Lahore: The 2014 year proved marvelous for Islamic banking and finance industry. It not only exceeded the limit of 2 trillion dollars assets but 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 very good progress i.e. Morocco, Tunis, Azerbaijan, Kazakhstan, Libya, Oman and non Muslim countries including Nigeria, Tanzania and South Africa.
While giving the prediction of 2015 for Islamic banking and finance, Muhammad Zubair Mughal, Chief Executive Officer, AlHuda Centre of Islamic Banking and Economics (CIBE) said that it was probable to exceed 2.5 trillion dollars in this year. To reach to 2.5 trillion dollar market in 2015 from 2.1 trillion dollar market (2014) is the historical increase in one year.
In which Islamic banking share will 86% share, Sukuk 6%, Islamic fund 4%, Takaful 2%, 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 all over the world in which Non-Muslim countries share is 40%. On the other hand, the share of 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 to 150 Brillion dollars. Islamic fund industry has also a great potential of gaining its market share to 100 billion dollars.
Talking about Takaful (Islamic Insurance), the chances are bright that it reaches to 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 added: “There are numerous good news related to Islamic banking and finance market affiliated with 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 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 will still 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.