February, 17, 2010

Islamic banking has to move beyond financing mainly homes and cars and into the real economy, an influential scholar said, noting potential for financing in aviation, shipping and infrastructure among other sectors.who advises the globally recognized Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) -- said industry players have been too comfortable sticking to retail financing and needed to make a big push into other sectors.

"Islamic finance was set up in the early 70s, 80s to help Muslims to buy houses and cars. It just stopped there," he said, speaking at the Reuters Islamic Finance Summit on Wednesday."We have to move on to the new century of financing the country at large."Bakar said there was a glaring need for sharia-compliant products in the aviation sector -- providing hedging against oil prices, for example -- and financing opportunities in agriculture, infrastructure, shipping, education and food services.

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