ICD Thomson Reuters finance development indicator launched

Thomson Reuters, a leading provider of intelligent information for businesses and professionals, has announced the third round of findings from its Islamic Finance Development Indicator (IFDI).
This has been developed in collaboration with the Islamic Corporation for the Development of the Private Sector (ICD), the private sector development arm of the Islamic Development Bank (IDB).
The official launch of the ICD Thomson Reuters finance development indicator coincided with the Global Islamic Economic Summit in Dubai.
As per the analysis, the size of the Islamic finance industry globally was $1.35 trillion in 2012.
This was based on a bottom-up analysis of disclosed financial statements of Islamic institutions.
The largest components of the industry were Islamic banking with $985 billion in assets and sukuk with $251 billion.
Khaled Al-Aboodi, chief executive officer of ICD, said: “Accurate information on the size of Islamic financial industry, its institutions and performance, based on bottom up analysis, is one of the key outputs of our Islamic Finance Development Indicator.”
He added: “Unlike other sources that are focused on specific countries or regions, or utilize sample testing and assumptions to develop their estimates, the IFDI provides accurate information on the entire Islamic finance space and its sub-components.”
Russell Haworth, managing director, Middle East and North Africa, Thomson Reuters, said: “The IFDI’s findings demonstrate the size and breadth of the Islamic finance economy and will serve as a critical reference point for its growth going forward. The ability to accurately size the Islamic finance industry, based on disclosed financial information as opposed to assumptions and conjecture, is key to providing meaningful analysis aimed at developing the industry. ”
Additional key findings include:
Malaysia was the largest Islamic finance economy, with total Islamic finance assets of $412 billion.
Malaysia has the largest sukuk market, valued at $171 billion and the second largest Islamic banking market, valued at $194 billion.
Saudi Arabia was second in terms of Islamic finance assets, with assets of $270 billion.
The Kingdom also has the largest Islamic banking market, with total Islamic banking assets of $217 billion.
There are 1,003 financial institutions operating in the Islamic finance space.
Analysis did not take into account undisclosed Islamic assets. Therefore the total value of the industry could be 10 percent to 20 percent higher than estimates.
Earlier this year, Thomson Reuters and ICD announced the creation of the ICD-Thomson Reuters Islamic Finance Development Indicator, a numerical measure representing the overall health and growth of the Islamic finance industry worldwide.