Islamic Finance Conference to discuss potential launch of digital Islamic bank

The 5th Doha Islamic Finance Conference, scheduled to open on March 19 at the Sheraton Hotel, will discuss the possibility of establishing an integrated digital Islamic bank, in addition to finding ways of adapting to the growing wave of financial technology in Islamic finance and banking.

The event will be held under the patronage of the Prime Minister and Interior Minister H E Sheikh Abdullah bin Nasser bin Khalifa Al Thani, and is being organised by the Bait al-Mashura Finance Consultations, in partnership with the Qatar Financial Centre (QFC).

Sponsors for the event include the Ministry of Endowments and Islamic Affairs and Barwa Bank in cooperation with the Qatar University’s College of Sharia and Islamic Studies and College of Business and Economics and the Hamad Bin Khalifa University’s College of Islamic Studies.

Over 1200 attendees from 22 countries across the world are attending the event, including members of international government bodies, international organizations, and financial and academic institutions in the field of economy, finance, and digital technology.

Addressing a press conference here yesterday, Dr. Khaled Bin Ibrahim Al Sulaiti, chairman of the organizing committee and deputy chairman of Bait Al-Mashura said the meet will also review the experiences of central banks amidst the development in information technology.

“With this, we will also review electronic systems in Islamic banks and their challenges in digitalisation, and find mechanisms to apply the requirements of Sharia standards on the current electronic systems. It will also review cyber security, its challenges and some of its forms in the financial and banking sectors, and will also look into digitalisation in the capital market through studying the instruments (Sukuk) model via blockchain technology”, Al Sulaiti added.

According to Dr. Osama Qais Al Dereai, vice chairman of the organising committee and managing director and chief executive officer of Bait Al-Mashura, adoption of fintech applications by Islamic banks around the world will increase their customer base rapidly and attract 150 million new customers within two years.

“There is a growing trend among Islamic financial institutions to adopt technological and digital systems, where a number of companies specialising in technology simplify the contracts of Islamic finance through the use of block chain technology, while others are targeting the development of integrated payment systems. These new systems could lead to significant savings in operational cost via smart contracts as well as simplifying and accelerating banking transactions, avoiding brokers and making Islamic financial transactions simpler and faster”, Al Dereai added.

Sheikh Dr. Khalid bin Mohammed Al-Thani, director general of endowments department at the Ministry of Endowments and Islamic Affairs pointed out the Ministry’s support to the recommendations of the conference which are aimed at bridging the digital gap between the Islamic world and the rest of the world, especially in the field of economy and finance.