World Bulletin/News Desk
Investors value legal stability and the predictability of policies, said German Proffessor Volker Nienhaus from the Global University for Islamic Finance in Malaysia.
Nienhous told an Anadolu Agency correspondent that political factors played an important role in terms of economic progress.
He explained there are expectations that when Islamic finance is introduced, funds will flow in from oil rich countries into the Arab spring countries, but that such is not the case.
"Islamic investors as well as other Arab investors are very picky. They are looking for specific projects. They are looking for a stable, political and legal environment,” Nienhous said. "What is more imortant is that yje legal environment must be stable and conducive to protecting investments, because without political stability nobody can ensure legal stability, so they are closely linked."
He also said existing financial systems and industrial structures are biased in some regards.
"There are links with old economic elites and old political elites. You cannot break up all of those things overnight. If this gradual change takes place in an atmosphere of political turmoil, Islamic finance definitely cannot be the pinnacle and cannot provide many tangible solutions,” he added.
Nienhaus stressed the importance of creating employment opportunities based on new industries and resources by saying, "if there is youth unemployment, nothing changes the perspective of the young people and this again causes political trouble. Therefore things are interdependent."Last Mod: 11 Eylül 2013, 12:52