Global Islamic Finance assets are forecast to reach USD 3.69 trillion by 2024, according to the 2020 Islamic Finance Development Report released on Wednesday by Refinitiv and the Islamic Corporation for the Development of the Private Sector, ICD, the private sector development arm of the Islamic Development Bank, IsDB.

According to the report, global Islamic Finance assets increased by 14 percent year-on-year totaling USD 2.88 trillion in 2019. Islamic Finance assets of Gulf Cooperation Council, GCC, reached USD 1.2 trillion in 2019, followed by Middle East and North Africa, MENA, at USD 755 billion (excluding the GCC), and Southeast Asia at USD 685 billion.

The Islamic banking sector contributes the bulk of the global Islamic Finance assets. The sector grew 14 per cent in 2019, equating to USD 1.99 trillion in global assets. This compares with just 1 percent growth in 2018 and an average annual growth of 5 percent 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, IFDI, moving into second place for the first time due to its high knowledge and awareness ranking.

David Craig, CEO of Refinitiv, 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 policy makers and market participants. This market is worth nearly $3 trillion 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.”

(Emirates News Agency)