Keynote Presentation:

Shariah as Key Pillar in Overall

Islamic Financial Industry
• Rapid expansion with bright growth prospects

• Continuously facing issues and challenges

• Confront and resolve issues

 Rapid Expansion
• Greater efforts to develop a comprehensive financial system
• Banking, takaful, and financial market

• Growing asset size

• Islamic finance is now globally integrated

• Facilitates cross border trade
• Active involvement of conventional markets in Islamic finance
• Islamic bank is governed by its own set of international
regulatory and prudential standards

•Malaysia Islamic finance initiatives

Operates in more challenging environment ...

 Issues and Challenges...
Given that... There is this
need to... Confront and
resolve issues
\

• Fast evolution of  Continuously review regulatory and legal

Islamic financial framework to suit Shariah requirements
system Modernize  Develop and standardize global Islamic
• Rising competition
and innovate banking practices – promote uniformity to
from well Islamic financial facilitate cross border transaction and
established and system within global convention – equivalent to ISDA,
Shariah boundary UCP
emerging financial
centres to meet customers’  Conduct in depth research and find
demand solution on Shariah issues relating to risk
• Untapped potential mitigation, liquidity management and
in the industry hedging
 Address shortage of talents in particular
financial savvy Shariah Scholars and
Shariah savvy financial practitioners

 Continuous adaptation of Islamic

financial products - is it sustainable?
“...To each among you, We have prescribed a law
and a clear way. If Allâh willed, He would have made
you one nation, but that (He) may test you in what He
has given you; so strive as in a race in good deeds.
The return of you (all) is to Allâh; then He will inform
you about that in which you used to differ.”

Surah al-Maidah : verse 48

I hereby officiate the International Shariah Scholars Dialogue 2006

May we have a successful dialogue, InsyaAllah

Thank you