ISLAMIC FINANCE MUST TURN ETHICAL PRINCIPLES INTO TRUSTED INSTITUTIONS AND MEASURABLE IMPACT
- Keynote speaker H.E. Mufti Muhammad Taqi Usmani said current Islamic financial structures are "only a beginning" and that permissibility alone doesn't settle ethical responsibility.
- Asked what change the sector most needed, Usmani replied: "A change of mentality."
LONDON, Nov. 5, 2026 /PRNewswire/ -- Islamic finance must build trust by turning its ethical principles into practice, from the way institutions serve customers to how they direct capital and measure its impact. This was agreed upon by speakers, business leaders, scholars and policymakers at the annual 5th AlBaraka Summit in London.
H.E. Yousef Hassan Khalawi, Secretary General of AlBaraka Forum for Islamic Economy, opened the summit in his keynote address to a room of over 500 business leaders, scholars and financial experts, making the point that customers choose Islamic banks because they trust the scholars who guide them, but they can still struggle to see a difference in the service they receive.
Islamic banking is established in the UK and continues to grow by meeting the needs of consumer interest, but still only has a niche share of total UK banking assets - accounting for around 0.1% of banking assets. Yet a 2026 survey found that 86% of British Muslims want an Islamic banking provider, while only just over half currently hold an Islamic bank account.
Khalawi explained that many banking customers still struggle to understand the difference between Islamic banking and conventional banking, and called on Islamic banks to make their ethical principles more visible, including how products are explained, advice is given, and risk is managed.
"When Islamic banks take their responsibility and raise the bar, I am sure conventional banks will follow," Khalawi said. "By providing greater education and better communication, consumers who align with Islamic financial principles of fairness, transparency and shared risk can access the products and services."
In his keynote address, H.E. Mufti Muhammad Taqi Usmani, Chairman of the Shari'ah Council at the Accounting and Auditing Organisation for Islamic Financial Institutions and President of Jamia Darul Uloom in Karachi, outlined two principles for Islamic finance: money should be a medium of exchange, rather than a commodity in itself, and wealth should circulate more equitably instead of becoming concentrated among a few.
"Money is a medium of exchange only," he said, arguing that finance should be connected to real trade and productive assets. Usmani said current Islamic banking structures should be seen as a starting point, with the sector moving towards more partnership-based finance that shares the returns from underlying trade with depositors.
"This is only a beginning," he said. The wider goal should be a financial system that supports productive activity and distributes wealth more equitably across society.
In a second-day discussion, Usmani cautioned that Shari'ah permissibility alone does not settle questions of ethical responsibility and that consistent implementation requires effective oversight and strong institutional governance. Asked what change the sector most needed, he replied: "A change of mentality."
Ms. Nurul Izzah Anwar Ibrahim, Executive Chairperson of Suluh Centre and social activist, argued that Islamic economics should be shaped around the needs of families and communities, rather than narrowed to the banking sector. She pointed to Malaysia's Tabung Haji as an example of an institution developed to help people save for pilgrimage without interest-bearing finance, and said Waqf endowments could provide another source of long-term support for community services.
In reviewing global experiences of implementing Islamic finance, H.E. Mr. Shakeel Ahmed Yousuf Mohamed, the Honourable Minister of Housing and Lands for the Government of Mauritius, described efforts to modernise the country's Waqf framework and establish Mauritius as a regional hub for Islamic endowments. He said effective governance, robust regulation and institutional accountability are essential to building public trust and delivering lasting social impact.
"Good intentions are not enough. Ethics need systems and trust must be engineered," Mohamed said.
In an address to the forum, H.E. Dr. Doris Uzoka-Anite, the Honourable Minister of State for Budget and Economic Planning at the Federal Republic of Nigeria, used Nigeria's sovereign Sukuk programme to demonstrate how non-interest finance can connect investment to a defined public need. She explained that the first three issuances raised approximately 360 billion naira for road projects, while investor orders for the third reached around 660 billion naira against an issuance of 160 billion naira. "Finance is a means to an end, productive investment and improved livelihoods," she told attendees.
H.E. Mr. Salim Arda Ermut, Chief Executive Officer and Board Member at Türkiye Wealth Fund, said the sector's development depends on building a new generation of talent and institutions equipped to put Islamic finance principles into practice. He cited Türkiye's work to develop a Takaful insurer and bring participation banks together under a larger structure, and said financial centres should direct capital towards productive, long-term investment.
Mr. Shockat Adam MP, Independent Member of Parliament for Leicester South, moderated the 5th Annual Summit panel on strategic leadership, policy, regulation and global direction. He said the sector had people, wealth and good intentions, but needed to turn them into practical action.
Panellists discussed the institutions needed to make that change. Dr. Hasnita Dato' Hashim, Chairman and Independent Non-Executive Director of Maybank Investment Bank who said ethical expectations could be built into governance, customer protection and risk management. Mohammed Ali Addarrat, Chairman of Libyan Foreign Bank, cautioned that reforms need to be matched by institutional readiness, skilled staff and effective supervision. Mr. Zafar Masud, Chairman of the Pakistan Banks' Association and President and CEO of the Bank of Punjab, joined virtually and outlined Pakistan's constitutional goal of making its entire banking system interest-free by 2028, stressing that success depends on changing the wider financial ecosystem, not banks alone.
Mr Adam MP concluded: "Ethics in action is not just about what we believe, but about what we build." He called for cooperation between regulators, scholars and industry, and for the sector to build trust through the substance of its work
Held at JW Marriott Grosvenor House in mid-October under the theme "Ethics in Action: Rebuilding Foundations and Advancing the Global Impact of the Islamic Economy", the summit brought together government ministers, policymakers, scholars, financial institutions and business leaders. Its five thematic panels and two workshops explored Islamic banking and capital markets, social finance, Takaful, Waqf, Zakat, entrepreneurship, digitalisation and the next generation of the Islamic economy.
Sessions on social finance considered how instruments including Waqf, Zakat, Sadaqah and Qard Hasan could support financial inclusion and move beyond immediate charitable relief towards longer-term development and community resilience. Speakers also discussed how institutions can assess the economic and social outcomes of investment.
The 5th Annual AlBaraka Summit's partners and sponsors include the Islamic Chamber of Commerce and Development (ICCD) as Strategic Partner, Al Baraka Group as Global Partner, Anadolu Agency as Global Communication Partner, Arab Bank Europe as Gold Sponsor, and Libya Africa Investment Portfolio as Silver Sponsor.
The summit was preceded by the 6th Global Business Excellence Gala at Jumeirah Carlton Tower. The dinner brought together business leaders, policymakers, investors and institutional representatives to discuss partnership and cross-border collaboration.
Gala speakers reflected on the contribution of shared values to business and community development. Dr. Yahya Hendi of Georgetown University urged entrepreneurs to "compete with one another, not against each other" in doing good.
Dr. Nabil Qaddoumi, Chairman of the Board of Taawon Association, Palestine, described the organisation's investment in programmes spanning education, healthcare, youth development and support for vulnerable communities.
H.E. Mr. Necmeddin Bilal Erdogan, Deputy Chair of Ibn Haldun University, said halal and tayyib principles should shape how income is earned, workers are treated and business decisions uphold human dignity. "We must show the same care for the legitimacy of the income that puts food on our tables as we show for the halal status of the food itself," said Erdogan. He added that Islamic finance instruments should be understood as ways of doing business, and highlighted the role of charitable endowments and partnerships in turning ideas into productive projects.
The 6th Global Business Excellence Gala was supported by Albaraka Türk Participation Bank as the Official Gala Partner, Anadolu Agency as the Global Communication Partner, and Arab Bank Europe and Libya Africa Investment Portfolio as Premium Sponsors.
About AlBaraka Forum
AlBaraka Forum for Islamic Economy is an independent, non-profit, global think tank specialising in Islamic economy in its holistic sense. The Forum emerged as an extension of the deep-rooted heritage of its founder, Sheikh Saleh Abdullah Kamel (1941-2020), a heritage that covered various areas of research and development in Islamic economy.
The Forum seeks to enrich research resources and serve the knowledge structure of Islamic economy, as well as build partnerships and alliances with regional and international entities to anticipate contemporary economic challenges and developments and keep pace with Islamic economy and finance.
View original content to download multimedia: https://www.prnewswire.co.uk/news-releases/islamic-finance-must-turn-ethical-principles-into-trusted-institutions-and-measurable-impact-302930683.html
