World News

Islamic Banks are Increasing their Share of the EU Market

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The abrupt growth of the Muslim population in EU countries has led to the growing amount of influence that Muslim migrant communities are now enjoying over the economic and political life of European countries. The percentage of Muslims in the population of European states is constantly growing, with this number jumping from around 4% back in 1990 up to more than 7% of the total population in 2014. According to the Pew Research Center, this ratio will exceed 8% of the EU population by 2030.


However, it won’t be an exaggeration to state that Muslims have never played the role that they are playing today in the financial sectors of the EU economy. Islamic finance practices deserves a special attention, since it’s becoming an integral part of the global financial system. This phenomenon that is based on the traditional values of Islam, appeared in the second half of the 20th century after the collapse of the colonial system. Islamic finance practices are providing a sort of an alternative to the liberal values of capitalism and the principles of socialist planning. The share of Islamic financial services still makes up about 15% of the market even in the Islamic world. And in the global volume of assets of the financial sector it amounts to mere 2%, but they’ve been gaining ground rapidly over the years.


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