<\/p>\n
Malaysia and Indonesia are amongst the world\u2019s top Islamic finance markets.<\/p>\n
The global Islamic finance industry is on the right path to grow into a $6.7t industry by 2027, according to a 2024 report by the London Stock Exchange Group (LSEG).<\/p>\n
The industry\u2019s assets grew by 11% to $4.5t in 2022, slowing from a 17% rise in 2021 amidst \u201ceconomic headwinds\u201d, the LSEG reported.<\/p>\n
This comes as Islamic financial institutions and activities reported lower metrics during the period. As of 2022, almost 1 in 4 Islamic bank reported lower profits or higher losses.<\/p>\n
Islamic banks held $3.2t in assets as of end-2022.<\/p>\n
Islamic funds also declined significantly. Most Islamic funds in most markets\u2013both mutual funds and exchange traded funds (ETFs)\u2013reportedly posted negative growth in 2022. Assets under management dropped by 10% from 2021 to $220b, whilst the number of new Islamic funds declined significantly from 223 in 2021 to 71 in 2022.<\/p>\n
There are bright spots, however. ESG Sukuk is expected to grow in the coming years, with several governments reportedly indicating their intent to rebuild their economies more sustainably, LSEG said.<\/p>\n
Total sukuk issuance reached $214.9b in 2023, up 9.9% from 2022.<\/p>\n
This is ESG sukuk\u2019s seventh consecutive record year since market inception in 2017, LSEG noted.<\/p>\n
ESG sukuk issuance rose by 42% to $13.4b in 2023. Green sukuk issuance made up 58.1% of the total in 2023.<\/p>\n
The Islamic sustainable finance is also expected to continue being highlighted thanks to the United Arab Emirates hosting COP28 in November and December 2023.<\/p>\n
The industry is also seeing increased efforts towards developing knowledge and awareness of Islamic finance. For example, Indonesia is implementing a diversity of means towards raising awareness for Islamic finance as part of its regulators\u2019 national strategy for financial literacy.<\/p>\n
Amongst 136 markets studied by LSEG, Malaysia, Saudi Arabia and Indonesia were named the most developed Islamic finance jurisdictions.<\/p>\n
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Malaysia and Indonesia are amongst the world\u2019s top Islamic finance markets. The global Islamic finance industry is on the right path to grow into a $6.7t industry by 2027, according to a 2024 report by the London Stock Exchange Group (LSEG). The industry\u2019s assets grew by 11% to $4.5t in 2022, slowing from a 17% […]<\/p>\n","protected":false},"author":1,"featured_media":1733,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1732","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/Kuala-Lumpur-44-1140x445.jpeg",1140,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/Kuala-Lumpur-44-463x348.jpeg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/Kuala-Lumpur-44-300x200.jpeg",300,200,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/Kuala-Lumpur-44.jpeg",2000,1334,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1732","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=1732"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1732\/revisions"}],"predecessor-version":[{"id":1734,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1732\/revisions\/1734"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/1733"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=1732"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=1732"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=1732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}