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Global Islamic finance industry to grow by 10% in 2023-2024

May 2, 2023 at 5:32 pm

A general view of the 43rd Gulf Cooperation Council (GCC) Summit at King Abdul Aziz International Conference Center in Riyadh, Saudi Arabia [Royal Court of Saudi Arabia – Anadolu Agency]

The global Islamic finance industry is expected to grow by around 10 per cent in 2023-2024, despite the economic slowdown, after posting a similar expansion in 2022 mainly led by the GCC countries, according to S&P Global Ratings report.

The report says the sector continued to expand in 2022, with assets up by 9.4 per cent compared with 12.2 per cent in 2021, supported by growth in banking assets and the sukuk industry.

“Structural weaknesses still curb the industry’s broader geographical and market appeal,” S&P said.

S&P also said that corporates are likely to contribute to issuance volumes, particularly in countries such as Saudi Arabia, where governments have announced transformation plans.

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