JEDDAH: Global Islamic finance is expected to maintain its rapid pace of growth, strengthening its credibility as a real alternative to conventional finance, Standard & Poor’s Ratings Services (S&P) has said.
However, structural problems continue to limit its potential while its growth has made the industry more sensitive to global economic fluctuations, it noted, according to Saudi Gazette.
The contrasting fortunes shaping Islamic finance will be the subject of a conference today (Oct. 2) hosted by S&P in Dubai.
Stuart Anderson, Managing Director & Regional Head, Middle East at Standard & Poor's, said: "We remain upbeat on the outlook for the global Islamic finance industry."
But are increasingly conscious that as it achieves critical mass, the industry will be exposed, more than ever, to the volatility of international markets."
Prospects for the sukuk sector will be one of the key focuses of the conference.
Despite registering healthy volumes in 2013, the sector is seemingly struggling to match last year’s exceptional growth due to tougher market conditions.
Worldwide year-to-date issuance dipped 25 percent from last year to $77.4 billion, as of September 22, 2013.
Nevertheless, 2013 issuance to date is already approaching total annual volumes achieved in 2011.
Despite challenges, S&P believes 2013 sukuk issuance is on course to cross the $100 billion mark. (QNA)
