Rich potential in emerging markets

Islamic finance is taking tentative steps towards regaining its mantle as one of the fastest growing asset classes in the world. In spite of the continuing aftershocks of the financial crisis and the Dubai debt standstill, the industry is expanding in many emerging markets and introducing new standards that should help develop products and attract investors.

Although it is not seeing anything like the growth it experienced before the financial crisis, the sector has expanded, even as other markets have been swamped by Europe’s sovereign debt crisis.

Assets in Islamic finance rose to $822bn by the end of 2009, an increase of 29 per cent compared with the end of 2008, according to Maris Strategies, the research and advisory group. Anecdotal evidence suggests it has continued to grow this year, as more institutions gain Islamic licences.