Islamic finance role of exchange highlighted

The ongoing Africa Stock Exchanges Conference has brought to light the growing importance of Islamic financing and instruments such as Sukhoops in the financial sector. Waheed Qaiser, the President of Maxim Corporate Finance, shared his insights on the role of Islamic finance in the economy. Qaiser highlighted that Islamic finance is rooted in the real economy, focusing on tangible assets, making it an attractive sector that has been experiencing a remarkable growth rate of 15% for nearly a decade. He noted that historically, Malaysia was among the first countries to adopt Islamic finance, setting a precedent for other regions to follow suit. However, Qaiser believes that Africa has immense potential to further develop its Islamic finance market. He emphasized that African markets are receptive and offer numerous opportunities for investors, provided that the government, regulators, and market players create a conducive environment. Qaiser stressed the importance of regulators in establishing policies and frameworks that support Islamic financing. Drawing from the UK's experience with Islamic mortgages, he highlighted the need for collaboration between regulators, politicians, and market participants to implement necessary reforms and create a level playing field for Islamic financial products. Qaiser further discussed the unique features of Sukhoops, explaining that these instruments offer investors direct ownership of underlying assets, ensuring greater protection for their capital. He underscored the importance of financial literacy in increasing awareness about the benefits of Islamic finance, ultimately driving more investment into this sector.