Friday 12 December 2014

AlHuda CIBE wants to help bring Islamic finance to Japan

Japan, the third-largest national economy in the world, could improve its financial position internationally and regionally by supporting Islamic banking and finance, says Muhammad Zubair Mughal, Chief Executive Officer, AlHuda Center of Islamic Banking and Economics (CIBE).

Speaking at the Japan Halal Forum in Tokyo and at meetings in Japan, Muhammad Zubair mentioned that non-Muslim countries are already benefitting from Islamic finance, including in the US, South Africa, and the UK. 

Japan would not only expand its financial mix but also increase ties with regional financial centres near it, including in Malaysia, Indonesia, and Singapore, as well as further afield particularly to the Middle East. 

Muhammad Zubair noted that some Japanese banking and financial companies are already providing Islamic banking and takaful (Islamic insurance) services in Malaysia, the Middle East and some other countries. New investor bases might also be build through the Tokyo Stock Exchange developing Islamic indices and sukuk listings. Islamic banking and finance also complements the halal industry, which has the potential to attract new tourists in Japan and boost revenues through halal food exports.

Muhammad Zubair also disclosed that the AlHuda Center of Islamic Banking and Economics has a long term vision to develop the Islamic banking and finance industry in Japan. The organisation is initially offering capacity building services for the Japanese banking and financial market, and plan to conduct workshops on the topic in Tokyo at the end of February 2015 with the Association of Nippon Asia Halal Association, to be conducted in Japanese.