( CNN ) -- While Western banking 's reputation was tarnished in the wake of the global economic crisis , Islamic finance is being touted by some as a more ethical alternative , with the potential to appeal to customers beyond its Muslim base . What sets Islamic finance apart from other models is that it complies with Sharia moral and religious law , including not charging or paying interest . And with more than 700 Islamic financial institutions around the world , the sector is already worth up to $ 1.3 trillion globally . CNN 's Jim Boulden sat down with Atif Hanif , Islamic Finance specialist and partner at Allen & Overy , to discuss what Islamic finance really is and where it is growing . CNN : How would you describe Islamic finance ? Atif Hanif : Islamic finance is an alternative form of finance . It is something that is trying to cater to a particular segment of the population , in this case the Muslim segment , because they are ethically constrained from participating in the conventional banking industry . But the aim is to try and offer to this segment as much as possible of what is available in the conventional sphere -- so in terms of your regular financial services and products , but overlaying that with certain rules which are derived from the Islamic jurisprudence . And the chief among these rules will obviously be the prohibition of charging and paying interest . CNN : I imagine those who 're trying to offer these products are trying to explain that they 're not just Islamic , they 're just different . AH : Absolutely -- I think that 's the way they are being pitched , and you know , 20 years ago , yes it was very exotic , but I think these days they 're much more a feature of the global financial industry . CNN : Do you think we will see an exponential growth in this ? AH : Certainly where I sit I can see Islamic finance moving into newer markets . It 's coming out of its sort of traditional dominion in the Gulf and Malaysia and moving into places like North Africa , Central Asia , and also Western Europe to some extent . CNN : Is it going to be a slow growth ? What would be your projection ? AH : You have to look at a number of factors behind what drives growth in these markets . One , obviously , is the population . I think the second factor is that there are political issues around what 's happening in those markets . There 's uncertainty ; we 've all seen what 's happening in Libya . It 's places like Bangladesh and Pakistan -- a significant population in both countries , and particularly in the case of Pakistan , a case of instability in the last 10 to 20 years . If that ever gets resolved , who knows ? That could be a very fertile land for growth . And there 's obviously India in the middle , which is not an Islamic country but again has a huge Muslim population , which is a potential growth area . CNN : Malaysia and Indonesia are obvious places , and I know it 's growing , but I wonder if there 's a lot of untapped potential there as well ? AH : Malaysia is very well established . I think that 's a very mature market and they are one of , I would say , the pioneers of this industry . So there does n't seem to be that much further room to grow in Malaysia . But Indonesia is largely untapped . I mean , the Indonesian government is moving in that direction . They have passed some legislation , I understand , to try and facilitate Islamic banking . And some of the Malaysian clients that I work with , the Malaysian banks , they see Indonesia as the last frontier for them to expand their operations and grow .
Islamic finance is Sharia compliant and does n't charge or impose taxes . Population growth in Muslim countries has caused a growth in Islamic finance . North Africa , Pakistan , Bangladesh and Indonesia are potential growth areas .