Islamic finance to outgrow conventional assets – Moody’s

Moodys_websiteRatings agency Moody’s is predicting that Islamic Finance will continue to outgrow conventional assets in core Islamic markets as the appetite for Shariah compliant financial services increases. In its report, Cross-Sector Islamic Finance: Strong longer-term growth prospects despite relatively flat 2018, Moody’s cites not only growing demand for Islamic finance from individuals but also government support as the primary drivers for the domestic and global growth of Islamic finance. Penetration of Islamic banking in the GCC region has grown from 31% in 2008 to 45% in 2017. Saudi Arabia remains the largest market for Islamic finance with $292 billion of assets as of September 2017. The fastest growing market is Oman which expanded at a rate of 20% during the first nine months of 2017, mainly due to the fact that it was a late entrant into Islamic finance. Meanwhile annual sukuk issuance more than doubled ($42 billion to $100 billion) between 2008 and 2017, driven by GCC sovereigns and Moody’s expects a similar level of issuance in 2018, although a rise in oil prices might reduce sovereign financing needs. The takaful sector also experienced strong growth in 2017 with Moody’s estimating gross premium income of more than $20 billion, helped by Islamic insurers’ increased penetration in Southeast Asia and North Africa. ©2018 funds global mena

Executive Interviews

INTERVIEW: Totally mega

Jun 13, 2018

In 2016, global consulting firm PWC forecast the emergence of five global ‘megatrends’ in the next two decades. Stephen Anderson, its Middle East clients and markets leader, talks about their...

INTERVIEW: Protecting the investment

Nov 23, 2017

Rasmala’s trade finance fund recently passed $100 million in assets. Doug Bitcon, head of credit strategies, explains why he has to be hands-on.


MENA ROUNDTABLE: ‘The story is about reforms’

Jun 13, 2018

Our cross-industry panel discuss the positive backdrop in Egypt, the Dana Gas controversy and the potential index upgrades of Saudi Arabia and Kuwait. Chaired by George Mitton in Dubai.


Jun 13, 2018

Our panellists tell us that instead of launching competing national projects, African countries should work together for the sake of a bigger capital market. Chaired by George Mitton in Cape Town.