Islamic finance is increasingly being viewed as a credible alternative to conventional finance, but Hussain Al-Qemzi, group chief executive of Dubai-based Noor Investment Group and chief executive of Noor Islamic Bank, recognises that Islamic institutions must work together if they are to compete with conventional banks.

To maintain its phenomenal growth rates, Islamic finance is increasingly looking beyond sukuk and property investment to growth areas such as renewable energy and healthcare. 

The steady growth of sharia-compliant assets suggests banks believe in the future of the sector, but the dismantling of the largest cross-border Islamic window raises questions about whether global banking groups can make a success of the business.

Malaysia leads the world in providing a sharia-compliant environment for savings. CIMB Islamic's Badlisyah Abdul Ghani charts the rise of Islamic finance since its founding in the country 50 years ago.

Indonesia's banks suffered heavy setbacks during the 1998 Asian financial crisis, but in the 20 years since, the country's recovery has seen its banking sector outperform the rest of the Association of South-east Asian Nations region.

An increasing number of financial institutions from international banks to local specialist players are developing sharia-compliant structured products, offering investors limited downside risk and high returns. But as the uptake for such products increases, so does the pressure of ensuring that they are 100% sharia-friendly.

Malaysia is going through a period of transformation as the government seeks to push the country to developed nation status. The ambitious economic goals, however, are being tested by events further afield and observers are questioning to what degree Malaysia’s growth will be impacted by the troubles of the eurozone. 

There is a feeling in some circles that as the East rises, the West must simultaneously decline. But why? Rising prosperity in Asia means more opportunities for businesses and banks in North America and Europe, and the only ones to suffer will be those who continue to think along 'East versus West' lines.

Malaysia has ambitious plans to reposition itself as an international finance centre, but, growth must occur in a well-regulated environment with minimal risks.

Despite Malaysia's banking sector emerging from the financial crisis in good health, consolidation and liberalisation look set to play a big part in its future. Writer Michelle Price