Malaysia is poised to assist Hong Kong in developing its Islamic finance sector but will wait for the city to clarify its policy direction first. Consul General Muzambli Markam highlighted that Islamic finance in Hong Kong is projected to grow significantly, reaching an estimated US$4.94 trillion by 2025. However, past efforts to penetrate this market have faced challenges, with only US$3 billion in sukuk issued from 2014 to 2017 due to a lack of interest [2fdf5cc5].
Markam emphasized the importance of adapting to Middle Eastern consumer behaviors, suggesting that Hong Kong should consider extending shopping hours and enhancing Halal options to attract this demographic. Currently, there are only 105 halal-certified eateries in Hong Kong, which may limit its appeal to Muslim consumers [2fdf5cc5]. In contrast, Malaysia's Islamic financing reached US$190 billion last year, accounting for 42% of its domestic banking loans, showcasing the potential benefits of collaboration [2fdf5cc5].
The rise of Islamic finance in the MENA region has been bolstered by strong profits in Islamic banks, which have thrived without the burden of low-interest-rate mortgages [e21d4aae]. This growth is supported by Saudi Arabia's commitment to becoming a leader in Islamic finance and sustainable projects, as highlighted by Crown Prince Mohammed bin Salman [bf14fc72]. Additionally, the expansion of the BRICS bloc is reshaping global economic dynamics, with business leaders discussing the potential for the Global South to enhance its economic standing [524e3220].
As Hong Kong bankers consider opportunities in the Middle East, understanding these dynamics and the importance of Islamic finance could be crucial for their career advancements [f05885cc].