The Islamic finance sector has concluded the first phase of its growth story. Following the contemporary industry’s emergence in the 1960s and 1970s, when a few pioneering jurisdictions opened the door to the growth of sharia-compliant institutions, the market’s development has been remarkably fast.
Today, global Islamic assets are just above $2000bn, according to most estimates. They are largely held in the dominant hubs of the Gulf Co-operation Council and south-east Asia, specifically Malaysia. But many sharia-compliant institutions in these regions have, to varying degrees, reached the limit of their growth potential. With market saturation, asset expansion and profitability have matured.
