Mucahithan Avcioglu
04 June 2026•Update: 04 June 2026
Islamic finance leaders on Thursday urged a broader and more socially responsible role for capital as the global economy faces geopolitical shocks, inflationary pressures and disruptions to trade and investment.
It came during the second day of the 3rd Global Islamic Economy Summit in Istanbul, where participants discussed how capital in Islamic economics should be shaped by ethical principles, financial inclusion and social benefit.
The summit, held under the auspices of the Turkish Presidency and organized as part of the AlBaraka Summit Series, is taking place at Halkbank’s headquarters in the Istanbul Financial Center. Anadolu is the global communications partner of the event.
Following opening remarks, including an address by Turkish Treasury and Finance Minister Mehmet Simsek, the first panel of the day focused on “Foundations of Capital in Islamic Economics: Concept, Principles and Purpose.”
Moderated by Umar Oseni, secretary general of the OIC Arbitration Center, it addressed the conceptual basis of capital in Islamic economics, principles shaping it and the ethical and sustainability dimensions of capital allocation.
Malek Khodr Temsah, general manager of Albaraka Turk Participation Bank, said the world has gone through major geopolitical and macroeconomic shocks in the last six to seven years, with concrete effects on countries, societies and individuals.
He said such periods create challenges and opportunities, adding that the responsibilities of capital providers and banks extend beyond financing.
Temsah said financial institutions are expected to support financial inclusion, expand the reach of capital to underserved communities, facilitate cross-border trade and investment during difficult periods and ensure that economic growth is not limited to the upper layers of existing economic structures.
He also underlined the need to provide access to finance and participation banking tools for disadvantaged groups that remain outside financial systems.
Khurram Hilal, CEO of Islamic banking at Standard Chartered Bank, said the Muslim world faces significant challenges, including a shortage of leadership.
Hilal said the global economy has come under pressure from tariffs, geopolitical conflicts and energy and commodity disruptions, which have deepened supply-side pressures and fueled inflation.
He said sanctions, blockades and similar measures have effects beyond macroeconomic indicators, directly affecting people’s lives through higher prices and economic hardship.
Hilal also warned that Islamic banks have historically maintained a largely domestic and narrow focus, leaving them more exposed when regional crises emerge.
He said Muslim countries and Islamic financial institutions need to adopt a broader and more diversified outlook instead of relying heavily on local markets.
Rafe Haneef, group CEO of MBSB Holding, which includes MBSB Bank and MIDF Group, said capital should be assessed through its social effect as well as its profitability.
He said capital must not create social harm and should be directed toward increasing social benefit.
Haneef stressed that capital should not be allocated to socially harmful sectors regardless of profitability, adding that the broader objectives of Shariah, including the protection of religion, life, intellect, family and property, should guide capital allocation.
He said that while capital is often managed with a focus on generating double-digit returns, profit should remain aligned with the ethical and social objectives of Islamic finance.
