- JEDDAH: The downgrading of the US credit rating will likely have "far-reaching consequences" on the Arab region, according to Chairman of the Arab Banks Federation and Executive President of the Al-Baraka Banking Group (ABG) Adnan Yousif.
- He put Arab holdings of US Treasury bonds at about $470 billion, ranking second after China's holdings of more than $1 trillion.
"We don't call for withdrawing these funds, but we urge redistribution of the risks," he told Al-Eqtisadiah, a sister publication of Arab News, on the sidelines of the annual symposium on Islamic economic system organized by ABG, Bahrain-based Islamic banking group.According to him, Arab countries are the second largest creditors to the United States after China. "The US credits are worth approximately SR470 billion and the Arab countries are the second largest creditors to the US after China," he said at the opening session of the symposium.The seminar discussed the debit and credit rating crisis of the US and other global issues, aside from those related to the Islamic economy."We do not call for the withdrawal of this wealth from the US but we must cover the risks. In the past we used to rush rashly to invest in the US economy without making any studies," he said and called for a detailed study of the current issues.ABG Chairman Saleh Kamel warned the Muslim bankers against blindly following the banking products of the West and pointed out that the Islamic economy is based on the "right and truth."Kamel, who chaired the seminar, told the Muslim bankers to avoid the pitfalls the European and American bankers have fallen into and emphasized that the capitalists are on the brink of collapse."We should know that interest-based credits are unlawful according to Islam and that is why we keep away from it. We do not charge interest under any other name," he said. "A debt accompanies many woes whether it is taken by an individual or a government," he added.He also warned that the US is the most powerful economy in the world and all countries depending on its currency (dollar) would meet the same fate. "If the world economists had followed the Islamic economic system, the global economic crisis of the 2008 or 2010 would not have occurred."

