36 Islamic Finance in Practice
the original seller of the desired asset, eg. the car, kitchen or holiday, to be
involved so simplifying the transaction in terms of guarantees and resale
values. And finally it enables the bank customer to borrow money for non-
specific items.Conclusion
Islamic banking has developed in market terms from the top-down. Growth
over the last three decades has been seen in the development of large
corporate bond issues and more recently the growth of investment products
to sophisticated investors. High net worth individuals have driven the
growth of the personal finance products but it is the burgeoning of mass
market retail banking that will finally cement Islamic banking into the
mainstream of the financial sector.
Islamic retail banking is growing as Islamic regions experience a rapid
growth in their middle class populations. The huge increase in the oil price
also has had its effect on the Gulf region economies, bringing more people
into a position where they have the opportunity to make a choice in how
they handle their personal finances. This increasing sophistication isdriving
the growth of Islamic banking in Asia and the Gulf region. In the UK,
Western Europe and North America, there is also a growing appetite from
Muslim residents for more appropriate banking facilities to meet their
religious requirements. All these factors have made Islamic finance the
fastest growing sector of the global retail finance sector; Yasaar Research
have estimated the sector will account for some 12 per cent of global finance
by 2015.