Islamic financial institutions are at cross roads entering 2011, said Ernst & Young. The industry is expected to continue to show resilience in the face of a challenging economic scenario.
This is despite the fact that growth levels of the Islamic finance industry, at more than 20% per annum for the past several years, came under tremendous pressure in 2010.
Ashar Nazim, Executive Director and MENA Head of Islamic Financial Services Group at Ernst & Young says: “Having achieved the critical volume estimated at US$1 trillion in Islamic assets, the question reverberating across board rooms, and among users of Islamic financial services, is about differentiation, or the lack thereof, that Islamic financial institutions have on offer. Effectiveness of the existing Shari’a governance framework, as well as synthetic product structures commonly in use are especially under discussion.”
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