The Islamic finance industry has shown exponential growth in recent years with global Islamic financial assets expected to have reached $1.9 trillion in 2013 from $150 billion in the 1990s. It is also expected that total Islamic financial assets will exceed $6.5 trillion by 2020.
Demand for Islamic investments globally is expected to outstrip supply by as much as $100 billion by 2015. This demand is being fuelled by:
- Growing Acceptance: Rapid development and proactive initiatives by Muslim and non-Muslim governments worldwide to promote the development and expansion of Islamic finance.
- Stronger Industry Dynamics: The Islamic finance industry continues to be enhanced by refinements within industry architecture, development of government-backed Islamic financial centers, and increasing number of Islamic finance professionals.
- Preferred Source of Capital: The Islamic capital markets are actively being tapped by sovereigns, sovereign-related entities, and top tier companies in Asia to finance infrastructure projects. In addition, rising income in many developing countries across Asia with large Muslim populations is fuelling local demand for Islamic finance.
Asia is expected to be the key driver in furthering the growth of the Islamic finance industry as its Muslim population is expected to reach 2.5 billion by 2020.
Secretary General, Islamic Financial Services Board
Professor Datuk Rifaat Ahmed Abdel Karim
Chief Executive Officer, International Islamic Liquidity Management Corporation
Dr. Adalet Djabiev
Chief Executive Officer, Badr Finance & Investment, Kazakhstan
Assistant General Counsel and Practice Leader - Islamic Finance, Asian Development Bank
Anthony H. Rowley
Tokyo Correspondent, Singapore Business Times
Writer, Emerging Markets newspaper and Institutional Investor magazine