The prospects for international Islamic capital markets remain bright, according to Economic Development Board chief economist Dr Jarmo Kotilaine.

Dr Kotilaine discussed the prospects for the future of Islamic capital markets during a speech at the World Islamic Funds and Financial Markets Conference, reported the Gulf Daily News, our sister publication.

This year's event marks the conference's 10th anniversary and comes at a time of growing global interest in Islamic capital markets - including last year's announcement from the UK government that it intends to issue a sovereign sukuk.

The speech assessed the global and regional economic outlook and the potential for a new wave of growth opportunities for Islamic investments.

"Islamic finance is experiencing strong levels of growth worldwide, both as the industry itself matures, and as demand for financial services grows in markets with Muslim populations that are also experiencing rapid growth," Dr Kotilaine said.

"Whether it is in bank credit, capital markets, or initial public offerings, regional economies are showing positive signs.

"Given the underlying growth fundamentals they possess, with young, fast-expanding populations and increasing demand for financial services, the prospects for the industry are strong," he added.

According to him, growth in Bahrain is estimated to be driven by a strong pick-up in the non-oil sector, thanks in large part to the initiation of a number of major infrastructure projects this year.

"With non-oil growth likely to exceed four per cent this year, the finance sector, and the Islamic Finance industry within it, should see significant new growth opportunities, as investors look for means of funding projects," he said.-TradeArabia News Service