As Islamic finance continues to grow amid the global economic headwinds, Refinitiv has launched its Islamic Finance Overview (IFOV) page, providing access to all Islamic finance data exclusively available on Refinitiv platforms Workspace and Eikon.
- Islamic finance has proved resilient to current global economic troubles, and is projected to grow at an average annual rate of 8 percent until 2025.
- Refinitiv is launching a comprehensive page covering Islamic finance, the Islamic Finance Overview (IFOV) page.
- The IFOV Page will cover Islamic market data and asset classes, including sukuk, Shariah-screened stocks and sustainable Islamic finance. It will also provide a gateway to Islamic finance news, research and a comprehensive database of Shariah and legal content.
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Despite the recent global macroeconomic conditions including the increase in COVID-19 cases, the Ukraine conflict, high inflation, and the continued supply chain gluts, Islamic finance maintained a steady growth rate.
According to our Islamic Finance Development Report 2021, the Islamic finance industry has been enjoying solid growth. In 2020, there was a 14 percent rise in Islamic financial assets to $3.4trn, which makes it one of the leading industries in the market.
According to Islamic Finance Development Indicator (IFDI)’s model projection, the global industry will hit $4.94trn by 2025, during which time the world’s OIC population is forecast to expand to around 2.05 billion, according to Pew Research’s forecast growth rates.
Barring unforeseen catastrophe, the global Islamic finance industry will continue its growth trajectory at an average of 8 percent until 2025.
We first longlisted 100 global megatrends and key drivers in our ICD-Refinitiv OIC Megatrends Report 2022, then filtered these down to six global megatrends that will be among the leading catalysts of change and transformation in OIC societies.
The six interrelated megatrends relate to technology and society: digitalisation, artificial intelligence (AI), transformation, inequality, youth and ageing societies.
The first three are technology trends, which are playing out across OIC societies, together with social changes brought on by the other three trends.
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Refinitiv has launched its Islamic umbrella page Islamic Finance Overview – IFOV Page, which will provide access to all Islamic finance data exclusively available on the Refinitiv platforms Workspace and Eikon.
The Islamic Finance Overview – IFOV Page will provide information on all asset classes including sukuk, Shariah-compliant stocks, indices and others, besides qualitative date such as news, research, Shariah and legal content.
Digitisation solutions will drive progress
Recent years have been mostly spent on mitigating the adverse impacts of COVID-19 on Islamic financial institutions, especially Islamic banks. Many IFIs introduced new digital services.
During the pandemic, Islamic fintech became more prominent and is increasingly challenging traditional banks.
However, when many social and economic activities moved online they encountered other risks, including technological and data disruptions.
Further operational risks came in the form of remote working for many employees and shifting customer behaviours that are still impacting financial institutions.
Refinitiv provided broad support to its customers during their transition to remote working and offered more content and data to help with day-to-day activities.
Growing markets within the Islamic finance markets
In spite of the market challenges, by the end of 2020 the Islamic finance industry had posted double-digit growth for the second year in a row – albeit by a lower 14 percent compared with 15 percent in 2019 – to reach $3.4trn.
According to Refinitiv Islamic finance data, the banking sector still has share of 70 percent of Islamic finance assets.
Among the leading countries, Iran, Saudi Arabia, Malaysia and UAE lead on the Islamic finance asset volumes in the global market.
Refinitiv provides 360-degree coverage of key Islamic finance markets within the Middle East and Southeast Asia, and gives an overview and detailed information on key market players.
Sukuk market exceeds expectations
Sukuk is the second largest contributor to Islamic finance assets with 19 percent.
According the Sukuk Quarter reports in the Sukuk Now App, the sukuk market exceeded expectations in Q1 2022, with over $51.6bn of issuances in the first quarter of the year, registering a growth of 19.2 percent compared with Q1 2021 of $43.3bn.
Q2 2022 also saw the continued rise of perpetual green and sustainability sukuk – including Bahrain-based Infracorp’s recently announced $900m perpetual green sukuk – and Saudi-based Riyad Bank’s $750m perpetual sustainability sukuk, which can also be viewed through the Sustainable Islamic Finance Page on Eikon.
Through IFOV, Refinitiv provides data that not only covers sukuk profiles but also includes all major Shariah-compliant asset classes, including money market, sharia-screened stocks, Islamic indices and Islamic funds.