Tuesday, May 19, 2009

Islamic finance assets now top RM2t

The total assets under management by Islamic financial institutions now exceeds US$600 billion (RM2.11 trillion), according to a report.
State Street Corporation, the world's leading provider of financial services to institutional investors, in its Vision Report on Islamic Finance stated that Islamic finance grew as much as 20% annually since 2003.
"In fact, demand for Islamic finance products and services in the global market, may be exceeding current availability," said State Street senior vice president, Rod Ringrow in a statement yesterday.
"Islamic finance will attract an increasingly global group of investors in the years ahead.
"We believe the industry as a whole will respond with new products offering greater variety and sophistication for a host of complex, cross border transactions," he added.
"Against the backdrop of a challenging global environment, Islamic finance is emerging as a competitive form of intermediation in the international financial system.
"It has a key role to play in restoring confidence in the market," Ringrow highlighted.
He said the global financial crisis has had a limited direct impact on Islamic finance as investors seek out asset classes and markets they hope would provide stability. He noted that the Islamic financing industry had become a growing option for investors and a competitive form of financing for commercial enterprises.
"It is also allowing for the further diversification of risks and is contributing to an efficient international allocation of resources across borders," he said. — Bernama (May 19, 2009)Any source

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