Islamic finance not replacement for traditional finance, says Saudi banker

By Gokhan Ergocun

RIYADH (AA) - Islamic finance is not a replacement for traditional finance, a top Saudi banker said.

"We are a finance (model) that is socially responsible. We care about the borrower as much as our shareholders and make sure people benefit from the process," said Mutlaq Al-Morished, a board member of Saudi Arabia based SME Bank.

Islamic bankers help their regions and share risks, especially for small and micro-small enterprises, he said Sunday at a session during the Islamic Development Bank (IsDB) Group's annual meeting in the Saudi capital Riyadh.

By injecting small amounts of money, the whole society is uplifted, he added.

Al-Morished further said that customers are interested in Islamic finance, but if it takes too long or costs more, larger clients like corporates, will use other options.

Islamic finance should not be promoted as just a global finance family, it is a finance with a human face, and social responsibility, he added.

Stephen Groff, governor of Saudi Arabia's National Development Fund, said Islamic finance, with its foundation based on core ethical principles, not only promotes risk sharing but also introduces innovative approaches that benefit both Muslim and non-Muslim communities worldwide.

Such financing activities are critical in driving sustainable development across many countries, particularly in times of crisis, he added.

The four-day event, which started on Saturday, will host seminars, keynote speeches and side events.