Internationalising Islamic Finance: Prospects & Challenges
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Not long ago, the Islamic finance industry was seen as a niche market, catering only for a specialised segment within the global banking industry. However, the credit crisis of 2007-08 and the more recent Eurozone debt crisis have catapulted Islamic finance into the mainstream. Today, the industry is worth over US$1 trillion, with market share crossing the critical 25% threshold, in the Gulf Cooperation Council (GCC) countries. But Islamic banking has reached a crucial crossroads. As conventional banks increasingly come under pressure for damaging local businesses and global economies, can Islamic financial institutions fill the global financing gap, with their focus on serving the real economy?

For Islamic banking to remain relevant it must move beyond its traditional stronghol...