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Development of Islamic finance in Industry 4.0 era
Islamic finance is one of the fastest growing segments of global emerging markets. However, the market is far below its potential.
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Finance Minister Sri Mulyani Indrawati speaks at a symposium on Islamic infrastructure finance, which is part of a series events during the IMF - World Bank Group 2018 Annual Meeting in Nusa Dua, Bali on Oct. 10. (Antara/Jefri Tarigan)
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slamic finance is one of the fastest growing segments of global emerging markets. However, the market is far below its potential. Over the last two decades, the total volume of Islamic financial assets has grown by 15 to 20 percent a year.
Islamic finance assets are projected to grow to US$3.2 trillion by 2020, with Islamic banking reaching $2.6 trillion (Thomson Reuters’ projections). The growing popularity of Islamic banking and finance and its increasing global outreach has led to a considerable undersupply of talent in the sector.
Estimations are that there is a shortfall of between 8,000 and 10,000 in core Islamic finance fields, plus more in peripheral sectors such as law and regulatory affairs, financial technology, insurance and others. Altogether, as the industry continues to grow, at least 56,000 people will be needed to serve the Islamic financial sector in the coming years.
The Fourth Industrial Revolution” (Industry 4.0) is the notion of an industrial revolution that will alter the way we live, work and interact with one another, including how we utilize and deploy highly disruptive technologies such as artificial intelligence, robotics and blockchain technologies. This impact is clearly evident in the banking and financial industry. Disruptive technologies force virtually all industries to fundamentally revise their business models or even define new ones.
