Growth and development of Islamic finance and investment: opportunities and risks
Until recently, Islamic finance was virtually unknown beyond the Muslim world. However, in the space of two decades it has become widely accepted as an integral part of the global financial services industry, with positive growth projections for the future. The market is expected to grow by 9.4 per cent CAGR to reach US$3.8 trillion by 2022.
The Islamic banking sector has become systematically important in Asia and the Middle East, while the global issuance of Sukuk-the Islamic equivalent of bonds –is expanding with remarkable international reach of issuers and investors. The trend is expected to continue, driven by strong economic growth in countries with large and relatively un-banked Muslim population, and the growing demand for Islamic finance in western countries, which is fuelled by individuals and corporations seeking safe and ethical banking solutions.
Islamic finance has much to offer the world’s economy. The use of Islamic finance to support green investments and infrastructure projects in emerging as well as developed markets has been receiving increased attention globally. There is also a natural connection between Islamic finance principles, responsible finance, Sustainable Development Goals (SDGs), and impact investing. In addition, Islamic finance offers the opportunity to counteract the UK’s potentially undermined position as a financial centre in the face of Brexit. Yet, despite the increased interest, Islamic banking penetration in western countries has so far been limited by the industry’s relatively small size and structure, and the absence of a strong response to the longstanding debate about standardisation, which continues to stymie the industry.
This roundtable, held in partnership with DWF, will explore the use of Islamic finance and how businesses can tap into opportunities while understanding its regulatory pitfalls.
Umera Ali, Global Head of Islamic Finance at DWF
Stuart Hutton, Chief Investment Officer, Simply Ethical
Stella Cox CBE , Managing Director – DDCAP Group & Chair of TheCityUK Islamic Finance Markets Advisory Group
To register, please contact Jana Psarska in the Business & Policy Team at: firstname.lastname@example.org