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  • Adem Aman

The Global Growth of Islamic Finance: A Statistical Overview

Globally, the Islamic finance sectors categories as follows: 1)Islamic Banking, 2)Takaful (Islamic Insurance); 3) Islamic capital markets, particularly Sukuk (Islamic Bonds) Market; last but not least 4) Islamic social finance including zakat, waqf, qard-hasan (free loan), sadaqah, charity and any form of philanthropic action for a good deed. Besides, Islamic finance is geographic distribution around the globe, and innovations in Fintech rapidly growing like others. Let us discuss more in detail one by one. For instance;



1. Global Islamic Finance Assets growth: According to recent statistics, the total global assets of Islamic finance have surged to over USD 4 trillion in 2021. This impressive figure showcases the substantial growth and widespread adoption of Islamic financial principles worldwide.


2: Islamic Banking Assets: Islamic banking, a fundamental component of Islamic finance, has also seen remarkable growth. With over USD 2 trillion in assets, Islamic banking institutions have become substantial players in the global financial landscape.


3: Takaful (Islamic Insurance) Sector: The Takaful sector, which encompasses Islamic insurance, has witnessed substantial expansion. The Takaful market size is estimated to be $30 billion in 2022, with a growth rate of approximately 14% annually, the Takaful industry has shown its resilience and potential, catering to individuals seeking Sharia-compliant insurance solutions. Conversely, still it is a very infant stage when it is compared to Islamic banking growth and development.


4: Islamic capital market or Sukuk (Islamic Bonds) growth: The Sukuk market segment, a cornerstone of Islamic finance, has experienced incredible progress. Sukuk issuances have exceeded USD $915 billion in 2022, while it is expected to be growth to $2,200 billion in 2028 USD, highlighting the appetite for Sharia-compliant investment instruments among both issuers and investors.


5. Islamic social financing is also dealing to improve the financial pain of people as well as progress to fill the gap between wealthy societies and poor and needy societies to enhance sustainable development and a stable economy, albeit, it is extremely poorly managed and treated badly for longlasting.


On the other hand, the growth of Islamic finance isn't limited to a specific region. It's truly global. From the Middle East and Southeast Asia to Europe and North America, Islamic finance institutions have established a presence across continents, contributing to its widespread recognition. For instance, Innovations in Fintech are newly emerging and in this segment as well Islamic finance has embraced technological advancements too. The integration of fintech solutions has brought convenience and accessibility to Islamic financial services, attracting a younger and tech-savvy demographic.


The growth of Islamic finance is far from reaching its peak. Experts project that the industry will continue to expand as more countries, financial institutions, and investors recognize the ethical and inclusive nature of Islamic financial principles.


To summarize – a statistical overview of the global growth of Islamic finance revealed that the numbers don't lie – Islamic finance has become a significant player in the financial world, with a trajectory that promises even greater expansion. If you found this concept informative, please give it a thumbs up, and don't forget to subscribe to [IFB Talk] for more insightful content.

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