ThE local Islamic banking and finance industry is expected to make up half of the total financial sector in six years time, a senior official from the country’s central bank said yesterday.
In his speech during the 10th Annual Brunei Darussalam Round-table 2014, YB Pehin Orang Kaya Indera Pahlawan Dato Seri Setia Hj Suyoi Hj Osman, deputy chairman of the Autoriti Monetari Brunei Darussalam (AMBD) and Minister of Development, said that the mar-ket share for Islamic finance in Brunei will grow to at least 50 per cent of the local financial sector by 2020, quoting a study by Islamic Financial News.
Asia presents huge developmental potential for Islamic finance and is likely to be the main driver of Islamic banking growth in the near future given the untapped potential in India, Bangladesh and Indonesia, according to a report. Islamic finance can be utilised for greater integration of financial markets with the real economy and for improvement of the economic balance between emerging and frontier markets, according to Kuwait Finance House Group report. Islamic banking is banking that is consistent with the principles of Sharia which prohibits acceptance of specific interest or fees for loans of money.
Russia hopes to collaborate with Brunei economically in halal food production, Islamic finance and banking and in infrastructure development, outside of the oil and gas industry.
The ambassador of the Russian Federation to Brunei, Victor A Seleznev, said that this year, there are many Bruneians visiting Russia, and because Brunei will be the chair of ASEAN, it would mean that a lot of the Russian delegations will also be making a trip to Brunei.
The rapid international expansion of Islamic finance reflects its ability to remain competitive and to increasingly meet the complex requirements of the global financial community.
With various countries now intensifying efforts to develop their respective Islamic financial capabilities, it is becoming increasingly vital to build deeper relationships between the key markets for Islamic finance and also between the leading industry players in each of these jurisdictions.
Global Islamic insurance sales rose nearly 20 per cent to US$8.3 billion (Dh30.48bn) in 2010, but opportunities still abound for further expansion, a new report has found.
Takaful contributions in the UAE grew by 28 per cent to reach $818 million during the year, said Ernst & Young's World Takaful Report 2012.
Planned changes in the financial regulations of Senegal, Kenya, Nigeria and South Africa that will allow for the issue of Sukuk are set to fuel a rebound in the international Sukuk market, a market that has been declining since 2008. The latest Global Sukuk Market report released by the International Islamic Financial Market (IIFM) indicates that Africa accounted for only 0.3% of global Sukuk issuances in the decade ending December 2010, all of which came from Sudan with some miniscule activity in The Gambia. The report also claimed international Sukuk issuances dropped from $13.8bn in 2007 to $5.3bn in 2010 which IIFN attributed to a lack of confidence from corporate issuers.
The Islamic finance sector in Brunei has shown "impressive" growth over the years, but it's no reason for players to be complacent, said an executive at BIBD At-Tamwil, the financing arm of Bank Islam Brunei Darussalam (BIBD).
Roland Ti, BIBD At-Tamwil's marketing and public relations manager, spoke to The Brunei Times on Brunei's Islamic financial landscape and his thoughts on what it takes to bring the Islamic finance institutions to a "golden age".
Takaful Insurance companies around the world especially in the Middle-East, North Africa and South Asia have set a target of $12billion USD premium generation from takaful insurance for 2011 as the demand by Muslim populations across the globe for the products are on the rise. Takaful insurance operators at the sixth Annual World Takaful Conference held in Dubai predicted a $12 billion USD premium income from Takaful insurance this year. The $12billion projected premium from takaful insurance represents 31 per cent increase from the $9.15 billion income generated from the Islamic products in 2010
Malaysian Islamic insurer Great Eastern Takaful will expand to Indonesia and Brunei to tap the Muslim market for sharia-compliant products, its chief executive officer said on Monday.
The company, which is owned by a subsidiary of Singapore's Great Eastern Holdings Limited and Malaysia's armed forces cooperative, also has Singapore and China on its radar for expansion.