Global: Islamic finance industry assets cross $2tn-mark
Source: Middle East Insurance Review | Jul 2018
The global Islamic finance industry has surpassed the $2tn-mark in assets across its three main sectors – banking, capital markets and takaful, according to the Islamic Financial Services Industry Stability Report 2018 released by the Islamic Financial Services Board (IFSB).
Total assets were valued at $2.05tn as of end 2017, marking an 8.3% growth in US dollar terms y-o-y and reversing the preceding two years of near stagnation of asset value of $1.89tn in 2016 and $1.88tn in 2015.
The strong growth momentum is mainly due to the global economic recovery in 2017, said the report. An increase in investment activities and manufacturing output, as well as some respite for oil-producing and oil-exporting countries from the improvement of crude oil prices during the second half of 2017 were also factors for the positive outcome.
The report also noted that the industry has seen new additions of countries where Islamic finance made its foray, namely Senegal, Bosnia and Herzegovina, Kyrgyzstan, Tanzania and Surinam, which is the first South American country to introduce Islamic finance. Several more countries in North and Sub-Saharan Africa are currently making efforts to introduce Islamic banking services, said the report.
The GCC maintained its status as the largest domicile for Islamic finance assets. In 2017, the region witnessed a slight moderation in global market share to 42% from 42.3% over the previous year. The share of countries in MENA has also slightly decreased to 29.1% from 29.9% in the period. M