Islamic Banking: Growth To Slow, But New Markets To Surface

BMI View: Islamic Finance is set for continued growth as several countries vie to become global centres, although expansion rates have peaked. At present, we expect Malaysia to remain the global leader in Islamic banking, although there will be concerted competition from Dubai. In addition, there is huge growth potential in India, Nigeria and Thailand.

We forecast strong growth for the USD1.7trn global Islamic finance industry over the coming quarters as several new markets come to the fore. It has been our long-held view that rather than becoming an integrated global financial system, Islamic banking will see the creation of regional hubs. Even with this slightly fragmented outlook, we still expect significant growth for the sector. That said, we think the impact of low base effects is beginning to wear off and we expect to see lower growth rates in the coming years.

Political Will Needed To Support Growth

Upward Trend To Remain In Place
Global Islamic Bond & Loans Issuance

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