ICD, IsDB & LSEG Launch 2023 Islamic Finance Development Report: “Navigating Uncertainty”
At the 18th AAOIFI–IsDB Annual Islamic Banking and Finance Conference, held in Bahrain and back‑up’d by the Central Bank of Bahrain, the Islamic Corporation for the Development of the Private Sector (ICD), the Islamic Development Bank Group (IsDB) and the London Stock Exchange Group (LSEG) rolled out this year’s flagship report. Its headline commentary? “Navigate the unknown, come out stronger.”
Green & Sustainability Sukuk – A Big Deal at COP28
- Dubai’s COP28 spotlighted green and ESG Sukuk as jump‑starts for eco‑friendly projects worldwide.
- In 2022, total ESG Sukuk issuance hit a record US$8.4 billion, up from the first themselves in 2017.
- Islamic ESG funds reached US$6.6 billion at year‑end, a 14 % dip from the peak of US$7.6 billion in 2021.
Global Islamic Finance: A 2022 Snapshot
The sector grew 11 % to US$4.5 trillion in 2022, with Islamic banking holding a respectable 72 % of the industry’s assets. Since 2012, the whole industry has surged 163 % and is projected to hit US$6.7 trillion by 2027.
What’s Fueling the Growth?
- Strong domestic markets like the GCC, Malaysia and Indonesia.
- Pakistan’s push for an interest‑free financial framework.
- Continuous tech and regulatory innovation across the board.
The Islamic Finance Development Indicator (IFDI)
This composite index, covering more than a dozen metrics (knowledge, governance, sustainability, awareness), pulls data from 136 countries to gauge the sector’s overall health.
Top Countries According to 2023 IFDI
- Malaysia – 103
- Saudi Arabia – 70
- Indonesia – 58
- Bahrain – 54
- Kuwait – 54
- UAE – 53
Voices from the Industry
Eng. Hani Salem Sonbol, Acting CEO of ICD: “The industry is on a trippy upward trajectory. Over the past decade we’ve seen the global Islamic finance ecosystem thrive. Regulators and multilateral bodies reference our indicator every year, especially when crafting roadmaps and masterplans. We’re hoping this report will create a tangible ripple in the sector.”
Mustafa Adil, Head of Islamic Finance at LSEG: “The IFDI report underscores our commitment to tracking the world’s Islamic finance pulse. Since its launch in 2013, the indicator has become a cornerstone for understanding assets, sectors and the wider ecosystem. Reaching this milestone reminds us how crucial it is to keep pushing for the industry’s exponential growth.”
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