Sharia finance has grown to become a major force in the global economy.

Sharia finance began principally as a financial system ideally suited to Muslim customers and companies, allowing them to carry out transactions and make investments in accordance with Islamic beliefs and Sharia laws. However, Sharia finance has now expanded beyond the Islamic world and has a growing presence in many countries worldwide.

Sharia finance began in Egypt with the groundbreaking Mit Ghamr savings project in 1972. This became part of the Nasr Social Bank, which is still going strong in the country today, but it didn't take long for its ideals to expand beyond Egypt into other Islamic countries.

The opening of Sharia banks in GCC countries soon followed, with the Islamic Development Bank opening its doors in 1975 and helping enormously in funding similar projects in other Islamic states. This was most notable with the Dubai Islamic Bank in 1975, which became the first modern commercial Sharia financial institution.

The subsequent decades saw Sharia banking becoming a significant economic system, and not only in the Islamic world. Current growth is estimated between 10 and 15 per cent year on year, and is expected to continue growing in the future as more countries embrace Islamic banking and more international banks open dedicated Sharia finance arms for customers. Currently, more than 50 countries feature Sharia banks in some form, including global superpowers such as the United States of America - which offers more than 250 types of mutual funds designed in accordance with Sharia laws.

The global presence of Sharia finance should not be underestimated, with the total worth of assets being estimated at over one trillion US dollars, or 0.5 per cent of total world assets. Thanks to the strong presence of Sharia finance in European countries such as Luxembourg and the United Kingdom, more people are becoming aware of this relatively new alternative to traditional banking, which can be of great benefit to Muslims and non-Muslims alike.

This is because Islamic finance is open to everyone, and does not require belief in the Islamic faith to participate. Indeed, the system of Sharia finance has been praised by the Vatican for its potential benefits to struggling markets, following the global economic downturn that caused less damage to Sharia banks than many others. Many people in all corners of the world are looking for an alternative to traditional banking systems that may have let them down, and Sharia finance could be said to offer a more ethical and financially secure option.

The author of this article is a part of a digital blogging team who work with brands like Fidomes. The content contained in this article is for information purposes only and should not be used to make any financial decisions.