The growth and globalization of Islamic finance over the past decade has been a rare success story for the financial industry. Here, Euromoney examines the challenges the sector faces to rise to the next level. Throughout the section, we highlight the banks, advisers, issuers and companies that are moving the industry forward, in Euromoney’s inaugural Innovation in Islamic finance awards.
Balancing innovation and integrity International banks used to dominate Islamic finance. But their desire to innovate risked the market straying from its principles. Local and specialist firms have benefited from their withdrawal. But can they take Shariah-compliant finance to the next level without repeating the mistakes of the past?
The sukuk market goes global As liquidity improves and conventional buyers become more familiar with it, the premium for issuing in an Islamic format is shrinking. Emerging market issuers may still hold the most promise for the future.
New finance for a growing continent With expanding economies and hundreds of million Muslims, Africa deserves to be a bigger part of Islamic finance. After a slow start, there are signs the sector is beginning to gain the crucial mass and legislative backing it needs.