Islamic finance needs better offerings

PETALING JAYA: The Islamic finance sector must come up with more competitive products and prices so that it can better meet demand from more sophisticated customers.

PricewaterhouseCoopers (PwC) global Islamic finance leader Mohammad Faiz Azmi said as the economy improved, there would be an increase in demand for syariah-compliant financial products.

Mohamed Faiz - Global Islamic Finance Leader

“Innovative product offerings and competitive pricing should be encouraged to meet the increasing and sophisticated demands of consumers.

“The key issue is return. Better returns and better managed risks will make products more competitive,” he told StarBiz.

Faiz said current prospects for growth remained positive as the principal demand in Islamic finance was based on the expanding Muslim middle class.

“Also, the key advantage of such products is that they are syariah-compliant while the other attributes are secondary. Some would still use Islamic finance products even if the returns are less competitive. Continue reading