Islamic finance industry growing


Standard and Poor’s Global Ratings Islamic Finance global head Mohamad Damak said that supported by global economic recovery as well as strong sukuk issuance, the Islamic finance industry is expected to expand between 10% and 12% for next year as well as 2021.

KUALA LUMPUR: The global Islamic capital market’s growth next year is hinged on the pace of policy revisions by major central banks and stable sukuk issuances, says Standard and Poor’s Global Ratings Islamic Finance global head Mohamad Damak.

He said that supported by global economic recovery as well as strong sukuk issuance, the Islamic finance industry is expected to expand between 10% and 12% for next year as well as 2021.

“Even though certain countries’ growth rates are expected to be low, there is a definite recovery expectation for 2022 and this recovery will be consolidated.

“Economic recovery will be the key driver impacting growth, with strong financing growth in Saudi Arabia, particularly in mortgages and corporate lending, investment in Qatar ahead of the 2022 FIFA World Cup,” he said in a special presentation in conjunction with the second day of Islamic Capital Market Summit 2021.

Turkey’s growth will be at a slower pace and driven primarily by public sector participation banks, said Damak.

“Continuous growth in Malaysia’s sukuk issuance are additional factors supporting the global Islamic financial market and there will be some sovereign funds tapping the sukuk market more aggressively and move away from the conventional debt market,” he said.

He said that economic recovery in core Islamic finance countries is spurred by higher oil prices, whichwill lead to a bigger fiscal space for the Gulf Cooperation Council. — Bernama

AGS: Islamic finance, sukuk, Islamic capital market, issuance, S&P
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