Islamic Banking can reach US$ 1 Trillion - Mckinsey and MTI

Studies carried out by both Mckinsey and MTI Consulting point in the direction of total asset base globally in Islamic Banking can reach USD 1 Trillion in the next three to five years.

This was revealed in the research studies presented by the two consulting companies at the World Islamic Banking Conference in Bahrain this week.

The key to continued high growth will be fueled by the adoption of Sharia-Compliant banking products by the wider population than being restricted to a core group of niche Muslims, as has been the case in Malaysia where Chinese are among the major consumers.

The rapid development of the Sukuk (the bonds market) as a corporate finance tool has drawn industry attention over the last year, with more complex bonds and related derivatives expected in the market.

The successful development of a robust and resilient Islamic financial system depends on the ability to integrate its various components thatinclude the Islamic banking industry; Takaful (an alternative to insurance); as well as the money and capital markets. Of equal importance is the marketing and branding of the salient features of the Islamic Financial Service to reach the target.