AFP, Dubai :
The slowdown in Islamic finance growth is likely to continue through 2017 due to low oil prices and lack of regulation, Standard and Poor’s Global Ratings said Monday.
The asset growth of Islamic banks fell to seven percent last year from 12 percent in 2014 when oil prices began to decline, the ratings agency said in a report.
“We think this slowdown will persist in 2016 and 2017 with growth stabilising at around five percent. Lower oil prices mean lower liquidity at Islamic and conventional banks in core markets.”
Islamic finance remains concentrated primarily in oil-exporting countries, with Arab states of the Gulf, Malaysia and Iran, accounting for more than 80 percent of the industry’s assets.
The slowdown in Islamic finance growth is likely to continue through 2017 due to low oil prices and lack of regulation, Standard and Poor’s Global Ratings said Monday.
The asset growth of Islamic banks fell to seven percent last year from 12 percent in 2014 when oil prices began to decline, the ratings agency said in a report.
“We think this slowdown will persist in 2016 and 2017 with growth stabilising at around five percent. Lower oil prices mean lower liquidity at Islamic and conventional banks in core markets.”
Islamic finance remains concentrated primarily in oil-exporting countries, with Arab states of the Gulf, Malaysia and Iran, accounting for more than 80 percent of the industry’s assets.
