Global Islamic financial assets to hit $1.8 trillion Bright prospects for Oman

| Thursday, May 2, 2013

The size of Islamic financial assets is forecast to reach $1.8 trillion in 2016, while the financing and investment activities are expected to accelerate, especially in the Islamic capital markets as emerging economies embark on infrastructure spending. This was stated by an expert at the two-day Oman Islamic Economic Forum 2013, which began yesterday. The forum in its second edition is organised by Amjad Development at Al Bustan Palace Hotel under the auspices of Dr Yahya bin Mahfoudh al Mantheri, Chairman of the State Council.

The forum shed light on various aspects of Islamic finance, Islamic banking, Takaful insurance, Zakat, Awqaf, alimonies, perfection of work, development of Islamic banking to finance the public sector and infrastructure projects, development of small and medium enterprises (SMEs) and the human resources. Speaking to the reporters, Al Mantheri said that Islamic banking has started taking shape in the Sultanate with the establishment of Bank Nizwa and the opening of Islamic windows by traditional banks.

He said that Islamic banking is witnessing remarkable growth in different parts of the world and that the industry is worth over $1.5 trillion. The figure reflects the fact that there is a global trend towards Islamic banking. The co-operation of Islamic countries in developing the mechanisms of Islamic banking will have a positive effect on the growth of the industry in the world including the Sultanate. Speaking on the occasion, Hamood bin Sanjour al Zadjali, Executive President of the Central Bank of Oman, said the holding of the conference coincides with the launch of Islamic banking in Oman.

He added that in response to the Royal directives of His Majesty Sultan Qaboos regarding the development of SMEs, it is expected that the Islamic banks would provide suitable financial support for SMEs and entrepreneurs. Banks will provide them with innovative Sharia compatible solutions that meet their needs. Khalid bin Hilal al Yahmadi, Chairman of Amjad Development Company, said that the Islamic banking industry posted more than 30 per cent growth in the last two years. He added that this high growth ushers well for the industry in the coming years.

He also emphasised the need to keep pace with this growth by developing existing human resources and ensuring sound utilisation of the available resources. Al Yahmadi added that the conference will include a panel discussion on education, technology, morals and their role in economy, especially in the light of employment challenges. Raja Nazarin Shah, Crown Prince of Perak in Malaysia and Financial Ambassador of the Malaysia International Islamic Financial Centre (MIFC), in his address said that over the last 30 years, the relations between Oman and Malaysia have grown in key areas including education, culture, business and trade.

He said that the Sultanate seeks to achieve the aims of its Vision 2020, as it is the case with Malaysia which has its vision 2020. He said that bilateral trade between the Sultanate and Malaysia stood at $740 million in 2011, a substantial increase from $265 million in 2010. Raja added that the Islamic finance industry has registered an impressive annualised growth of almost 15 per cent over the past 10-15 years to reach $1.3 trillion globally. While this growth has been achieved primarily in Muslim-majority countries, an increasing number of non-Muslim countries have also been developing their Islamic finance industry, including the United Kingdom, Luxembourg and Hong Kong.

“I am very confident that the concerted efforts and initiatives of the Sultanate to develop its Islamic finance industry will gain substantial momentum and yield desired results,” he said. Suleiman bin Hamad al Harthy, GM of Islamic Banking at BankMuscat Meethaq, said that the forum is very important for Islamic banking industry, which is still in its early stages. This requires us to keep pace with the developments in this sector in the world. 

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