Islamic finance can offer opportunities for Australia's financial services, Austrade national manager of financial services Gary Johnston said.
Given the depth of our industry and ability to develop complex products, areas like funds management, insurance and private equity can develop products tailored to principles behind Islamic finance, according to Johnston.
"Our close proximity to countries such as Malaysia and Indonesia positions our financial services industry to benefit from these growth markets, which have large Muslim populations and links to key Islamic centres," he said.
Austrade has been actively involved in looking at ways that the sector can benefit from Islamic finance for over 12 months.
Austrade has commissioned research in the area of Islamic finance and supports stronger links with countries that predominately use Islamic finance.
Johnston said there may also be opportunities for Australian funds management firms to form joint ventures with Islamic finance houses. Some of these finance firms are actively looking to set up shop in Australia.
"Australian financial services have the product capability and distribution reach to capitalise on the growth of Islamic finance," he said.
