Alhamdulillah ... Islamic Finance Industry Grows 14 Percent

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KUALA LUMPUR - Islamic finance industry has experienced significant growth over the past two decades. In fact, with the provision of Islamic financial system, shows the growth reached 14 percent, over the last 15 years.

Capital Chapter Executive Director, Securities Commission Malaysia (SC) Izlan Zainal Abidin Zainal said the financial industry is estimated to have reached 1 trillion U.S. dollars. Players in this industry has made some progress especially in Malaysia and Gulf countries, seeking to penetrate new markets such as Europe and Africa.

"Of the total assets of sharia, the visible segment grew strongly last few years is the sukuk," he said as quoted by The Star, Tuesday (28 / 6). Zainal said that during the last 12 months to May 2011, the value of global sukuk rose by 30 percent to 140 billion U.S. dollars over the same period the previous 48 billion U.S. dollars.

According to him, this is an instruction for the perpetrators of Islamic finance, to immediately realize a greater challenge. "Because if not recognized promptly, this will inhibit the growth momentum in the future," he explains.

He said one challenge was related to how to overcome regulatory uncertainty, ranging from legislation to implementation of the tax for Islamic finance. "The challenge becomes more acute when we get into cross-border situations where the jurisdiction of the laws, regulations and applicable double taxation," he said.

As a result, Islamic financial Zainal rate will probably be on the economic route is less definite, in contrast to conventional business. "There will be fears among the industry players and practitioners to fully embrace Islamic finance," he said.

In addition, the achievement of harmonization in the interpretation of sharia principles is also a major challenge for this financial. He said this would affect the industry's efforts to build scale in terms of product development, distribution and expertise, and cost efficiency.

"Therefore need a variety of initiatives to provide a conducive environment for the application of Islamic capital markets practice," he asserted. He added that necessary guidelines to regulate the issuance and offering a wide range of Islamic financial products to ensure industrial development as well as guidelines on a regular basis to ensure relevance and effectiveness.

Source: republika.co.id

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