KUALA LUMPUR, Dec 11 (Bernama) — 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 (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 here today.
Ahmad said the Islamic Financial industry would continue to grow as more countries are increasingly accepting 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 Muslims and 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 Islamic Insurance, Takaful, market and the third largest Islamic banking market.
Meanwhile, Islamic Banker Asia, 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.
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.
Also present at the magazine launch were CIMB Islamic Bank Chief Executive Officer Badlisyah Abdul Ghani, Association of Islamic Banking Institute Malaysia Executive Director Addellan Jusop and Islamica Money Group Chief Executive Officer Muhammad Fadzil Abdullah