عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Arabia Tops Islamic Financial Service Sector with $800 bln in Assets

The signing ceremony of the MoU between the Saudi Ministry of Investment and King Saud University (Asharq Al-Awsat)
The signing ceremony of the MoU between the Saudi Ministry of Investment and King Saud University (Asharq Al-Awsat)
TT
20
TT

Saudi Arabia Tops Islamic Financial Service Sector with $800 bln in Assets

The signing ceremony of the MoU between the Saudi Ministry of Investment and King Saud University (Asharq Al-Awsat)
The signing ceremony of the MoU between the Saudi Ministry of Investment and King Saud University (Asharq Al-Awsat)

The Islamic financial services industry in Saudi Arabia enjoys a prominent position globally, announced Deputy Governor of the Saudi Central Bank (SAMA) for Research and International Affairs Dr. Fahad Bin Abdullah Al-Dossari.

The total assets of the industry in the banking sector, the Sukuk sector, the insurance sector, and the investment funds sectors amounted to $800 billion, which puts it in the lead, according to the 2021 report of the Islamic Financial Services Board (IFSB).

Dossari spoke during the 42nd Al-Baraka Islamic Economics Symposium, which ended recently at the Islamic University of Madinah.

He pointed out that the Islamic financial services industry has witnessed an evident quantitative growth in assets, adding that it has also developed at the international level.

Its global assets amount to about $2.7 trillion, achieving annual growth of more than 10 percent, said Dossari. He noted that the Islamic banking sector continues to acquire the most significant amount of the industry's assets, up to 68 percent.

The official stated that the sector witnessed rapid growth in Saudi Arabia, as the total Sharia-compliant financing amounted to over $4.5 billion, with an annual growth rate of 18 percent.

The total Sharia-compliant deposits amounted to more than $4.7 billion, with an annual growth rate of about 13 percent.

Meanwhile, the Saudi Ministry of Investment signed a memorandum of understanding with King Saud University to bolster cooperation, develop investment opportunities, and exchange data and expertise in the field.

It comes within the framework of the Ministry's efforts to achieve its objectives of attracting investments, enabling the sector to grow, facilitating access to investment opportunities, localizing knowledge and expertise, and enhancing integration efforts between public sectors.

The memorandum will establish regular graduate programs and master's programs based on the needs of the Ministry of Investment and in its areas of interest.

It will help develop investment opportunities in the university's assets to serve the objectives of the National Investment Strategy and achieve new resources for the university.

It will also motivate graduate students and their supervisors to adopt research in basic, applied, economic, and financial research related to investment.

The agreement provides courses, seminars, and workshops to promote a culture of sustainable investment and support training and development opportunities in investment and entrepreneurship.

Most Viewed

 
Business

UN Forecasts Slower Global Economic Growth Following Trump’s Tariffs and Trade Tensions 

An American flag flutters over a ship and shipping containers at the Port of Los Angeles, in San Pedro California, US, May 13, 2025. (Reuters)
An American flag flutters over a ship and shipping containers at the Port of Los Angeles, in San Pedro California, US, May 13, 2025. (Reuters)
TT
20
TT

UN Forecasts Slower Global Economic Growth Following Trump’s Tariffs and Trade Tensions 

An American flag flutters over a ship and shipping containers at the Port of Los Angeles, in San Pedro California, US, May 13, 2025. (Reuters)
An American flag flutters over a ship and shipping containers at the Port of Los Angeles, in San Pedro California, US, May 13, 2025. (Reuters)

The United Nations on Thursday forecast slower global economic growth this year and next, pointing to the impact of the surge in US tariffs and increasing trade tensions.

UN economists also cited the volatile geopolitical landscape and threats of rising production costs, supply chain disruptions and financial turbulence.

“These days, there’s so much uncertainty in the air,” said Shantanu Mukherjee, director of the Economic Analysis and Policy Division at the UN Department of Economic and Social Affairs.

“It’s been a nervous time for the global economy,” he told reporters while launching the midyear forecast. “In January this year, we were expecting two years of stable — if subpar — growth, and since then, prospects have diminished, accompanied by significant volatility across various dimensions.”

The UN is now forecasting global economic growth of 2.4% this year and 2.5% next year — a drop of 0.4 percentage point each year from its projections in January. Last year, the global economy grew 2.9%.

Mukherjee said the slowing is affecting most countries and regions, but among the most severely hit are the poorest and least developed countries, whose growth prospects have fallen from 4.6% to 4.1% just since January.

“That translates into a loss of billions in economic output for the most disadvantaged of countries,” which are home to over half the global population living in extreme poverty, he said.

The world’s developed and developing countries also are projected to suffer, according to the UN report.

Economic growth in the United States is now projected to drop significantly, from 2.8% last year to 1.6% this year, it said, noting that higher tariffs and policy uncertainty are expected to weigh on private investment and consumption.

China’s growth is expected to slow to 4.6% this year from 5% in 2024 as a result of subdued consumer sentiment, disruptions in its export-oriented manufacturing companies, and continuing challenges in its property sector, the report said.

The European Union’s growth is forecast to remain the same this year as it was last year — just 1%, the report said, citing weaker net exports and higher trade barriers. The United Kingdom’s economic growth of 1.1% last year is projected to fall to 0.9%.

Weakening trade, slowing investments and falling commodity prices are also forecast to erode growth in other major developing economies, including Brazil, Mexico and South Africa.

India will remain one of the world’s fastest-growing large economies, but the UN forecast said its growth is expected to drop from 7.1% in 2024 to 6.3% this year.

The UN’s global economic growth forecast is lower than the International Monetary Fund’s.

On a more positive note, Mukherjee said the UN is expecting that bilateral negotiations will lead to lower tariffs, although he said they won’t return to the levels before US President Donald Trump’s February announcement.

Nonetheless, Mukherjee said, resolving uncertainties would help individuals and businesses move forward with economic decisions and that would have a positive impact on the global economy.