RIYADH: Global Islamic finance assets are forecast to reach $3.69 trillion by 2024, according to a report released by the Jeddah-based Islamic Development Bank.
The Islamic Finance Development Report 2020 was released by global financial data provider Refinitiv and the Islamic Corporation for the Development of the Private Sector (ICD), the private-sector development arm of the IDB.
It stated that global Islamic finance assets increased in value by 14 percent year-on-year to $2.88 trillion in 2019, the highest recorded growth for the industry since the global financial crisis.
The Islamic finance assets of the Gulf Cooperation Council (GCC) reached $1.2 trillion last year, followed by the Middle East and North Africa (MENA), excluding the GCC, which was valued at $755 billion, and Southeast Asia at $685 billion, the report said.
The Islamic banking sector contributes the bulk of global Islamic finance assets. The sector grew 14 percent in 2019 to $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 years 2015 to 2018.
According to the report, the top five developed countries in Islamic finance are Malaysia, Indonesia, Bahrain, UAE and Saudi Arabia.
Commenting on the report, Ayman Sejiny, the CEO of ICD, said: “We believe that the analysis and information provided in this year’s report will serve as a vital reference point for the state of the Islamic finance industry during these difficult times and we remain convinced that Islamic finance can play a major role in alleviating the social and economic consequences of the COVID-19 pandemic.”