The Size of the Islamic Finance Market Estimates of the current size of the Islamic Finance market range from $1.66 Trillion to $2.1 Trillion with expectations of market size to be $3.4 Trillion by end of 2018. Based on $1.66 Trillion, Islamic Finance assets represented 1% of the global financial market of $127 Trillion in assets. To put this into context, $1.66 Trillion is about the size of the b... »
Sukuk issuances rose to USD114.7bln in 11M14 (Jan-Nov 2014), a sizeable 8.6% increase from the USD105.6bln volume recorded during 11M13. Sovereign issuances accounted for almost 80% of total issuances. The record for issuances was in 2012 when $137.1 billion was raised, while issuance dropped to $116.9 billion in 2013 and fell further in 2014. »
The Islamic Financial Services Board in its Islamic Financial Services Industry Stability Report 2015, provides some useful data with regards to the latest statistics to the size and growth of the market, an industry which remains in an upward trajectory, evidenced by its assets’ double-digit compound annual growth rate (CAGR) of 17% between 2009 and 2013. »
As of end of Q1 2016, Islamic compliant securities (Islamic Capital Market) listed on Bursa Malaysia totalled USD$306.7 billion, the highest for any exchange globally. »
Taken as whole it is likely Islamic compliant financial assets exceed $2.5 trillion as Sukuk issuances in its core market recorded a 21% year on year increase. »
2012 and 2013 were record years for global Sukuk issuances while in 2014 the Sukuk market slowed down to just over USD100 billion issuances. 2015 witnessed a major drop in issuances when only USD60.6 billion Sukuk were issued, a massive 43% fall compared to 2014. »
The Islamic finance industry’s geographical presence has grown beyond its traditional markets in the Middle East and South East Asia to include new players from diverse regions such as Africa, East Asia and the Americas. Given the bright prospects for the industry in these markets, it is likely that Islamic finance will continue to expand there. »
In 3Q 2015, total global Islamic assets under management (AuM) stood at USD60.2 billion. The sector is conservatively projected to grow by 5.05% per annum for the next five years to reach USD77 billion in value by 2019. This is substantiated by a number of facts, such as the average growth rate of Islamic funds at 9.55% per annum over the past five years. »
Current estimates of the size of the global Islamic finance industry range from $1.66 trillion to $2.1 trillion. Recent announcements from Saudi Aramco may be about to give these numbers a supersized boost with a potential valuation and part IPO of up to $10 trillion. »
Despite the lowering commodity prices, tightening global financial conditions and possible higher interest rates, OIC Member States will maintain economic growth next two years. Thus, it is expected that OIC Member States average economic growth rate will accelerate in 2016 and 2017 with 5.1 and 5.8 percent, respectively. »
