The world economy is undergoing another paradigm shift building up to new uncertainties emerging from a changing global political landscape, evolving monetary policy impetus from the US, unresolved geopolitical conflicts, sluggish recovery in oil prices and a general uncertainty in economic outlook. The above factors, combined with lagged precedents from the earlier years, have contributed towards a general slowdown in the global economy.
The Islamic Financial Services Industry (IFSI) has also not been immune to these developments and, in a reversal of several years of strong double-digit growth rates, has experienced a slowdown in recent times since 2015. These developments are also taking place at a time when gradual implementation of new capital and liquidity regulatory requirements is ongoing.
Against this backdrop, it has become imperative for the stakeholders of the IFSI to find fresh impetus to reinvigorate the momentum in the various sectors of the industry including Islamic banking, Islamic capital markets, and Takāful (Islamic insurance). At the same time, the need for sustaining resilience of the institutions offering Islamic financial services (IIFS) is also profound. New opportunities and challenges are also emerging from recent financial technology developments.
The above underscores the importance of a continued emphasis for the development of prudential, legal and regulatory architecture for the specificities of the Islamic financial transactions. There remain opportunities to achieve greater interconnectedness and harmonisation between international exchanges and establish platforms to further facilitate cross-border issuances.
The IFSB Summit is designed to allow a higher-level interaction among the delegates to explore the implications on the IFSI from the evolving global economic and financial environment. The Summit seeks to raise awareness on the emerging challenges in the resilience and stability of the IFSI while discussing measures to reinvigorate growth momentum along with supportive policy reforms. The Summit welcomes high-level participants from regulatory and supervisory authorities, institutions offering Islamic financial services, international organisations, multilateral development banks, academics and all other interested parties.