By Amanullah Khan
Karachi: Generally Speaking the purpose of the financial sector is to stimulate the production of real wealth rather than considering money as a form of wealth, Islamic economy views it as a means of developing necessary assets — such as roads, schools, universities, hospitals and houses — as well as services that satisfy people’s material and moral needs.
Of all the countries that have generated abundant funds from their material resources, very few have used that wealth for the benefit of civilisation — through the wise exploitation of its resources and its far-sighted economic and social outlook.
Trading, finance and banking methods have evolved significantly in the wake of the latest technological revolution that has triggered the rise of digital economy. Amid the advancements, our goal remains the same — to lay the foundations of a long-term economic boom that will ensure stability and sustainability for the foreseeable future.
In this context, Islamic economy need to define the role of the financial sector, and utilise its tools and technologies as growth accelerators and as means to facilitate transactions free from traditional bureaucratic processes.
According to a report the emergence of FinTech opens a host of investment opportunities in the digital Islamic economy. This nascent sector is widely receptive to innovation and in dire need of fresh talent, especially when it comes to small and medium enterprises in the field of digital financial engineering.
DIFC’s FinTech accelerator — the first of its kind in the Middle East, Africa and South Asia, is already expanding the scope for investment in this field. The accelerator provides a low-cost platform to develop FinTech companies and also contributes to strengthening the legal framework governing individual and corporate finance activities. As a sign of the positive impact of FinTech on Islamic economy, a recent Ernst & Young report noted that FinTech products have the potential to attract 150 million customers to the Islamic banking sector by 2021. Using disruptive financial technologies to address the demand for Islamic finance products will not only increase the influx of customers to Islamic banks and financial institutions, but also boost the volume of investable assets to record levels over a limited time.
Source: Pakistan Observer