Moody’s forms global Islamic finance group
Moody's Investors Service has formed a dedicated global Islamic finance group (IFG) to meet the growing demand for Islamic finance credit ratings and research, as Islamic capital markets, insurance products and banking continue to register double-digit growth rates.
The IFG will deliver independent analysis of Shari'ah-compliant products, financial institutions and takaful insurers to support an improved understanding of the credit risks and market trends in this rapidly expanding sector.
It will be chaired by Dubai-based Khalid Howladar, recently-appointed global head of Islamic Finance, and draws expertise from Moody's sovereign, banking, corporate, insurance and structured finance analytical teams worldwide.
Howladar has held various positions at Moody's since 2001, spanning both the structured finance and financial institutions groups, and will continue to provide coverage for GCC conventional banks with the Dubai-based banking team.
The launch of the IFG recognises the growing importance of Islamic finance in international capital markets, particularly in fast-growing economies in the Middle East and Asia, said Moody’s.
Howladar said: “The Islamic finance industry is relatively new, complex and evolving rapidly, which highlights the constructive role that Moody's independent opinions and research on credit risk can play for global investors.
“Given the natural affinity of customers within the Gulf and Malaysia towards Islamic banking, growth of these banking assets in emerging markets is broadly twice that of conventional banks. Saudi Arabia's domestic banking and sukuk markets are already strong, while newer markets, such as Turkey and Indonesia, also show very significant long-term growth potential.”
