Tailwinds in South and Southeast Asia for the Islamic Banking Industry: Moody’s

The long-term outlook for Islamic banking in the South and Southeast Asian region appears very healthy, with the main driving factors being growing populations and the efforts of the different governments to develop the sector, according to Moody’s Investors Service (Moody’s). With key Muslim-majority markets such as Bangladesh, Indonesia, Malaysia and Pakistan, the region is regarded as one of the brightest spots for the growth of Islamic banking. According to Moody’s, the demographic of those aged 25 to 54 years is growing rapidly within the region and this together with greater cultural affinity towards Halal products as well as services will support demand for Islamic financial services.

Why it matters?

Islamic banks in the regio...