ISLAMIC finance industry growth slumped to 3% in 2018 from the previous year’s 7%, marking the second-slowest expansion after 2014 since the Islamic Finance Development Indicator (IFDI) report was introduced in 2012.
The slowdown in 2018 reflected the downtrend in three industry-leading markets, namely Iran, Saudi Arabia and Malaysia, according to the Islamic Finance Development Report 2019.
The three countries, all of which have Islamic finance assets over US$500 billion (RM2.04 billion), accounted for 65% of global Islamic finance assets in 2018.
Despite the slower growth, total assets across the industry grew to US$2.52 trillion in 2018 from US$2.46 trillion previously.
Malaysia’s assets grew 5% to US$521 billion in 2018, versus an 18% jump recorded in 2017.