Great Ambition: Islamic Finance Goes Global
Monday, April 27, 2015 / 2:30 pm - 3:30 pm
Matthew Rees, President, Geonomica; Senior Fellow; Tuck School of Business, Dartmouth College
Mohammed Ahmed Alkhaja, Head of Asset Management, Osool Asset Management BSC
Charon Wardini bin Mokhzani , Executive Director, Managing Director's Office, Khazanah Nasional Berhad, Malaysia; Managing Director, Khazanah Research Institute
Sean Marion, Managing Director, Financial Institutions Group, Moodys Corporation
Islamic banking, based on religious principles that forbid collecting interest, is one of the fastest-growing sectors in global finance and one that escaped significant damage during the financial crisis. Collectively, Sharia-compliant banks are forecast to grow at a rate of 20 percent a year through 2019, albeit from a low base. Despite this growth and record level of sukuk (Islamic Bond) issuance, the industry as a whole is still largely concentrated in the banking sector, creating the risk of government bailouts. Participants on this panel will discuss the expansion of Islamic finance and the effects it may have on capital flows and development. Will opportunities exist to expand into areas such as trade and infrastructure financing in Asia and Africa, where foreign banks have scaled back? Can regulatory and conventional market structures be aligned with the needs of Sharia-compliant intermediaries and their customers? What can be done to reduce fragmentation in Islamic finance markets due to differences in accepted standards of Sharia compliance?