The Islamic Finance Industry is developing at a rapid pace, said Ashar Nazim, Managing Director, Islamic Capital Partners Limited. He said capturing 3 percent market share within five years was remarkable, even by International standards.
Malaysia took nearly ten years to teach this milestone. In 30 years it has reached a share of 12 percent of the market. If you compare Bahrain where Islamic Banking industry has a share of approximately 15 percent of the local market, said a press release.
If we review the data of Pakistan market for Islamic Banking, the deposits have almost doubled over the past 18 mouths; currently it is 100 billion rupee. This reflects the fantastic growth of 60 percent year on year.
In Pakistan there are currently 19 Islamic Bank and windows set up. Two more foreign banks have approached State Bank of Pakistan to seek license. Whereas Islamic Banks have launched an aggressive outreach campaign to promote its importance.
The branch network has increased upto 170 and an addition of 100 branches in just 18 months. These banks have introduced variety of products, including leasing and debt partnership arrangements. As opposed to the international Islamic banking industry, which is almost, 70 percent based on Murabaha, in Pakistan Islamic banks have a more balanced portfolio.
Only 40 percent is Murabaha financing, 30pc Ijarah and 17pc is Musharaka based assets. Islamic banking has reached a point wherein many product areas; it offers a credible alternative to traditional banking.
International Islamic banking institutions will be meeting in Karachi in November at the '3rd WorldAsia Islamic Capital Conference' to discuss the achievements and the way forward. Islamic Capital and Dubai international Financial Center have been promoting the conference in previous years.-PR