The past 12 months have provided a watershed moment for the Islamic finance industry, as global sharia-compliant assets crossed the $1000bn mark. For an industry less than 40 years old, the global financial crisis represents the first major challenge that Islamic finance has faced but there is no doubt that its growth story remains in tact. The industry is expected to record a compound annual growth rate (CAGR) of 15% to 20% until 2015, according to a report published in November 2010 by professional services firm PricewaterhouseCoopers.
With the eurozone debt crisis deepening and the US in financial turmoil, investors are increasingly looking to move away from a speculative and profit-based financial system. Within the new world order of austerity and caution, Islamic finance’s fundamental tenets of risk-sharing and a prohibition on interest have helped boost its image as a safe haven.
