Islamic Finance Development Indicator shows strong sector growth
The yearly report chronicles the development of the world’s Islamic Finance sector, which operates on financial principles grounded in Shariah law.
This year’s report was released at the World Islamic Banking Conference (WIBC) in Bahrain and highlighted the growth in Islamic finance governance, corporate social responsibility, knowledge and quantitative development.
Islamic finance is now a major global growth industry worth around $1.8 trillion, according to the new report. That represents more than nine percent growth since the last IFDI report.
The report tracks key indicators across 108 countries. Malaysia comes in as the global leader in the IFDI with GCC nations taking the next top spots. Bahrain maintained its position as second globally, with the UAE switching positions with Oman to come in third. While Saudi Arabia is the world’s second largest Islamic finance market, it was previously ranked ninth in the world by the IFDI. Improvement of corporate social responsibility helped the kingdom jump up to the sixth position this year.
“The Islamic finance industry has demonstrated tremendous growth over the last few years,” Nadim Najjar, Thomson Reuters' managing director for the MENA region, said. “We have seen the industry develop a conducive eco-system that made it possible for many countries to enter this space. Currently, there are more than a thousand Islamic financial institutions -- most of which are located in the GCC and Southeast Asia -- and we expect this number to increase significantly in the next decade.”