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 The British Secretary of State for Business and Trade, Kemi Badenoch, and Minister of State in the Department for Business and Trade Lord Johnson announced on Monday the launch of new working group on Islamic Finance at a “Great British Iftar” at Lancaster House in London.
The working group will help realize the Secretary of State’s priority of making the UK an undisputed investment destination by ensuring the UK is a global hub for Islamic finance, a statement said.
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 According to the report published by Allied Market Research, the global takaful insurance market garnered $24.85 billion in 2020, and is expected to generate $97.17 billion by 2030, witnessing a CAGR of 14.6% from 2021 to 2030. The report offers an extensive analysis of changing market trends, value chain, top segments, top investment pockets, regional scenarios, and competitive landscape.
 Turkish Islamic banks’ market shares will grow further, says Fitch Ratings in a new report, given the strategic importance of participation banking to the government and the government’s strategy to grow participation finance more broadly in Turkiye – as outlined in Turkiye’s recently published Participation Finance Strategy Document.
The segment’s market shares have risen in recent years, mainly been driven by the entry and rapid growth of three state-owned banks.  The Islamic finance industry in Morocco is nascent and faces structural challenges, which could hinder its full growth potential, Fitch Ratings says.
However, the rising demand for Islamic mortgage financing could be a key pocket of growth and could accelerate the industry’s trajectory. The challenges faced by the industry include underdeveloped Islamic finance ecosystem and regulations, a limited Islamic product offering, a small capital base of Islamic banks, the lack of public awareness and understanding of Islamic finance and the lack of confidence in the sharia-compliance of these products.  The Nigerian Islamic finance industry will continue its growth trajectory in 2023-2024 on the back of government sukuk issuance and policy push but is still likely to remain nascent in the medium term, says Fitch Ratings. Nigeria houses the largest sukuk market in Africa with an outstanding issuance of NGN755.5 billion (USD1.6 billion), albeit small by global comparison.
Islamic banking - referred to as non-interest banking in Nigeria - is also growing swiftly from a low base on the back of strong financing push (including from newly-established Islamic banks), a growing capital base, and government’s more lax prudential requirements compared with conventional banks’. Challenges include a limited Islamic banking footprint and low public awareness of Islamic products.  Russia started an experimental pilot project on implementing Islamic financial practices in several regions with Muslim-dominated population.
The experiment will take place in Dagestan, Chechnya, Bashkiria and Tatarstan and will last for two years. After that, the authorities will decide on the suitability of the Islamic model for Russia. Alexandr Kazakov, a senior expert at the Russian Association of Experts in Islamic Finance, told Anadolu that it is "time to forget" about the Western financial markets and focus on cooperation with the Arab and Asian countries.  Pakistan's Ministry of Finance is expected to issue the country’s first-ever 12-month Ijara Sukuk or Islamic bonds next month — a move that’s part of the renewed push for Sharia-compliant debt instruments as the banking industry begins its transition to an interest-free system.
However, some analysts have raised doubts about the ability of the country to completely replace treasury bills and Pakistan Investment Bonds (PIBs) with their Islamic variants within the stipulated timeframe for one simple reason: the government seemingly lacks the physical assets required for Sharia-compliant debt instruments.  Muslims living in Canada now have access to interest-free mortgages, which will enable them to buy homes, a report said on Wednesday.
Islamic mortgages are necessary because interest charges are forbidden for Muslims. "We cannot deal with conventional banks even if the interest is very low, even if it is 0.1 percent," Abdullah Mohiuddin told the Canadian Broadcasting Corporation (CBC).  According to the latest report by IMARC Group, titled " Takaful Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028," the global takaful market reached a value of US$ 30.5 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 54.9 Billion by 2028, exhibiting a growth rate (CAGR) of 10.2% during 2023-2028.
Takaful is an Islamic insurance scheme where members contribute money into a pool system to guarantee each other against loss or damage. The surplus funds are often distributed among the members in case no claims arise.  Addressing the climate emergency will require all the funding possible from as many diverse sources as possible. Islamic climate finance instruments could help in Asia and in many other parts of the world.
The latest Intergovernmental Panel on Climate Change (IPCC) reports sounded an alarm that without urgent climate action, many parts of Asia and the Pacific may become unlivable within the next three decades. This warning builds on recent climate-related events, such as this year’s devastating floods in Pakistan and Asia’s hottest year on record in 2020, all of which threaten decades of economic and social development gains |
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