Islamic finance
GC explores the rise of the Islamic finance industry, and how legal teams, regulators and governments are responding to the ever-growing demand for Islamic financial products.
Banks the world around are subject to a level of supervision and regulatory scrutiny over and above almost any other entity. In certain parts of Asia, and in an increasing number of Western countries, banks have even more to contend with. In Southeast Asia, where Muslims number 240 million and over 40% of the population, the demand for financial products that adhere to Sharia legal principles is similarly high.
Ernst & Young estimates that Islamic banking assets grew at an annual rate of 17.6% between 2009 and 2013, and further estimates that it will continue to grow by an average of 19.7% up to 2018. A report by Thomson Reuters in 2017 projected global Islamic financial assets to be worth $3.2tn by 2020.
