London to Host Key Islamic Finance Summit This Year

The 3rd AlBaraka Islamic Finance Summit will be held on October 26-27, 2024, at the London Marriott Hotel Grosvenor Square, marking a significant event in the world of Islamic finance. This summit is poised to address pressing global financial challenges and demonstrate how Islamic economic principles can provide sustainable, ethical alternatives to conventional financial systems. With Islamic finance assets now surpassing $3 trillion, the summit will delve into how this sector can further contribute to global financial stability, sustainable development, and social justice.

Islamic Finance in Modern Economics

Islamic finance is a rapidly growing sector within the global financial system. Its principles are grounded in Shariah law, emphasizing ethical finance, risk-sharing, and prohibition of interest-based transactions. These principles appeal to not only Muslim-majority countries but also non-Muslim countries seeking sustainable and ethical financial practices. The AlBaraka Summit will explore how Islamic finance’s risk-sharing models and emphasis on real economic activities can help address financial instability and socioeconomic inequities. With a market estimated to grow to $4.94 trillion by 2025, Islamic finance’s global appeal continues to expand, especially in sectors like banking, investment, and insurance.

Global Collaboration

The summit, themed “Global Prospects for Islamic Economics: A Path to a Sustainable, Ethical, and Innovative Global Economy,” will bring together leading economists, policymakers, business leaders, academics, and scholars from over 30 countries. This diverse participation underscores the global relevance of Islamic finance as a tool for fostering cross-border economic partnerships. The summit will provide UK businesses with opportunities to engage with companies from Muslim-majority countries, potentially unlocking new growth avenues within the global Islamic economy.

AlBaraka Summit is supported by key partners, including Al Baraka Group B.S.C., the Islamic Chamber of Commerce and Development (ICCD), and the United Nations High Commissioner for Refugees (UNHCR). These collaborations aim to bridge the gap between Islamic finance and other economic models, showing how ethical and sustainable finance can contribute to the broader financial system.

Thought Leaders

The event will feature prominent figures in the field of Islamic finance and economics. H.E. Mr. Yousef Hassan Khalawi, Secretary-General of AlBaraka Forum for Islamic Economy, will open the summit by discussing the potential of Islamic finance to achieve financial prosperity while upholding social justice. His address will touch upon how Islamic economics can serve as a universal model, not limited to Muslim-majority countries, for creating more resilient and inclusive economies.

Naz Shah, a UK Member of Parliament and an advocate for community-based financial inclusion will also deliver a keynote speech. She will highlight the importance of ethical finance frameworks in the UK, addressing how Islamic finance can align with the country’s social and economic policies to support marginalized communities. Her speech will explore the potential of Islamic finance to address challenges such as financial exclusion and poverty.

Panel Discussions

The summit’s agenda includes multiple thematic panels and workshops, each aimed at unpacking different aspects of Islamic finance. Some key sessions include:

1. Collective Responsibility
   Moderated by Stella Cox, Managing Director of DDCAP Group, this panel will explore how Islamic finance provides ethical alternatives to conventional capitalism. The discussion will focus on social responsibility and sustainability, emphasizing collective approaches to economic development that prioritize the welfare of society over profit maximization. Speakers will discuss how integrating Islamic finance principles into economic policies can support the achievement of global sustainability goals.

2. Investment Solutions for Sustainability
   Speakers like Prof. Mohd Ma’Sum Billah of King Abdulaziz University will discuss how Islamic finance can prioritize social and environmental impacts alongside financial returns. This session will highlight the importance of integrating environmental, social, and governance (ESG) criteria in Islamic financial institutions, examining how sustainable practices can lead to long-term economic growth while meeting ethical standards.

3. Islamic Non-Profit Models
   This panel will feature Haroun Atallah, Chairman of Islamic Relief Worldwide, who will highlight the power of non-profit economic models such as Waqf (endowments) and Qard Hassan (benevolent loans). The discussion will center on how these Islamic economic tools can be used to empower communities and drive social development, particularly in areas experiencing economic hardship.

Sukuk in Islamic Finance

A special workshop titled “Sukuk as High-Quality Liquid Assets: Structures and Navigating Liquidity Crunches in Financial Markets” will be held on the sidelines of the summit. Led by H.E. Mr. Mohamad Safri Shahul Hamid, Chief Executive Officer of The International Islamic Liquidity Management Corporation (IILM), the session will delve into how Sukuk, or Islamic bonds, can serve as effective financial instruments for managing liquidity. With the global Sukuk market projected to exceed $230 billion by 2026, this workshop will explore practical solutions for utilizing these instruments to achieve financial stability and sustainable economic growth.

Innovation in Islamic Economics

The summit will also feature a dedicated session showcasing research from British universities, titled “Innovation in Islamic Economics.” This session will present PhD research on topics such as Islamic banking, socio-economic sustainability, and Shariah-compliant commercial law. Universities such as Durham, Dundee, and Anglia Ruskin will present their findings, providing valuable insights into how Islamic economic principles can address contemporary financial challenges.

Foundations of Islamic Economics

The 3rd AlBaraka Summit will not only focus on modern applications but also delve into the rich history of Islamic economics, which dates back over a millennium. The sessions will cover foundational principles such as Maqasid al-Shariah (objectives of Islamic law), which aim to ensure social justice, ethical financial conduct, and equitable distribution of wealth. By revisiting the historical evolution of Islamic finance, the summit will highlight how these time-tested principles can be adapted to meet the demands of the 21st-century economy.

Scope Beyond Muslim-Majority Countries

While Islamic finance is deeply rooted in Muslim-majority countries, the summit aims to show its universal applicability. In countries like the United Kingdom, Islamic finance has gained traction as a valuable tool for promoting ethical banking and inclusive economic growth. With institutions such as the Bank of England recognizing the potential of Islamic finance to contribute to financial stability, the summit will discuss ways to integrate Islamic economic principles into mainstream financial policies. Sessions will also explore the role of fintech and digital Islamic banking in broadening access to Sharia-compliant financial products across different demographics.

Cross-Border Investments

The summit will act as a catalyst for cross-border investments, with dedicated sessions on fostering collaboration between the UK and Muslim-majority countries. These discussions will explore investment opportunities in sectors such as infrastructure, real estate, healthcare, and education. By leveraging Islamic finance’s ethical framework, the summit aims to encourage investment in sustainable development projects that not only generate financial returns but also contribute to social welfare.

Addressing Contemporary Challenges

Amid concerns over economic inequality, debt accumulation, and speculative financial practices, the AlBaraka Summit will critically assess the shortcomings of traditional capitalist models. Islamic finance, with its emphasis on ethical considerations, risk-sharing, and asset-backed transactions, offers viable solutions for addressing these challenges. The summit will feature discussions on how Islamic economic principles can be applied to mitigate financial risks and promote economic resilience in the face of global financial crises.

Sustainable Development

The AlBaraka Summit’s agenda aligns with global efforts to achieve sustainable development goals (SDGs). Islamic finance principles are inherently supportive of several SDGs, particularly those related to poverty alleviation, responsible consumption, and climate action. The summit will explore how Islamic financial tools, such as Zakat (charity) and Waqf, can be utilized to fund social projects and promote environmental sustainability. Discussions will include the role of Islamic finance in green investments, renewable energy projects, and sustainable agriculture, to create a more balanced and ethical economic framework.

The 3rd AlBaraka Islamic Finance Summit promises to be a landmark event in the advancement of Islamic economics. By bringing together key stakeholders from different sectors and regions, the summit will foster dialogue, innovation, and partnerships that can drive the global Islamic finance industry forward. As the sector continues to grow, its principles of ethical finance, social justice, and sustainable development will play an increasingly important role in shaping the future of the global economy.

With a comprehensive agenda that includes panel discussions, workshops, and special sessions, the summit will provide attendees with deep insights into the potential of Islamic finance to address contemporary economic challenges. This event not only reaffirms Islamic finance’s relevance in today’s world but also positions it as a leading force for ethical economic transformation.