"Greater Internationalisation in Next Phase of Islamic Capital Market Growth"

KUALA LUMPUR, June 28 (Bernama) -- The Islamic finance industry is at a crucial stage where it needs to redefine and establish the enabling environment that will spur its next phase of growth. Zainal Izlan Zainal Abidin, Executive Director, Islamic capital market of the Securities Commission (SC) said the next phase of growth of the Islamic capital market will be characterised by greater internationalisation. This will entail, among others, a growing number of product issuers and service providers expanding beyond their home market, more investors seeking products or instruments with international exposure, as well as greater diversity in terms of currencies used in issuing Shariah-compliant instruments, he said in a statement on Wednesday, issued in conjunction with the 7th Islamic Markets Programme. Zainal Izlan said Islamic finance has developed into an industry with global appeal, marked by a 15 per cent average annual growth rate over the past decade, to reach US$1.3 trillion at present. "Malaysia's Islamic capital market is expected to grow at an average rate of 10.6 per cent per annum towards 2020, according to the Capital Market Masterplan 2. "Islamic finance has developed not only in traditional Muslim markets like Malaysia and the Middle East, but also in conventional markets and financial centres such as the United Kingdom, with a growing number of jurisdictions across the globe at various stages of developing their capabilities in Islamic finance," he added. -- BERNAMA