Islamic finance sector in 2016 is expected to increase

Islamic finance sector is expected to grow to 14 percent next year despite the country's economic situation is not very encouraging.

Vice-President (Academic) of the University Global Islamic Finance (INCEIF), Datuk Dr. Syed Othman Alhabshi said this is because Islamic finance still has potential for growth in the country as growth at the global level is still high.

He said that from 2008 to 2013, Islamic finance has grown by an average of 17 percent per year and growth next year will slow down a bit because of the slow economy.

"I believe the sukuk will be the driver of this growth will be in addition to Islamic banking is expanding rapidly. Malaysia will also continue to be the leader in sukuk in the next year.
"In addition, Wealth Management is also expected to be one of the top growing and will be the focus," he said.

He was speaking after the launch of the book 'SRI (Sustainable and Effective Responsibility) and Case for Funds of Islam' by BNP Paribas Wealth Management Centre of Islamic and INCEIF (CIWM) here today.

Also present were the Chairman of BNP Paribas Malaysia, Datuk Abdullah Mat Noh and Promotion Unit Director of the Malaysia International Islamic Financial Centre (IFC), Nik Mohamed Din Nik Musa.

The book held by a joint venture between CIWM and MIFC to create awareness and sustainable relationship between sharia-compliant investments. Meanwhile, Syed Othman said economic growth in the third quarter of this year is not so favorable and expect the same thing in the next quarter.