The rapid growth of the Islamic financial market in the Gulf Cooperation Council (GCC) region and South East Asia over the last five years has created a thriving market for the suppliers of support technology to develop and enhance their offerings to meet the increasing demands of their customers who operate within this specialized segment.
However, the current economic meltdown in the US and European markets (which is likely to spread to other regions) will force Islamic finance players to review and redefine their focus on how to survive in a highly turbulent market place. Many proponents of Islamic finance claim that it will not be greatly affected by this meltdown due to the underlying principles of Shariah, nevertheless, regulators will require Islamic financial institutions to enhance key processes, including risk management, to withstand the shock should another meltdown occur.
Therefore, opportunities are in the offing for suppliers of supporting technology in Islamic finance to re-architect their offerings in anticipation of the changes required by Islamic finance regulators and players as they cope with the changing landscape post the economic meltdown.
More on Structured Products
Chris Leone and Dushyant Chadha replace Paul Galietto
Steffen Scheuble says growth in mainstream strategies may be nearing saturation point
Capital-at-risk product pays out early if crude index is no lower than strike price in 30 months’ time
Investors’ capital at risk if underlying is below barrier level at maturity
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.