Islamic banking and financial vendors are increasingly seeking diversification into foreign investments on account of strong growth prospects and higher investment returns. Technavio’s market research analysts predict the global Islamic financing market to record a CAGR of close to 19% during the 2015 to 2019 period.
The market is expected to witness an increase in the demand for sharia-compliant assets in Asian markets, including Malaysia, and Indonesia. Islamic banks located in Iran and GCC are also expanding operations in countries like Singapore to deploy Islamic funds strategically to corporates in the different regions across the globe, through Islamic bank financing, and Sukuk issuances. Similarly, other countries offering strong political support with various tax incentives for institutional investors will attract significant investments through Islamic banking in the years to come.
Global Islamic finance segmentation by product
Islamic funds' assets
Islamic banks will produce more customized products and services for the clients over the forecast period. Governments of different developing economies are also focusing on the regulatory intervention that help the key market players to expand their customer base. In countries like UAE the Islamic banking industry is estimated to grow at more than twice the rate of conventional banking which would considerably spur the growth of the Islamic banking assets over the next fore years.
Geographical segmentation and analysis of the global Islamic banking financing market
This market research report predicts the global Islamic financing in Asia to reach a market size of over USD 985 billion by 2019 with the growth of Islamic financing in countries like Bangladesh, Indonesia, Malaysia, and Pakistan.
The asset-backed nature of Islamic financing is ideal to build highway networks, new ports and other huge investment projects. An estimated USD 800 billion worth of infrastructure financing will be needed each year in Asia over the next decade. During the forecast period, countries such as Hong Kong, China, and Thailand will also witness a growing niche of Islamic finance.
Vendor analysis of the global Islamic financing market
Low market penetration of Islamic products in most of the emerging markets has created an attractive growth opportunity for the top market players. Market expansion strategies are crucial to the enhancement of Islamic products and services. To capitalize on the market opportunity, the leading players are expected to focus more on devising and developing effective marketing channels by affiliating with various distribution channels as per the forecast.
Al Rajhi Bank
Abu Dhabi Islamic Bank
Al Baraka Banking Group
Dubai Islamic Bank
Emirates NBD Key questions answered in the report
What are the key factors driving the global Islamic financing market?
What are the key market trends impacting the growth of the global Islamic financing market?
What are the various opportunities and threats faced by the vendors in the global Islamic financing market?
Trending factors influencing the market shares for GCC, MENA (ex. GCC), Asia, Sub-Saharan Africa, and other regions?Key outcome of the five forces analysis on the global Islamic financing market?
Growth forecast of the global Islamic financing market until 2019?
Technavio also offers customization on reports based on specific client requirement.
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Technavio Announces the Publication of its Research Report – Global Islamic Financing Market 2015-2019
Technavio recognizes the following companies as the key players in the Global Islamic Financing Market: Al Rajhi Bank, Abu Dhabi Islamic Bank, Al Baraka Banking Group, Dubai Islamic Bank and Emirates NBD
Other Prominent Vendors in the market are: Bank Mandiri, HSBC Amanah (Malaysia) and Asuransi Jiwa BRINGIN JIWA SEJAHTERA
Commenting on the report, an analyst from Technavio’s team said: “Islamic financing needs to enhance the current operating model by tailoring products in line with customer specifications and market demands. Such strategies will likely attract a large number of depositors and may help expand retail and industrial credit services.”
According to the report, many banks like the Dubai Bank in the UAE and Kuwait International Bank have converted their entire operations to become Sharia-compliant. Islamic banks have started to expand globally with a sharper focus on African and Asian markets. Examples of these banks include Qatar Islamic Bank and Al Rajhi Bank. As there are a number of global players in the marketplace, people are highly aware of Sharia-compliant products and services.
Further, the report states that there is an enormous shortage of skilled manpower that understands Sharia principles and the complexities of Islamic jurisprudence.
Al Rajhi Bank, Abu Dhabi Islamic Bank, Al Baraka Banking Group, Dubai Islamic Bank, Emirates NBD ,Bank Mandiri, HSBC Amanah (Malaysia),Asuransi Jiwa BRINGIN JIWA SEJAHTERA