The volume of Islamic banking globally reached $1.5 trillion and estimated to hit $2.1 trillion by 2015, or an increase of 30 percent, local media said quoting experts.
Meanwhile, head of the Excellence Center for Banking Studies and Islamic Finance at Dhahran-based King Fahd University for Petroleum and Minerals (KFUPM), Salah Al-Shalhoub stated that the university plans to introduce a program for executive master in Islamic banking to provide trained and qualified cadres for the labor market in the Kingdom.
There is a considerable expansion of Islamic banking in the Kingdom in the last 10 years as well as cooperative insurance companies and sukuk (Islamic bonds) markets, Shalhoub told Al-Riyadh daily.
He said Islamic products have widely and noticeably spread in the banking sector and the growth rate of Islamic banking in the Kingdom has been estimated at 30 percent per annum.
He said the Islamic banking applied in the Kingdom was an important stage for the establishment of a solid base for this kind of banking.
Though the existence of Islamic (advisory) boards in banks is important, it is not the required mechanism to achieve sustainable development of Islamic banking and there must be clear-cut regulations derived from Shariah and properly applied to ensure the safety of accounting procedures in accordance with the known and accepted accounting principles in the banks, he was quoted as saying.
Dean of the Institute of Islamic Economics at King Abdulaziz University Abdullah Quriyan stated that Islamic banking is widely applied in Saudi Arabia, Malaysia, Britain, and other GCC countries.
“Full leadership of the Islamic banking should originate in the Kingdom which is being strongly sought in this direction, especially if we take into consideration the fact that liquidity in all countries applying Islamic banking is mostly Saudi capital,” he said.
He urged the Saudi Arabian Monetary Agency (SAMA) to issue regulations and systems to help organize the Islamic banking in the Kingdom.
On the other hand, professor of the Chair of Custodian of the Two Holy Mosques for Islamic Jurisprudence and scholar at Harvard Law School, Frank Vogel, said the Kingdom lacks legislations from the concerned bodies supervising Islamic banking.
He said Islamic banking needs qualified and skilled cadres to improve Islamic banking which, he said, is attainable if appropriate academic programs are adopted and introduced.