The Islamic finance industry valued at $1.35 trillion in 2012
Analysis shows Malaysia is the largest Islamic finance market, worth $412 billion, followed by Saudi Arabia at $270 billion
Largest components of the industry were Islamic banking valued at $985 billion in assets and sukuk valued at $251 billion
Dubai, UAE - Thomson Reuters, the world's leading provider of intelligent information for businesses and professionals, announced today the third round of findings from its Islamic Finance Development Indicator (IFDI), developed in collaboration with the Islamic Corporation for the Development of the Private Sector (ICD), the private sector development arm of the Islamic Development Bank (IDB).
As per the analysis, the size of the Islamic finance industry globally was $1.35 trillion in 2012. This was based on a bottom-up analysis of disclosed financial statements of Islamic institutions. The largest components of the industry were Islamic banking with $985 billion in assets, and sukuk with $251 billion.
Russell Haworth, Managing Director, Middle East & North Africa, Thomson Reuters, said: "The IFDI's findings demonstrate the size and breadth of the Islamic finance economy and will serve as a critical reference point for its growth going forward. The ability to accurately size the Islamic finance industry, based on disclosed financial information as opposed to assumptions and conjecture, is key to providing meaningful analysis aimed at developing the industry. "
Additional key findings include:
- Malaysia was the largest Islamic finance economy, with total Islamic finance assets of $412 billion.
- Malaysia has the largest sukuk market, valued at $171 billion and the second largest Islamic banking market, valued at $194 billion.
- Saudi Arabia was second in terms of Islamic finance assets, with assets of $270 billion.
- The Kingdom also has the largest Islamic banking market, with total Islamic banking assets of $217 billion.
- There are 1,003 financial institutions operating in the Islamic finance space
- Analysis did not take into account undisclosed Islamic assets, therefore the total value of the industry could be 10% to 20% higher than estimates.
Khaled Al-Aboodi, Chief Executive Officer, Islamic Corporation for the Development of the Private Sector, said: "Accurate information on the size of Islamic financial industry, its institutions and performance, based on bottom up analysis, is one of the key outputs of our Islamic Finance Development Indicator. Unlike other sources that are focused on specific countries or regions, or utilise sample testing and assumptions to develop their estimates, the IFDI provides accurate information on the entire Islamic finance space and its sub-components."
Dr Sayd Farook, Global Head of Islamic Capital Markets for Thomson Reuters, said: "Our sizing of the industry is unique in that each dollar is accounted for, and we have minimized subjectivity and bias. This will provide policy makers and practitioners with the precise information that they require to develop the industry in their local markets."
Earlier this year, Thomson Reuters and ICD announced the creation of the ICD-Thomson Reuters Islamic Finance Development Indicator, a numerical measure representing the overall health and growth of the Islamic finance industry worldwide.
The indicator measures five key components - quantitative development, governance, social responsibility, knowledge and awareness. The IFDI, which was officially launched at the Global Islamic Economy Summit today, aims to expand the scope of Thomson Reuters' universe of Islamic finance content, research and news analysis and to develop an unbiased multi-dimensional barometer for the development of the Islamic finance industry. The IFDI analysis can be viewed on www.zawya.com/islamic-finance-development-indicator.
The IFDI is part of Thomson Reuters' new information solution catering to the growing need for better access to Islamic finance investments and markets, Zawya Islamic - a unique first of its kind solution for Islamic finance and Shari'ah-sensitive investors. Zawya Islamic will be an add-on to Zawya Markets - the leading Middle East and North Africa business information and investment opportunities solution.
Powered by data from Thomson Reuters and partnering with global Shari'ah and Islamic Finance market players, standard setters and authorities, Zawya Islamic makes Shari'ah-compliant investment, decision making and networking with the Islamic markets easier amalgamating:
- Fatawa, standards, regulations, legal documentation and product guidance notes, intelligently connected with scholars and instruments;
- Deep fundamental data on global Sukuk, Islamic funds, Islamic banks, financial institutions and Shari'ah-compliant equities;
- Islamic finance news, research, indices, money market and benchmark rates;
- The Islamic Finance Development Indicator and the Islamic Finance Gateway Community.
The Global Islamic Economy Summit, organised by Thomson Reuters and the Dubai Chamber of Commerce & Industry, began today and will run until the 26th November 2013 in Dubai, United Arab Emirates. For more information, please visit www.globalislamiceconomy.com.
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About Thomson Reuters
Thomson Reuters is the world's leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial and risk, legal, tax and accounting, intellectual property and science and media markets, powered by the world's most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs approximately 60,000 people and operates in over 100 countries. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges. For more information, go to thomsonreuters.com
About the Islamic Corporation for the Development of the Private Sector
The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral developmental organization affiliated with the Islamic Development Bank (IDB) Group. Its authorized capital stands at $2.0 billion. Its shareholders consist of the IDB, 52 member countries, and five public financial institutions. Headquartered in Jeddah, KSA, the ICD was established by the IDB Board of Governors during its 24th annual meeting held in Jeddah in November 1999.
The mandate of the ICD is to support the economic development of its member countries through provision of finance to private sector projects in accordance with the principles of Sharia'a law i.e., Islamic Law.
CONTACT
Tarek Fleihan
PR Manager, Middle East, Africa & Russia / CIS, Thomson Reuters
+97144536527
Email: tarek.fleihan@thomsonreuters.com
© Press Release 2013
