2018-11-27
The Islamic finance sector grew 11 percent year-on-year in 2017 and aims to continue its double-digit growth with support from capital markets products and the adoption of financial technology, Thomson Reuters reported on Tuesday.
 
The study estimates that the sector is now represented by 1389 financial companies, whose transactions comply with Islamic Shari'ah in 56 countries with total assets of $ 2.4 trillion.
 
Islamic banks still hold the lion's share in the sector, accounting for 71 percent of total assets, but growth remains weak at 5 percent.
 
In contrast, the study showed that financial market products such as Islamic bonds (sukuk) and Islamic investment funds performed better, growing by 9 percent and 16 percent, respectively.
 
The Sukuk market was worth $ 426 billion in 2017, with 19 countries issuing sovereign sukuk worth $ 85 billion.
 
Malaysia remains the largest sukuk market in the world and is now open to individual investors, while Saudi Arabia has added $ 26 billion in issuing new sukuks on domestic and international markets.
 
Islamic investment funds grew 16 percent to $ 110 billion.
 
The study pointed out that the sector is undergoing a new change in the hands of financial technology products such as Islamic banks specializing in digital transactions only, automated consultants and digital wealth management services.