Brunei Darussalam ranked 11th in terms of overall development in Islamic finance industry out of 135 countries being assessed, according to the ICD-Refinitiv Islamic Finance Development Report 2020: Progressing Through Adversity.
The report revealed that based on 2019 data, Brunei Darussalam achieved 36 points in the Islamic Finance Development Indicator (IFDI), whilst the global average indicator value was 10.8.
The report highlighted how the global Islamic finance industry continued to grow despite some challenges. It has grown 14.4 per cent year-on-year amounting to USD2.9 trillion in assets in 2019, and are forecasted to grow further to USD3.7 trillion by 2024.
In terms of total global Islamic Finance Assets, Islamic banking dominated Islamic Finance Asset Distribution with 69 per cent share in 2019, followed by Sukuk at 19 per cent, other Islamic financial institutions (OIFI) at five per cent; Islamic funds at five per cent, and Takaful at two per cent.
The IFDI provides rankings and profiles for different Islamic finance markets around the world, with instrumental factors in five broad areas of development as the main indicators. These include quantitative development (islamic banking, takaful, OIFI, sukuk and islamic funds): knowledge education and research), governance (regulations, syariah governance and corporate governance); corporate social responsibility (CSR activities and CSR funds disbursal); and awareness (seminars, news and conferences).
Malaysia, Indonesia and Bahrain came as the top three Islamic finance markets in overall development. Meanwhile, Brunei Darussalam attained top place in terms of Takaful assets to gross domestic product (GDP) at 1.12 per cent in 2019, the highest among all countries.
The Sultanate also achieved fourth place with 57 per cent share of Islamic banking to total banking assets, the report added.
In terms of other assets growth, the Sultanate was recognised as the fastest growing market in Sukuk assets in 2019 and one of the top 10 countries in OIFI assets, valued at about USD2 billion.