An enabling vision of sharia’s role in finance

by Abdel-Maoula Chaar June 22, 2008

written by Abdel-Maoula Chaar June 22, 2008

Islamic finance is becoming an increasingly attractive sector and financial players are seeking to take advantage of its development. The value of assets regulated by sharia principles has reached $500 billion and is expected to exceed $1 trillion by 2010. When compared to the $74 trillion of assets accumulated by the 1,000 top international banks, this number may seem insignificant. Yet, its implications are extremely important. It is indeed a significant indicator that Islamic finance is at a turning point. It is reaching a critical mass and changing from just a “niche market” to a main component of finance. This trend is reinforced by the phenomenal growth rate the field has been experiencing. Experts are talking about a yearly increase of 20-25% or even greater. Whatever the actual number is, it remains above the 11% average growth rate of the conventional financial sector. Furthermore, there are no signs indicating a

Abdel-Maoula Chaar

Abdel-Maoula Chaar holds a PhD in Business Administration with a concentration in strategic management from the French University Paris-Est. He is a full professor at the ESA Business School where he heads the center of research (CRED). He is also member of the school’s scientific council, scientific co-director of the DBA program and co-director of the “Scenarios Factory”; a think-tank which conducts foresight studies on the long-term implications of major societal or economic issues in Lebanon and the Middle East.

An enabling vision of sharia’s role in finance

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