Potential volume of transactions
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.
The growth rate of Islamic financial assets
Although oil prices and global economic fluctuations affect the value of the assets, given the yearly increase of transaction volumes and Islamic population, global Islamic finance assets could reach $4 trillion in the near future. The line graph shows an average growth of 6%between 2012 and 2017 despite the fall in 2014.
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.
International trade volume of OIC countries*
Global trade volume of OIC countries is calculated as $2.5 trillion. About 73% of this volume ($1.8 trillion) is attained by the rst 20 countries listed above. Only four of those countries are member of OIC (countries numbered with a one on the right-hand side of the list). This list alone proves that there is a huge potential volume that can be reached by FCI members by Islamic International Factoring. The numbers on the left-hand side of the list show the number of FCI members in those 20 countries.
*Source: Yuce Uyanik