It is predicted that in 3 to 5 years' time, Islamic Banking sub sector will become equal to the 12 per cent of the total value of the financial sector in Pakistan. And in doing so, it will help the global Islamic sector to exceed USD 1 Trillion, if not close to it in the next 3-5 years.
Studies carried out by both Mckinsey and MTI Consulting point in the direction of total asset base growing globally not only within Islamic countries but also in developing countries, which is seen a growing trend towards Shariah Compliant banking. All this was revealed in the research studies presented by the two consulting companies at the World Islamic Banking Conference in Bahrain recently. The key to the continued high growth will be fuelled by the adoption of Sharia-compliant banking products by the wider population than being restricted to a niche core group such as Muslims strata, as has been the case in Malaysia where Chinese are among the major consumers. So too in Singapore and Thailand.
The rapid development of the Sukuk (the bonds market) as a corporate finance tool has drawn industry attention over the last year, with more complex bonds and related derivatives expected in the market. The successful development of a robust and resilient Islamic financial system depends on the ability to integrate its various components that include the Islamic banking industry; Takaful (an alternative to insurance); as well as the money and capital markets.-PR
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