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Krystine Lumanta is a journalist with IFA magazine, a Morningstar publication.

According to the most recent census figures, about 350,000 Australians are practising Muslims. Combined with the rapidly growing Islamic financial market, it certainly makes a case for Islamic products that are set to become an option for financial advisers in the coming years.

The Muslim Community Cooperative of Australia (MCCA), a Melbourne-based Sharia-compliant mortgage provider, plans to move into the retail banking space.

MCCA chairman Dr Akhtar Kalam says financial advisers should begin to educate themselves on the "alternatives" to mainstream banks and products currently available.

"We're thinking in terms of five years that we will become the first Islamic bank in Australia," Kalam says.

"It will mean a good market where financial advisers will make money because there are new opportunities, new avenues and the products will be reliable.

"They've got to look broader and look at other options. If you don't know the options, how can you advise your clients about a better option?"

The tenets of Sharia law forbid earning interest, ruling out most mainstream banks, and, in addition, funds must avoid companies involved in alcohol and gambling, pork products, armaments and pornography.

Kalam says that while Muslims shouldn't have to compromise their religion, Islamic finance is not restricted to Muslims.

"The sharia-based [principle] is god-given law on how to invest, how to make money. There's nothing wrong with making money, it is how you make money without trespassing on others is what is important," he says.

"The best example is our neighbour Malaysia. You'll be surprised that the majority of the customers in Islamic banking are non-Muslims.

"The ingredient of Islamic finance is avoidance of interest and uncertainty and that every transaction is backed by an asset, therefore Islamic banks aren't the least affected by global financial crises."

Crescent Wealth director of investment and superannuation Chaaban Omran says the motives for Islamic finance are twofold.

"First, an ethical or socially responsible investment perspective," Omran says.

"Second, potential attractive performance returns."

He says Islamic investments performed better than conventional markets during the global financial crisis (GFC) as funds and products aren't positioned in banks, insurance stocks or companies with highly-geared balance sheets.