become a bridge to Africa for trade and investments. Mauritius’ commitment to Islamic finance is reflected in a number of initiatives, which include becoming a full member of the IFSB in 2007 and establishing a full-fledged Islamic bank. The country is also in the midst of introducing an Islamic banking window and developing Sharī`ah-compliant liquidity management instruments for the industry.
H.E. Rundheersing Bheenick, Governor of Bank of Mauritius, in his Welcome Address, observed the changing landscape of the financial sector arising from the global financial crisis. The crisis also heightened the awareness of the resiliency of Islamic finance, as well as its role as ethical and socially responsible investments. He, however, cautioned against complacency and suggested that “this Summit will not only address the hopes for a continuing expanding horizon for Islamic finance, in pioneering such services into new continents and sectors, but will also keep a wary eye on the regulatory perimeter”. In this context, he suggested to keep an eye on the objectives of Islamic finance that advocate social justice, “green banking” and financial inclusion. Reiterating the increasing role of Islamic finance in the development of Africa, he shared the optimism that Islamic finance is a bright star coming over the horizon for the African region which is experiencing spirited growth.
Mr. Jaseem Ahmed, Secretary General of the IFSB, noted that strong growth of Islamic finance over the years, led by the Islamic banking sector, has raised both new opportunities and challenges for the industry. Opportunities include the expansion of the Islamic financial services industry into new markets and frontiers, in particular in Africa, to serve as an alternative form of financing that can contribute towards sustainable economic and social development. “In the aftermath of the global financial crisis”, he emphasized that “the issues of financial and social stability are increasingly viewed as being interconnected”. While highlighting benefits of financial innovation in terms of reducing costs and widening financial and social inclusion, he cautioned that “this underscores the importance of shaping the regulatory perimeter in a way that is proportionate to the risks, so that it allows scope for, and doesn’t stifle, innovation”. Observing growing IFSB membership in Africa, he noted that it suggests that a sound and resilient Islamic finance industry could play an important role in Africa’s economic transformation.
After the keynote speech, the Prime Minister launched the Islamic Financial Services Industry Stability Report 2014.
The Summit continues with sessions covering topics such as:
