Malaysia's international Islamic banking assets are expected to grow to more than US$390 billion about (RM1.27 trillion) by 2018 from US$125 billion about (RM410 billion) in 2012, says the Ernst and Young World Islamic Competitiveness Report 2013-14. Ernst and Young Malaysia's Country Managing Partner and Islamic Finance Leader Abdul Rauf Rashid said the introduction of the Islamic Financial Services Act 2013 has set Malaysia apart from other markets by providing greater regulatory clarity to the industry, according to Malaysia's (Bernama) News Agency. He said the on-going liberalisation of the financial sector is creating opportunities for partnerships between Malaysian and global banks, particularly those in the Middle East. According to the report, rapid growth markets (RGMs) including Indonesia, Saudi Arabia, Malaysia, United Arab Emirates and Turkey are expected to see their collective Islamic banking assets reach an estimated US$1.6 trillion in 2018 having commanded 78% of the international Islamic banking assets in 2012 and growing at a five-year compound annual growth rate of 16.4%. By 2018, it said, these RGMs are also envisaged to represent GDP of US$4.8 trillion with a mostly young population of around 419 million, making them the drivers of the next wave of development for the industry.