Edit... Dina El Sheriff

The US $2.2 trillion global Islamic finance industry is expected to grow by 10% to 12% from 2021 to 2022 due to increased Islamic bond issuance and modest economic recovery in major Islamic finance markets. According to S & P Global classifications.

The industry continued to grow last year despite the Corona virus pandemic, although it was at a lower pace than in 2019, with global Islamic assets expanding by 10.6% in 2020 compared to 17.3% growth the previous year.

Islamic finance, which prohibits interest payments and purely monetary speculation, has been rising for many years across markets in Africa, the Middle East and South-East Asia, but it remains a fragmented industry with unequal application of its rules.

Standard & Poor's stated, over the next 12 months, we can see progress in a unified global legal and regulatory framework for Islamic finance... We believe that such a framework could help resolve the lack of standardization and harmonization that the Islamic finance industry has faced for decades. "

The industry is expected to receive some support in the next two years in Saudi Arabia, and mortgages and corporate lending are expected to rise as the State moves ahead with its plans to diversify the economy.

Investments in Qatar for the 2022 FIFA World Cup and Expo in Dubai later this year are also expected to support growth.

The rating agency predicted that the global issuance of Islamic bonds or instruments would reach US $140-155 billion this year, up from approximately US $140 billion in 2020, thanks to an abundance of liquidity and ongoing financing needs between companies and governments.

Standard & Poor's also highlighted that the full impact of the Corona virus crisis has not yet been achieved, and further requests for restructuring of instruments and benefits extensions, as well as higher default rates, are expected this year.