The fast-growing Islamic financial sector needs strong regulation to ensure it never faces the damage suffered by the global system as a result of the financial crisis, Malaysia’s prime minister said yesterday.
Najib Razak, whose government oversees one of the world’s largest and most comprehensive Islamic financial sectors, said it was “imperative for the industry to draw upon the lessons learnt to ensure that we avoid any such financial instability in the future”.
Of course, Prime Minister Razak is either mistaken or joining the chorus of purposely misleading Islamists who have been spreading the myth that Islamic finance has been insulated from the economic downturn. Each day in researching source material for SFW, we come across numerous articles which repeat that same propaganda.
We would also point out that the whole concept of man-made governmental regulation of something that derives its basis from Shariah, which is regarded as allah’s law, is going to be controversial to say the least. Shariah scholars such as Jihadists like Mufti Taqi Usmani and Sheikh Yusuf al-Qaradawi regard themselves as all the regulation that Islamic finance needs.
In fact, Shariah scholars do not regard man-made laws as having any authority at all over anything involving Shariah. This is a brewing conflict which is worth keeping an eye on…