Islamic funds top industry growth chart

Assets under management (AuM) in Islamic mutual funds have a grown at a faster rate than the broader funds industry according to a report from Fitch ratings.

By the end of Q2 2021, AuM peaked at $130 billion before ending the year at $120 billion.

Based on data from Lipper and ICI Global, Fitch estimates that the growth of Islamic funds over the last five years has reached a nominal rate of 84%, exceeding the 68% nominal rates for the global funds industry.

Saudi Arabia has played a pivotal role in this growth and remains the pre-eminent Islamic fund domicile, along with Malaysia.

It is also the biggest producer of sharia money market funds, which account for 83% of the kingdom’s AuM.

In addition to highlighting the growth of Islamic funds, Fitch’s Islamic Asset Management Dashboard 2021 also highlights some of the rating challenges within the asset class, such as the legal complexities around defaults in portfolio holdings and the different regulatory practices in major international markets.

©2022 funds global mena

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