Kuala Lumpur, 27 June 2012
Next phase of growth for Islamic capital market to feature greater internationalisation
The Islamic finance industry is presently at a crucial stage where it needs to redefine and establish the enabling environment that will spur its next phase of growth.
Zainal Izlan Zainal Abidin, Executive Director, Islamic capital market, of the Securities Commission Malaysia (SC), said today, at the 7th Islamic Markets Programme (IMP), that Islamic finance has developed into an industry with global appeal, marked by a 15% average annual growth rate over the past decade, to reach US$1.3 trillion today.
"The next phase of growth of the Islamic capital market will be characterised by greater internationalisation which entails, among others, a growing number of product issuers and service providers expanding beyond their home market, more investors seeking products or instruments with international exposure, as well as greater diversity in terms of currencies used in issuing Shariah-compliant instruments," said Izlan in his welcome remarks at the four-day (24-28 June) IMP, a flagship programme by the training and education arm of the SC, the Securities Industries Development Corporation.
Malaysia's Islamic capital market is expected to grow at an average rate of 10.6% per annum, over the ten-year period to 2020, according to the Capital Market Masterplan 2.
Islamic finance has developed not only in traditional Muslim markets like Malaysia and the Middle East, but also in conventional markets and financial centres such as the UK, with a growing number of jurisdictions across the globe at various stages of developing their capabilities in Islamic finance, according to Izlan.
Themed `Building the Environment for the Growth of Islamic Finance', the IMP attracted 41 local and international participants including Islamic finance practitioners, members of academia and regulators.
Speakers at the programme include senior industry practitioners Rafe Haneef, Managing Director of HSBC Amanah Malaysia, Rafiza Ghazali, Head of Islamic Finance, Asia, of Thomson Reuters, prominent academician Professor Datuk Dr Syed Othman Alhabshi, Chief Academic Officer of INCEIF, and Ijlal Ahmed Alvi, CEO of IIFM, an international Islamic financial market organisation.
First organised in 2006, the IMP has hosted 289 participants from various regions around the world including the Middle East, Asia, Europe, Africa, Australia, South East Asia, which reflects the global reach, diversity and acceptance of Islamic finance today.
SECURITIES COMMISSION MALAYSIA