The Industry will gain Historical success during this year, thorough Analysis of Zubair Mughal, in the beginning of 2015
Lahore- 2014 proved to be tremendous for Islamic banking and finance industry. It not only exceeded the limit of 2 trillion dollars assets but it also got access to the new markets including various new destinations of European region, Korea, Australia, Brazil, Malta, Argentine, China and many more. Islamic banking and finance gained the popularity in its traditional markets of e.g. Malaysia, Pakistan and Middle East as well. There are various countries which recently stepped into Islamic banking and finance, showed strong progress i.e. Morocco, Tunis, Azerbaijan, Kazakhstan, Libya, Oman and non Muslim countries including Nigeria, Tanzania and South Africa.
While predicting the future of Islamic banking and finance industry in 2015, Muhammad Zubair Mughal, Chief Executive Officer, AlHuda Centre of Islamic Banking and Economics (CIBE) said that it is probable to exceed 2.5 trillion dollars this year. To achieve the target of reaching 2.5 trillion dollar market cap in 2015 from 2.1 trillion dollar market in 2014 could be an historical increase in one year. If this happens the Islamic banking share will go up to 86%, Sukuk to 6%, Islamic fund to 4%, Takaful 2%, and Islamic microfinance 1%. There are more than 1500 organizations working for Islamic banking, finance, Takaful, Sukuk, Islamic Fund, and Islamic microfinance in more than 90 countries in which Non-Muslim countries` share is 40%. On the other hand, the share of the Muslim countries including Qatar, Saudi Arabia, UAE, Malaysia, Pakistan, Indonesia in global Islamic banking market is 76%.
Making a thorough analysis, he added that the downfall of Sukuk market in 2013 got tactfully recovered in 2014. Meanwhile, there is a great chance of rapid growth of Sukuk market in 2015, It is also anticipated that it will reach 150 billion dollars. Islamic fund industry has also a great potential of gaining its market share to 100 billion dollars during this year.
Talking about Takaful (Islamic Insurance) segment of the overall Islamic banking industry, the chances are bright that it may reache 15% growth rate. while, global Takaful contribution will reach to 20 billion dollars during 2015. Tanzania, Namibia, Morocco, and India are the new destinations for Islamic insurance. 2015 is taken as a beam of hope for the poor as it will be a good year for Islamic microfinance industrial growth as Islamic microfinance has gained popularity in world poverty alleviation. Many multilateral agencies are helping in the promotion of Islamic microfinance with the help of governmental support in various countries i.e. Pakistan, Yemen, Afghanistan, Sudan, Malaysia etc.
He further added that there are numerous good news related to the Islamic banking and finance market related to 2015, including the start of Islamic banking and finance in India is prominent of all where 180 million Muslim population is waiting for the Shariah compliant banking for many years, prominent advancement related to Islamic banking in America is predicted especially in Sukuk market and in Islamic capital market where there is a hope to get some diversification of china’s hold in capital and investment market.
Dubai being a global Islamic finance hub will continue its position and Kuala Lumpur may be out of this race which can be really extracted from the recent speech of Malaysian Prime Minister Najeeb Razaq in 10th World Islamic Economic Forum organized in 28th October, Dubai where he recognized Dubai as a global hub of Islamic finance and Economics
Originally published on www.zawya.com