Islamic banking sector in SA shows healthy growth

On the African continent, the Islamic finance market’s assets are estimated to be more than $1.6-trillion (about R17-trillion) and are expected to surge to more than $5-trillion by 2020. The growth of Islamic banking has not gone unnoticed by the National Treasury. Earlier this year, former finance minister Pravin Gordhan revealed that South Africa will launch sukuk. Several banks like Absa, FNB, Al Baraka Bank and HBZ Bank offer Islamic commercial and corporate banking products in South Africa. The total Islamic banking sector in South Africa is estimated to be worth as much as R12-billion. However, the banks have their sights also set on expansion beyond South Africa’s borders.