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Islamic Funds’ Asset Growth Likely To Slow

News From : DagangHalal.com (26 Mar 2009)

The rate of asset growth of funds in Islamic financial instutions this year is expected to be slower than in 2008, says Kuwait Finance House (M) Bhd managing director Datuk K. Salman Younis.

He said this was due to the prevailing global economic downturn but added that long-term recovery was certain.

“We believe asset growth of Islamic funds will be back to its strong level once the global economy improves,” he said at the Dow Jones Islamic Market Indexes media briefing yesterday.

Salman said there was huge potential for Malaysia to be the leading Islamic financial hub in the region and for Islamic financing to be the country’s key pillar of growth.

According to The Banker, a global financing intelligence magazine, the top 500 Islamic financial instutions charted a 27.6% asset growth to US639.1bil in 2008 compared with US500.1bil the previous year.

The major contributors to asset growth for Islamic funds are Gulf Cooperation Council (GCC) countries (US$262.7bil) ; Asia (US$67.1bil), led by Malaysia ; Australia/Europe/the United States (US$35.3bil) ; and non-GCC Middle East countries, Middle East and North Africa (US$248.3bil).

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