Islamic finance urged to prioritize transparency to attract mainstream savers

The summit, held at the JW Marriott Grosvenor House, highlighted a growing pressure for Islamic financial institutions to demonstrate exactly how funds are deployed and who benefits from them. H.E. Yousef Hassan Khalawi, Secretary General of the AlBaraka Forum, stressed that ethical principles must underpin growth, particularly as AI and new technologies reshape wealth creation. Scholars like Mufti Muhammad Taqi Usmani underscored the necessity of backing wealth with real economic assets, rather than relying on speculation or interest-based models.

Industry participants argued that the sector is no longer an alternative, but must position itself as a mainstream financial force. Mohammad Shoaib Memon of Arab Bank Europe noted that the industry’s greatest challenge lies in explaining complex structures clearly to the public. This call for clarity aligns with the UK’s Consumer Duty requirements, urging providers to make the benefits of Islamic products easily recognizable when compared to conventional alternatives. Experts like Irshad Mahmood, formerly of Deloitte, challenged firms to provide empirical evidence of their contribution to employment and productivity, rather than relying on the assumption that Sharia compliance alone constitutes sufficient social value.

Institutional governance remains a critical hurdle. Shakeel Ahmed Yousuf Mohamed, Minister of Housing and Lands for Mauritius, warned that ethical intentions are insufficient without robust regulatory frameworks. The event, themed "Ethics in Action," continues to explore how endowments, pensions, and digital banking can bridge the gap between traditional Islamic principles and the practical needs of modern, diverse communities.