Islamic venture capital is the next frontier of Islamic finance that will enhance the co-operation among diverse Islamic financial institutions around the world, said Dr. Mohamed Abdu Moustafa, from the College of Business & Economics, UAE University.
Presenting a paper on “The Venture Capital: Proposed Co-operation Strategy between Islamic banks” at a conference on Islamic Financial Institutions at the Dubai Chamber of Commerce and Industry (DCCI), Dr. Moustafa said venture capital is very close to the Islamic instruments and very suitable to Islamic countries because of its positive impact on economic growth and development.
The paper proposed adopting the venture capital as a strategy for co-operation between the Islamic banks, either on country-based, regional-based or worldwide-based. In order to implement such a strategy, the potential Islamic banks which are willing to co-operate should establish a committee to be responsible for setting up the outline of the strategy.”
The conference organized by the College of Shariah & Law, University of UAE and DCCI discussed a number of participating researches and announced the final recommendations