To be able to forecast the potential international factoring volume increase by way of Islamic International Factoring, we need to analyse three areas. First is the growth rate of Islamic financial assets, second is the percentage of Islamic assets in the total assets of Organisation of Islamic Cooperation (OIC) countries, and third is the international trade volume of those OIC countries.
Although oil prices and global economic fluctuations affect the value of the assets, given the yearly increase in transaction volumes and the Islamic population, global Islamic finance assets could reach $4 trillion in the near future.
Chart 1: Islamic assets as a percentage of total assets of OIC countries
Islamic assets as a percentage of total assets of OIC countries
The percentage of Islamic financial assets within total financial assets in OIC countries. Taking the expected growth of Islamic assets we should expect also that the percentages in many countries will grow with the increase in the awareness of commercial people avoiding interest based transactions and the increase in the number of Islamic financial institutions. An increase in Islamic international factoring transaction volumes will obviously serve such growth.
Chart 2: The percentage of Islamic financial assets within total financial assets in OIC countries.
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