With no single interpretation of Islamic law, differences in rulings between scholars over whether products are sharia-compliant has led to a lack of standardisation in the industry. Resolving this issue is key to bringing about greater efficiency, transparency and cohesion – ultimately helping to raise the curtain for more Islamic business, says AAOIFI deputy secretary general Khairul Nizam.

The Islamic finance industry has undergone rapid growth in recent years, but in representing just 1.5% of global banking assets, it remains a hugely underpenetrated market across many asset classes and geographies. This has led the heavyweight global Islamic players to redefine their strategies to capitalise on these opportunities.

The Gulf's Islamic finance industry is on an upward growth trajectory as the sukuk market rebounds and new lines of business emerge. But there are growing calls for greater regulatory oversight to ensure the industry remains true to its values and improves transparency going forward.

As banks prepare for the impact of Basel III regulations, many Islamic financial institutions are finding they already exceed the requirements.

While Islamic financial institutions have been active in offering retail products and investment banking services, regular corporate banking has tended to fall through the gaps. Now banks are correcting the balance.

Mohammad Al-Jasser, governor of Saudi Arabia’s central bank, discusses the huge potential of sukuk issuance in an interview with Stephen Timewell in Riyadh.

Qatar's decision to ban conventional banks from operating sharia-based finance units within its financial jurisdiction has left observers concerned the central bank has set the wrong kind of precedent, one that is likely to create uncertainty in banking throughout the Middle East.

Large financial institutions from the Gulf are increasingly buying stakes in local banks in west Africa to tap into the region's sizeable Muslim population.