Islamic Finance Set To Grow Rapidly, According to Experts

The subprime crisis in the US is increasing interest in Islamic finance because Sharia investment avoids interest-related risks, according to experts at the Islamic Bank of Asia (IB Asia).

The bank, which is based in Singapore and recently opened a GCC regional office at Bahrain Financial Harbour, has more than 30 regional shareholders.

Two of the bank’s pre-eminent Sharia board members have seen a steadily growing stream of interest from GCC investors, Muslim and non-Muslim, for Islamic banking products, as they seek new investment opportunities.

IB Asia Sharia board members Shaikh Nizam Yaqouby and Dr Mohammed Daud Bakar say that while changes in the global investment climate are driving demand for Islamic banking, it is the development of innovative Sharia-compliant products that will help grow the industry.

“Islamic Sharia scholars have led the way in innovation. Investors now demand more than just debt finance in their products. They participate in the assets and this creates real economic value,” said Bahrain-based Shaikh Yaqouby, an internationally-acclaimed Islamic scholar and teacher of Tafsir, a scientific study that focuses on the interpretation and explanation of the Quran.