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Global Islamic Finance Directory 2009

Executive Summary


In less than a decade, the Islamic finance industry has evolved to become an essential part of the international financial system. Islamic assets are expected to grow between 8% and 10% to reach USD964.2bln in 2009 vs. USD150bln in the mid-1990s.

The tremendous growth has been mainly driven by abundant liquidity flows from the recycling of petrodollars, encouraging demographics, as well as the active role played by some jurisdictions around the world to promote the development of Islamic financial markets in their respective countries.

At present, there are more than 300 Islamic financial institutions in existence worldwide which include banks, mutual funds, mortgage companies and takaful. Islamic financial institutions have also started to tap new growth opportunities in other regions and form cross-border linkages. Given that Islamic finance has become part of the global financial system, several countries are now in the race to become Islamic financial hubs, including established financial centres such as London, Hong Kong, and Singapore.

 


Overall, we believe that the potential for Islamic finance far outreaches the global crisis and has vastfurther, given the following factors:

  • Strong demand for Shariah-compliant products and i nvestments point to immense potential for further growth of the industry.
  • Encouraging demographics and the proactive measures taken by jurisdictions worldwide to promote the development of Islamic finance.
  • Industry growth will be strengthened further by improvements in the Islamic finance industry architecture, development of government-backed Islamic financial centres as well as greater awareness and global technological development.
  • Government-linked / top tier companies in the Middle East and emerging Asia (financial, real estate, oil gas and transport sectors) are looking for funds on the back of massive infrastructure and construction projects in the regions.
  • By 2020, the total Muslim population would have increased to an estimated 2.5 billion from 1.5 billion currently.      

Breakdown of Shariah-Compliant Assets (2009E)


Aggregate Assets of Islamic Banks in Selected Countries (2008)


Global Sukuk Issuance by Country


Total Sukuk Issuance by Type (January-July 2009)

For more information or to purchase the report, kindly contact either
mashkurah.latif@kfhresearch.com or aina.ghani@kfhresearch.com.