Islamic Finance Should Be Made Easier To Understand - Expert

By Rosemarie Khoo Mohd Sani & Niam Seet Wei KUALA LUMPUR, Oct 4 (Bernama) – The world’s understanding of Shariah-compliant financial instruments is still low, said Amanie Advisors LLP Dubai Chief Executive Officer, Maya Marissa Malek. She said that there was a need to educate the laymen on Islamic finance to avoid misunderstanding and misinformation on its mechanism. “When we make it too difficult for them to understand, it will erode their interest (in Islamic finance instruments),” she told Bernama on the sidelines of the 14th Kuala Lumpur Islamic Finance Forum here, Wednesday. Maya Marissa said there was a difference between Shariah and conventional investors, as conventional investors looked for profitability or competitive returns, while Shariah investors would seek to ensure that the underlying assets were Shariah-compliant. She said fund and asset managers should first outline the similarities between Shariah and conventional instruments, for example, the risk and pricing aspects. “Fund and asset managers also need to look at the different types of industry investments, as they would be the one explaining the merits to the investors.” “Those with a good track record should also introduce Shariah-compliant investment products to conventional investors, thus creating a wider investor base,” she said. Aside from making it easier for the people to understand the Islamic financial module, Maya Marissa also said that things such as legal documentation should also be simplified. “The Islamic investment instrument should be restructured, making it easier for conventional and foreign investors to join in,” she added. -- BERNAMA