Learning to live with slow growth

S&P says the Islamic finance industry will continue to expand this year but lose momentum in 2018, according to a report called “Islamic Finance 2018: Slow Growth Is The New Normal.”

The industry’s assets reached $2tn at year-end 2016, slightly below the agency’s September forecast due to local currency depreciation and weaker economic performances in some core Islamic finance countries.

Sukuk issuance, meanwhile, accelerated in the first half of 2017, until the Dana Gas Sukuk began to dominate the news. “We think that 2018 is less certain as we don’t see some of the large issuances of last year repeating next year,” said Dr. Mohamed Damak, senior director and global head of Islamic finance at S&P.

 

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