The Islamic finance sector is witnessing significant growth, with a projected increase of 10.6% in 2024. This promising trend was highlighted recently during the 15th Annual Islamic Finance Conference, hosted by S&P Global Ratings and the Dubai International Financial Centre. The event focused on the sector’s robust performance, revealing that the total outstanding Sukuk has exceeded the $1 trillion mark for the first time. This article delves into the insights shared at the conference, exploring global projections for Islamic finance, as well as the opportunities and challenges ahead.
Highlights from the Conference
The 15th Annual Islamic Finance Conference, held in the Atrium of the Dubai International Financial Centre, showcased the powerful momentum of the Islamic finance sector in 2024, bolstered by a remarkable growth rate of 10.6%. The discussions provided an in-depth analysis of the evolving capital markets in the Gulf Cooperation Council (GCC) countries. Haadi Maleki, the regional head at S&P Global Ratings, stated, “The Islamic finance sector continues to demonstrate resilience, supported by the growth in banking assets and Sukuk issuances.” He emphasized the sector’s favorable position to maintain its momentum into 2025, despite prevailing global uncertainties.
Commitment to Sustainable Growth
Aliya Alzarooni, Chief Operating Officer at the Dubai International Financial Centre Authority, affirmed the ongoing commitment to advancing the Islamic finance sector as a key driver of sustainable and inclusive development. Alzarooni remarked, “As the Islamic finance sector continues to grow as a vital contributor to comprehensive and sustainable development, the Dubai International Financial Centre remains dedicated to accelerating the transition in this sphere.” The focus is on creating an ecosystem that fosters innovation, enhancing the development of Sharia-compliant financial solutions with competitive global capabilities, supported by digital technologies.
Future Prospects and Challenges
The first session of the conference, titled “Islamic Finance 2025 – 2026: Resilient Growth Amidst Emerging Challenges,” addressed key growth drivers, opportunities, and future challenges. Among the speakers were Abdelkader Hussein, Head of Fixed Income Assets Management at Arqaam Capital; Ali Tawfiq, Head of Sukuk Financing at HSBC for the MENA and Turkey region; and Hitesh Dhoot, Chief Financial Officer at Damac Properties. Their insights into the factors influencing the sector’s trajectory underscored the importance of strategic adaptability in navigating upcoming challenges.
The Islamic finance sector, with its projected growth rate of 10.6% in 2024, stands at a pivotal moment, offering substantial opportunities for stakeholders to engage and innovate. The collaboration among industry leaders highlighted at the conference signifies a collective commitment to leveraging this potential while addressing the inevitable challenges of an evolving financial landscape.