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.
-
Magazines2 months ago
OER, October 24
-
Oman1 month ago
Shell Oman Partners with Oneroad Automotive Gives Away 2 Forthing Cars as Part of its ‘Win Big’ Campaign
-
Alamaliktistaad Magazines4 weeks ago
Al-iktisaad, November 24
-
Energy3 weeks ago
OUTLOOK: Emerging Markets and Renewables – The Twin Engines of Energy Growth for 2025
-
News4 weeks ago
Mitsubishi X-force Joins Sayarti’s Fleet: A New Era of Elegance and Performance
-
Energy3 weeks ago
Oman and Belgium Strengthen Green Hydrogen Partnership with New Landmark Agreement
-
Auto2 months ago
Moosa Abdul Rahman Hassan & Co. Celebrates Launch of 2025 Suzuki Swift and Opening of New Suzuki Showroom in Azaiba
-
Oman3 weeks ago
Oman Braces for Launch of First Experimental Rocket Duqm-1 on 4 December 2024
You must be logged in to post a comment Login