landmark IMF recognition of Islamic finance and sukuk position in global economy

Dated March 2015 an online publication by the International Monetary Fund — a credible source not known to jump prematurely to conclusions nor to furnish commercial sectors positive publicity without good reason. To summarise and selectively quote from their findings:

  • Islamic finance ‘systemically important’ in Asia and the Middle East
  • Global issuance of sukuk ‘is expanding with remarkable international reach of issuers and investors.’
  • ‘This trend is expected to continue, driven, in particular by strong economic growth in countries with large, relatively unbanked, Muslim populations.’
  • In recognition of the industry’s growth and projected future, the IMF has formed an Interdepartmental Working Group
  • ‘Islamic banking outperformed conventional banking over the past decade, increasing its penetration rate about 15 percent in a dozen countries in the Middle East and Asia.’
  • ‘Over the same period, Sukuk issuance increased twenty-fold to reach US$120 billion in 2013, and its issuer base is broadening with new issuances in Africa, East Asia and Eruope’
  • ‘Sukuk resemble Public Private Partnership financing whereby investors finance the assets, and then own them which leads to real securitization and, finally, transfer them at maturity to the government’

A list and links to IMF publications on Islamic finance. An IMF blog entry (6 April 2015) on social inclusion and Islamic finance. IMF Staff Discussion Note (6 April 2015), ‘Islamic Finance : Opportunities, Challenges, and Policy Options’

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