COMCEC Financial Outlook 2018
23
Source: IFSB 2019
Islamic banking share in the entire domestic banking sector for member countries, ranging from
100% to 0.1%. In 2018, 12 countries where Islamic banking comprises more than 15% of total
domestic banking sector assets, accounting for 91% of the global Islamic banking assets. Iran
had the largest share in the global Islamic banking in the world with 32.1% in 2018. It was
followed by Saudi Arabia at 20.2% [2017: 20.4%], Malaysia 10.8% [2017: 9.1%], UAE 9.8%
[2017: 9.3%] and Kuwait 6.3% [2017: 6.0%]. These top five countries had systemically23
important Islamic banking share.
2.4 Capital Market Sector
In 2017, Islamic capital markets have been triggered thanks to the recovery in global economic
conditions; however this positive trend did not continue in 2018. Despite this, Islamic capital
markets grew with a steady pace.
Sukuk Market
Sukuk remained attractive to issuers as well as a wide range of investors. In 2017, sukuk market
observed double-digit growth rates thanks to the large issuances. On the other hand, total global
sukuk issuance increased only about 5% from USD 116.7 billion in 2017 to USD 123.2 billion in
2018. In 2018, the increase in sukuk issuance was mainly driven by regular issuances in Saudi
Arabia, Asia, GCC, Africa and some other regions. Malaysia continued to dominate the sukuk
market.
Figure 16: Global Sukuk Issuances (2001-2018, USD million)
Source: IIFM
Furthermore, Green sukuk is a new innovative product of the Islamic capital markets and aims
to accumulate fund to finance environmentally friendly projects. The first green sukuk issued in
Malaysia in 2017 and it was followed by several OIC member countries, such as Indonesia issued
its first green sukuk in February 2018. The green sukuk issuance continued in 2018. There are
23 Share of Islamic Banking Sector in Total Banking sector>15%
66,8
50,2
24,3
37,9
53,1
93,2
137,6 136,3
107,3
67,8
87,9
116,7
123,2
2001-6 2007 20082009 2010 2011 2012 2013 2014 2015 2016 2017 2018