The Global Islamic Finance Market Growth, Trends, and Forecast (2018 - 2024) report by Mordor Intelligence is now available on ResearchAndMarkets.com.
The global Islamic finance market is growing moderately, because of strong investments in the halal sector, infrastructure, and sukuk, especially through online availability of all products and services, said the research firm.
According to Mordor Intelligence, Islamic banking is commonly seen to have two advantages over conventional banking. The first is a perception that Islamic banks are bound to a higher moral standard. They will not take on irresponsible amounts of risk or pay outsize bonuses to their top bankers. The second is that earnings come from identifiable assets, not opaque combinations of derivatives and securities. Because Islamic banks cannot make money through interest, they rely on ties to tangible assets, such as real estate and equity, charging 'rent' instead of interest.
Across its three main sectors - banking, capital markets and takaful - the Islamic finance market has an estimated worth of US$2.05 trillion in 2017, marking 8.3% growth in assets in US$ terms. Global sukuk surged by a record 25.6% to close at US$399.9 billion at the end of 2017 on the back of strong sovereign and multilateral issues in key Islamic finance markets, including debut entries into the sovereign sukuk market by KSA.
Islamic banking is the largest sector in the Islamic finance industry, contributing to 71%, or US$1.72 trillion, to the market. Commercial banking remains the main contributor to the sector's growth.
There were 505 Islamic banks in 2017, including 207 Islamic banking windows. However, the number of players is not necessarily indicative of the size of the industry in terms of assets. Islamic finance's second-largest market, KSA, has 16 Islamic banks, including windows, which is fewer than the geographically-smaller markets of Malaysia and the UAE.
With the growing popularity of mobile banking, particularly among younger people according to PwC's 2018 Digital Banking Consumer Survey, a growing number of digital-only, or 'disruptor banks' with no physical branches, have emerged. Islamic banks are also catching up with the launching of digital-only subsidiaries, such as Gulf International Bank's Meem in Bahrain and KSA.
Shari'ah-compliant assets represent a significant portion of total banking assets in the GCC. In the GCC, the market share of Islamic banking has crossed the 25% threshold, which suggests that Islamic banks have become systemically important in these countries.
The global Islamic finance market is fragmented with a large number of players trying to grab a chunk of the developing market. In Asia, it is growing moderately with many local players and some big players. However, the GCC is a highly competitive market, with many international players. Al-Rajhi Bank, Dubai Islamic Bank, and Kuwait House Finance are among the major players present in the region.
Companies mentioned in the report include:
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The global Islamic finance market is growing moderately, because of strong investments in the halal sector, infrastructure, and sukuk, especially through online availability of all products and services, said the research firm.
According to Mordor Intelligence, Islamic banking is commonly seen to have two advantages over conventional banking. The first is a perception that Islamic banks are bound to a higher moral standard. They will not take on irresponsible amounts of risk or pay outsize bonuses to their top bankers. The second is that earnings come from identifiable assets, not opaque combinations of derivatives and securities. Because Islamic banks cannot make money through interest, they rely on ties to tangible assets, such as real estate and equity, charging 'rent' instead of interest.
Across its three main sectors - banking, capital markets and takaful - the Islamic finance market has an estimated worth of US$2.05 trillion in 2017, marking 8.3% growth in assets in US$ terms. Global sukuk surged by a record 25.6% to close at US$399.9 billion at the end of 2017 on the back of strong sovereign and multilateral issues in key Islamic finance markets, including debut entries into the sovereign sukuk market by KSA.
Islamic banking is the largest sector in the Islamic finance industry, contributing to 71%, or US$1.72 trillion, to the market. Commercial banking remains the main contributor to the sector's growth.
There were 505 Islamic banks in 2017, including 207 Islamic banking windows. However, the number of players is not necessarily indicative of the size of the industry in terms of assets. Islamic finance's second-largest market, KSA, has 16 Islamic banks, including windows, which is fewer than the geographically-smaller markets of Malaysia and the UAE.
With the growing popularity of mobile banking, particularly among younger people according to PwC's 2018 Digital Banking Consumer Survey, a growing number of digital-only, or 'disruptor banks' with no physical branches, have emerged. Islamic banks are also catching up with the launching of digital-only subsidiaries, such as Gulf International Bank's Meem in Bahrain and KSA.
Shari'ah-compliant assets represent a significant portion of total banking assets in the GCC. In the GCC, the market share of Islamic banking has crossed the 25% threshold, which suggests that Islamic banks have become systemically important in these countries.
The global Islamic finance market is fragmented with a large number of players trying to grab a chunk of the developing market. In Asia, it is growing moderately with many local players and some big players. However, the GCC is a highly competitive market, with many international players. Al-Rajhi Bank, Dubai Islamic Bank, and Kuwait House Finance are among the major players present in the region.
Companies mentioned in the report include:
- Dubai Islamic Bank
- National Commercial Bank Saudi Arabia
- Bank Mellat Iran
- Bank Melli Iran
- Kuwait Finance House
- Bank Saderat Iran
- Malayan Bank Berhad (Maybank) Malaysia
- Bank Maskan Iran
- Qatar Islamic Bank
- Alinma Bank Saudi Arabia
Buy the report (February 2019)