Islamic Banking Market in Southeast Asia Expected to See 8% Growth by 2026: S&P Global Ratings

Southeast Asia's Islamic banking market, valued at USD 290 billion, is anticipated to witness a compound annual growth rate of about 8% over the next three years, led by Malaysia and Indonesia, as per a report published by S&P Global Ratings on the 11th of May 2022, titled "Growing Belief In Southeast Asia's USD 290 Billion Islamic Banking Market."

Why it Matters?

Southeast Asia accounts for 17% of the USD 1.7 trillion valued global Islamic banking assets, representing the world's third-largest Islamic banking market. Due to strong demand, Islamic banks in Malaysia and Indonesia are expected to develop at a faster pace than conventional peers. However, obstacles are expected in this trajectory as COVID-19 recovery has been inconsistent in the reg...