According to Standard & Poor Global Ratings, the International Islamic financial sector is expected to grow by by 10-12% between 2021 and 2022 due to increased Islamic bond issuance and modest economic recovery in major Islamic financial markets. The Islamic Financial Industry is currently valued at $ 2.2 trillion
The industry continued its growth momentum despite the COVID-19 pandemic, albeit at a slower pace than in 2019, as international Islamic assets grew 10.6% in 2020 but increased 17.3% year-on-year.
Islamic finance, which prohibits interest payments and pure monetary speculation, has been growing in the African, Middle Eastern and Southeast Asian markets for years, but it remains a fragmented industry with unequal regulation.
“Over the next twelve months, we will see progress in creating a single international legal and regulatory framework for Islamic finance, and we believe such a structure can help address the lack of standardization and harmonization facing the Islamic financial industry. said Standard & Poor’s on Monday. .
The sector is expected to receive some support in Saudi Arabia over the next two years, as mortgage lending and businesses are expected to grow as the country pursues its plans to diversify its economy.
Growth is also expected to support investment in Qatar in connection with the 2022 FIFA World Cup and Expo in Dubai.
The rating agency expects the international issuance of Islamic bonds, or sukuk, to reach $ 140-155 billion this year, up from $ 140 billion by 2020, due to high liquidity and capital needs for companies and governments.
Latest posts by News Desk (see all)
- FBR asked to enhance efforts for Broadening Tax Net - May 27, 2023
- National Savings Rate for June-2023 - May 27, 2023
- Islamabad to get a new “Luxury Resort” - May 27, 2023