##kuk, and fund, asset and wealth management activities. the pace of product innovation has also intensified with more sophisticated islamic banking and takaful products as evidenced by the surge of structured products and investment - linked products. these products have become competitive both in terms of product structure and pricing. the enhanced depth of the islamic financial markets has also increased its attractiveness as an asset class for investment. these developments have resulted in an extensive range of islamic financial products and services that is being offered to consumers and businesses. the third dimension in which there has been significant evolution is in the regulatory and legal framework for islamic finance which has taken into account the distinct features of islamic financial transactions. this has ensured that the growth and developments of islamic finance is accompanied by the corresponding development of the supporting legal, regulatory and supervisory framework to ensure its soundness and stability. the establishment of the islamic financial services board in 2002 also marked an important milestone in the development of the prudential regulatory standards and best practices for islamic financial institutions. its establishment has also contributed to the harmonisation in the development of islamic finance across different jurisdictions. fourthly, the international dimension of islamic finance has rapidly gained significance as it evolves to become an increasingly important part of the international financial system, and as is becomes poised to contribute towards greater global financial integration. islamic financial institutions have now ventured beyond their domestic borders and funds raised in islamic financial markets in different jurisdictions have drawn investors from financial centres across the globe. as market players across continents participate in the expansion of interregional investment flows, it has enhanced financial linkages among the major regions. to date, the number of islamic financial institutions worldwide has increased to more than 300, spanning more than 75 countries both in the muslim and non - muslim countries. 1 the expansion of the inter - linkages among intermediaries and markets across regions would contribute towards a more efficient allocation of financial resources across borders and thus contribute to enhancing global growth prospects. the fifth dimension that has seen significant change is in the development of human capital in islamic finance. it has been a vital development that has been key in ensuring an adequate supply of talent and expertise for further expansion and development of the islamic financial services industry. high caliber professionals that have the combined knowledge and understanding of the shariah with the necessary skills in finance 2 are now in great demand. recognising this, several major institutions of higher learning are offering more focussed and structured programmes in islamic finance. the establishment of the international centre for education

on infrastructure over the next five years, while infrastructure requirements in the middle east are estimated to be usd700 billion over the same period. 3 while in malaysia, the national economic regional corridor plan requires an estimated usd192 billion ( rm620 billion ) of investment. 4 on the demand side, the issuer also benefits from the competitively attractive pricing of sukuk ranging from 10 to 20 basis points lower than mainstream bonds. this has resulted from the continuous over subscription of the sukuk which has ranged from two to thirteen times. the phenomenal demand for sukuk is further reinforced by excess liquidity in the global financial system. this demand comes from a relatively wider investor base that comprises both the conventional and islamic investors. the strong demand for sukuk has also been spurred by the higher level of surplus savings and reserves in asia. in the case of japan, apart from the high savings rate, japan has the largest percentage of high net worth individuals wealth distribution in the asia pacific. from the investors'perspective, besides the intrinsic value of sukuk which is largely assetbacked, convertible to shares and exchangeable with shares, there are benefits of source : gcc research, kuwait finance house. an estimate amount of investments for eastern corridor economic region ( rm112 billion ), northern corridor economic region ( rm100 billion ), iskandar regional development ( rm382 billion ) and sabah development corridor ( rm25. 8 billion ). diversification. sukuk is fast becoming a new asset class. sukuk has also generated good investment returns for investors arising from its higher pricing in the secondary market due to the " buy and hold " preference and its scarcity. opportunities in takaful the other opportunities in islamic finance are in the takaful or islamic insurance and retakaful. the global takaful market, in particular, has also undergone positive developments at the international level. from only a single takaful company being in existence more than twenty years ago in sudan, the takaful industry has now expanded with the establishment of more than 50 takaful companies worldwide with a total contribution estimated at about usd3 billion for the year 2005. the takaful industry is expected to grow at about 20 % per annum to reach usd7. 4 billion in global annual contributions over the next ten years. 5 it is also encouraging to note that the number of retakaful companies have also grown in tandem with the increased number of