Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
Story Views
Now:
Last hour:
Last 24 hours:
Total:

A Global Analysis about the Outlook of Islamic Banking and Finance in 2017

% of readers think this story is Fact. Add your two cents.


2017 will prove to be the best year for Islamic Financial market. By the end of 2017, the total volume of Islamic Finance industry will reach $2.7 trillion: Zubair Mughal

Lahore, Pakistan, January 1st, 2017 — Due to sharply declined trends in Oil prices, slow economic pace & Arab spring, the trend of the Islamic Banking & Finance had been slow paced in 2016 in Middle East and Arab region, while a sufficient development was recorded in Africa, Central Asia & Far East. especially in African market. For the broader understanding of Islamic Finance Industry, we can divide Islamic Finance industry into five major components e.g. Islamic Banking, Sukuk, Islamic Fund/Asset Management, Takaful & Islamic Microfinance. Islamic Banking is the greatest contributor in Islamic Finance Industry, which contributes 80% to the total $ 2.3 trillion  Islamic finance industry, while Sukuk contributing 14% volume in Islamic Finance industry and ranked as second largest contributor, Islamic Fund/Asset management Industry with 3% is ranked as 3rd while Takaful Industry is contributing 2% with slow pace and Islamic Microfinance contributing 1% stands as last. By 2017, the total volume of Islamic Finance Industry is expected to be USD 2.7 trillion.

Indonesia, Malaysia, Turkey, Pakistan, U.A.E, Qatar, Saudi Arabia, Kuwait & Bahrain are prominent where the contribution of their total assets of Islamic Banking is 82% to the Global Islamic Banking market. According to the increment in assets of Islamic Banking, Kingdom Saudi Arabia stands first, but as per new Islamic Banking market entrance, Morocco, Uganda, China & Russia are expected to have a good start in Islamic banking by 2017.

According to a research by Mr. Muhammad Zubair Mughal, Chief Executive Officer – AlHuda Center Of Islamic Banking & Economics (CIBE); There will be a steady growth of Approx 13% – 15% will be shown in Islamic Finance market during 2017 and the total volume of Islamic Finance will crossed 3 trillion USD figure by 2020, which will be accompanied by a definite addition of Sukuk alongwith Islamic banking. While the Sukuk market in Malaysia, Pakistan, U.A.E, Turkey, Central Asian countries and Africa seem determined in 2017. According to the prospects, Sukuk worth 78 billion dollars approximately are expected to be issued which can define the total volume of outstanding Sukuk up to 350 billion dollars. It should be clear that ICD will be rendering its contribution in flourishing Sukuk at global landscape especially in african countries.

It should be clear that Takaful Industry, unfortunately, has lacked far behind in 2016. While Takaful companies are found default in Pakistan, South Africa and some other countries due to lack of regulations, performance Issue & various Models etc. In spite of all these reasons, it is expected that the total volume of Takaful industry will reach up to 25 billion dollar till the end of 2017. As far as Islamic Microfinance is concerned, certain positive changes have been seen in 2016, new microfinance models were introduced with the amalgamation of Micro-Takaful, Fintech, and social finance along with various Islamic microfinance products. It is hope that the volume of Islamic Microfinance could reach up to $2 billion dollars globally by the end of 2017 while the total number of Islamic Microfinance Institutions will reach up to 400 Institutions/Bank.

In 2017, many new Islamic Finance markets are seen to be emerging on the horizon in the world. If we see on the regional basis, in East Africa, we find that Uganda has recently passed an Islamic Financial bill through Parliament, Islamic banking & Finance in Kenya and Tanzania is already flourishing very well. Morocco & Tunisia are emerging markets in North Africa while Nigeria, Senegal, Mauritania, Ivory Cost in West Africa has an organized system of Islamic Finance while Sukuk is also strengthening its roots in these regions.

As far as Central Asia is concerned, 2017 will prove to be a better year with respect to the previous year. Its main reason is the increasing tendency of Russia towards Islamic Banking & Finance, the countries in central Asia are closer to Russia in Banking & Finance despite its having been separated from USSR, while Donald Trump as a businessman entity is perceived positive for the development of Banking& Finance industry in USA, definitely, Islamic Banking and Finance will be benefited from his agenda, In USA where more than 25 Islamic Finance institutions are already working.  After Brexit, David Cameron’s dream to make London as a hub of Islamic Finance seem to get shattered and UK Islamic Financial market will remain subjected to pressure & slow pace in 2017. Although Modi reign in India has exhibited a soft attitude regarding Islamic banking & Finance in 2016, But still there are no prospects of establishment of Islamic Banking in India in 2017. It seems that in India with having 2nd biggest Muslim population in the world, Islamic banking is being treated as religious product instead of Banking product, and a lot of bad politics and lack of religious harmony have been shown on this subject. While in 2017, China will be enter properly in Islamic Finance. China’s CPEC’s project with Pakistan and increasing tendency in Muslim world register the basic reasons to it.

If we have look at worldwide Islamic Banking & Finance regulatory level, 36 countries maintain an organized legal and regulatory framework. According to careful estimates, 42 countries will establish a  proper legal & regulatory system in 2017 where organizations like IFSB, AAOIFI & IDB will play a pivotal role. In 2016, the governments of various countries has played a important role in flourishing Islamic banking & Finance which include Pakistan, U.A.E, Morocco, Kenya, Tunis, Turkey, Saudi Arabia, Oman & Russia, which will exhibit a tremendous growth in the industry in coming future.

As far as the global Hub of Islamic banking & Finance is concerned, UK on the account of Brexit has been excluded in this reace while the ties lie between Dubai & Kuala Lumpur. But it should be clear on the account of growth in Islamic banking financial assets, Saudi Arabia stands first but due to lack of quality HR, lack of educational and training Institution, existing regional conflict and for many other reasons, is unable to compete in the race of “Hub of Islamic Finance”

About the Writer:
Muhammad Zubair Mughal, CEO- AlHuda CIBE (Center Of Islamic Banking & Economics) who is serving to promote Islamic banking & Finance for the last 15 years. One can contact him through the following email address: [email protected]

About AlHuda CIBE:
AlHuda Center of Islamic Banking and Economics (CIBE) is a well-recognized name in Islamic banking and finance industry for research, advisory and capacity building over the last twelve years. The prime goal has always been to remain stick to the commitments and provide state-of-the-art Advisory Consultancy and Education through various well-recognized modes viz. Islamic Financial Product Development, Shariah Advisory, Trainings Workshops, and Islamic Microfinance and Takaful Consultancies etc. side by side through our distinguished, generally acceptable and known Publications in Islamic Banking and Finance.

We are dedicated to serving the community as a unique institution providing Services not only in UAE/Pakistan but all over the world. We have so far served in more than 35 Countries for the development of Islamic Banking and Finance industry.

For further Details about AlHuda CIBE, please visit: www.alhudacibe.com

Press & Media Contact:
Ms. Shaguftta Perveen, Manager Communications
AlHuda CIBE
Lahore, Pakistan
+92 42 35913096 – 98
[email protected]

http://www.alhudacibe.com



Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.