The global Islamic finance sector hit a milestone in 2022, with total sharia-compliant assets growing by 9.4% to pass the $3tn mark, according to S&P Global Ratings. Broadly similar growth is anticipated in 2023/24, thanks to solid growth among Islamic banks in the Gulf Co-operation Council (GCC) and a healthy sukuk market.
The Middle East continues to underpin growth in the global Islamic banking sector, with GCC countries responsible for 92% of the growth in sharia-compliant banking assets for the year, according to S&P. Saudi behemoths Al Rajhi Bank and Saudi National Bank posted strong gains in 2022 on the back of the country’s booming mortgage market and funding for projects linked to the Vision 2030 economic development programme. Yet the year was especially notable for Kuwait Finance House’s acquisition of Bahrain’s Ahli United Bank, which saw the former’s sharia-compliant asset base increase by 70%, making it the third-largest Islamic lender worldwide.
