Page 70 - CMA Journal (Mar-Apr 2025)

Focus Section
Shaping Pakistan’s Islamic Economy with

Halal Assets and Digital Innovation

By: ICMA Research and Publications Department

Islamic Finance Market – At a Glance North Africa (MENA) region (12.7%), Europe (8.3%), South
Asia (3.1%), and Sub-Saharan Africa (0.7%).
Islamic banking is rooted in Shariah law, which
emphasizes ethical finance guided by principles such as Country-Wise Concentration: Around 95% of global
fairness, transparency, and profit-and-loss sharing. It Shariah-compliant assets are concentrated in just ten
prohibits the payment or receipt of interest (riba), countries. Saudi Arabia and Iran each hold 25–30%,
speculative transactions (gharar), excessive risk, and followed by Malaysia (12%) and the United Arab

investment in haram (prohibited) sectors. Unlike Emirates (10%).
conventional finance, Islamic
finance views money not as a Figure 1: Breakdown of the Global IFSI by Sector and Region
commodity but as a tool to support
responsible economic activity, (USD in billion) for 2023
serving both Muslims and
non-Muslims. As of 2023, Islamic Islamic Insurance…
finance has grown into a $4 trillion
global industry. Islamic banking Islamic Funds Assets
commands the largest share at
70.21%, followed by sukuk
(25.16%), Islamic funds (3.92%), and
takaful (0.71%). Islamic Banking Assets
Regional Breakdown: The Gulf
0% 20% 40% 60% 80% 100%
Cooperation Council (GCC) leads
with 52.5% of total Islamic finance Gulf Coopera on Council East Asia and the Pacific
Middle East and North Africa* Europe and Central Asia
assets, followed by East Asia and the
Pacific (21.8%), the Middle East and South Asia Others
Sub-Saharan Africa

Table 1: Regional and Sectoral Breakdown of Global IFSI for 2023 (USD in billion)
Region Islamic Banking Sukuk Islamic Funds Islamic Insurance Total Share
Assets Outstanding Assets in %
(GCC) 1,463.91 292.96 28.16 14.64 1,847.42 52.50%
East Asia and the Pacific 313.83 411.25 38.13 5.75 768.96 21.80%
Middle East & North Africa* 417.79 6.3 0.07 2.79 427.82 12.70%
Europe and Central Asia 79.7 102.02 46.24 0.61 228.57 8.30%
South Asia 83.58 19.63 5.13 0.24 108.58 3.10%
Others - 14.64 11.06 - 25.7 0.90%
Sub-Saharan Africa 13.36 3.2 3.5 0.01 19.2 0.70%
Total 2,372.17 850 132.29 24.04 3,378.5 100%
Share% 70.21% 25.16% 3.92% 0.71% 100%
Note*: Excluding GCC countries
Source: IFSB- Stability Report 2024

68 ICMA’s Chartered Management Accountant, Mar-Apr 2025