Islamic finance set to sustain economic growth in MENA:experts

Rapidly-growing Islamic-based finance will drive the next phase of economic growth across the Middle East and North Africa (MENA), financial leaders have said.
Bankers in attendance from around the world at the Euromoney Qatar Conference in Doha this week provided critical insight into the state of the global economy, and the MENA region's growing role as a source and key market for Islamic-based finance.
Globally sharia-compliant assets are estimated to be worth USD 1.4 trillion, and slated to post double-digit growth in the next two-to-three years, a recent report from Standard & Poor's said.
The GCC and Asia are set to be Islamic finance leaders, followed by newcomers such as Turkey and Nigeria. The GCC includes Arab states bordering the Persian Gulf, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.

As well as funding planned government infrastructure investment, Shariah-compliant finance is increasing its importance in the corporate space.
International communications company Ooredoo recently launched a USD 1.25 billion five-year Sukuk as part of a growing trend.

The rise of the Islamic financing sector will provide important stimulus at a critical period for the MENA region, where there is increasing pressure to boost employment opportunities and enhance support for the private sector.
The MENA region needs to create 75 million jobs to keep pace with population growth, requiring greater investment by small- and medium-sized enterprises which represent 80 per cent of the region's businesses, according to figures presented at the conference.

"The private sector is the main engine of growth for jobs, better income and increased standard of living. Achieving this developmental goal will require public-private partnerships, supported with Islamic finance.
"Qatar is assuming an increasingly prominent place on the world stage, while playing an important role in socio-economic development in Africa, Central Asia, and Southeast Asia," said Khaled Al-Aboodi, Chief Executive Officer, Islamic Corporation for the Development of the Private Sector (ICD).
Beyond the GCC, Turkey is becoming more active in the Islamic finance market in order to enhance economic growth, as the country recently issued two sovereign Sukuk: USD 1.5 billion 5.5-year in September 2012, and USD 1.25 billion 5-year in October 2013.

For delegates from the international finance sector, as well as for local decision-makers in Qatar, this year's Euromoney Qatar Conference has provided an important opportunity to share ideas and better understand the changing dynamics of the global economy.
Euromoney runs large-scale events in the major financial capitals of the world and in selected Middle Eastern countries - notably Saudi Arabia, Egypt, Kuwait and Qatar.