Islamic investment funds currently manage close to $200 billion in assets. This has quadrupled in the last ten years. The funds have thrived even during the coronavirus pandemic.
Despite the 2020 coronavirus pandemic, assets under management by Islamic funds increased by nearly 14 percent during 2020. A year earlier, however, the rate of asset value growth was much higher, exceeding 35 percent. In the third quarter of 2021, the rate increased to 17.1 percent, and the value of assets under such management is approaching $200 billion. This is according to a report by Bahrain’s General Council for Islamic Banks and Financial Institutions.
According to experts, Islamic funds have huge growth potential. They are not allowed to make money on interest income or financial speculation. On the contrary, the ESG principle, which is gradually becoming part of the criteria for assessing projects when deciding on their financing, is playing into their hands.
Saudi Arabia has the largest share of assets under management in Islamic funds, followed by Iran and Malaysia. Malaysia, on the other hand, has the largest number of Islamic funds operating in the global market, with 401. Indonesia and Saudi Arabia have 209 and 183 respectively.
