Islamic Finance Center opened in Istanbul

The World Bank's Global Islamic Finance Development Center opened in Istanbul on Wednesday evening with a ceremony attended by World Bank Group President Jim Yong Kim. Deputy Prime Minister Ali Babacan, Treasury Undersecretary Ibrahim H. Canakci and Borsa Istanbul Chairman Ibrahim Turhan also attended the opening ceremony. Speaking at the ceremony, Babacan said that the interest-free Islamic finance system makes important contributions to global financial stability. "Interest-free finance, which works in a system based on risk-sharing, reduces systemic risks. This is the basic difference between Islamic finance and other conventional financial institutions," Babacan said. The center is a World Bank initiative whose mission in Istanbul will last four years, ending in 2017. It will develop Islamic finance programs and establish a physical presence for the World Bank in Istanbul. The center will collaborate with stakeholders in Islamic economics and finance, including international financial institutions, standard-setting bodies, nongovernmental organizations and the private sector. Turkey is regarded as the most promising market for Islamic finance with its diversity of financial products, services and practices; young and dynamic population; qualified labor force; developed financial markets; and strong regulatory framework. The Islamic finance industry, growing rapidly over the last 40 years, has demonstrated its potential with strong, steady 15-to-20 percent growth throughout the recent economic crisis, and Standard & Poor's predicts global Islamic financial assets will rise to as much as $3 trillion by 2015 and $6 trillion by 2020.