The global Islamic finance industry will show low-to-mid single-digit growth in 2020-2021 after 11.4% in 2019, says S&P Global Ratings in its 2021 outlook released on September 22. “The significant slowdown of core Islamic finance economies in 2020, because of measures implemented by various governments to contain the Covid-19 pandemic, and the expected mild recovery in 2021, explain our expectations,” said the credit rating agency. It estimates global Islamic finance assets, covering banking, sukuk, takaful, and funds, were $2.4 trillion in 2019. Islamic Banking S&P expects Islamic banking, which is the biggest component of the global industry, to show “at best stable total assets or low-single-digit growth” after 6.6% increase in 2019. “The Covid-19 pandemic will halt growth at GCC Islamic and conventional banks in 2020 as they focus on preserving asset quality rather than business expansion,” said S&P’s report.—Agencies
