TheDh 3.68 trillion ($1 trillion) global Islamic finance industry is in the process of developing a road-map to convergeonDh 2.4 trillion ($651 billion)halal market, says Saleh Abdullah Lootah, Managing Director of Al Islami Foods, the leading producer of halal food in the Middle East.
Speakers discussed the convergence mechanism of Islamic Finance and Halal Market at the 8th Kuala Lumpur Islamic Finance Forum 2011 (KLIFF), organized by the Centre for Research and Training (CERT). The event, officiated by the Malaysian Minister of Finance II, Y.B Dato’ Seri Hj Ahmad HusniHanadzlah, was held in Kuala Lumpur, Malaysia, and endedyesterday, October 7, 2011.
Saleh Abdullah Lootah, Managing Director of Al Islami Foods, theDubai based leading Halal food producer, commented: “Islamic stock exchange for both Islamic financial services and halal FMCG companies is a logical outcome and a natural relationship of the two fast growing industries. The time has come to sustain and channelize this growth.”
“Growing Muslim population, awareness and consumers, their rising literacy and professional training, sustainable nature of Islamic economy, role of press and social media are the contributing factors for the impressive growth of Islamic finance and Halal food industry.” Saleh Lootah continued.
He added: “Modern Islamic banking originated with the establishment of the Dubai Islamic Bank in 1975, an Islamic economy movement initiated by the founder of Al Islami Foods Hajj Saeed Lootah, Chairman of Lootah Group, a business conglomerate based in Dubai. Hajj Saeed passionately believes in and practices the Islamic principles and values across every facet of life. His unwavering commitment to these values helped Al Islami to set a benchmark in the global halal food industry.”
From the international Halal food industry, Al Islami was the only halal food company which was invited to this international and prestigious event to share its experience and evolution of becoming a world leader in halal food industry.
Concurrent industry events were organized to cover the completepackage of Islamic finance industry that included: Shariah Forum, The Takaful Rendezvous, Ethics and Finance Roundtable Exhibition, Workshops, Islamic Finance Essay Competition, and Islamic Finance Awards. KLIFF 2011 gathered more than 1,500 delegates ranging from regulatory authorities, Shariah scholars, bankers, legal practitioners, Takaful operators, consultants, and academicians in Islamic finance around the globe.
The Size of Islamic Finance Market in the GCC:
According to a 2009 report titled the Development of Islamic Finance in the GCC, published by the Centre for Study of Global Governance of the London School of Economics:“the value of shariah-compliant assets is impressive in the GCC. The current size of global Islamic finance industry is at overUS$1 trillion (Dhs3.68 trillion), with GCC having US$262.6 billion(AED964.5 billion).”
Islamic finance in the UAE, reports said, has been recording a steady and impressive growth in last few years with US$ 73 billion (Dhs 269 billion). Industry experts estimate the global industry size to rise to US$2 trillion (Dhs 7.3 trillion) in five years.
Malaysia, notwithstanding the efforts of the Gulf countries, claims the world’s largest Islamic capital market with assets rose 15 per cent to US$123 billion (Dhs 452.6 billion) in 2011. The country has integrated the Islamic sector into its broader financial system, providing institutions as well as intermediaries a deep market in shariah-compliant equities, sukuk, exchange-traded funds, real estate investment trusts and derivatives #