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This is according to investment house State Street, which estimates that the market for Islamic finance has grown by as much as 20 per cent a year since 2003, bringing total assets under management by Islamic financial institutions to $600bn globally.

"Investors are looking for asset classes that provide some stability, so it is striking a chord with the non Muslim community," said Rod Ringrow, senior vice president of State Street.

"It has a key role to play in restoring confidence in markets and has the potential to play a much bigger role once the industry has evaluated what has happened to it."

"Western markets may also get close to thoughts and policies that underline Islamic finance."

According to Ringrow, returns on Islamic funds are superior to returns on conventional funds and he expects a string of more product launches to come once the market becomes more developed.

But as it stands, Islamic finance is thought to only account for 1 per cent of global assets under management and one reason growth in this market is being hindered is the worldwide shortage of Shariah scholars.

Ringrow said: "Islamic products need a board to rely on with at least three Islamic scholars."

"The understanding of complex instruments is holding back growth as they need to say is this a Shariah compliant product or not?"

Ringrow also identified what he described as "huge potential" for the Sukuk or the Islamic bond market and said players in the industry were also considering the establishment of Islamic hedge funds which he said was a sign that the industry was beginning to develop and move forward.

He added: "There’s a need for world class players to develop the market and more products will come after."