Islamic finance growing15%-20% annually

Islamic finance growing15%-20% annually

Islamic finance is among the fastest growing financial segments globally with an annual average growth of 15% to 20%, said Deputy Finance Minister I Datuk Dr Ng Yen Yen.

She said Islamic finance can now be found in 75 countries globally with over 300 institutions providing Islamic banking services, and worldwide Islamic assets totalled over US$1 trillion (RM3.3 trillion) currently.

Ng foresees the continuous growth of Islamic finance, citing the example of Shenyang city, China, which is now participating in Islamic banking where there would be many opportunities in future.

“China will be the next economic giant where inflows and outflows of Islamic banking products from its financial and capital markets will be another asset to their economic development,” she told reporters yesterday after witnessing the signing of a memorandum of collaboration between the Islamic Banking and Finance Institute Malaysia (IBFIM), the Kuala Lumpur Chinese Assembly Hall (KLCAH) and the Shenyang provincial authority of China.

IBFIM and KLCAH would be working closely to provide the Shenyang authorities with syariah advisory and consultancy services and training in Islamic banking and finance.

Asked about plans on making Shenyang an Islamic finance hub for northern China, director of the Shenyang finance and trade development zone Yin Hongwu said the provincial authority was in the planning stage to introduce Islamic banking and finance products in the city.