Muscat: The Islamic finance and banking sector is likely to grow four times higher than the current financial services in next four years which stand at $1 trillion across the globe.
According to the organizers of the upcoming International Islamic Finance Conference 2012, the global Islamic finance and banking sector has a current worth of $1 trillion with an estimated growth rate that is four times higher than conventional financial services.
The event management team of the Islamic Finance Conference, Emerald Insight, made an announcement in which they suggested that the demand for the Sharia-managed industry is largely market driven with a noticeably high number of institutions entering the arena introducing new products to market.
They pointed out that Islamic Finance industry is undergoing a dramatic change with its one-time easily identifiable early entrants of the 70s increasingly joined by new dedicated players, alongside Sharia-specific, specially-branded product offerings from the general banking sector.
A spokesperson for Emerald Insight, part of Emerald Publishing Group, claimed that current recent estimations predict a year-on-year growth rate of 25 percent, which would see the global industry valued at $5 trillion by the end of 2016.
The team said that this indicates a need for an increased understanding of both the sector and the robust strategies needed to support such growth where the increased competition is in danger of blurring of lines between products and services.
One of the region’s leading economists, Dr. Henry Azzam, has been selected to open the conference in Abu Dhabi in October this year. Dr. Azzam, a financial services expert with more than 30 years regional experience, is currently adviser to Deutsche Bank AG and Chairman of the Board at NASDAQ Dubai. He will be joined by banking and investment specialists to consider the opportunities and challenges that face the sector, including its regulatory and supervisory set-up.
Dr. Azzam will inaugurate the three-day event which will also make a special review of the impact of the recent political and socio-economic developments within the region and their likely impact on the global Islamic financial sector, including mutual funds, securities and derivatives, as well as regular banking services.