WIEF SG: “Islamic bonds more compliant than treasury bills and foreign borrowing”

The Secretary General of the World Islamic Economic Forum (WIEF), Fawzi Hadj Abderrazak said that Algeria should issue Islamic bonds or “Sukuk” which are more effective and Shari’a-compliant, instead of the Treasury bond or resorting to foreign debt to finance economic projects, while stressing the need to foster mainstream Islamic banks.

The word “Sukuk” commonly refers to the Islamic equivalent of bonds. However, contrary to treaty obligations, which merely confer ownership of a debt, the “Sukuk”, whose appearance was one of the most important developments in Islamic capital markets over the past year, it confers on the investor a share of an asset, as well as cash flow and proportionate risk. As such, the title «Sukuk» respects Islamic laws that prohibit billing or payment of interest.

To do this, the SG of the WIEF is visiting Algeria to issue an invitation to the government, including the Minister of Industry and Mines, Abdeslem Bouchouareb, who will be the Algerian representative due to take part in the upcoming 12th summit of the World Islamic Economic Forum to be held from 2 to 4 August in Jakarta, Indonesia.

This twelfth edition of WIEF will know the participation of about 2500 delegates and 60 stakeholders from over 100 countries around the world with the central theme, “Decentralize growth, encourage trade in the future.”

The session that Jakarta is home for the second time, will aim, said the WIEF SG, to explore the essential role of micro, small and medium enterprises (MSMEs) as a  driving force for spurring economic growth in economies around the world.

This justifies the choice of this theme that decentralization promotes growth MSMEs allowing their wider participation in the formal economy, ensuring inclusive economic development, encouraging innovation and improving efficiencies while offering businesses a competitive advantage to navigate through the commercial crossing which is constantly changing.

As a recall, the World Islamic Economic Forum, dubbed the “Islamic Davos”, was established on 6 March 2006 and headquartered in Kuala Lumpur, Malaysia; it is held once a year.

It has become a platform whose fundamental goal is to ensure the improvement of the economic welfare of the Islamic Ouma communities worldwide through the promotion of this entity in the world as a trading bloc and lucrative investment.

Such a major forum has attracted since its inception, all the elite of the economies of Muslim and non-Muslim countries worldwide.