Social distancing, resulting from the Coronavirus pandemic, is likely to be the catalyst for Islamic banks across many countries to accelerate their digital transformation strategies, especially with financial inclusion being a major issue in many of the countries where Islamic finance is active.
From the State of the Global Islamic Economy 2020/2021 Report, the Covid-19 pandemic halted the growth of the Islamic finance sector but stimulated the development of more inclusive and socially driven finance, whether through crowdfunding, public-private partnerships, or support for SMEs.
The report estimates that the value of Islamic finance assets increased by 13.9% to $2.88 trillion in 2019 from $2.52 trillion in 2018.
Iran, Saudi Arabia, and Malaysia rank as the top three countries by the value of Islamic finance assets and retain their positions from last year. —Agencies