Islamic Finance Market Less Affected By Crisis
KUALA LUMPUR, Feb 27 (Bernama) — The Islamic finance market is not severely hit by the global economic crisis like the conventional market as many Islamic finance products are structured in a more transparent way.
This was stated by Dr Zaha Rina Zahari, co-author of the “Islamic Finance Encyclopedia”, who said while there may be some impact, Islamic finance products are affected to a lesser extent compared to conventional products as they are backed by real assets.
According to Zaha Rina, the global Islamic financial services industry has experienced spectacular growth in the last four decades.
“This is driven in part by the greater awareness and understanding of Syariah-compliant instruments and a demand for an alternative market,” she said.
Islamic finance, she added, has become a US$1 trillion industry and was still growing at an average rate of 15 percent according to the Islamic Financial Services Board.
The encyclopaedia, co-authored by Zaha Rina, Professor Bala Shanmugan and Nafis Alam, was launched here today by Securities Commission chairman Datuk Seri Zarinah Anwar.
Speaking at the launch, Zarinah said Malaysia has a comprehensive Islamic finance system with a comprehensive Islamic capital market comprising products such as bonds, unit trusts, private equities and fund management.
“What is important is to grow and develop talent in human capital, and to encourage players to come up with more diversified products into the market,” she said.
The encyclopaedia, priced at RM250, contains 1,384 entries, which include a list of Islamic terminologies, Islamic equity funds and Islamic (real estate investment trusts (REITs),Islamic banks and investment companies as well as names of experts, academicians, bankers and heads of various Islamic bodies.