“Abundance of money is a trial for a man,” according to an old Moroccan proverb. This saying summarises the challenge for the Islamic finance industry, which passed the $1000bn milestone during 2011. Sharia-compliant assets have surged from $894bn to $1086bn, reflecting yet another year of solid double-digit growth of 21.41%.
What is more impressive is that since The Banker's Top 500 Islamic Financial Institutions survey began in 2007, the rise in the industry’s sharia-compliant assets has maintained a persistent double-digit rate, averaging a compound annual growth rate (CAGR) of 18.82%. Perhaps more remarkable still is the fact that double-digit growth has continued in spite of the fact that last year’s concern was that the significant widespread statistical latency in the industry would show a greater impact of the financial crisis in the 2011 figures. Just under three-quarters (72%) of institutions reported a growth in assets, while 25% recorded a decline. Similarly, the vast majority (80%) of reporting institutions showed positive pre-tax profit growth.
