It seems that the rapid success of Islamic banking in Switzerland has slowed down.  A few years ago, Islamic financial products were considered the biggest potential market for the financial sector.  International banks were rubbing their hands at the prospect of the large influx of money from Muslim clients who wanted to invest their money according to Islamic law.

Accordingly, Swiss banks decided to join the party.  Both UBS and Credit Suisse launched investment funds guaranteeing customers they are fully compliant with Sharia (Islamic law).

Zurich Insurance Group Ltd, a composite insurer, is considering a foray in the Islamic insurance market in Malaysia.

Chief executive officer Martin Senn said an exposure in Islamic insurance will make Zurich strategically stronger in the domestic market.

"We will consider Islamic insurance," Senn told reporters here on Thursday.