The growth figures for Asia are staggering, and nothing less than impressive. Southeast Asia alone is expected to grow at an average of 5.6% in 2012, up from 5.3% in 2011, while intra-trade between South Asia and the Middle East has seen a hike to 11% over the last year, and is expected to remain on an upward trajectory; all this amid the cacophony in the global financial markets. However, Asia’s position as an emerging market also places it in a Catch-22 situation; while growth is hard to be ignored, risk is equally high, and an unfamiliarity among the global financial community with the business dealings within Asia and a perceived disparity in business cultures and norms has somewhat created trepidation among investors looking to park their money in what seems to be the world’s most bustling region in terms of growth and issuer activity. In terms of Islamic finance, market players are confident of key areas within Asia such as project and infrastructure financing, development of soft sectors such as IT and healthcare, and wealth management to name a few. And many are restless for the Islamic finance community to focus on this emerging market and tap the existing growth opportunities to further boost the industry’s position; and perhaps to some degree popularity, among the general investment community. Should Islamic finance successfully work in tandem with Asia’s growth story, there is no doubt that the market will eventually achieve what it has always sought – the elusive question of critical mass and secondary market deepening. With the proper implementation of regulations and the provision of sufficient infrastructure, the capital markets of Asia will continue to thrive and attract liquidity from all over the world. From being an exotic market with immense growth potential, Asia is now in the driving seat to become the world’s new economic giants.
Posted on: Wed, 04 Sep 2013 06:24:59 +0000