Dr Khirbash highlights impressive global strides made by Islamic Financial Institutions

Speaking to delegates on the opening day of the three-day International Islamic Forum at the JW Marriott, Dr Khirbash said: "A report released by the Islamic Development Bank in Jeddah said Islamic banks would manage 40 to 50 per cent of global Islamic savings within the next ten years. I see no reason to dispute this and believe it is an accurate reflection of trends we are seeing develop in the sector".

The increasing significance of Islamic finance as a global movement was reflected in the fact that more than 600 organisations from 50 countries are attending the International Islamic Forum.

"The success of Islamic financial institutions and banks extends beyond the Gulf region and to the international market. Recently, there was a €100 million Islamic issue in Saxony, Germany. Here was an example, in a European country, of Islamic finance being used to gain access to more investors. Now we are seeing even the biggest and most prestigious international banks in the world offering some form of Islamic service in response to the tremendous growth of the sector.

"Terms such as 'Sukuk', 'Ijara', 'Musharaka', and 'Mudaraba' have become part of the language of finance the world over. Sukuks, in particular, have attracted large investor volumes, with subscriptions exceeding expected issuance even in big issues. The US$750 million Government of Dubai Department of Civil Aviation Sukuk issue was a case in point where the strength of demand encouraged the issuer to increase the amount to US$1 billion, to record the biggest Islamic Sukuk issue worldwide.

"The value of Islamic issues in the Gulf States alone approached US$4 billion last year and these were invariably met with an enthusiastic response from both Islamic and non-Islamic financial institutions and banks. In fact, the contribution of non-Islamic institutions to such issues approached 60 per cent of the total. This proved Islamic finance not only offers an alternative to conventional finance, but also gives a wider range of investors the opportunity to participate"

Dr Khirbash welcomed the export of Islamic finance. He said: "Islamic financial institutions have been able to prove their credentials in non-Islamic markets. Last year, we saw the launch of a new Islamic bank in UK, The British Islamic Bank. The success of the launch encouraged management to approach other European markets and open about 15 new branches in other UK cities."