AMF expects significant growth of Islamic financial products and services

Kuwait January 11 (Reuters) - The Arab Monetary Fund predicted on Monday that the Islamic economy and the various products is growing rapidly in the coming years.

The head of the Board of Directors and Director General of the Fund Abdulrahman bin Abdullah Al-Hamidi, recent years have seen a "significant growth in the Islamic financial products and services is expected to continue growing at a rapid pace, especially as there is an increase in demand for these products."

He added in a speech at the opening session of the Islamic Insurance Fund held with the World Bank in Abu Dhabi and published on the Fund's Web site that there is a desire by banks including traditional banks to provide Islamic financial services.

Hamidi stressed that Islamic finance has become an integral part of the global financial system has evolved since 1960 and became includes banking, insurance and capital markets grew at rates ranging between 15 and 20 percent a year since 2000 until it reached about $ two trillion by the end of 2014.

He said that the provision of Islamic insurance services is one evidence of the remarkable progress in expanding the provision of banking services and products that comply with Islamic law.

Islamic insurance is based on the principle of financial compensation to protect against unforeseen risks and depends mainly on co-insurance on the basis of risk-sharing by customers in accordance with the cooperative principles rather than transfer the risk to a third party.