The Moody’s report, which did not include any timetable for its forecast, noted that “despite the recent gloomy economic environment globally, the industry’s total assets scaled new heights.” The assets under management by the Islamic finance industry reached $950 billion last year. The report emphasized that demand for products that comply with Muslim principles is on the rise. The global market for Islamic bonds, or sukuk, is worth $110 billion, the rating agency said.
“Islamic financial institutions are continuing to deliver Shariah-compliant returns whilst, at the same time, focusing on efficiently mitigating the associated risks through a new risk management approach, including the use of derivatives.” Policies to promote assets that follow Islamic law are spreading as far as Singapore, Japan and Europe. Malaysia, which has the world’s largest Islamic bond market, has eased foreign ownership rules.
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