IslamicFinance.de

China remains a major market that Islamic finance has not yet reached. But this could be set to change in the coming years – and one province in particular is leading the way. Ningxia, in the north-west of China, is an autonomous region where 35% of the population is Muslim and there has recently been talk of establishing an Islamic Financial Centre there in the next five to seven years. Local laws and tax regulations need to be modified to permit shariah-compliant investments. However, the effort could be undermined by cultural insensitivities such as allowing Muslim restaurants to serve alcohol alongside halal food. The growth potential of Islamic finance in China is huge given the country’s 1.3 billion population.