Brunei Darussalam Ranked 11th In Islamic Finance Development Indicators 2020
Source : AMBD
19 Mar, 2021
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1. The global Islamic Finance industry has continued to grow despite some challenges. As reported in the ICD-Refinitiv Islamic Finance Development Report 2020: Progressing Through Adversity, Brunei Darussalam ranked 11th in terms of overall development in Islamic finance industry out of 135 countries being assessed. The report revealed that based on 2019 data, Brunei Darussalam achieved 36 points in the Islamic Finance Development Indicator (IFDI), whilst the global average indicator value was 10.8.
2. The report indicated that the global Islamic finance industry has grown by 14.4% year-on-year amounting to US$ 2.9 trillion in assets in 2019. The report forecasted potential for the industry to grow further to US$3.7 trillion in assets by 2024. In terms of total global Islamic Finance Assets, Islamic banking dominated Islamic Finance Asset Distribution with 69% share in 2019; followed by Sukuk at 19%; other Islamic financial institutions (OIFI) at 5%; Islamic funds at 5%; and Takaful at 2%.
3. The IFDI provides rankings and profiles for different Islamic finance markets around the world, with instrumental factors in five broad areas of development as the main indicators. These include Quantitative Development (Islamic Banking, Takaful, OIFI, Sukuk and Islamic Funds); Knowledge (Education and Research), Governance (Regulations, Syariah Governance and Corporate Governance); Corporate Social Responsibility (CSR Activities and CSR Funds Disbursal); and Awareness (Seminars, News and Conferences). Malaysia, Indonesia and Bahrain came as the top three Islamic finance markets in overall development.
4. In 2019, Brunei Darussalam attained top place in terms of Takaful assets to Gross Domestic Product (GDP) at 1.12%, the highest amongst all countries. Brunei Darussalam also achieved fourth place with 57% share of Islamic banking to total banking assets.
5. In terms of other assets growth, Brunei Darussalam has also been recognised as the fastest growing market in Sukuk assets in 2019 and was one of the top 10 countries in OIFI assets, with value of about US $2 billion.
