Recession sparks interest in Islamic finance

LONDON, England (CNN) -- With irresponsible banking practices taking the blame for bringing about the global economic crisis, there has been a surge of interest in Islamic finance. Now, a slew of academic courses are springing up to meet the demand of those wanting to break into an expanding market.

According to ratings agency Moody's, the global Islamic finance sector is worth $700 billion and has the potential to be worth $4 trillion.

What's more, the ethical principles underpinning Islamic finance are seen by some as offering a more sustainable alternative to profit-oriented conventional banking. The result is that academic institutions are lining up to offer formal training in the area.

"There is a huge demand for Islamic finance courses now, so large that it's difficult to cope with," Professor Habib Ahmed, Sharjah chair in the school of government and international affairs at Durham University, England, told CNN.....Read More

'Islamic Finance gaining more respect'

STAR:Malaysian PM Abdullah Ahmad Badawi says there are many opportunities for Islamic Finance to lead the financial fraternity into a new growth era.

Islamic Banking in Turkey, Indonesia and Pakistan: A Comparison with Malaysia

By Paul Wouters

Worldwide, the Islamic finance industry is developing rapidly. While it makes sense for the Islamic financial institutions to foster growth and to regularly compare themselves against the financial market as a whole, sometimes it is also worthwhile to keep an eye on developments in different countries.

It is easy to talk about "market shares" and "deposits", but what do these terms really mean? And what can be expected in the near future? For a better idea, we will examine the Islamic banking system in some countries: Turkey, Indonesia and Pakistan.

Turkey and Indonesia are secular republics where Muslims form the majority of the population, but Islamic finance developed differently in the two nations.

With a population that is roughly slightly over half that of both countries combined; the Islamic Republic of Pakistan is used as an outside comparator. To put all that into better perspective, the writer has included some data from Malaysia as benchmark..more

Islamic finance growing15%-20% annually

KUALA LUMPUR: 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.