Islamic finance to take over conventional system in many countries

According to Moody’s Investors Service, growth prospects for the Islamic banking are still strong despite subdued sukuk issuance predicted for 2016. Growth in the Islamic banking sector continues to broadly outpace that of conventional banks in most systems in which Islamic banks have been established. The current size of the Islamic finance market has been estimated to range from $1.66 trillion to $2.1 trillion with expectations of market size to be $3.4 trillion by end of 2018. According to the Moody's report, Islamic banking sector growth is driven by strong retail demand and proactive government legislation for the industry. There is potential for further growth, especially in countries in which the penetration of Islamic banking assets remains relatively low, at between 5% and 10% of Islamic financing assets.