Asia-Pacific Islamic Finance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Asia-pacific Islamic Finance Market is Segmented by Financial Sector (Islamic Banking, Islamic Insurance 'Takaful', Islamic Bonds 'Sukuk', Other Islamic Financial Institutions (OIFL's), And Islamic Funds), By Geography (Bangladesh, Pakistan, Sri Lanka, Indonesia, Malaysia and Rest of Asia-Pacific). The Report Offers Market Size and Forecasts for the Asia-Pacific Islamic Finance Market in Value (USD) for all the Above Segments.

Asia-Pacific Islamic Finance Market Size

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Asia-Pacific Islamic Finance Market Summary
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Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR (2024 - 2029) > 3.50 %
Market Concentration Medium

Major Players

Asia-Pacific Islamic Finance Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Asia-Pacific Islamic Finance Market Analysis

The Asia-Pacific Islamic Finance Market is expected to register a CAGR of greater than 3.5% during the forecast period.

The Islamic finance industry has grown substantially in Asia over the last two decades. In Asia, the strong growth of Islamic finance is led by Bangladesh, Brunei Darussalam, Indonesia, Malaysia, and Pakistan with Azerbaijan, Hong Kong, China, Kazakhstan, Singapore, and Thailand observing a niche growth in the Islamic finance sector.

The COVID-19 pandemic has provided another opportunity for Islamic finance to prove its potential and shine. The Islamic financial system is based on the principles of risk-sharing, ethics, and morality, which equip it to act as a potential warrior to safeguard the interest of the poor and vulnerable under crisis. During Covid, Malaysia observed growth of 6.8% in Islamic banking assets compared to 3.8% for conventional banking. Sukuk bond and Waqf endowment were important contributors to long-term resilience during the period.

Asia Pacific countries of Malaysia and Indonesia during the last year were leading in Islamic Finance Development Indicator value score of 113 & 61, signaling a growing opportunity for Islamic finance market in the region. With the lastest data available Asian region was having the largest share in Distribution of Islamic fund globally existing at 39.3% leading to expansion of Islamic finance in the region.

Asia-Pacific Islamic Finance Market Trends

Emerging Islamic Finance Instruments in Asian Countries Drives the Market

Asia Pacific region is witnessing a growing popularity and awareness of Islamic finance instruments. This increasing popularity and awareness is contributing to the expansion of the Islamic finance market. Increased demand for Sharia-compliant financial products and services is driving the market. In various Asian economies, there is significant growth in Islamic finance for instance China, India, and in a few other Asian countries, Islamic finance is experiencing notable trends, with increasing interest and government support. These countries have witnessed the issuance of Islamic bonds, the establishment of Islamic banks, and a growing appetite for Sharia-compliant investments. 

Countries that do have a predominantly Muslim population for instance Malaysia, Pakistan, and Indonesia are beginning to innovate digital Islamic financial instruments and hence boosting the growth of the market.

Asia-Pacific Islamic Finance Market: Islamic Finance Asset of Leading Asia-Pacific Countries, In USD Billion, 2022

South-East Asian Region is Leading In Islamic Finance Market

Malaysia during last year exist among the leading country in Islamic financial assets during last, ranking third globally with an asset value of USD 650 Billion. Australia, Sri Lanka, Afghanistan, Bangladesh, and Pakistan exist as the most developed Islamic finance country in Asia Pacific.

Takaful, Sukuk, and Islamic funds are among the leading Islamic finance product in the Asia Pacific region. With countries of Bangladesh, Malaysia, Maldives, Mauritius, and Indonesia having leading positions. Malaysia and Indonesia exist among the leading countries with outstanding sukuk existing at USD 279 Billion and USD 84 Billion last year. These trends signify an established and continuously expanding Islamic Finance market in the Asia Pacific region.

Asia-Pacific Islamic Finance Market: Sukuk Value Outstanding by Asia Pacific Region, In USD Billion, 2022

Asia-Pacific Islamic Finance Industry Overview

The report covers major international players operating in the Asia-Pacific Islamic Finance Market. In terms of market share, some of the major players currently dominate the market. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets. Maybank Islamic, Bank Rakyat, CIMB Islamic Bank, RHB Islamic Bank, Bank Islam Malaysia, Public Islamic Bank, AmBank Islamic and MBSB Bank are a few of the major market players.

Asia-Pacific Islamic Finance Market Leaders

  1. Maybank Islamic

  2. Bank Rakyat

  3. CIMB Islamic Bank

  4. RHB Islamic Bank

  5. Bank Islam Malaysia

*Disclaimer: Major Players sorted in no particular order

Asia-Pacific Islamic Finance Market Concentration
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Asia-Pacific Islamic Finance Market News

  • On Janruary 2022, Al Rajhi Bank Malaysia (ARBM), a wholly-owned subsidiary of the world's largest Islamic bank Al Rajhi Bank of the Kingdom of Saudi Arabia (KSA), has selected Thought Machine, the cloud native core banking technology firm, to power their upcoming next-generation digital bank and strengthen their position as a leader in Islamic banking.
  • On February 2022, Maybank Islamic Berhad (Maybank Islamic) in partnership with Islamic Markets Limited launched global thought leadership conference, enabling a global platform and collaboration on the integration of sustainability and Islamic finance within the Halal economy.

Asia-Pacific Islamic Finance Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Innovation and Product development in the Islamic Finance Industry

      2. 4.2.2 Government Support and Regulation expanding the market

    3. 4.3 Market Restraints

      1. 4.3.1 Niche Market of Islamic Finance in Muslim Minority Asia Pacific regions

      2. 4.3.2 Rising economic uncertainity globally posing challenge for Islamic Finance Industry

    4. 4.4 Market Opportunities

      1. 4.4.1 Increasing Consumer satisfaction expanding market opportunity for Islamic finance

      2. 4.4.2 Launching of ESG products in Islamic finance for sustainibility

    5. 4.5 Industry Attractiveness - Porters' Five Forces Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitutes

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Insight on Various Government Regulations in the Market

    7. 4.7 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Financial Sector

      1. 5.1.1 Islamic Banking

      2. 5.1.2 Islamic Insurance 'Takaful'

      3. 5.1.3 Islamic Bonds 'Sukuk'

      4. 5.1.4 Other Financial Institutions (OIFL's) and Islamic Funds

    2. 5.2 By Geography

      1. 5.2.1 Bangladesh

      2. 5.2.2 Pakistan

      3. 5.2.3 Sril Lanka

      4. 5.2.4 Indonesia

      5. 5.2.5 Malaysia

      6. 5.2.6 Rest of Asia-Pacific

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Maybank Islamic

      2. 6.2.2 Bank Rakyat

      3. 6.2.3 CIMB Islamic Bank

      4. 6.2.4 RHB Islamic Bank

      5. 6.2.5 Bank Islam Malaysia

      6. 6.2.6 Public Islamic Bank

      7. 6.2.7 AmBank Islamic

      8. 6.2.8 MBSB Bank

      9. 6.2.9 Hong Leong Islamic Bank

      10. 6.2.10 Meezan Bank

      11. 6.2.11 AFFIN Islamic Bank

      12. 6.2.12 Bank Muamalat Malaysia

      13. 6.2.13 HSBC Amanah Malaysia

      14. 6.2.14 OCBC Al-Amin Bank

      15. 6.2.15 Kuwait Finance House (Malaysia)*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER

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Asia-Pacific Islamic Finance Industry Segmentation

Islamic banking, Islamic finance, or Sharia-compliant finance is banking or financing activity that complies with Sharia and its practical application through the development of Islamic economics. Maybank Islamic Berhad, Afganistan International Bank, Standard Chartered Shaadiq Bangladesh, and Bank Syariah Mandiri are some of the leading Islamic finance institutions in Asia-Pacific.

The Asia-Pacific Islamic Finance market is segmented By Financial Sector (Islamic Banking, Islamic Insurance 'Takaful', Islamic Bonds 'Sukuk', Other Islamic Financial Institutions (OIFLs), and Islamic Funds), By Geography (Bangladesh, Pakistan, Sri Lanka, Indonesia, Malaysia and Rest of Asia-Pacific). The report offers market size and forecasts for the Asia-Pacific Islamic Finance Market in value (USD) for all the above segments.

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Asia-Pacific Islamic Finance Market Research FAQs

The Asia-Pacific Islamic Finance Market is projected to register a CAGR of greater than 3.5% during the forecast period (2024-2029)

Maybank Islamic, Bank Rakyat, CIMB Islamic Bank, RHB Islamic Bank and Bank Islam Malaysia are the major companies operating in the Asia-Pacific Islamic Finance Market.

The report covers the Asia-Pacific Islamic Finance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Asia-Pacific Islamic Finance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Asia-Pacific Islamic Finance Industry Report

Statistics for the 2024 Asia-Pacific Islamic Finance market share, size and revenue growth rate, created by Mordor Intelligenceā„¢ Industry Reports. Asia-Pacific Islamic Finance analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Asia-Pacific Islamic Finance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)