Islamic Finance 2017: State of the Art and Outlook for the Future

Abstract

The Islamic finance industry is composed of four sectors: banking, sukuk (bonds), equity and funds, and takaful (insurance). The banking sector dominates the industry with approximately 75% of all Islamic financial assets under management. Islamic financial industry assets are domiciled predominantly in Gulf Cooperation Council (GCC) countries (USD 922 billion), Southeast Asia (USD 473 billion), and Middle East excluding GCC countries (USD 453 billion). In non-Muslim majority countries, in Europe and the Americas, Islamic finance maintains a presence but remains marginal. Interest in Islamic finance among conventional investors appears to be limited.