Monday, August 11, 2008

Islamic finance needs tighter regulation to avoid future problems

Islamic finance, driven by economic growth in the GCC and Asia as well as high oil prices, still faces potential pitfalls from lack of product diversification and a lack of clearly understood regulatory treatment. The Dubai Financial Services Authority (DFSA) also recently warned that Islamic finance needs tighter standards to avoid some of the problems affecting conventional financial markets.

A Malaysian retakaful provider, MNRB Retakaful, plans further expansion into other regions including the GCC and South Africa. Shari'ah-compliant insurance and reinsurance is currently underdeveloped but predicted to see growth at a rate close to the Islamic finance industry as a whole.

HSBC plans to issue sukuk in Turkey once the regulatory & legal environment becomes accomodative.

4 comments:

Anonymous said...

hi

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