Islamic Finance in Southeast Asia
Local Practice, Global Impact

To raise awareness and understanding of Islamic finance among the U.S. policy community and corporate sector, The National Bureau of Asian Research (NBR) convened a conference on “Islamic Finance in Southeast Asia: Local Practice, Global Impact” in October 2007. Representatives from the U.S. and Malaysian governments as well as global institutions such as American International Group, Inc. (AIG), Japan Bank for International Cooperation, Bank Negara Malaysia, HSBC Amanah Takaful, the Dow Jones Islamic Index, the World Bank, Islamic Financial Services Board, Securities Commission (Malaysia), Harvard Law School, Tufts University, and others assembled to discuss the institutions, beliefs, and trends fueling the industry’s evolution. The conference offered a venue for constructive interchange between senior finance officials, industry practitioners, and subject-matter experts to consider ways for shaping the context in which these developments are unfolding.

This report presents findings from the October 2007 conference.

Table of Contents

Foreword
Mercy Kuo & Eric Altbach

Project Overview Remarks
Emile Nakhleh

Opening Keynote Address: Enhancing Interlinkages and Opportunities—The Role of Islamic Finance
Zeti Akhtar Aziz

Islamic Justification and Authority in Islamic Finance: Current Debates within the Industry
Frank E. Vogel

Global Trends in Islamic Finance: Social Legacies and Institutional Variation
Robert W. Hefner

The Development and Impact of Islamic Finance on Southeast Asia
Nik Norzrul Thani

The Economic Development and Future of Islamic Finance in Southeast Asia
Angelo Venardos

Certifying Sharia-Compliance in Financial Products: Te Role of Islamic Values in Financial Decision Making
Yusuf Talal DeLorenzo

Islamic Finance Afer September 11: Toward Arab-Malaysian Integration
Ibrahim Warde

Closing Keynote Address: Islamic Finance—Its Sustainability and Challenges
Shamshad Akhtar

Glossary