2011-04-18-奥纬咨询-Islamic_Finance_16页_449kb

Provide Islamic and Financial Services Increasing Demand for New Institutions in Muslim World

This report addresses the gap in access to finance for Muslims, which presents significant opportunities for Islamic finance to drive economic development. Muslims constitute about 20% of the global population, with 70% lacking access to basic financial services, particularly in countries with large Muslim populations where economic growth is constrained. Islamic finance, preferred by many Muslims due to Shari’ah compliance, currently holds only 1% of global financial assets but has been growing at over 30% annually since 2000. The demand for at least 150 new financial institutions is estimated, with the majority needed in the Muslim world.

Key challenges include operationalizing Islamic financial products, such as profit-and-loss sharing agreements, and issues with standardization, regulatory frameworks, and insufficient expertise. However, there is strong customer demand for Islamic products, often willing to pay a premium, driven by principles emphasizing real economic ties, prohibition of harmful activities, and promotion of social justice.

To capitalize on this, institutions should adopt tailored entry strategies based on market and country characteristics. These include Islamic windows (for rapid entry), conversions (leveraging existing institutions), and greenfield development (for emerging markets). Market positioning varies from established economies focusing on product innovation to less developed regions needing infrastructure expansion. A structured approach to building institutions, learning from examples like ProCredit, is crucial for scalability and success. This growth potential, especially in regions like Sub-Saharan Africa, could significantly enhance financial inclusion and development.

Greg Rung, Travis Hollingsworth, and Rico Brandenburg, as part of Oliver Wyman, analyzed this market, highlighting the need for strategic focus on demand, competitive analysis, and region-specific approaches to maximize opportunities while navigating challenges.