(Bandar Seri Begawan, 13th) According to a statement released by the Brunei Central Bank (BDCB), Brunei ranks 13th out of 136 countries globally in the latest "2024 Islamic Finance Development Report: From Niche to Mainstream."
The report shows that Brunei scored 29 points on the 2024 Islamic Finance Development Indicator (IFDI), which measures the development of the Islamic finance industry based on 2023 data.
Meanwhile, the global average score rose from 9 points the previous year to 12 points in 2024.
IFDI highlights another strong year for the global Islamic finance industry, with total assets growing by 11% from USD 4.5 trillion in 2022 to USD 4.9 trillion in 2023. This growth was driven by strong performance in key sectors, with IFDI projecting global total assets to reach USD 7.5 trillion by 2028, indicating continued growth for the industry.
In 2023, Islamic banking saw a strong growth of 12%, with assets reaching USD 3.6 trillion, with the highest growth rates in Afghanistan, Iraq, and Bahrain. Islamic bonds followed with a growth of 9%, primarily due to an increase in sovereign bonds issuance to maintain the yield curve in major markets, significant issuance in non-traditional markets, and a substantial increase in the issuance of green and sustainable Islamic bonds, bringing the outstanding total to USD 863 billion.
The Takaful industry saw moderate growth, reaching USD 86 billion, but was hindered by competition from conventional peers, limited Sharia-compliant options, and pressure from a monetary tightening cycle.
In terms of total global Islamic financial assets, Islamic banks continue to dominate the distribution of Islamic financial assets, accounting for a 73% share in 2023, followed by Islamic bonds (18%), Islamic funds (5%), Other Islamic Financial Institutions (OIFI) (3%), and Takaful (2%).
The five main IFDI indicators are financial performance, governance, sustainability, knowledge, and awareness. According to the report, Malaysia and Saudi Arabia maintained their positions as the top two overall developed Islamic financial markets in 2023, with the UAE replacing Indonesia in third place, achieving an IFDI score of 88.
While Brunei's financial performance indicator score remains at 11 points, significant progress has been made in the Takaful and Islamic bonds sub-indicators.
Brunei also ranks 10th in the asset sub-indicator under financial performance for OIFI. In terms of government governance, Brunei maintained a perfect score in the regulatory sub-indicator, significantly boosting the overall governance score from 59 points in IFDI 2023 to 71 points in IFDI 2024.
Additionally, both awareness and sustainability indicators have improved, with the awareness score rising from 16 points to 24 points, and the sustainability score increasing from 13 points to 14 points.
Meanwhile, the global average score rose from 9 points the previous year to 12 points in 2024.
IFDI highlights another strong year for the global Islamic finance industry, with total assets growing by 11% from USD 4.5 trillion in 2022 to USD 4.9 trillion in 2023. This growth was driven by strong performance in key sectors, with IFDI projecting global total assets to reach USD 7.5 trillion by 2028, indicating continued growth for the industry.
In 2023, Islamic banking saw a strong growth of 12%, with assets reaching USD 3.6 trillion, with the highest growth rates in Afghanistan, Iraq, and Bahrain. Islamic bonds followed with a growth of 9%, primarily due to an increase in sovereign bonds issuance to maintain the yield curve in major markets, significant issuance in non-traditional markets, and a substantial increase in the issuance of green and sustainable Islamic bonds, bringing the outstanding total to USD 863 billion.
The Takaful industry saw moderate growth, reaching USD 86 billion, but was hindered by competition from conventional peers, limited Sharia-compliant options, and pressure from a monetary tightening cycle.
In terms of total global Islamic financial assets, Islamic banks continue to dominate the distribution of Islamic financial assets, accounting for a 73% share in 2023, followed by Islamic bonds (18%), Islamic funds (5%), Other Islamic Financial Institutions (OIFI) (3%), and Takaful (2%).
The five main IFDI indicators are financial performance, governance, sustainability, knowledge, and awareness. According to the report, Malaysia and Saudi Arabia maintained their positions as the top two overall developed Islamic financial markets in 2023, with the UAE replacing Indonesia in third place, achieving an IFDI score of 88.
While Brunei's financial performance indicator score remains at 11 points, significant progress has been made in the Takaful and Islamic bonds sub-indicators.
Brunei also ranks 10th in the asset sub-indicator under financial performance for OIFI. In terms of government governance, Brunei maintained a perfect score in the regulatory sub-indicator, significantly boosting the overall governance score from 59 points in IFDI 2023 to 71 points in IFDI 2024.
Additionally, both awareness and sustainability indicators have improved, with the awareness score rising from 16 points to 24 points, and the sustainability score increasing from 13 points to 14 points.