Islamic Financial Industry amounted 2.7 Trillion Dollars in 2020, Central Bank Governor

Saudi Central Bank workshop on Islamic Finance stresses on research, development

The 15th Summit of the Islamic Financial Services Board (IFSB) launched here on Wednesday organized by Saudi Central Bank, under the theme “Islamic Finance and Digital Transformation: Balancing Innovation and Resilience”. The two-day summit will focus on ways to foster innovation, technology adoption, accessibility and sustainability in the Islamic financial system to boost its growth and development, as well as the policy implications arising from rapid digital transformation.

The Governor of Saudi Central Bank Dr. Fahd bin Abdullah AlMubarak said at the opening session that the Saudi Central Bank is honored to host the summit this year, adding, “The summit seeks to focus on the development of the Islamic financial industry and digital transformation, from the perspective of a balance between the ability to benefit from innovation and at the same time enhance the strength and stability of the financial sector, and that the Islamic financial industry has been able to maintain a steady growth, and has been able to spread geographically until it is today present in all continents of the world.”

He pointed out that the Islamic financial industry witnessed remarkable developments at the global level, as it achieved an annual growth of more than 10%, according to the report of the Islamic Financial Services Board for the year 2021, bringing Islamic finance to about 2.7 trillion dollars during the year 2020, from 2.44 trillion dollars in 2019.

He said, “The total assets of Islamic financial services in the banking sector, instruments sector, insurance sector and investment funds sector in the Kingdom amounted to nearly $800 billion, which represents approximately 28% of the total Islamic financial assets globally, according to the report of the Islamic Financial Services Board issued this year.”

He added, “The main indicators of the Islamic banking sector in the Kingdom witnessed rapid growth, as the total Sharia-compliant financing amounted to more than $430 billion, while the total volume of Sharia-compliant deposits amounted to $433 billion, by the end of the second quarter of this year. This growth and this advanced rank in the Islamic financial industry in the Kingdom of Saudi Arabia aim to achieve the objectives of the Kingdom’s Vision 2030.”

Dr. AlMubarak said that the summit will discuss financial technology and its role in Islamic finance, and the associated opportunities, challenges and regulatory policies will be discussed, and the relevant effective supervisory and regulatory frameworks will be discussed, through seven specialized sessions.

He asked the attendees to review the joint report with the Islamic Financial Services Board, which was issued in conjunction with this global occasion.