Moody's report says weak coordination hinders growth of Islamic finance industry
Modern Islamic finance is a recent phenomenon. Only 30 years have passed since the first fully fledged Islamic financial institutions (IFIs) emerged, and the market for Sukuk (Islamic bonds) was virtually nonexistent as recently as the beginning of this century. Today, estimations tend to value the Islamic financial industry, which comprises about 300 Shari'ah compliant banks, Takaful companies and mutual funds in line with the principles of Islamic finance, at more than $700 billion in terms of assets. “The market for Sukuk alone, accounting for around $100 billion at year-end 2007, has exceeded the GDP of a country the size of Morocco,” said Anouar Hassoune, a Moody's analyst and author of the report.