Islamic finance 'set for solid growth'
Manama, October 24, 2011
Islamic finance is continuing to go from strength to strength and in the near future the industry is likely to see a period of consolidation, said a top banking expert.
'Mergers within the industry will make it more efficient through economies of scale but it will also allow the industry to finance the kind of mega projects sometimes outside its scale at present,' remarked Dr Mohammed Nedal Alchaar, the secretary-general of Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
Dr Alchaar said he expected to see a lot of merger and acquisition activity in the industry in the near future.
'It will give the industry more capacity and create the strength and credibility that will make it easier for financial institutions to successfully issue more sukuk which is something the industry needs.
Dr Alchaar is standing down to take up a post as Minister for Economy and Trade in Syria but will remain a member of the AAOIFI board of trustees. He said that a successor would be announced in the next few weeks.
AAOIFI chairman Shaikh Ebrahim said that Dr Alchaar had provided strong leadership as well as critical strategic thinking to the industry and had championed the cause of Islamic finance as a global financial platform.
More that 300 delegates from 30 countries took part in yesterday's event.-TradeArabia News Service