Many experts are estimating the growth of the Islamic
finance industry at 15-20% per annum, with some predicting that it
could become a major competitor to the conventional finance
industry. Experts expect to see Islamic finance spread beyond
Muslim countries, as seen in Europe, where it has already made
considerable headway in UK, Germany and Switzerland.
As a result of these developments, Islamic financial
institutions have developed a vast range of products designed to
serve the growing market. Several "Islamic equity" investment funds
have also been launched, with both FTSE and Dow Jones providing
indices to monitor this growing market. Islamic finance is
important in helping the City of London maintain and develop its
status as the global financial centre. Presently, it is estimated
that Islamic banks and financial institutions manage some
US$200-300 billion of funds all over the world (Standard &
Poors Islamic Finance Outlook 2008).