6th December 2018


We Tracked the Path of Islamic Finance - Here are the Answers

Apart from being underrepresented in the global financial system, the strong potential of Sharia-compliant is undeniable.

Projected to grow 58 percent by 2023, Islamic finance is one of the most disruptive budgetary methods right now not only in London but in all Europe, thanks to its attractive flexibility and complete adaptability through the Fintech innovations of the present. The leading nations applying this different approach in all scales of society are Saudi Arabia, Malaysia and the United Arab Emirates.

Risk-sharing seems to be the main point that enthusiasts like about Sharia-compliant, due to the current market trends that tend to be very volatile and highly unpredictable. Islamic finance offers an asset-backed methodology in which traditional interest rates play a non-existent role within the process, making the transaction a mutual agreement of complete compromise.

"Around 62 per cent investors will either invest in Islamic finance or increase their asset allocation in Islamic finance.” Said Andrew Naylor, a World Gold Council executive.

Consulting firms like Refinitiv strongly believe that new emerging frontiers such as Nigeria, the United Kingdom, Hong Kong, Russia and Luxembourg, are opening new opportunities and breaking new grounds for the further relationships that can foster from Islamic finance; with its epicenter being the UAE and Bahrain.

Fast Facts

  • Malaysia is the most developed market in regards to Islamic finance.
  • The total assets held by Sharia-compliant companies is valued at $1200 billion.
  • 71 percent of the assets come from banking institutions.
  • The World Islamic Banking Conference in Bahrain is the largest Islamic finance event globally.
  • There are $22 million assets available only in Hong Kong.

Sukuk issuances are projected to grow in the United Kingdom, and other tax-friendly countries like Luxembourg are posing as a definitive stop for the next Islamic finance revolution that will take Europe by storm. A $2.4 trillion industry that cannot be ignored.