Islamic finance has many growth opportunities to provide in both the Australian financial services sector and the wider economy, according to the Australian government, reports Financial Standard.
The introduction of Shariah products to the domestic market would "help to create jobs and boost sustainable growth", the parliamentary secretary to the treasurer, Bernie Ripoll, reportedly said at an Islamic Finance Forum in Melbourne.
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He added: "The Shariah prohibition of highly speculative activities not only helps to protect the economy against abuses and distortions, but also forges a closer link between financial activity and the real economy.
"The introduction of Islamic finance products into the Australian market is not a replacement for other forms of finance, but rather a door to new opportunities for our financial services sector and for our economy more broadly," he said.
The Islamic finance industry is growing at a rate of 15%-20% per year and recent estimates cited by Ripoll said it could be worth as much as US$2 trillion in the next four years.
Ripoll also sought to reassure delegates that Shariah-compliant products would be privy to the same regulation and capital laws that governed all Australian financial products.
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