Global Islamic finance assets are forecast to reach US$3.69 trillion (US$1=RM4.05) by 2024, according to the 2020 Islamic Finance Development Report released by Refinitiv and the Islamic Corporation for the Development of the Private Sector (ICD) today.

The global Islamic finance assets increased by 14 per cent year-on-year to US$2.88 trillion in 2019, with the Gulf Cooperation Council (GCC) reaching US$1.2 trillion, followed by the Middle East and North Africa at US$755 billion (excluding the GCC), and Southeast Asia recording US$685 billion.

In a statement, Refinitiv said the Islamic banking sector contributed the bulk of the global Islamic finance assets which grew 14 per cent in 2019, equating to US$1.99 trillion in global assets.

“This compared with just one per cent growth in 2018 and an average annual growth of five per cent over the period from 2015 to 2018,” it said. 

The top five countries involved in Islamic finance are Malaysia, Indonesia, Bahrain, the United Arab Emirates, and Saudi Arabia. 

The report covers 135 countries and is based on five key metrics comprising quantitative development, knowledge, governance, awareness, and corporate and social responsibility.

“This year, Indonesia displayed one of the most notable improvements in the Islamic Finance Development Indicator (IFDI),moving into second place for the first time due to its high knowledge and awareness ranking,” it said.

Meanwhile, ICD chief executive officer Ayman Sejiny said the analysis and information provided in this year’s report would serve as a vital reference point for the state of the Islamic finance industry during these difficult times.

“We remain convinced that Islamic finance can play a major role in alleviating the social and economic consequences of the COVID-19 pandemic,” he added.

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