Report by Malaysia International Financial Centre Report
Asia: Future of Islamic Finance
Article Overview
In just four decades, Islamic financial system has evolved into a comprehensive financial system of its own, ranging from banking, capital market, to takaful sectors. In the past five years between 2009 and 2014, the Islamic financial industry has experienced robust expansion, recording a 17.3% Compounded Annual Growth Rate (CAGR). To date, total global financial assets of the
Islamic financial industry is estimated to be around USD2tln and is estimated to surpass USD3tln by 2018.
By geographical dispersion, expansion has been concentrated in emerging markets such as the Gulf Cooperation Council (GCC) countries and parts of Asia, especially South East Asia. Discussion on Asia’s growth prospects is fairly entrenched around South East Asian Muslim-majority countries such as Malaysia, Indonesia and Brunei; with strong potential growth in banking, capital market and takaful sectors to support the growing economic activities. Apart from the South East Asian Muslim-majority countries, it also centres on large and populated Asian economies such as China and India, as well as dynamic hotspots such as Singapore, Hong Kong and Japan.
