Global Islamic finance is growing at a fantastic rate with over half a trillion dollars currently under management. Conservative estimates put the growth rate at 20%, while more optimistic estimates set it at almost 30%. Wealth under management by Islamic financial institutions is expected to skyrocket over the coming years as the world’s 1.3 billion Muslims become increasingly well-off. It is anticipated that by 2015 the sector will be worth $2.8 trillion. A big part of that wealth is coming in the form of petro-dollars, which have saturated the Gulf with liquidity over the past few years. That wealth, in turn, needs to be invested and Islamic financial products are rapidly becoming a popular option. But with Islam’s thirteen-hundred-year-old history, why is Islamic banking just now starting to make the headlines? Historical perspective: product development Source: Iqbal Khan, June 2007 Beginning of the Islamic bank The answer to that question
