Global Islamic finance assets are projected to reach US$4.94 trillion (US$1=RM4.17) in 2025, according to financial markets data provider Refinitiv.
Citing its Islamic Finance Development Indicator (IFDI) 2021 report released today said, it said global assets for the industry maintained double-digit growth by rising 14 per cent to US$3.374 trillion in 2020.
“Sukuks, the second-biggest sector in Islamic finance, grew 16 per cent in 2020, driven by the Gulf Cooperation Council (GCC) and Southeast Asia,” it said in a statement.
Refinitiv said the report also highlighted new trends for this year, including the expansion of the financial technology (fintech) industry and digital banks led by Malaysia, Indonesia, Saudi Arabia, Bahrain, and the United Arab Emirates (UAE).
In terms of the IFDI 2021 indicator score which measures knowledge, governance, corporate social responsibility, and awareness among 135 countries, Refinitiv said Malaysia and Indonesia retained their top rankings for the second year in a row.
Looking back at 2020, Refinitiv head of Islamic finance Mustafa Adil said Malaysia, Indonesia, and Saudi Arabia were notable actors in the industry as they leveraged sukuks to finance social and green projects.
Moving forward, he said the group expected to see more developments in the industry after the central banks of Malaysia and Saudi Arabia awarded their first digital banking licences in their countries.
“Islamic fintechs coming out of the United Kingdom and the United States also continue to attract attention, and we expect to see newer entrants from Pakistan and Central Asia,” he said.