Islamic finance hasn’t utilized full potential yet despite massive growth: Experts
20 Jul 2012 12:24 GMT
 
Manama: Islamic Finance industry has experienced tremendous growth during the past few years and the industry seems to be going more ahead in the coming years due to its positive results in the time of global financial crunch. By Farhan Iqbal

Manama: Islamic Finance industry has experienced tremendous growth during the past few years and the industry seems to be going more ahead in the coming years due to its positive results in the time of global financial crunch.

According to the estimates, there has been dramatic growth in the Islamic corporate finance industry during the recent years.

The industry experts believe that this growth will continue to flourish being major economies in the Middle East and Asia, which are the major markets for Islamic finance. Islamic finance has continued to expand even during the period of global economic uncertainty.

There is no doubt that Islamic finance is maturing into a global phenomenon with increasing appetite for Islamic instruments and deal structures in international capital markets, corporate loans and asset finance.

Though Islamic finance has been emerging as a viable corporate finance alternative, which is highlighted by several recent landmark transactions regionally and globally, the Sharia-compliant corporate finance market has not yet realized its full potential.

The experts believe that Islamic finance’s value proposition has not been fully communicated to its corporate client base.

The organizer of the Second annual International Summit on Islamic Corporate Finance (ICFS 2012), David Mclean, stated, “It is essential that there must be further refinements and innovations brought into the industry to fully realize the growth potential for Islamic corporate finance and meet the growing and often complex needs of corporate borrowers.”

“To achieve success for borrowers and lenders, it is critical to engage all key components in the deal-making value chain - the corporate borrowers and bankers - in focused dialogues to develop long-term successful business relationships,” he added.

The summit is scheduled to be held in Abu Dhabi on September 25 this year. The theme of the summit will be “Boosting Deal Flow in Islamic Syndicated Lending, Trade Finance, Corporate Sukuk and Project Finance to Meet the Needs of Corporate Borrowers.”

The summit is supposed to create an ideal platform to bring key components of the deal-making value chain together, corporate banking leaders, both Islamic and conventional, and corporate end-users of these services, to ensure the objectives of both are achieved. ICFS 2012 will provide in-depth interactive discussions and high-profile networking opportunities to create the most productive and results-orientated environment.



-- Al Arabiya Digital


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