IslamicFinance.de

SECP is striving to establish a comprehensive Islamic financial system to cater for the needs of people, which are not inclined to use conventional financial products. The decision of SECP to permit conventional insurance companies to launch Takaful operations will result in rapid development of this sector. However, the development of an Islamic financial system needs to include Islamic banking industry, Takaful industry and Islamic capital and money markets with strong linkages, interdependence and synergies. Although Takaful has been in the market for long, it has yet to make significant inroads as the concept is clouded by unfamiliar terms and principles for commoners resulting in hesitancy. In absence of a viable Islamic capital market the adequate supply of quality financial instruments could be a difficulty.