ISLAMIC BANKS IN IRAQ ATTRACT THE SAVINGS OF CUSTOMERS AND PROVIDE LEGITIMATE ECONOMIC SOLUTIONS THAT ACHIEVE ECONOMIC BALANCE

by **claud39** Tue May 05, 2020 10:31 am

[rtl]

[/rtl]

[rtl]The international expert d. Sadiq al-Shammari pointed to the role that Islamic banking can play in Iraq by providing economic solutions that achieve the right economic balance, in light of the continuous search for new financial alternatives that diversify the state’s revenues and reduce its dependence on oil in shaping its financial policy. And dr. Sadiq al-Shammari, a member of the International Union of Arab Bankers, to the role of Islamic banks in achieving the right economic balance through linking finance to work and projects, noting that linking finance to work leads to achieving more balance between supply and demand. Which contributes to achieving economic stability and the development and development of societies, and in a manner that leads to parallel and simultaneous cash and commodity flows.

Al-Shammari pointed to the fact that many actors in the western world are adopting the Islamic banking model in financing economic activities, so that they have become an essential and important pillar of global banking operations. Al-Shammari considered that Iraq is required to adopt this model with the aim of attracting capital and investing in various projects, especially as attracting money and savings is one of the most important goals of Islamic banking, as it is possible to overcome any upcoming liquidity crisis that the Iraqi economy may be exposed to.

Al-Shammari stressed the need to work to create an appropriate environment that works on adopting Islamic banking in order to attract money to Iraq. The latter needs a large business volume in many of its productive and service joints, especially as it is considered one of the countries rich in the size of its natural resources, which in itself constitutes one of the catalysts of the work inside it.

The financial expert explained that the number of Islamic banks in the world exceeded 590 banks spread in 57 countries, equivalent to one third of the countries of the world, as it was proven in concrete that the activity of Islamic banking has been able to prove its presence due to the high demand for its products by customers, and the increase of profits despite the fact that Islamic banking carries more risks, knowing that the higher the risk, the higher the returns. He pointed out in this regard to the contribution of the economic balance to reducing the risks of inflation in the prices of goods and services that are a top goal of public and sectoral financial and economic policies, in addition to achieving the benefit of the individual and society as a broad and the well-being of societies, and preventing cases of fraud and deception in transactions because of transparency in determining the profit margins of these institutions .

Al-Shammari indicated that the economic balance contributes to achieving the settlement of wealth and investment in the fields of energy, extraction, land reclamation and water desalination, instead of trading and gambling with financial derivatives. Adding that Islamic banking services are no longer limited to specialized Islamic banks only, as traditional banks and investment banks can provide these services. Also, these services are no longer limited to banks operating in Arab and Islamic countries, but rather to international banks that have opened Islamic windows.

And he added that Islamic banking operations are not limited to financing service activities, or providing retail products only, but that bank officials work to provide job opportunities, through contributing to finding solutions to the inherent economic problems such as high inflation rates and increasing unemployment rates, as well as a high percentage Public debt relative to gross domestic product, in addition to poor distribution of wealth and incomes, the inefficiency of education and training mechanisms, and the inability of market mechanisms to provide products with a high degree of efficiency. Al-Shammari called in regard to this matter the departments of Islamic banks to continuously go to financing productive projects of social benefit, whether these projects are small, medium, or very small.

https://uabonline.org/%d8%a7%d9%84%d8%a8%d9%86%d9%88%d9%83-%d8%a7%d9%84%d8%a7%d8%b3%d9%84%d8%a7%d9%85%d9%8a%d8%a9-%d9%81%d9%8a-%d8%a7%d9%84%d8%b9%d8%b1%d8%a7%d9%82-%d8%aa%d8%b3%d8%aa%d9%82%d8%b7%d8%a8-%d9%85%d8%af%d8%ae/
[/rtl]