Opening ceremony of the Global Islamic Economy Summit.

Abu Dhabi, (IINA) : The Global Islamic Economy Summit 2016 kicked off in Dubai on Tuesday where industry specialists highlighted the challenges and opportunities of the global Islamic finance industry, which is estimated to be worth $3 trillion by 2020.

Shaikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and General Supervisor of the Dubai Islamic Economy Development Centre (DIEDC), attended the opening ceremony. The Dubai Chamber of Commerce and Industry and the DIEDC are organizing the two-day summit, Khaleej Times newspaper reported.

One of the highlights of the day was the launch of the Awqaf International Organization (AIO).

During his keynote speech at the opening ceremony, Minister of Cabinet Affairs and Future, Mohammad bin Abdullah Al Gergawi said: “The initiative is a main pillar for the ‘Dubai: Capital of Islamic Economy’ initiative that aims to develop the Awqaf sector and unify the efforts of global Awqaf entities and organizations to improve the role of Waqf as a key catalyst of economic development.”

At the summit, Shaikh Hamdan launched the ‘My Salaam’ portal and mobile app in Dubai. In a bid to further digitize sectors spanning the Islamic economy, the My Salaam portal and mobile app complement the B2B platform ‘Salaam Gateway’ launched by Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, during the summit’s second edition in 2015.

Shaikh Hamdan said: “My Salaam App is an innovative and progressive initiative that is fully aligned with the digital age we live in. Through this launch, we aspire to empower Islamic economy businesses as well as consumers with powerful tools to live more efficiently, abundantly and wisely – even while staying in tune with the times and enjoying the conveniences of our digital and mobile age.”

At a session titled ‘Is blended finance a solution to the funding requirements of sustainable development goals?’ Dr. Mohammed Yousef Al Hashel, governor of the Central Bank of Kuwait and keynote speaker, said: “It is heartening to see the broad context of the conference, ranging from philanthropy to innovations, to Islamic finance and halal industries. This reflects the true essence of an Islamic economic system. Constricting the Islamic economy to a few sectors defies its ubiquity.”

“Assets of the top 1,000 global banks alone are worth around $115 trillion, yet these banks are facing a serious squeeze on profit margins. Meanwhile, the Islamic finance industry, despite its impressive growth, collectively accounts for just $2 trillion,” Dr Al Hashel said. “Looking at these figures, one might think that funding is not a constraint to achieve SDGs. However, the reality is quite different. By some estimates, around $3.5 trillion to $5 trillion is needed every year to make desirable progress on SDGs,” he added.

During a panel discussion, experts said the Muslim world must look to both modern innovations and traditional practices if it is to put under-used capital to work in improving society.

Tayeb Al Rais, secretary-general of the UAE’s Awqaf and Minors Affairs Foundation, said the concept of charitable giving is a foundation of Islam, but that certain practices were struggling for relevance in the modern world.

Another panel discussion said that governments are not doing enough to address needs of Islamic youth as 50 percent of attendees polled agreed on it.

Interestingly, one panelist at the opening plenary, Tirad Mahmoud, CEO of Abu Dhabi Islamic Bank, suggested this result was conservative. “I think this is optimistic,” he said. “If you polled youth throughout the region, I think you’d get a result that is far more concerning.”—SM/IINA