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00:00Gold as an asset class will not be a game changer for Islamic banking. Yeah I think I would believe he would be a game changer because gold has been neglected a lot in the last four tickets because people thought gold is a very sensitive asset because you link to the Weibo interest notion of it. But we can read the gold from the rebar element. We can make it publish an asset investment asset and hedging asset as well. So this is something which is very interesting to ponder because it would have been very much in demand. Gold could have some limitation in terms of volatility but it can be managed to a sound investment strategy. Getting a good return and a good time for the investors. How soon do you think this will happen. How soon will gold be seen as Sharia compliant. I think we have some skeptic products in the world. We have ETF we have idea of World Bank support. We have also a deposit base overlooking some of the conditions in Malaysia. The key perhaps to it but it's no shadow stand it. The governing the gold product. So these are done now by local council IOC to really put the first Bush out and spend it on good debt you remove all the light Woody and the concern by spoilers. Good at this . Because gold should be corrected and to say oh make the assumption that after gold will come so far. Then how the . Yeah I think not only suitable but also the intangible asset say it time and all the eyepiece the affected so differently. Get finding the world. I think we are progressing to sophistication and we can not take for granted. We have to expand the asset classes. As you know we are focused very much on income with for good on behalf and for profits this stock market share in the stock market we have seen so much volatility in the commodity sector . What's the risk that the association between Islamic banking and commodities communities and slow rate. May have to suffer real economy. No in a lot of risk but the benefits have to be collective enough to put on the proper investment hedging strategies to put it at ease because you're lucky to be lucky. We need to fund from to find the backbone of the of the of the world and RTS the old professions of faith people buy and sell commodities. Then them to produce to be effective they have to rely on the raw material . So I think in finance must come and learn from the Western banks inability in financing. When you buy the coffee and soya and whatnot you have to put the proper valuation financing until it's going before but it will be the end product when gold becomes a Sharia compliant asset we're talking about it could be a lot in a market and debt will push the mining companies to dip further provided the problem with what is physical like money. Unlike some other countries because we have small studies for the amount of money but one minute any physical asset and the cost of looking after the is very expensive. That's why we need Islamic financial community to come in to take over the costs from the investor by having the quality of the investment scheme so that the insured earn deposits stories. Plus also the best idea would be to use meeting what investors are looking for. They're likely going to want to take this off before from 17 to 20 percent. Yet it is still I think we have to put the double digit growth for the last few decades based on the year to year growth. I would pull off. I said small. So we'll be a little bit then he can transform it for the big growth rate. But the future is too big. He wouldn't do that for me because I don't. Did you do with it being the number required. Not yet. I think we are being misled by debt growth. We have to get into a little state Senate Banking. Compared to our total asset as in very very small baby girl and I said 10 percent would become so great very conventional. They put a 1 percent out of so many so cheap this is better and much better than Islamic philosophy. So we have to put the bill like any consolation to really put it in year to year. It's an asset but we a ratio of dividend to reflect the actual good faith. I'm not .

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Investing In Gold: a Game Changer for Islamic Finance?

Mohammad Daud Bakar, founder and group chairman of Amanie Advisors, discusses gold as an asset class for Islamic finance, their reliance on commodities and the future of Islamic banking. He speaks to Bloomberg's Haslinda Amin on "Asia Edge" from the Global Islamic Finance Forum in Kuala Lumpur. (Source: Bloomberg)

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