Sign up | Log in



Home  >>   Daily News  >>   Singapore News  >> Finance  >> Continued Growth of Islamic Finance
NEWS UPDATES Asean Affairs   6 June 2013  

Continued Growth of Islamic Finance

When this conference convened in Singapore this time last year, one key takeaway was that the Islamic Finance industry, being well-capitalised and tied to underlying real economic activities, was presented with unique opportunities to expand further in an era of deleveraging by global financial institutions and the demand for back-to-basic investment.

The need for the industry to integrate itself with global finance and strike roots in key international financial centres was also emphasised.
We have indeed seen continued strong growth in the Islamic finance industry over the past year. The Islamic Financial Services Board (IFSB) estimated that assets of the global Islamic financial services industry grew by 20.4% year-on-year to reach an estimated USD1.6 trillion as at end 20121. Last year also saw a record volume of sukuk issuances globally, with sukuk issuance from more countries, and of larger size and longer tenor.

Key financial centres have continued to facilitate the development of Islamic finance within their jurisdictions. Singapore has made adjustments to our regulatory and tax regime to allow for the growth of Islamic finance since 2004. Hong Kong has recently amended its tax regulations to allow for issuance of sukuk, while the UK recently established an industry task force to facilitate further development of Islamic finance. Going forward, the broadening and deepening of economic and financial ties between Asia and the Middle East, the two major centres for Islamic finance, will also provide further impetus for future growth of Islamic finance globally.

Connectivity between Asia and the Middle East

There are three important observations to be made on the growing connectivity between Asia and the Middle East.

First, the economic relationship between the two regions has expanded beyond the energy-related sector. Asia’s demand for energy exports from the Middle East will continue to remain robust as the region expands. However, non-energy trade between the two regions is also growing fast. About 40% of GCC’s non-oil exports are to Asia. Saudi Arabia is the leading petrochemical supplier to China’s textile industry, and China’s exports to the GCC are estimated to be growing by 30% annually.

Second, financial flows between the two regions are increasing significantly. With the rapid accumulation of foreign reserves from the unprecedented oil windfall in recent years, GCC countries are looking to rebalance their portfolio of foreign investments with a greater allocation to Asia. McKinsey observed that over the period of 2002-2006, about 11% of GCC’s capital outflows were to Asia. They estimated that this share could nearly double to 20% by 2020. However, Asia in turn is also investing into the Gulf, particularly in infrastructure projects in the GCC. There is now rising FDI from China and India in sectors such as construction, tourism, telecommunications, software and engineering services, garments, chemical products, and food.

Third, there are now increased numbers of financial intermediaries to facilitate cross-border financial transactions between the two regions. Major Middle East Islamic banks have established operations in Malaysia. Leading banks from the GCC are now using Singapore as a base for expanding into East Asia and to facilitate Asian business expansion into the Middle East. Malaysian and Singapore banks are in the Middle East to seek business opportunities. Together, the presence of all these active players makes for a vibrant Islamic Finance ecosystem in Singapore.



Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories    6 June 2013 Subsribe Now !
• Continued Growth of Islamic Finance Subcribe: Asean Affairs Global Magazine
• Cross-border Islamic Transactions Set to Take Off Asean Affairs Premium
• Singapore’s Contribution
• Investors tee-up golf course deals
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Thai alternative bourse lists entertainment content creator on June 6
• Laos gets tough with immigrants
• Coca-Cola bottled in Myanmar for first time in 60 years
Asean Analysis            4 June 2013 Advertise Your Brand
• Asean Analysis- June 4, 2013
MTF 2013 in China ’s Guilin announced
Asean Stock Watch     4 June 2013
• Asean Stock Watch-June 4, 2013  

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2019 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand