Global Islamic finance assets expected to reach $3.69 trillion in 2024: Report

Global Islamic finance assets expected to reach $3.69 trillion in 2024: Report

JEDDAH “” Global Islamic finance assets are forecast to reach $3.69 trillion by 2024, according to the 2020 Islamic Finance Development Report released on Tuesday 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 totaling $2.88 trillion in 2019. Islamic finance assets of Gulf Cooperation Council reached $1.2 trillion in 2019, followed by the Middle East and North Africa at $755 billion (excluding the GCC), and southeast Asia at $685 billion.

The Islamic banking sector contributes to the bulk of global Islamic finance assets. The sector grew 14 percent in 2019, equating to $1.99 trillion in global assets. This compares with just 1 percent growth in 2018 and average annual growth of 5 percent over the period from 2015 to 2018.

According to the report, the top five developed countries in relation to Islamic finance are Malaysia, Indonesia, Bahrain, the United Arab Emirates, and Saudi Arabia. This year, Indonesia displayed one of the most notable improvements in the Islamic Finance Development Indicator, moving into second place for the first time due to its