The challenges that needed to be addressed include improving regulatory oversight, rebalancing tax treatment, strengthening insolvency framework, promoting standardisation, ensuring adequate liquidity and establishing sound risk-management practices.
Mahmoud said innovation and knowledge sharing between various market players were essential to facilitate the standardisation and unification of global markets for Islamic financial products.
In many countries, levelling the playing field with respect to the tax treatment of financial instruments was an urgent need. Conventional debt often received advantageous tax treatment, while some Islamic finance products like faced double taxation, he said
“Malaysia and Thailand took fundamental steps to ensure that Islamic financial transactions operate on a level playing field and are treated equally for tax purposes,” he said.
Meanwhile, Inceif signed an agreement with the World Bank to develop education and executive programmes in Islamic finance.
The collaboration, which aims to foster the development and expansion of sustainable and equitable Islamic finance worldwide, is focused on sharing of research, strengthening capacity, sharing of case studies and sharing of knowledge.
Its president and CEO Daud Vicary Abdullah said Inceif’s position as a global knowledge leader in Islamic finance would be strengthened with this collaboration.
source: The Star Malaysia