Abdullah Kamel: Activating investment accounts is the future of Islamic banking
Sheikh Abdullah Saleh Kamel, Chairman of the Board of Trustees of the Al Baraka Forum for Islamic Economics and Chairman of the Islamic Chamber of Commerce and Development, stressed the importance of bringing about a qualitative shift in the Islamic finance sector by reactivating “participation-based investment accounts,” considering them the real engine and main driver for the growth of Islamic banking in the next stage.
A strategic vision from Medina
These remarks were made during his opening address at the Third Strategic Meeting on Islamic Economics, organized by the General Council for Islamic Banks and Financial Institutions (CIBAFI) in Medina. The meeting, titled “Towards Activating Participation-Based Investment Accounts: A Regulatory and Applied Perspective on the Islamic Banking Model,” was attended by prominent figures from the financial sector, representatives of regulatory bodies, and a select group of scholars and experts.
Kamel pointed to the profound symbolism of holding this meeting in Medina, the cradle of Islamic values, stressing that the place inspires the meanings of sincerity and honest work, and that the meeting goes beyond being a professional event to become a renewal of the covenant with the values of honesty and integrity upon which the nation was founded, and which are the solid foundation for any ethical financial system.
Balancing stability and risk
The Chairman of the Federation of Saudi Chambers emphasized the need for a delicate and sustainable balance between stringent financial stability requirements and the core principles of Islamic banking, which are based on profit and loss sharing. He explained that this balance is essential for strengthening confidence in the financial system and reinforcing ethical responsibility, thus distinguishing Islamic banking from its conventional counterpart.
He added that participatory investment accounts are not merely a technical tool or regulatory procedure, but a practical expression of the philosophy of Islamic economics, which aims to link the financial sector with real economic activity, and to promote transparency and accountability.
Global context and rapid growth
Sheikh Abdullah Kamel's call comes at a time when the Islamic banking sector is witnessing remarkable growth and increasing global recognition as a safe and sustainable alternative. Economic reports indicate that Islamic financial assets continue to rise globally, driven by the search for flexible and resilient financing instruments. Activating "participation" instruments is a crucial step towards moving from simply imitating conventional products to offering authentic Islamic products that contribute to genuine economic development.
In this context, Kamel explained that the expansion of the global financial system has imposed diverse applications for investment accounts, reflecting the flexibility of Islamic finance and its ability to adapt to different regulatory environments, while preserving the authentic Sharia principles.
A roadmap for the future
During the meeting, Sheikh Abdullah Kamel raised a number of pivotal questions that outline a roadmap for the future of the sector, most notably how to transform participation accounts into a real tool for growth and excellence, and the expected role of regulatory bodies and standards agencies in building more robust banking models.
He concluded by emphasizing that constructive dialogue between the various stakeholders is the only way to develop the industry and enhance its maturity, calling on participants to actively contribute to the discussions in a way that serves the development of Islamic banking and benefits society and the real economy, to ensure the sustainability of this unique financial model.
