DOHA: The Arab banking conference which concluded here yesterday has asked the Islamic banking industry to follow international standards and rules regarding capital adequacy and transparency.
It is important that the Islamic banking industry adheres to Basel III, Arab bankers said at the close of their two-day convention.
In a communiqué issued, the conference recommended that the members of Shariah boards of Islamic banks be elected by the shareholders.
It is necessary to separate the board of directors of an Islamic bank and its Shariah board, the communiqué stressed.
There must be transparency in the performance of Shariah boards of Islamic banks.
The communiqué urged the Islamic banking industry to focus on quality and introduce new and innovative products and services.
The regulatory system for the Islamic banks must be developed further with new and strict monitoring mechanism.
The bankers called for encouraging intra-Arab trade so that a common Arab market could be set up and a large and single pan-Arab capital market comes into being.
Arab countries must have a unified investment laws, they added emphasizing that this would tremendously help attract foreign investment into the region.
The corporate sector should not shy away from playing its social role and it must should social responsibility.
The Arab banking conference noted in the context of the rising unemployment in the Arab world that direct investments must be made in the fields of education.
Skills development must be accorded a priority in the Arab world, said the communiqué.
It said that investment banks in the Arab world must play an active role and help the family businesses turn successfully into public shareholding companies.
The bankers also laid emphasis on the Arab world having a common energy fund and stressed the significance of encouraging the private sector to play a more proactive role in the economies of the Arab states.