The global Islamic financial industry is expected to grow to US$2 trillion (RM6.42 trillion) next year from US$1.3 trillion (RM4.7 trillion), propped up by growing demand from non-conservative countries, says Malaysia’s 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).
Maslan also 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, adding that the Islamic financial system was also fairer such as in terms of profit distribution.
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.