Islamic funding becomes more attractive for the non-Muslim world
Islamic finance has traditionally been dominated by Muslim-majority countries in the Middle East and Southeast Asia. It has transformed from a niche corner of global banking to a growing source of funding for the rest of the world. The government of Singapore was one of the earliest non-Muslim entrants into the space, followed by the United Kingdom, Luxembourg and Hong Kong, which issued their first sukuk in 2014. African nations such as South Africa, Nigeria and Ivory Coast have made legal and tax changes to make it easier for borrowers to issue sukuk. The value of sukuk bonds issued outside the Middle East and Southeast Asia by non-Muslim countries reached 2.25 billion USD for the period from January to November. By comparison, the volume in 2016 was 2 billion USD, and in 2015 was 1 billion USD. Islamic finance is seen as a more stable alternative to the conventional banking system and offers a more ethical approach to managing money.
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