Islamic finance has been growing at 1.5 times the rate of traditional finance
Dubai International Financial Centre (DIFC), the leading international financial hub in the Middle East, Africa, and South Asia (MEASA) region, announced that it has recorded solid growth of 45% in Islamic assets during the period between the second quarter of 2018 and Q2-2019.
Islamic finance has been growing at 1.5 times the rate of traditional finance as the MEASA is significantly driving this industry on the back of a number of jumbo sukuk issuances and almost $1 trillion in financial assets across GCC countries, according to a press release.
Dubai is one of the largest centres in the world for sukuk listings with offerings worth $62 billion, including listings on Nasdaq Dubai valuing at $60 billion, the DIFC highlighted.
The global financial centre supports over 40 firms that provide sharia-compliant products and services in reaching a Muslim population of over 600 million in the Middle East and Africa region alone.
The centre has attracted several major Islamic institutions, such as Maybank Islamic Berhad, to set up their headquarters in Dubai due to the healthy legal and regulatory environment in the centre, as well as its highly developed and dynamic financial ecosystem.
Arif Amiri, CEO of DIFC Authority, said: “The growth in the number of financial institutions with a sharia-compliant offering, alongside the rise of Islamic assets managed from the DIFC highlights the increasing demand for Islamic financial products in the region.”
“Aligned with the vision of Dubai’s leadership to establish the city as the capital for Islamic Economy, we are committed to continuously enhancing our world-class business environment to support the growth of sharia transactions here in the Centre,” Amiri added.
Furthermore, the DIFC is strengthening the UAE’s position as the fourth largest Islamic FinTech hub in the world after it became the preferred home for emerging Islamic FinTech firms.
The DIFC is keen to develop the sector by creating an Islamic FinTech stream in its award-winning FinTech Hive accelerator programme, alongside RegTech, InsurTech and FinTech.
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