Brunei Darussalam ranked 13th out of 136 countries globally in the latest Islamic Finance Development Report 2024: From Niche to Norm, according to a press release from the Brunei Darussalam Central Bank (BDCB).
The report reveals that Brunei Darussalam achieved 29 points on the Islamic Finance Development Indicator (IFDI) 2024, which measures the development of the Islamic finance industry based on data in 2023.
Meanwhile, the global average score increased to 12 in 2024 from 9 in the previous year.
The IFDI highlights another strong year for the global Islamic finance industry, with total assets increasing by 11 per cent from USD4.5 trillion in 2022 to USD4.9 trillion in 2023. Strong performances across key sectors drove this growth, and the IFDI forecasts total global assets to reach USD7.5 trillion by 2028, signalling sustained growth in the sector.
Islamic banking saw a robust growth of 12 per cent in 2023, reaching USD3.6 trillion in assets, with Afghanistan, Iraq, and Bahrain leading in growth rates. Sukuk followed closely, rising by 9 per cent, driven by increased sovereign issuances to maintain yield curves in key markets, sizeable offerings from non-traditional markets, and a notable rise in green and sustainability sukuk issuances, bringing the total outstanding amount to USD863 billion.
The takaful sector experienced modest growth, reaching USD86 billion, hindered by competition from conventional counterparts, a limited range of Syariah-compliant options, and pressures from the monetary tightening cycle.
Source: Borneo Bulletin
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December 30, 2024
