A reversal in globalisation creates opportunities for Islamic finance in Asia-Pacific
The current reversal in globalisation and the challenges faced by the Western financial system are presenting fresh opportunities for Islamic finance to gain a stronger foothold and influence among consumers and investors in the Asia-Pacific region, according to industry expert Azman Mokhtar. He stated this at the Asian Financial Forum in Hong Kong, highlighting the potential for Hong Kong to leverage its status as a global financial hub to establish connections with industry powerhouses in Southeast Asia and the Middle East.
Hong Kong’s position as a global financial hub presents opportunities for collaboration in Islamic finance
Azman Mokhtar, chairman of the leadership council at the Malaysia International Islamic Finance Centre, has emphasized that Hong Kong is well-positioned to collaborate with market leaders such as Malaysia, Indonesia, and Saudi Arabia. He believes that Hong Kong can broaden or deepen its services by leveraging its connections with these industry powerhouses. With shifting sands and new trade and investment routes emerging, Mokhtar sees potential for Hong Kong to strengthen its role in Islamic finance in the region.
The expertise of Malaysia, Indonesia, and Saudi Arabia can benefit Hong Kong’s Islamic finance sector
According to Azman Mokhtar, the expertise of countries like Malaysia, Indonesia, and Saudi Arabia can contribute significantly to the development of Hong Kong’s Islamic finance sector. By collaborating with these market leaders, Hong Kong can tap into their knowledge and experience to strengthen its offerings in Islamic finance. This collaboration has the potential to attract more consumers and investors in the Asia-Pacific region, as well as enhance Hong Kong’s reputation as a global financial center.
Azman Mokhtar’s background and experience in the financial industry
Azman Mokhtar, the chairman of the leadership council at Malaysia International Islamic Finance Centre, has an extensive background in the financial industry. Prior to his current role, he served as the managing director of Khazanah Nasional, Malaysia’s sovereign wealth fund. Under his leadership, the fund’s investment assets grew to 122.5 billion USD by the end of 2022. Mokhtar’s experience and expertise make him a reputable industry expert on Islamic finance and its potential in the Asia-Pacific region.
The potential for Islamic finance to grow amid global de-globalisation
The current de-globalisation trend in the world presents unique opportunities for Islamic finance to grow and expand its influence. As global trade and investment routes undergo significant shifts, there is a need for alternative financial systems that can cater to the changing landscape. Islamic finance, with its ethical principles and focus on shared risk and profit, can offer an attractive alternative to traditional Western financial systems. With Hong Kong’s strategic position as a global financial hub, the city has the potential to play a significant role in the growth of Islamic finance in the Asia-Pacific region.
Analyst comment
Positive news: The reversal in globalisation and challenges faced by the Western financial system present opportunities for Islamic finance in Asia-Pacific. Hong Kong, as a global financial hub, can collaborate with Malaysia, Indonesia, and Saudi Arabia to strengthen its role in Islamic finance. By leveraging their expertise, Hong Kong’s Islamic finance sector can attract more consumers and investors, enhancing its reputation as a global financial center. As global de-globalisation continues, Islamic finance can grow and offer an attractive alternative to traditional Western financial systems.
