Covid an opportunity to transform Islamic finance, says S&P
The temporary slowdown in the growth of Islamic finance as a result of the Covid-19 pandemic could help unlock the long-term potential of the industry. This is the finding of a report from rating agency Standard & Poor’s (S&P) into the global Islamic finance industry. After a stellar performance in 2019, helped by a dynamic sukuk market, there has been “a significant slowdown of core Islamic finance economics in 2020,” stated S&P Global Ratings head of Islamic finance Mohamed Damak. While there is expected to be a “mild recovery” in 2021, there is also an opportunity to undergo reforms that could accelerate the industry’s long-term prospects.