Islamic Finance Assets May Rise to $5 Trillion, Moody’s Says

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Assets held by Islamic financial institutions may rise five-fold to more than $5 trillion as demand increases for products that comply with Muslim principles, according to Moody’s Investors Service.

The Islamic finance industry’s assets under management reached $950 billion last year, Moody’s said in a report today, without providing a timeframe for the projected growth. The global market for Islamic bonds, or sukuk, is worth $110 billion, the rating agency said.

“Despite the recent gloomy economic environment globally, the industry’s total assets scaled new heights,” the report said. “Islamic financial institutions are continuing to deliver Shariah-compliant returns whilst, at the same time, focusing on efficiently mitigating the associated risks through a new risk management approach, including the use of derivatives.”