A shot in the arm: future challenges for Islamic banking

Existing Islamic financial institutions should welcome the globalization of Islamic banking. It is inevitable that these institutions will be challenged by Western competitors like Citibank. Such competition is necessary for the globalization of Islamic banking to continue. Increasingly, multilateral agencies are turning to Islamic finance for investment opportunities. Islamic banks must now meet the challenge by emerging out of the protectionist policies of Islamic governments. There are many encouraging signs that Islamic banks will soon be able to compete in a truly global market.