Takaful (Islamic insurance) is one of the pillars of Islamic finance markets but its growth requires further impetus. Takaful accounted for USD46 billion of global Islamic finance assets in 2017, up by 4.5% from 2016*. — More than 45 countries have takaful operators or takaful windows (which enable insurers to offer sharia-compliant and conventional products side by side), totaling 324 entities. However, takaful continues to only represent 2% of total global Islamic finance industry assets.

Sukuk issuance by corporates in 2018 in key Islamic finance markets, such as the Gulf Cooperation Council (GCC) region, Indonesia, Turkey and Pakistan, has been small relative to its potential. — The only exception is Malaysia, which has a relatively developed local sukuk market (at USD116 billion of local corporate sukuk issuance). The return to debt issuance in 2018 by many governments (although not at the same level of 2017) could help encourage growth in the private sector’s sukuk market. This…

The UK has carved out a pivotal role in growing it’s footprint in Islamic finance over the past several years. — Islamic finance, which is systemically important in many jurisdictions including the Gulf Cooperation Council (GCC) and Malaysia, is now growing throughout the Middle East, Asia and Africa. …

Canada has helped to establish a template for other sovereigns in embracing alternative and socially conscious forms of investing. A recent notable example of Canada’s proactive push in this area is Islamic Finance. — The overarching reason is that Canada can deepen its pool of investors; the belief being that the more people have a personal stake in an investment, the more public acceptance it will generate. …

Created to fund projects with positive environmental benefits, green bonds have become rapidly popular in Europe and Asia while gaining traction in the United States. — Islamic finance is one of the latest sectors to begin exploring the possibilities of what has been called “socially responsible” investing. With Islamic finance systemically important in many jurisdictions and now growing in the wider regions of Middle East, Asia and Africa, recent discussion is focused on the favourable prospects…

Whether you call it Fintech, Insure-tech or Takaful-tech, Fintech has become a buzzword in the Islamic finance industry. — Though not a sudden development, the evolution of Fintech in the industry has evolved rather rapidly. Innovation is a cornerstone in the development of Islamic finance itself. As such, the general consensus among market participants is that Fintech has the potential to play a major role in the Islamic finance…