SOUTH AFRICA: Islamic finance remains in its infancy stage in the country, but there remains potential for rapid growth, said industry experts.
Yusuf Dukander, an Islamic finance specialist at the South African Institute of Chartered Accountants, said that while Islamic financial services assets in the domestic market are growing between 15-20% a year, there is still a long way to go in terms of growth.
Meanwhile, Imraan Jakoet, an analyst at Glacier, the investment unit of financial services firm Sanlam, said that: “We believe Muslims in South Africa are underinvested in financial products that comply with Shariah laws.”
The country currently sees 12 Shariah compliant unit trusts, from five in 2007; while total assets in Islamic funds stand at ZAR12 billion (US$1.47 billion).
Imraan also noted that growth for the balanced fund segment is well below potential, due to a shortage of Sukuk in the country.