Sukuk issuance is expected to maintain its position as a major growth driver for the Islamic finance industry after seeing record-breaking issuances over the past year, according to new research.
Alpen Capital (ME) Limited and Alpen Asset Advisors Limited said in a report that while the industry slowed during the year after experiencing record growth in 2019, it showed resilience amid the ongoing global coronavirus pandemic.
Total Islamic finance assets in 2020 are estimated to match the previous year’s figures, it added.
“Islamic finance and wealth management industry faced the dual shocks of adjusting to the pandemic and historically low oil prices in 2020. While the industry slowed down during the year after experiencing record growth in 2019, it showed resilience,” said Sameena Ahmad, managing director, Alpen Capital (ME) Ltd.
“Technology adoption has become one of the most critical drivers of survival. The adoption and integration of new and emerging technologies is likely to streamline the Islamic finance market and broaden the service offerings. An optimistic outlook by the IMF on global economic recovery is expected to spur a recovery within the sector,” Ahmad noted in the report.
Hameed Noor Mohamed, executive director, Alpen Capital (ME) Ltd, added: “Sukuk is expected to maintain its position as a major growth driver for the Islamic finance industry. Sukuk has witnessed record-breaking issuances over the past year, and this is likely to continue. Concepts such as ESG/sustainable investing, and green sukuk are also rising in prominence and gaining investor interest.
Source: Arabian Business