Speaking on the the role of Islamic banks in providing initial solutions in view of the current financial crisis, Safa Abdul Rahman Al-Hashem (pic left), Chairman and Managing Director of Advantage Consulting Company, said that Despite all the skepticism the world had toward the Islamic banking system in the GCC, particularly in Kuwait, not only does the integrity of the system hold, but Islamic finance also remains the most optimal solution to avoiding the repercussions of the Financial Crisis
She said however, that Islamic finance needs to be revitalized. As although Islamic banks do contain an array of real Islamic Banking products like Tawreeq, Sukuk, Murabaha, Islamic real estate mortgages, they in effect provide the same traditional products of commercial and investment banks with only change of trade name.
Al Hashem added, 'This is primarily due to the fact that the Islamic banking system is a part of capitalistic system and endeavors to realize profits using Fiqh (Jurisprudence) tricks to reformulate products in an Islamic framework and then sell Islamic products at a higher price as compared to original traditional financial products.'
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