Islamic Finance increasingly appealing to global finance industry
Global Islamic finance leadership summit opened in Istanbul today
Islamic Finance is increasingly appealing to non-Muslim countries and non-Islamic institutions across the globe, which are veering more towards ethical ways of investing and financing.
So says Rushdi Siddiqui, Global Head Islamic Indexes, Dow Jones who spoke today at one of the main sessions of IQPC’s Leaders in Islamic Finance Summit being held in Turkey this week.
“Islamic finance and banking is in its infancy in the progressive OIC countries and enlightened OECD countries, like the UK and Turkey, but there is huge room for growth. Offerings are based on strong, stand-alone concepts that are proven - especially in this sub-prime market environment.”
He adds that the 2- day conference, tailor-made by IQPC, aims to build bridges and expand dealings between Turkey, GCC and South East Asia, covering innovation and development, bringing together individuals and institutions that are driving the industry forward.
The conference was inaugurated by Surreyya Bilgic, Member of Parliament, Member of the Turkish National Assembly, who delivered the welcoming address on behalf of HE Mr. Recep Tayyib Erdoğan, Turkish Prime Minister. The welcome speech addressed delegates and speakers, including key government officials, on the future of, and challenges facing, Islamic Finance on a global scale.
Also present at the summit, Christian Mouchbahani, CEO, Jefferies Middle East and North Africa commented, “The Islamic finance industry has jumped from theory, learning centers and academia into the mainstream financial world. Figures for 2007 by industry experts estimate the market is to be pegged at $500 billion of assets under management.”
“Traditional Islamic banks still account for around 75 percent of the total assets under management, with a further of 13 percent managed by investment banks, leaving only the other 12 percent for Sukuks and alternative assets, clearly indicating that there is significant room for growth in alternative Islamic fund products.”
Mouchbahani strongly believes that the next phase in Islamic Finance will be beyond Sukuks, real estate and equity fund filters.
“A strong Islamic asset management and fund industry is emerging, with scholars and professionals putting efforts into creating competitive Shari’ah-compliant and ethical products”, he adds.
First day topics for discussion included the potential in global markets, Islamic Finance and greater economic development projects in emerging markets, identification of emerging markets within the Islamic Finance arena, global expansion and implications on a geo-political level.
The summit incorporates an exciting mix of interactive pre and post summit workshops, an open discussion forum and seven panel sessions, presided over and attended by industry stalwarts, Shariah scholars and Islamic finance practitioners.
