London
According to the 10th Global Islamic Finance Report (GIFR) 2019, the estimated figure for the global Islamic financial industry at the end of 2018 was US$2.6 trillion after recording a growth of 6.58%.
“Islamic finance as an industry has been witnessing substantial growth in the past decade, but its growth rate has steadily declined since 2013 from 11.16% to 6.02% in 2017. After five years of declining trend, the industry has once again picked up to register annual growth in assets of 6.58% during 2018,” explained Professor Humayon Dar, Director General of Cambridge Institute of Islamic Finance and Founder of GIFR.
The report also recorded a growing gulf between potential and actual size of the global Islamic financial services industry as the gap has now more than doubled. With the potential size of US$9.4 trillion against US$2.6 trillion, the catch-up time required for the industry to realise its potential is ever-increasing from an estimated 17 years (as reported in GIFR 2014) to well beyond 40 years at the present state of the industry.
Professor Humayon Dar presented findings of the report at the launching ceremony of GIFR 2019 on October 17, 2019 in Jakarta, Indonesia. The GIFR 2019 was launched by Professor Bambang Brodjonegoro, Minister of National Development Planning of Indonesia (BAPPENAS) – in an event organised by the National Islamic Finance Committee (KNKS) and hosted by BAPPENAS. The event was attended by more than 300 distinguished government representatives, policymakers and industry players.
GIFR, the oldest yearbook in Islamic banking and finance, was first published in 2010 and is recognised as the most authentic source of market intelligence for the global Islamic financial industry. The report is published by Cambridge Institute of Islamic Finance (Cambridge-IIF) and produced by Cambridge IFA, a global think tank for the banking and finance industry based in the UK.
“With the growth in Islamic banking and finance declining year-on-year, a fresh solution is required with an emphasis on the adoption of new business models that will ensure sustainable growth. This is expected to come in the form of Islamic financial technology (Fintech), which can provide the means in boosting interest in Islamic finance and in increasing its accessibility to the wider Muslim world,” said Dr. Sofiza Azmi, Editor-in-Chief of GIFR 2019 and CEO of Cambridge IFA.— Reuters
