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Islamic finance to hit US$2t in 2014: M’sia official
Publication Date : 12-12-2013
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 Malaysian Deputy Finance Minister Ahmad Maslan.
He said the world's acceptance of Islamic finance was growing as evident from the issuance of sukuk (Islamic bond) in non-conservative countries such as the United Kingdom (UK).
“We can see that the United Kingdom 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 Asia magazine yesterday.
Ahmad said the Islamic financial industry would continue to grow as more countries increasingly accept the financial system as a competent alternative to the conventional system.
“The Islamic financial industry will surely expand when the financial authorities out there understand the stability of the Islamic financial system.
“The system is not shaken by the economic downturn anywhere (in the world),” he said.
Furthermore, the Islamic financial system was also fairer such as in terms of profit distribution, Ahmad said.
In Malaysia, the growth of Islamic finance would benefit both Muslim and and non-Muslim consumers, he said.
“Due to our strong regulatory and legislative framework as well as high level of awareness, not only is our Islamic banking industry robust, it also serves non-Muslim consumers who form 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.
Meanwhile, Islamica Money Group Chief Executive officer Muhammad Fadzil said the magazine is targeted at Islamic financial industry players such as Islamic bankers, financial professionals, policymakers, regulators, Islamic fund and wealth managers.
The company is the publisher of the Islamic Banker Asia .
He said the magazine will feature exclusive coverage, breaking news and latest developments in the global Islamic banking and financial industry.
“We strongly believe the Islamic Banker Asia publication will provide wholesome literature to build and strengthen an already rapidly growing
industry, whilst helping the nation to understand the principles and tenets of Shariah-compliant financial practices,” he added.