KUWAIT: Islamic finance is still the “optimal solution” in avoiding the effects of the financial crisis, but the sector needs to be revitalized, said Safa Abdul Rahman Al-Hashem, chairman and managing director of Advantage Consulting Company.
“Islamic finance was considerably affected by the crisis due to the fact that the Islamic banking system is a part of the capitalistic system and endeavors to realize profits by reformulating products in an Islamic framework and then selling them at a higher price as compared to the original traditional financial products,” she claimed.
Al-Hashem added: “With the current financial crisis invading Kuwait and other countries in the world, Islamic banks and their investment instruments will soon be forced to reconsider financial engineering.”