Business

Wednesday February 25, 2009

Deloitte expects double-digit growth from Islamic financing


KUALA LUMPUR: International financial consulting firm Deloitte sees double digit growth in global Islamic finance in the next few years on the back of growing interest from non-Islamic markets, said Daud Vicary Abdullah, a specialist in Islamic finance with Deloitte Consulting Malaysia Sdn Bhd.

“Countries like Japan, South Korea and Singapore are showing more interest in the Islamic finance because of the value of the products offered and also the transparency of the transaction,” Daud said at the launch of the Deloitte Islamic Finance Centre of Excellence for the Asia Pacific region in Kuala Lumpur.

“The Asia Pacific market, for example, is showing an average of 12% to 15% annual growth and with vast liquidity in countries like Malaysia, the potential to expand this business is very big.”

Daud said although the sukuk (Islamic bonds) market was a bit down last year, the overall performance in other areas of Islamic finance such as asset management and insurance was positive.

Deloitte’s KL centre is the only such centre in the Asia Pacific region and one of three globally, alongside London and Dubai.

Commenting on the KL centre, Deloitte Asia Pacific chief executive officer Chaly Mah Chee Kheong said a team of eight professionals had been set up to provide advice to corporations, organisations, banks and the government on matters related to Islamic finance.

“These people have background expertise in Islamic finance such as accounting, negotiating and tax law as we want to give the best service to all our clients,” he said.

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