The Philippines with its sound and stable banking system is positioning itself as a viable investment destination for Islamic banks.
“We have liberalized the banking system. The Islamic banking law was built to provide flexibility in promoting and developing Islamic finance in the country,” said BSP Assistant Governor Arifa A. Ala, BSP ambassador for Islamic banking and finance and chair of the Islamic Finance Coordination Forum. Bangko Sentral ng Pilipinas cited investment opportunities in the Philippine Islamic Banking and Finance sector during the PH Dialogue: Economic Outlook and Opportunities in Doha, Qatar on September 10, 2023. From left are: Department of Budget and Management Undersecretary Margaux Marie V. Salcedo; DBM Secretary Amenah F. Pangandaman; Department of Finance Secretary Benjamin E. Diokno; National Economic and Development Authority Secretary Arsenio M.
Further, latest data from the Philippine Statistics Authority showed that there are 6.98 million Muslim Filipinos, consisting of 6.4 percent3 of the country’s population. Given their specific needs for financial services, Islamic banks may find it worthwhile to do business in the Philippines and cater to this underserved segment.
“Currently, the market for Islamic finance and halal industry across the world is about US$7.2 trillion. In 2028, it is expected to grow to US$11.2 trillion,” Deputy Director Guiapal said.