News
Islamic finance growth to slow over low oil price: S&P
According to Standard and Poor’s Ratings Services, the fast-growing Islamic finance industry is set to slow down next year over the sharp fall in oil revenues and rapid regulatory changes.
According to Standard and Poor’s Ratings Services, the fast-growing Islamic finance industry is set to slow down next year over the sharp fall in oil revenues and rapid regulatory changes.
The agency said that such rapid growth had seen the Islamic finance industry exceed an estimated $2 trillion in value.
“We think Islamic finance growth will drop to single digits in 2016 from between 10 percent and 15 percent over the past decade,” S&P said in a report.
“But we now think the industry faces challenges from the decline in oil prices, changes in the global regulatory framework for banks and insurance companies, and its own fragmented nature,” said S&P Global Head of Islamic Finance Mohamed Damak.
S&P expects the size of Islamic finance to hit $3 trillion sometime in the next decade although the Sharia-compliant industry was projected to hit the landmark much earlier.
Governments in core markets see Islamic finance as a tool to maintain their investment spending, somewhat countering the negative impact of oil prices on their budgets, the report said.
Islamic finance bans interest, products with excessive uncertainty, gambling, short sales and financing prohibited activities considered harmful to society.
Around 40 million of the world’s 1.6 billion Muslims are clients of the Islamic finance industry, which has surged in popularity since its niche market days of the early 1970s.
Islamic finance’s risk-sharing features and prohibition of speculation suggest that it may, in principle, pose less systemic risk than conventional finance, the International Monetary Fund said in June.
-
Banking & Finance2 months agoOman Oil Marketing Company Concludes Its Annual Health, Safety, Environment, and Quality Week, Reaffirming People and Safety as a Top Priority
-
News2 months agoJamal Ahmed Al Harthy Honoured as ‘Pioneer in Youth Empowerment through Education and Sport’ at CSR Summit & Awards 2025
-
OER Magazines2 months agoOER, December 2025
-
News2 months agoAI Security Conference 2025 Hosted by Securado Highlights the Changing Cybersecurity Landscape
-
Insurance1 month agoSupporting Community Wellness: Liva Insurance Sponsors Muscat Marathon 2026 with Free Health Checkups
-
Interviews1 month agoEXCLUSIVE INTERVIEW: TLS Rebranding Marks Strategic Leap Toward Innovation, Sustainability & Growth
-
Insurance4 weeks agoLiva Insurance Supports Community Wellness Through “Experience Oman – Muscat Marathon 2026”
-
Investment2 weeks agoLalan Inaugurates Its First Overseas Manufacturing Facility, Marking Sri Lanka’s First Investment in SOHAR Freezone

You must be logged in to post a comment Login