The frontiers of the global Islamic finance industry are expanding. From competitive home markets such as Malaysia and the countries that make up the Gulf Co-operation Council (GCC), sharia-compliant financial institutions are now pushing outwards to tap into the higher growth opportunities on offer elsewhere in the Islamic world. This has come as global demand for sharia-compliant financing options is on the rise. With massive Muslim majority markets, including Indonesia, lacking significant sharia-compliant financial coverage the opportunities for growth are substantial.
Encouragingly, national governments in these underserved markets are increasingly aware of the benefits of Islamic finance. This awakening has emerged in the form of new sovereign sukuk issuance, positive regulatory reforms as well as training initiatives for regulatory agencies. As a consequence, momentum is now building behind the development of a truly globalised industry.
