Islamic financial sector to grow to US$2 trillion next year

KUALA LUMPUR: The global Islamic financial industry is expected to grow to US$2 trillion next year from US$1.3 trillion currently, propped up by growing demand from non-conservative countries, says Deputy Finance Minister Datuk Ahmad Maslan.

He said the world’s acceptance of Islamic finance was growing as evident from the issuance of sukuk in non-conservative countries such as the United Kingdom.

“We can see that the UK government has started to issue sukuk. This is something startling as we never thought such a thing will ever happen.

“This is an example of how we should venture out to foreign countries to promote Islamic financial instruments and to ensure that Islamic financial products are constantly on the growth path,” he said after launching Islamic Banker Asiamagazine.

Ahmad said the Islamic financial industry would continue to grow as more countries were increasingly accepting the financial system as a competent alternative to the conventional system.

In Malaysia, the growth of Islamic finance would benefit both Muslim and non-Muslim consumers, he said.

“Due to our strong regulatory and legislative framework as well as high level of awareness, not only our Islamic banking industry is robust, it also serves non-Muslim consumers who formed half of the market,” he said.

Currently, Malaysia is the world’s largest sukuk issuer, second-largest takaful market and the third-largest Islamic banking market. — Bernama

http://www.thestar.com.my/Business/Business-News/2013/12/12/US2-trillion-global-Islamic-financial-sector.aspx