Home to more than sixty per cent of the world’s Muslim population, the Asian Development Bank (ADB) says the outlook for Asian Islamic banking and finance is bright, according to Dawn News.
ADB’s report on ‘Islamic Banking and Finance in Asia’ notes that Asia’s growing middle class, strong economic and financial fundamentals, strong political support, large investor base, and generous tax incentives are strengthening interest in Islamic finance.
The Islamic banking and equity sector is well established in key global bourses and jurisdictions. The world’s major financial index providers (e.g., Dow Jones, Standard and Poor’s, and the FTSE) all have Sharia-compliant equity listings, which have allowed the Sharia-compliant finance markets to grow and develop.
Islamic financial instruments have financed a wide range of corporate investment, social and physical infrastructure projects. Thus, they are increasingly important for driving growth in the region.
Moreover, according to ADB the Islamic finance market in Asia is likely to be an appropriate source for “infrastructure financing; government fiscal and revenue expenditure financing; corporate and retail financing; ethical investment solutions for corporate and retail investors; trade financing for international trade; and Islamic insurance services.”