Islamic finance continue to grow despite COVID-19 and fall in global oil prices

After remaining resilient in 2020, the Islamic finance segment is performing strongly this year, as an improved economic environment, a rise in the number of large projects and an increased focus on environmental, social and governance (ESG) factors combine to drive demand. Despite the twin challenges of COVID-19 and the fall in global oil prices, the segment’s assets grew by 10.6% last year, according to global rating agency S&P. Although this was down on the 17.3% growth rate recorded in 2019, it was nevertheless a strong performance in light of the global recession, with many suggesting that the segment’s positive growth was a sign of its strong future potential.