In an era where ethical and sustainable finance is gaining prominence on the global stage, the Islamic banking and finance industry has emerged as an icon of responsible financial practices. It has emerged as an effective tool for financing development worldwide, including in non-Muslim countries. Major financial markets are increasingly recognizing the potential of Islamic finance to help address the challenges of ending extreme poverty and boosting shared prosperity.

The global Islamic banking industry is growing rapidly. In 2023, the industry assets reached 4 trillion USD, and is poised to register a compound annual growth rate (CAGR) of 10% during the forecast period. In 2021, Islamic finance assets amounted to USD 3.6 trillion, the highest recorded growth for the industry. The prospects look positive: by 2025, this is set to rise to almost USD 5 trillion. This growth is being driven by a number of factors, including the increasing demand for Sharia-compliant financial products and services, the growing population of Muslims, and the increasing awareness of the benefits of Islamic finance. The growth of Islamic banking setup in non-Muslims countries reflects the power and potential of Islamic banking as a global financial force. 

Islamic finance development is mainly driven by its two biggest segments, Islamic banks and Sukuk. By 2022, GCC accounts 44% of total Islamic finance assets, the MENA region accounting 26.3%, Southeast Asia accounting 24%, and Europe Asia, America and Africa accounting for the rest. The Islamic finance market is fragmented, with a large number of players trying to grab a significant chunk of the developing markets. In some regions, like Asia and Africa, it is moderately growing with the presence of a large number of local players and some foreign players. However, the GCC is a highly competitive market with a large number of international players. Bank Al-Rajhi, Dubai Islamic Bank, and Kuwait House Finance are among the major players present in the region. In terms of Islamic finance assets distribution, about 70 per cent is under the Islamic banking sector, followed by 19 per cent under Sukuk, five per cent under Islamic funds, four percent under other IFIs and the remaining 2 per cent under takaful sector. 

Furthermore, Fintech’s adoption in Islamic social finance space is particularly an interesting area of innovation, promising greater access, coverage, efficiency and governance benefits to all stakeholders involved. The Global Islamic Fintech Report 2021, Malaysia was ranked at the top of the list based on the GIFT index factors across five different categories (talent; regulation; infrastructure; Islamic FinTech market and ecosystem; capital). Malaysia leads the other 64 countries in terms of capital growth and FinTech ecosystem conduciveness.

Alhuda Centre of Islamic Banking & Economics (CIBE) continued its commitment to promoting the global growth of Islamic banking and finance. Alhuda CIBE is a leading provider of training, research, and consultancy services in the Islamic finance industry. In recent years, Alhuda CIBE has expanded its reach to new markets, including Southeast Asia, Africa, and the Middle East.

Mr. Muhammad Zubair, the Chief Executive Officer of AlHuda CIBE said that, we are committed to promote the global growth of Islamic banking and finance. He believes that Islamic finance is a sustainable and ethical financial system that can benefit people of all faiths. He also said that, he with his dedicated team of experts is devoted to design ideal products for banking, microfinance, insurance, capital market and other financial institutions. The Socio-Economic aspects of financial industry together are the best solution for sustainable development of economy, and Islamic Finance is the best alternative. 

As the global Islamic banking and finance industry continues to witness significant growth, Alhuda Centre of Islamic Banking & Economics (CIBE) emerges as a pivotal player in advancing and promoting the principles of Islamic finance worldwide. With its unwavering commitment to providing cutting-edge education, consultancy, and advisory services, Alhuda CIBE has played a paramount role in the expansion and development of this dynamic sector.