Islamic economy operates under Sharia law is Halal food production, Halal medicine and tourism, Islamic banking

Experts believe that the use of modern information technology in Islamic Finance (which operate under Sharia law) will help the development of this market. This they said in the discussion held on the forum of KazanSummit.

Islamic economy operates under Sharia law is Halal food production, Halal medicine and tourism, Islamic banking. Islamic banks are different in that because of the ban on usury cannot issue classic loans at interest, and engage in other forms (installment, leasing, equity financing).

“In the last two to three years appears in this field a large number of different startups, there are those who have <...> the Islamic products or startups, a fully Sharia-compliant. <...> The potential of using [the innovation] financial technologies in Islamic Finance is huge. We are confident that appropriate technology can be used in order to provide transparency,” said Vice President of Ethis Ventures (Singapore, the company is engaged in investments in different areas) Madjid Abdul Ahmad.

Blockchain for donations

Agree with him and the rector of the International centre for education in Islamic Finance (INCEIF, Malaysia) Azumah Ismail. According to him, the latest technology in the field of Finance is very suited to the requirements imposed by the Sharia. He points, for example, that blockchain technology, can be successfully applied to sadece — voluntary Islamic charity.

The blockchain technology is a structured database with defined rules for constructing chains of transactions and access to information, which does not allow to steal data and commit fraud. Based on the technology of the cryptocurrencies, including bitcoin.

“According to research, about 40% different donations or support programmes is lost in connection with the bureaucracy and other difficulties, for example, I saw it, in the case of assistance to Filipino refugees — funds did not reach them, <...>. The blockchain allows for a transparent [distribution of funds] and obtain their specific recipients of aid,” he explained.

Ismail also noted the efficacy of the blockchain in the system of Takaful. This concept in Islamic Finance, which implies the insurance system, which is based on the mechanism of distribution of profits and losses between depositors and operator of funds. According to Ismail, when using the blockchain in Takaful can provide a more effective system of cash management.

Simulator Islamic Finance and jalalain

The head of the Islamic financial centre, BIBF (Bahrain) Mujtaba Khalid cites studies Thomson Reuters, according to which, the global market for Islamic Finance at the moment a little more than $ 2 trillion, by 2022 it is projected that it will rise to 3.2 trillion dollars. But, according to him, highly qualified specialists in this sphere is not enough now.

Islamic financial center to increase the number of such specialists offers the use of electronic distance education. Its specialists have developed a virtual platform for distance education in the field of Islamic Finance. In addition, in July they plan to launch a special banking simulator which can show whether the simulated scenario a financial transaction Sharia law.

The application developer HalalGuide (Tatarstan, it shows places and services Halal, that is allowed from the point of view of Islam) Ayrat Kasimov found another use blockchain technology for their product — he is planning to release a cryptocurrency. “The advantage of a blockchain is that information cannot be changed. We want to use [the blockchain] to improve the most important factor of our project is trust,” he explained.

International economic summit “Russia — Islamic world Forum” is held in Kazan from 10 to 12 may. For the past ten years, the site assembles representatives of international organizations, governments, financial institutions, embassies, MPs, investors and businessmen, top-managers of Russian and foreign companies. The summit has established itself as a successful business platform to establish new contacts and assist with the presentation of economic possibilities and investment potential of Russia.