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Islamic FinanceNovember 24 2010

Focus of growth shifts to Asia

Asia's emergence as the healthiest engine of global economic growth is as evident in Islamic finance as it is in the conventional banking sector. The Gulf Co-operation Council (GCC) region remains the core of Islamic finance, accounting for more than 40% of total sharia-compliant assets.
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However, Islamic asset growth in this region slipped to just 5.5% in this year's ranking, from 34.5% the previous year. By contrast, in Asia, which has a 14.6% share of total assets, the growth rate was almost unchanged at 22.6%.

Those differences are also reflected in the fastest movers' list, which compares the latest asset figures available this year with the previous data available. That comparison is not necessarily year on year, and can lead to some anomalies. For Yemen's Saba Islamic Bank, for example, the extraordinary growth rate reflects the fact that the previous data for the bank was at start-up, when the bank had made almost no investments. In addition, the high inflation rate and multiple exchange-rate policies in Iran make growth rates for its banks' balance sheets more opaque and difficult to compare internationally.

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