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.
-
News2 months ago
Aligning HR Strategies with Oman Vision 2040: A Roadmap for Organisational Growth – OER Business Summit 2025
-
OER Magazines1 month ago
OER, April 25
-
Alamaliktistaad Magazines1 month ago
Al-Iktisaad, April 25
-
Renewables3 weeks ago
Jindal Renewables and OQ Alternative Energy Sign Joint Development Agreement to Advance Integrated Renewable Power Projects in Oman
-
Banking & Finance2 months ago
Bank Nizwa Signs MoU with Ministry of Endowments and Religious Affairs to Enhance Endowment Management & Islamic Finance Frameworks
-
News2 months ago
Oman Signs Historic Agreement to Establish World’s First Liquid Hydrogen Corridor to Europe
-
Banking & Finance1 month ago
How Bank Muscat is Pioneering Digital Solutions to Empower Customers
-
Renewables1 month ago
Sembcorp’s 588MW Solar Power Plant In Oman Begins Commercial Operation
You must be logged in to post a comment Login