RIYADH: Saudi Arabia is the largest Islamic finance market, with total assets exceeding SR3.1 trillion ($830 billion), revealed the chief of the Saudi Central Bank, also known as SAMA. 

Speaking at the Islamic Financial Services Board symposium in Riyadh, SAMA Gov. Ayman Al-Sayari said that the global Islamic finance sector has been witnessing robust growth over the past few years. 

According to Al-Sayari, also the chairman of the IFSB Council, the total value of the Islamic finance sector currently stands at SR11.2 trillion, displaying an average growth of 9.6 percent over the last three years, reported the Saudi Press Agency. 

“Saudi Arabia has a deep-rooted and historical relationship with Islamic finance. It houses the largest Islamic finance market in the world, with total Islamic assets across sectors exceeding SR3.1 trillion. The Islamic banking sector alone accounts for 33 percent of the global Islamic bank assets,” said Al-Sayari. 

The IFSB’s annual meeting, hosted by SAMA from Aug. 14-16, is being held in Riyadh to discuss various developments in the Islamic finance sector. 

The governor further noted that the Kingdom is the largest sovereign sukuk issuer in the world. Its cooperative insurance sector is the fastest growing in the world, clocking a growth rate of 27 percent in 2022. 

During his speech, Al-Sayaru also assured the central bank’s support in achieving the goals of IFSB, including building a resilient and sound Islamic finance market. 

This year’s IFSB annual meeting featured several events and dialogue sessions with the participation of experts and decision-makers in the industry. 

During the meeting, board members also discussed the outlook of Islamic finance amid global economic headwinds and tightened financial conditions. 

Market intelligence in the past six months have been favorable toward Shariah-compliant funding.   

In May, S&P Global Ratings noted that the Islamic finance industry is expected to grow by around 10 percent this year, primarily driven by the economic growth of countries in the Gulf Cooperation Council region. 

In March, Moody’s Investors Service also suggested that global sukuk issuance is forecast to level off from $170 billion to $175 billion in 2023, after a 10 percent fall in 2022 to $178 billion. 

Moody’s further pointed out that Saudi Arabia and Malaysia will continue to lead global sukuk issuances.