Though the takaful market is only 1 percent of the global insurance market at present, its global market could reach $25 billion at the end of 2015, Ernst & Young's experts said at the recent International Takaful Summit 2011 in London. Global Takaful contributions are expected to touch $12 billion at the end of this year while they were at $9.15 billion in 2010. Saudi Arabia, Malaysia and the UAE are the top three Takaful markets while Egypt, Sudan, Bangladesh and Pakistan are growing at a rapid pace. Abid Shakeel, Islamic Financial Services, Ernst & Young who spoke on "Takaful - the default option for Muslim countries" at the summit said: "Legislation in the Islamic countries to make Takaful products the preferred choice among insurance products can place the industry on a completely different level. As we have seen, growth in the GCC is primarily driven by compulsory insurance rather than only voluntary policies." The Malaysian model, which is widely regarded as more mature and where family Takaful dominates, is expected to be increasingly followed by the rest of the world. The family Takaful market remains underpenetrated as it is estimated to currently contribute only 5 percent in the MENA region compared to 77 percent in Malaysia. "If we look at contributions per takaful operator, Malaysia leads the world at $115.8 million. It is followed by GCC at $$63.5 million, the Indian subcontinent at $$16 million, Africa at $$11.8 million and the Levant at $$4.3 million. There is a tremendous amount of catching up to Malaysia that we could see happen in the future," Ashar added. Terming takaful "the default choice for Islamic countries" and acknowledging its rapid growth, Ashar Nazim, MENA Head of Islamic Financial Services, Ernst & Young, said: "If we continue with the 2009 growth rate of 31 percent or higher, we will clearly touch the $25 billion mark in 2015. We expect that growth will be maintained, as the foundations of the Takaful market in Muslim countries and in emerging markets have already been laid." The takaful industry today is concentrated mainly in the Middle East and North Africa region and in Malaysia, but its future growth markets are the most populous countries of Indonesia and the Indian subcontinent, followed by the African sub-continent and the CIS countries. "In addition to emerging markets, Muslim countries are expected to increase the adoption of takaful and related instruments in the coming years. We expect takaful to be the default choice for Islamic countries in the future," Ashar noted. – SG/QJMErnst & Young was recently awarded the 'Best Advisory Firm' at the International Takaful Summit 2011. The organization's Islamic finance team is credited with several path-breaking initiatives that have helped shape the industry over the years - including the annual global Takaful and Islamic Funds reports. Its authoritative research on global Waqf and Zakat industry is expected to provide further impetus to the growth of Islamic finance sector. - END - *Takaful refers to Shari'a-compliant cooperative insurance Note to editors About Islamic Financial Services Group (IFSG) Ernst & Young's Islamic Financial Services Group (IFSG) is the award winning team headquartered in Bahrain and serving Islamic Banking & Finance clients across GCC and globally. For 12 years now, IFSG team has worked closely with clients on capital planning, strategy implementation, business transformation and product structuring, bringing strong Shari'a knowledge advantage for the advantage of our clients. Acknowledged as the market leader in Islamic Banking & Finance, IFSG is credited with assisting on some of the most influential industry initiatives over the past decade. About Ernst & Young Middle East The Middle East practice of Ernst & Young has been operating in the region since 1923. For over 87 years, we have evolved to meet the legal and commercial developments of the region. Across the Middle East, we have over 4,200 people united across 20 offices and 15 Arab countries, sharing the same values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential. For more information, please visit www.ey.com/me About Ernst & Young Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 141,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential. For more information, please visit www.ey.com Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. 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