This research report segments the Islamic financing market by product categories such as sukuk outstanding, Islamic fund assets, and takaful contributions. Market shares of the leading regions for Islamic banking include GCC, MENA (ex. GCC), Asia and Sub-Saharan Africa. Leading Islamic banking and financing institutions analyzed by this report include Al Rajhi Bank, Abu Dhabi Islamic Bank, Al Baraka Banking, Dubai Islamic Bank
Technavio’s market research analysts estimate the global Islamic financing market to grow at a CAGR of around 19% between 2015 and 2019. This market generates major part of its revenue through Mudaraba and Sukuk investments. Islamic banking and financial vendors are increasingly seeking diversification into foreign investments on account of strong growth prospects and higher investment returns. GCC dominates the global Islamic financing market, where Saudi Arabia, United Arab Emirates (UAE), and Malaysia are the major contributors to this market. Growing Sukuk investments is one of the key factors for the growth of Islamic banks in this region.
The new market research report from Technavio provides a breakdown and analysis of the Islamic financing segments by technology.
“Growing inclination towards digital banking is one of the key trends that this market will witness in the next four years. Islamic banks are investing in analytical solutions to improve the end-user experience and provide customized services. They are shifting towards digital payment economy to enlarge their market footprint. They are encouraging the halaal system, where the Muslim mortgages cannot charge interest payments from the borrower. Under this halaal system, Muslim financing should always be interest free financing or free of Riba,” says Navin Rajendra, Lead Analyst, IT Services, Technavio Research.
Various banks such as UAE’s Dubai Bank and Kuwait International Bank have modified their entire operations to become Sharia-compliant. Islamic banks like Qatar Islamic Bank and Al Rajhi Bank have increased their focus towards African and Asian markets, owing to increased opportunities for infrastructure financing in these regions. Many Islamic banks are seeking to form strategic partnerships with foreign financial institutions in pursuit of expansion strategies and to exploit opportunities in untapped markets.
The key vendors in the global Islamic financing market include Al Rajhi Bank, Abu Dhabi Islamic Bank, Al Baraka Banking, Dubai Islamic Bank. Low market penetration of Islamic products in most of the emerging markets has created an attractive growth opportunity for the top market players. Market expansion strategies are crucial to the enhancement of Islamic products and services. To capitalize on the market opportunity, the leading players are expected to focus more on devising and developing effective marketing channels by affiliating with various distribution channels as per the forecast.
A more detailed analysis is available in the Technavio report, Global Islamic Financing Market 2015-2019.
We can customize reports by other regions and specific segments upon request.
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