JOHANNESBURG - Global Islamic finance assets were forecast to reach $3.69 trillion (R55trl) by 2024, according to the 2020 Islamic Finance Development Report released yesterday 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 totalling $2.88trl in 2019.
Islamic Finance assets of Gulf Cooperation Council (GCC) reached $1.2 trillion in 2019, followed by Middle East and North Africa (Mena) at $755 billion (excluding the GCC), and Southeast Asia at $685bn.
The Islamic banking sector contributes the bulk of the global Islamic Finance assets. The sector grew 14 percent in 2019, equating to $1.99trl 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.
David Craig, the chief executive 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 $3trl 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.”
BUSINESS REPORT