Chennai: The Shariah compliant assets in Asia are estimated to exceed $1 trillion by 2023 and the overall Islamic finance industry is poised to expand further to $3.5 trillion by 2021 as countries and companies look for alternative funding sources.
This was discussed during the World Islamic Economic Forum (WIEF) roundtable in India, organised in partnership with United Economic Forum (UEF) Chamber of Commerce. The first-ever WIEF roundtable in India on innovative and alternative financing for business and infrastructure was held in Chennai, Tamil Nadu on Saturday.
More than 550 industry experts from India, Malaysia, UAE, Italy, Australia, Sri Lanka, Bahrain, Saudi Arabia, France and China along with the Tamil Nadu government authorities attended the WIEF-UEF Chennai roundtable series.
“Islamic finance is continuously gaining traction globally. It is transforming from a niche market of global banking to a growing source of funding through sukuk in recent years,” said Tun Musa Hitam, Chairman, WIEF Foundation.
He also said that the global financial crisis has led many governments to look for innovative and alternative forms of financing for business and infrastructure developments. Shariah compliant finance is being seen as more stable compared to the conventional banking system and therefore more appealing to borrowers.
“The non-speculative nature of Shariah compliant finance can help ensure financial stability – a reason why it is gaining traction globally. As a matter of fact, it has become so attractive that even non-Muslims find it appealing,” continued Tun Misa Hitam.
The growing demand for Shariah compliant finance, coupled with various initiatives undertaken by many governments and regulatory bodies across Asia, has fuelled the growth of the industry.
“The Chennai roundtable was a huge success and the platform gives an opportunity to reach out to as many people as possible and create awareness on Shariah compliant finance. We hope to assist and build an ecosystem which will benefit the Indian community,” said Arif Buhary Rahman, Chairman, UEF Chamber of Commerce.
This article was published at gulf today website on 12 November 2018.
Click here to view the original piece of the article.