The Islamic finance industry’s performance is measured through five sub-sectors: Islamic Banking; Takaful; Other Islamic Financial Institutions (OIFIs) such as investment or micro-finance companies; Sukuk; and Islamic Funds.

The global Islamic finance market is growing rapidly, because of the strong investments in the Halal Sectors, infrastructure, and Sukuk bonds, especially through electronic modes in all products and services. The factors driving the growth of the Islamic Finance market are directing investment toward the tremendous growth opportunities in the promising Islamic sectors.

The industry’s total worth, according to key industry stakeholder organizations, across its three main sectors (banking, capital markets, and TAKAFUL), global Islamic Finance assets increased by double-digit year-on-year totaling in 2019. The global Islamic banking sector is the main contributor to this market and is worth USD 1.99 trillion growing at 14percent. Islamic banking has a 6 percent share in global banking assets.

Global SUKUK’s outstanding value stood at USD 538 billion, as per industry sources, on the back of strong sovereign and multilateral issuances in key Islamic Finance markets to support respective budgetary expenditures. This included debut entries into the sovereign SUKUK market by Saudi Arabia and Nigeria, as well as the pan-African multilateral development finance institution, Africa Finance Corporation.

The pandemic has got a dent in the growth of the Islamic Finance market. Sukuk is one of the worst-hit segments and will be in the slump of slow trend. The main reason being the longer regularization process of Sukuk made many choose regular bonds to raise money during the Pandemic.

Covid-19 pandemic and tumbling oil prices hamper Sukuk’s growth. The first two quarters of 2020 saw high levels of volatility in global markets as the Covid-19 pandemic took hold and oil prices crashed. Some of the largest sukuk issuers, often from oil-exporting countries, held off from issuing sukuk during the first quarter amid the market turmoil.

Courtesy by:https://finance.yahoo.com/