Islamic finance hindered by prejudice

The growth of the Islamic finance industry continues to be hindered by prejudice, fragmented markets and a lack of transparent regulation, according to Islamic finance executives at a conference held in Malaysia this week.

At the IFN Forum held in Kuala Lumpur on May 26, chief executives of large Islamic banks said that poor understanding of the sector one that is open to non-Muslims too is a major impediment despite more than a decade of heady growth.

“A lot of people still do not understand that Islamic finance is a commercial transaction that is deemed socially responsible and is open to everyone,” Badlisyah Abdul Ghani, CEO of...