Recent Developments of Islamic Finance in Japan Naoyuki Kabata, Partner
Anderson Mori & Tomotsune
For a number of years, the utilisation of Islamic financing methods and practices has been discussed as one of the next significant trends in the Japanese financial market. This has yet to be the case unfortunately, largely because of the prolonged downturn in Japan's economy following the global financial crisis.
Although Islamic finance has not taken hold in Japan as previously anticipated, there have been, however, notable advancements. In fact, due to several recent developments (and proposed reforms) in laws and regulations, as well as actual transactions by Japanese market participants, Islamic finance in Japan looks to be moving steadily towards a breakthrough. This article aims to give an overview of some of those recent developments.