There is an urgent need for standardisation in Islamic finance in order to raise the sophistication of the industry and make it more attractive to a wider pool of investors, said an expert.

Nasser Al Shaali, CEO of the Dubai International Financial Centre Authority (DIFC Authority), was delivering the opening address at the Islamic and Ethical Finance Conference on the second day of DIFCweek yesterday.

The event, hosted by DIFC in association with The Wall Street Journal, forms part of a series of week-long conferences, summits and boutique events being held in the DIFC. It opened on November 17 and will conclude on November 23.

The landmark Islamic and Ethical Finance conference examined the positioning of this high-growth industry, and participants debated ways of broadening its appeal to ethically-aware investors and consumers around the world.

'Today, Islamic finance is only a drop in the global finance ocean; investors around the world are learning that Islamic finance offers attractive alternatives to conventional finance, a way to diversify investment portfolios and manage risks. It also provides alternatives that are both environmentally and socially responsible,' said Al Shaali.

'Innovation is taking place all across the world, and particularly at major international financial centres. Traditional financial industry strongholds in the non-Muslim world are increasingly adopting regulatory environments to attract Islamic finance.  We are seeing this movement in Europe, North America and increasingly in Asia,' he concluded.

Moderated by managing editor of Zawya Dow Jones Andrew Critchlow the day's agenda included speeches, panel discussions, case studies and interactive sessions incorporating real-time research and polling.

Keynote speeches were given on topical issues such as ethical responsibilities of the product issuer and codifying scholars' opinions around the globe, with in-depth case studies provided on Sukuk and Takaful. - TradeArabia News Service