Global Islamic Finance assets are forecast to reach $3.69tn by 2024, according to the 2020 Islamic Finance Development Report released today by Refinitiv and the Islamic Corporation for the Development of the Private Sector, the private sector development arm of the Islamic Development Bank.
According to the report, assets increased by 14 per cent year-on-year totalling $2.88tn in 2019.
The Islamic Finance assets of the Gulf Cooperation Council reached $1.2tn in 2019, followed by the Middle East and North Africa at $755bn (excluding the GCC), and Southeast Asia at $685bn.
The Islamic banking sector contributed to the bulk of the assets. The sector grew 14 per cent in 2019, equating to $1.99tn in global assets. This compares with just one per cent growth in 2018 and average annual growth of five per cent over the period from 2015 to 2018.
According to the report, the top five developed countries in relation to Islamic finance are Malaysia, Indonesia, Bahrain, UAE, and Saudi Arabia.
This year, Indonesia displayed one of the “most notable” improvements in the Islamic Finance Development Indicator, moving into second place for the first time due to its high knowledge and awareness ranking.
Chief Executive Officer of Refinitiv, David Craig, said, “A lack of relevant, actionable data has held back the Islamic finance industry for too long. That’s why the Islamic Finance Development Indicator is now such an important tool for policymakers and market participants.
“This market is worth nearly $3tn already and I’m excited about its future, particularly when it comes to Sukuk and because Islamic finance has so much in common with sustainable finance – one of the most significant trends in global business today.”
