2008 to see Islamic banking to rise by 20%

by Richard Kilner

Story link: 2008 to see Islamic banking to rise by 20%

Over the course of 2008 it is projected that the Islamic banking industry will increase in size by 20%.

In recent years the financial services sector generally has been greatly affected by great strides in technology and the globalisation of the world market.

In May this year Jordan will host the 5th annual summit of the IFSB, an organisation tasked with setting standards of both supervision and prudence for the global islamic banking sector. The 2008 summit will centre on “Financial Globalization and Islamic Financial Services”.

Islamic banking has enjoyed strong annual growth in recent times and is predicted to expand, year-on-year by around 20% for at least the next few years.

Topics of debate at the summit will include discussion about the opportunities and challenges presented by increasing globalisation of the financial services sector. Varying growth rates in different sectors, innovation and progressing technology will be discussed, as will regulation and human resources.

A central theme of the summit will be the integration of Islamic financial markets and the role of governments.

In addition to its strong annual growth record of the past few years, Islamic finance is thought to be in a stronger position to withstand global financial turbulence, according to the IMF.

Recent market difficulties, most notably the credit crunch, could act as yet another incentive for investors to flock to Islamic banking.