The global Islamic finance industry grew to be worth more than $2.4 trillion by the end of 2017, according to a new report.
The Global Islamic Finance Report (GIFR) 2018, which is scheduled to be launched at the Astana Islamic Economic Forum next month, showed the sector saw 6 percent growth last year.
According to GIFR 2018, 2017 was the fourth consecutive year that the industry registered a single digit growth and the fifth consecutive year that the growth rate has been on a declining trend.
“This should be a cause of concern for the stakeholders in the global Islamic financial services industry but apparently no one seems to be interested in understanding the root cause of the loss of momentum,” said Dr Sofiza Azmi, editor-in-chief of GIFR and CEO of Edbiz Consulting, the publisher of the report.
The Islamic Finance Country Index (IFCI), part of the report, put Malaysia on top of the list of the countries leading the industry globally.
While Iran is a close second, Saudi Arabia, the UAE and Kuwait are ranked third, fourth and fifth respectively.
Indonesia moved one position up to capture sixth position on IFCI, while Pakistan slipped one position down to become the seventh most influential market in the global Islamic financial services industry.
The 2017 Islamic Banking Index published by Emirates Islamic Bank revealed a seven percent increase in the adoption of Islamic products by non-Muslim bank customers.
Dubai Investments in March announced plans to lead a consortium of investors to launch Arkan Bank, a wholesale Islamic financial institution with an initial paid-up capital of $100 million.
Arkan Bank is applying to the Dubai Financial Services Authority (DFSA) for approval for a prudential Category 5 licence to operate as an Islamic financial institution.