China’s support is critically instrumental in developing Islamic finance
While China and Arab countries discuss ways to develop their bilateral ties, Kazakhstan aims to become a key part of those relations as well since the capital recently launched the Astana International Financial Center aspires to become a new global financial hub.
An economic event was carried out between July 3rd and 5th to talk about the main issue included Islamic Finance. Experts have emphasized China as a priority role in the global economy that China’s support can be very instrumental in the development of Islamic Finance.
“There are two essential elements for potential. One is it sort of legitimizes Islamic finance in terms of long-term investment commitment, economic development, social infrastructure, capital infrastructure and so on. The second thing is, besides legitimizing it, it actually gives scale, and everything in finance is easier to do if you have got critical mass. China will bring the critical mass not just in the retail market, but the wholesale market,” said Daud Vicary Abdullah, the Chairman of AIFC Advisory Board on Islamic Finance.
Meanwhile, Kazakhstan has also positioned itself to take advantage of China’s Belt and Road initiative as it strived to draw investors from Central Asian countries as well as from the Arab world. The member of AIFC Advisory Board on Islamic Finance, Sheikh Bilal Khan said the financial center is linked to the world.
Moreover, Lawyers have also stressed that because the newly formed Astana International Exchange will be operating under the principles of English common law – it will create even more opportunities for collaboration between Central Asian countries and the Arab world.
“From an arbitration point of view, it doesn’t have to be limited to English law. So if a dispute in Islamic finance, says Saud Arabia, or in Brussels or UK comes, if it comes here, we can do it on the basis of the parties on choice. If the party chooses a certain law or procedure, that is the flexibility it offers, and it’s amazing,” Sheikh Bilal Khan added.
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