Closing of the 46th Al-Baraka Symposium: Innovations in the Charity and Benevolence Economy
The Al Baraka Symposium on Islamic Economics concluded its 46th session, held under the theme "The Charitable Sector in the Islamic Economy: Towards a New Future," with broad participation from leading scholars, economists, and bankers from around the world. This session marked a significant turning point in the development of Islamic economics, as discussions focused on shifting from the traditional focus on commercial banking to broader horizons encompassing social development and the solidarity economy.
Strategic shift: From banking to a land economy
In the context of the historical development of the Islamic economy, the Secretary-General of the Al Baraka Forum, Yousef Hassan Khallawi, affirmed that Islamic banking has been the most prominent sector over the past fifty years, successfully establishing its institutional presence globally. However, this symposium aims to highlight the next phase, which necessitates activating the "economy of charity and benevolence" as a broader framework. This shift reflects the maturity of the experience and the desire of those involved to enhance the developmental and social impact of funds, moving beyond mere commercial transactions to achieving the objectives of Sharia in solidarity and social justice.
Innovation in Waqf and Sukuk
The scientific sessions featured an advanced presentation of financial engineering tools, with Dr. Elias Dardour from Al-Zaytuna University offering insights on "Endowment Sukuk and Endowment Funds." These tools are of paramount importance today, as they represent innovative solutions to ensure the sustainability of endowment assets and maximize their returns. Endowments are no longer merely traditional charitable acts, but have transformed into economic engines capable of financing infrastructure projects and social services, aligning with global trends toward sustainable finance.
Alignment with Vision 2030 and demographic growth
The symposium discussed key intersections with the Kingdom's Vision 2030 , particularly regarding increasing the non-profit sector's contribution to GDP to 5%. Dr. Abdullah Al-Ghamdi noted that the Kingdom's endowment assets are estimated at approximately 430 billion riyals, providing a solid foundation for achieving these objectives. In parallel, Dr. Iman Shadi reviewed the opportunities inherent in the demographic growth of the Islamic world, emphasizing that the young workforce represents a promising market for Sharia-compliant products, provided there is sound, data-driven planning.
Looking to the future: Human capital
In a forward-looking move, the forum announced that its upcoming 47th session will be dedicated to discussing “Human Capital in Islamic Banks.” This announcement reflects an awareness that the next challenge lies not in a lack of liquidity or assets, but rather in developing leadership capable of innovation and adherence to Sharia and ethical standards. The forum also highlighted the “Saleh Kamel Prize for Islamic Economics,” valued at one million riyals, as an initiative to bridge the gap between academic research and practical application, thus commemorating the legacy of the forum’s founder, Sheikh Saleh Kamel, may God have mercy on him.
In conclusion, the Al Baraka Symposium was not just a passing event, but a platform for shaping the future of the Islamic economy, as the concluding recommendations called for transforming theoretical ideas into executive programs and effective partnerships that serve communities and promote the concept of “dignity economy” instead of relying on seasonal donations.
