Dhaka, Bangladesh (BBN)- Islamic finance is expected to grow in 2014 significantly and its volume will reach more than US$ 2.0 trillion.
According to a new report from the chief executive of the AlHuda Centre of Islamic Banking and Economics Muhammad Zubair Mughal, who said the volume of the industry will exceed $2 trillion in 2014.
Growth will be driven by increased uptake of Islamic finance in north African countries like Libya, Morocco, Senegal and Tunisia, as well as across Europe and the UK.
Sukuk – Islamic bonds – will also become more popular, with Mr Mugal estimating it will make up 16 percent of the total industry in 2014.
Islamic banking will dominate – consisting of 78 percent of the industry – while Islamic funds, Takaful – an Islamic insurance concept – and Islamic microfinance will hold four per cent and one percent each respectively.
However, the industry will also face challenges, he warned, noting that religious and political issues could stem growth in Nigeria and Tunisia, while recession could harm operations in Indonesia.
Dubai and London are expected to be strong competitors in 2014 to become the global hub of Islamic banking and finance, according to reports.
BBN/SSR/AD-05Jan14-9:20 am (BST)