The history of modern Islamic financial institutions is relatively short but quite dynamic. Since the establishment of the Islamic Development Bank and Dubai Islamic Bank in 1975, the idea of interest-free banking and Islamic financial services has become increasingly attractive to the 1.6 billion Muslims across the world. But this decade there has been an explosion of activity in Islamic finance, not only in traditional Muslim regions, but also stretching well beyond. Islamic finance and Islamic financial institutions are fast becoming a major global force and their impact is only just beginning.
How fast is this infant industry growing? What proportion of the global finance industry will be turning to Islamic instruments in the future? Where will the industry be in 2010 and beyond? The key to understanding where Islamic finance will be tomorrow is grasping where it is today. But in a highly fragmented, young market that is emerging within the infrastructure of a western interest-bearing banking system, clear and meaningful figures are difficult to obtain.
