The rapid growth of the global Islamic banking market over the last five years has boosted the demand for specialised Islamic banking and finance software solutions, according to Misys, a global application software and services company.

With the influx of mainstream banking institutions, particularly leading Western brands, into Islamic banking throughout the world, the support from specialist solution vendors has become a necessity to ensure a smooth transition to Shariah-based banking, the compaany said.

'Banks embarking on Islamic banking operations in key markets around the world are searching for partners with a thorough understanding of the sector and a proven track record in delivery,' noted Samir Safa, business development manager, Islamic Banking at Misys.

'Islamic banking has opened new and exciting growth possibilities, but it remains a challenge for banking institutions to work within the Shariah-based banking system and adopt its distinct practices.'

'The core banking technology used by financial institutions that operate in this market is essential for meeting local customers' needs, regulatory reporting, operational requirements and Shariah boards' approvals,' he added.

Research from the analyst community estimates that the global Islamic banking market is now worth over $500 billion, with growth forecast of between 10 and 15 per cent during 2010.

According to Safa, Misys has been providing specialised services and software solutions for over two decades that have enabled banking institutions to maintain their competitive edge in this burgeoning market.

'Although the Middle East has in the past been the primary market for Islamic banking, we have been expanding our presence in other regions as the market grows globally. The experience and knowledge we have built from more than 25 years of delivering integrated, comprehensive solutions to customers puts us at the forefront of the marketplace,' he added.

Misys, Safa said, provides its BankFusion Equation Islamic Banking and Finance solution for retail and corporate banking clients that helps them deliver robust and efficient products and services to their customers.

The solution supports a wide range of Islamic Finance products, including Murabaha, Ijarah, Istisna, Musharaka and Al Tawarruq, together with fully automated Islamic Profit calculation and distribution. BankFusion Equation uses our revolutionary BankFusion platform to deliver re-usable components, he added.-TradeArabia News Service