The Six Key Countries Driving Global Islamic Finance Growth
28 Pages Posted: 20 Jan 2015
Date Written: 2014
Six countries; Qatar, Indonesia, Saudi Arabia, Malaysia, the United Arab Emirates and Turkey (denoted by the acronym QISMUT) are considered the potential primary force of the future international development of Islamic finance. These countries, with both expertise and potential for growth in Islamic finance, accounted for about 78% of the world’s Islamic financial assets (excluding Iran) in 2013. Thanks to their abundant natural resources and strong social infrastructure, the QISMUT countries enjoyed continued growth in population and average income, thereby attracting interest from Islamic and non-Islamic companies alike. Islamic financial assets in the QISMUT countries are projected to grow at an average annual rate of 19.7% from 2013 to 2018. At that rate of growth, Islamic financial assets in the QISMUT countries would exceed US$1.6 trillion, about 50% of the expected global total, by 2018. In light of the important role that the six QISMUT countries can play in the future global development of Islamic finance, this paper looks at the current status of each country’s domestic market and the various measures that their governments have implemented to encourage growth in Islamic finance.
Note: The original of this report was published in July 2014 in Japanese. All quoted data and figures are from publications previous to that.
Keywords: Islamic finance, Islamic economy, Sukuk, Islamic banking, Halal business, Qatar, Indonesia, Saudi Arabia, Malaysia, UAE, Turkey
JEL Classification: A13, E42, E44, E50, E52, E58, E61, E62, E66, F33, F42
Suggested Citation: Suggested Citation