By Melissa Hancock THE BANKER

Year upon year, the Islamic finance industry posts stellar growth figures. However, as large Western lenders withdraw from the sector, is Islamic finance in as healthy a shape as the figures suggest? The Banker asks a number of experts in the field what the future holds for sharia-compliant banking.

There has been no shortage of articles written about how Islamic finance is growing at a galloping pace, with its estimated 15% to 20% annual growth rate considerably outstripping that seen in the conventional banking industry. Global Islamic assets held by commercial banks stood at $1.3bn in 2011, but the industry’s forecast growth of some 40% over two years will see this figure rise to $1.8bn in 2013, according to research by Ernst & Young.

To put these statistics in perspective, however, it is worth bearing in mind that Islamic finance is growing from a relatively low base; Islamic banking assets account for less than 1% of global banking assets today.

READ MORE HERE: http://www.thebanker.com/Markets/Islamic-Finance/Islamic-finance-in-2013-beyond-the-growth?ct=true