U.S. Chamber’s Chief Operating Officer Addresses 19th Annual World Islamic Banking Conference

Emphasizes Need for Access to Capital, Increased Globalization of Markets As Keys to Development of Islamic Finance

MANAMA, BAHRAIN—U.S. Chamber of Commerce Executive Vice President and Chief Operating Officer David Chavern delivered the keynote address today at the 19th Annual World Islamic Banking Conference in Manama, Bahrain.  Chavern highlighted the importance of access to capital to long-term growth and development in the Gulf Cooperation Country (GCC) nations and stressed that the globalization of finance has led to the GCC countries playing a more active role in the U.S. financial sector and markets around the world.

“A competitive American economy is dependent on having vibrant capital markets not just in the United States but around the world, including within nations in the Middle East and North Africa,” said Chavern.  “Islamic finance is no longer a niche market, but is rapidly becoming an important component of the mainstream global financial system.”
Chavern also pointed to the financial crises of the last few years as evidence that globally linked markets, particularly those of emerging markets, play increasingly important roles in the new dynamics of international finance.

“Aspects of Islamic finance can help address credit issues that were part of the financial crises that reverberated in markets across the globe,” Chavern continued.  “Leading institutions now recognize the importance of lending that is better secured by tangible assets and less leverage, and also place a renewed emphasis on the need to streamline financial transactions.  Together, these factors signal a change in global finance that bodes well for the future of Islamic finance.”

The global Islamic finance industry has witnessed phenomenal growth over the past decade, with an estimated asset size of over $1 trillion dollars.  Many of the GCC countries have become net suppliers of capital. In the United States alone, at least 20 providers of Islamic banking products and services operate, including retail banks, investment banks, mortgage companies, investment advisors, and community-based finance providers.

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.