Islamic financial systems

More than 100 financial institutions in over 45 countries practice some form of Islamic finance, and the industry has been growing at a rate of more than 15% annually for the past 5 years. Its continued growth in the face of eroding oil revenues reflects other factors, such as the desire for sociopolitical and economic systems based on Islamic principles. Whereas the convention financial system focuses primarily on the economic and financial aspects of transactions, the Islamic system places equal emphasis on the ethical, moral, social, and religious dimensions, to enhance equality and fairness for the good of society as a whole. Banking is the most developed part of the Islamic financial system. Islamic banks are becoming resourceful and are going global, in part owing to their increased integration with international markets. Historically, Islamic financial markets have lacked liquidity-enhancing instruments, however, more liquid instruments are emerging through securitization.