US takes a closer look at Islamic banking
The US government is currently studying the salient features of Islamic banking to ascertain how far it could be useful in fighting the ongoing world economic crisis, Robert M. Kimmitt, US deputy secretary of the Treasury, said at a press conference held at the US Embassy here yesterday.
Kimmitt, who is on an official visit to the Kingdom, also held discussions with Finance Minister Ibrahim Al-Assaf. Today, he is scheduled to meet Saudi Arabian Monetary Agency (SAMA) Gov. Hamad Al-Sayari, Saudi Arabian General Investment Authority (SAGIA) Gov. Amr Al-Dabbagh, Prince Alwaleed bin Talal, chairman of the Kingdom Holding Company, and Saudi investors and bankers. He said that the agenda for the G-20 summit to be held in Washington on Nov. 15, has to be carefully prepared since important topics are to be discussed in just one day. "I am not sure that Islamic banking will also be itemized in the agenda, but it is a subject that is often dwelt in the public and private sectors," he noted. He said that experts in the US Treasury Department are currently learning the important features of Islamic banking.
However, he added that his country is focusing on the activities of various governments and central banks in tackling economic issues. He pointed out that the member countries in the G-20 also include Islamic countries such as Indonesia and Turkey, besides the Kingdom which has been a member for the past 10 years. Representatives from these countries could present their experiences of Islamic banking in light of the prevailing situation.
He hoped the G-20 summit will provide an effective platform for the member countries to exchange their views on the current economic problem and layout a plan for the countries to draw out their respective national plans to ease the situation.
Commenting on his meeting with Al-Assaf, Kimmitt said the items that could be included in the agenda were also discussed. "The geographical representation from member countries would provide a broader view of the crisis and would also benefit the non-member countries through their experiments," he added.
The G-20 summit, said Kimmitt, was proposed by Europeans which was readily accepted by President George W. Bush, who is seeking a common response to the global crisis.
Spelling out the purpose of his visit to Saudi Arabia, Kimmitt said that he has been associating with the Kingdom for more than two decades, but this is a significant visit since he was coming to the Kingdom at a time when there is a threat to the global financial market. "It's an opportunity for me to present the US perspective ... and hear from the Saudi leadership on the current situation in the Kingdom and in the region," he said, adding that even at a time of crisis, the US wants to stress its commitment to tell the countries in the region of the US open investment policies.
Pointing out that a good number of American investors are coming to the Kingdom, Kimmitt said the US government expects reciprocation in the same manner. The deputy secretary is slated to visit the United Arab Emirates, Qatar, Kuwait and Iraq where he would meet the leadership and investors on similar lines.
Topics: Economy, Islamic Finance
at SAUDI banking".
Both Western and Islamic bankings are present in
Saudi and other Muslim countries.
Solution of crises is only present in Islamic
economic system which served humankind above 1000
Saudi money is more than 2000 Billions $ in US economy and 11% of NYSE (New-York Stock Exchange) compagny, the holy place of ERRIBA!!!
What's the prupose of this article ?
Many Muslim countries are following the footsteps of western capitalism(interest based finances- Haraam in Islam.) Some Scholars and Islamic institutions justify these by Fatwas.
If the finance system go with real Islamic principles and laws, it will be a different world. All Mortgagges,Loans,Credit cards, compensations to CEOs must be regulated and capped.
Usually the economy gets better with wars and occupation, many say? It was true in the past. BUT what went wrong this time? Maybe the greed and wrong intentions.
It is a badtime for all during this financial crisis and most of us are into it directly or indirectly. May Allah help us and guide us to follow the right path.
The Saudis and other Arabs must forget US pub
relation gimmick designed to get free oil from
them. Enough oil will help US and Israelis to fly
their fighters to burn every inch of Arab cities.
I dont think the Arabs will take this advice Chandr...
Rather it is the Saudi stock exchange which has gone down quite heavily over the last few months. Now what is a stock exchange? A fancy name for gambling. Same thing in Kuwait and Dubai.
Don't get fooled.