Islamic Finance industry seems promising in 2024: Zubair Mughal

Islamic Finance industry seems promising in 2024: Zubair Mughal

Dubai, UAE : As the global financial landscape finds its footing after the tumultuous years of the pandemic, Islamic finance shines as a beacon of resilience and responsible growth. With assets expected to reach a staggering US$5 trillion by 2025, this ethical and sustainable financial system is not just recovering, but thriving. "Islamic finance has shown remarkable resilience in the face of unprecedented challenges," asserts Mr. Muhammad Zubair Mughal, CEO of AlHuda Center of Islamic Banking and Economics (CIBE). "While navigating initial disruptions, the industry has demonstrated its inherent strengths, emerging stronger and poised for significant growth." Islamic banks are witnessing a steady rise in profits, with figures reaching up to 40% in some regions. This positive trajectory is bolstered by increased regulatory support, with initiatives like Shariah-compliant investments further solidifying the industry's foundation. The issuance of Sukuk, Shariah-compliant financial instruments, has seen remarkable prominence. Mr. Mughal predicts that Sukuk investments will reach US$160-180 billion by 2025, driven by impactful sovereign and corporate issuances. This surge positions Sukuk as a vital engine for Islamic finance expansion. Saudi Arabia and Indonesia are establishing themselves as regional Islamic finance powerhouses, with dedicated government support propelling their growth. Meanwhile, initiatives like Pakistan's Roshan