The report, which is commissioned and supported by the Dubai Islamic Economy Development Centre (DIEDC) in partnership with Thomson Reuters, and in collaboration with DinarStandard, will be published ahead of the second Global Islamic Economy Summit 2015 (GIES 2015) in Dubai this October.
Islamic finance is considered the most developed sector within the various pillars of the Islamic economy. The growth in the global shari'ah-compliant economy is broadly measured by the value of Islamic finance assets. In 2014, Islamic finance assets had an estimated value of US$1.8 trillion, with Islamic banking representing 74% of total shari'ah-compliant assets, followed by 16% in outstanding sukuk based on ICD Thomson Reuters' Islamic Finance Development Indicator (IFDI 2015). According to Thomson Reuters' projections, Islamic finance is expected to grow to reach US$3.2 trillion by 2020, with Islamic banking constituting US$2.6 trillion of this figure.
There are now 1,143 Islamic financial institutions operating globally, including 436 Islamic banks/windows, 308 takaful institutions and 399 other Islamic financial institutions, such as financing and investment companies. Most of these Islamic finance institutions are located in the GCC countries and Southeast Asia, while the others are distributed between other MENA countries, South Asia and other regions. Most Islamic finance assets are held by Saudi Arabia, Iran, Malaysia and UAE.
As global acceptance of Islamic finance continues to grow, more corporates and non-Muslim sovereigns are announcing Islamic finance initiatives such as ethical or shari'ah-compliant regulations, as well as products such as sukuk issuances. This increased appetite demonstrates that the market is attracted to the benefits surrounding the ethical principles of Islamic finance, linking finance to physical assets, productive fiscal activities and real economic growth.
GIES 2015, which is taking place under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, will discuss Islamic finance as part of its remit. Featuring more than 60 international speakers across 15 sessions, the summit will offer comprehensive insights on the seven core pillars of the Islamic economy: Islamic finance, Halal Industry, Family tourism, Islamic Knowledge, Islamic Arts and design, Islamic Digital Economy, and Islamic standards.
One of the morning sessions at GIES 2015 will discuss the importance and relevance of the Islamic economy to Islamic finance, featuring a debate by Tirad Al Mahmoud, Jamal Bin Ghalaita and Dr Adnan Chilwan, the respective CEOs of the Islamic banks ADIB, Emirates Islamic and Dubai Islamic Bank.
The CEO debate will be followed by a session covering how Islamic financial institutions have moved from niche to mainstream. The session will also discuss whether Islamic financial institutions can meet the needs of people who are financially excluded solely for religious reasons, and whether Islamic finance can act as a financial inclusion mechanism for non-Muslims.
Interested?
The GIES 2015 summit, organised by the Dubai Chamber of Commerce & Industry, the DIEDC and Thomson Reuters, gathers over 2,000 policymakers, thinkers and business leaders on 5 and 6 October 2015 at Madinat Jumeirah, Dubai, UAE. Register here
Read the Suroor Asia blog post on GIES 2015
Read the Suroor Asia blog post on trends identified to date by the State of the Global Islamic Economy Report 2015-2016
Hashtag: #2015GIES
Read the Suroor Asia blog post on trends identified to date by the State of the Global Islamic Economy Report 2015-2016
Hashtag: #2015GIES