Islamic banking and finance to keep expanding next year

KUALA LUMPUR, Dec 29 (Bernama) -- Despite the global financial crisis, Islamic banking and finance is expected to continue expanding next year, with Malaysia-based players ready to lead the pack regionally and internationally.

The flaws in conventional finance have created great interest in the Islamic financial model, and this provides the basis for the industry to sustain a period of strong growth for the rest of this decade.

Dubai-based Noor Investment Group chief executive officer, Hussain Al Qemzi, said the high level of infrastructure spending in both Asean and the Middle East offers Islamic finance an opportunity to establish itself strongly in the global financial market, especially with the eurozone crisis that has certainly depressed the European banks' appetite for financing infrastructure projects.

"Islamic finance has not stopped growing despite all the crises. I think 2012 would be a much better year especially in the sukuk market, which is expected to rebound once the issues in the Middle East have settled down," he told Bernama in an interview.

Malaysia is already one of the largest sukuk (Islamic bond) issuance centres in the world and has established Islamic finance institutions well governed by trusted bodies like the International Islamic Liquidity Management Corporation.

Source : http://www.malaysiasme.com.my/index.php/SME-News/Islamic-banking-and-finance-to-keep-expanding-next-year.html