The launch of TheCityUK’s new report on Islamic Finance provides a landmark for promotion of the industry internationally as the UK maintains its position as the leading Western provider of Islamic financial services.
The report estimates that the global market for Islamic financial services rose by 10% to reach $1,041bn by end-2009, taking global assets above the $1,000bn threshold for the first time: a respectable outcome in the context of the difficult economic environment.
TheCityUK estimates that the global market for Islamic finance grew at a similar rate in 2010, with the potential to continue growth at this rate over a number of years. This is dependent however on major markets in the Middle East such as Saudi Arabia, Iran, UAE and Kuwait not being affected by the spread of political upheaval in the region.
The sukuk market recovered strongly in 2010 with record issuance of $50bn. While there have been defaults, the impact on the broader market has not been as extensive as was feared a year ago. Quality issuers of sukuk continue to attract demand from investors.
Revenues of banks picked up in 2010, following downward pressure on revenue and profitability in two previous years. Fewer launches mean that growth in Islamic funds industry has slowed in the recent years with global assets totalling $52bn in 760 funds.
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