(MENAFN) Islamic finance development is decelerating, mainly on the back of the severe plunge in oil incomes, rapid regulatory changes, and lack of integration.

According to the latest reports, Islamic finance growth will deteriorate to single digits in 2016 from between 10 percent and 15 percent over the past ten years.

The decrease in oil prices means that governments and firms in the Middle East will have less to invest in Islamic financial products, based on available data.

"We estimate the Islamic sukuk investor base at just over USD500 billion, excluding sovereign wealth funds and other conventional investors," said the Global Head of Islamic Finance.