ACCORDING to the State of the Islamic Economy Report 2018/19, Malaysia has been the leader of the Islamic economy ecosystem for five consecutive years since 2013.
Thomson Reuters ranked Malaysia as the most developed Islamic finance market in the world based on Islamic Finance Development Indicator (IFDI) values.
According to the Malaysia International Islamic Financial Centre (MIFC), Malaysia continues to be the main driver for the sukuk market, representing 48.8 per cent of the total global outstanding sukuk; and 35.8 per cent of the total global Islamic funds assets under management (AuM) as of Sept 2019
Malaysia ranked first with a total of 430 global funds, followed by Saudi Arabia (203), Luxembourg (202), and Pakistan (180).
In 2017, for the Islamic banking sector, Thomson Reuters ranked Malaysia third after Iran and Saudi Arabia.
Malaysia’s rank was similar in the takaful sector for that year, but with Saudi Arabia as the leader, followed by Iran.
Based on the same ranking system, Malaysia took the lead in other Islamic finance sectors, such as financing, real estate and financial technology (or fintech).
It is pertinent to mention that myriad Islamic fintech companies, especially Islamic crowdfunding platforms, have taken various progressive steps towards invigorating Islamic social finance (ISF) instruments.