Malaysia top of the chart in global Islamic finance ranking for 10th year
22 Dec 2022
Malaysia has retained its first place in the overall ranking of global Islamic Finance Development Indicator (IFDI) for the tenth consecutive year, said the Malaysia International Islamic Financial Centre (MIFC).
In a statement, MIFC said according to the recently published Islamic Corporation for the Development of the Private Sector (ICD)-Refinitiv IFDI Report 2022, Malaysia also ranked first in four sub-categories, namely financial performance, governance, awareness and sustainability.
The report also covers the industry’s growth prospects. The global Islamic finance industry has total assets worth US$4 trillion (US$1=RM4.43) in 2021. This is expected to reach US$5.9 trillion by 2026, the statement said.
According to the report, Malaysia ranked first with a total IFDI 2022 score of 113 points, ahead of Saudi Arabia in second place at 74 points, Indonesia (61 points), while Bahrain and Kuwait both shared 59 points.
The IFDI provides Islamic finance stakeholders such as governments and financial institutions a detailed analysis of the key factors driving the growth and development of the industry worldwide.
The global IFDI 2022 measures the performance of 136 countries in five categories, namely financial performance, governance, sustainability, knowledge and awareness.
“The average score for the 136 countries is nine; 38 countries scored above the average while the majority fell below nine.
“Due to the change in the IFDI methodology this year, the scores and rankings are not comparable with previous years,” said the report.
The report highlighted that Malaysia’s biggest Islamic finance ecosystem strengths are awareness, knowledge and sustainability. Saudi Arabia followed closely after Malaysia.
Indonesia showed a strong performance in knowledge and scored well in governance, it secured third place.
The other countries in the top 10 include Bahrain, Kuwait, United Arab Emirates, Oman, Pakistan, Qatar and Bangladesh.