The Covid-19 pandemic has ravaged the global economy, with countries fighting record inflation levels with soaring interest rates across the board. For example, inflation in the United States recently went as high as 9.1%: a figure that has not been seen in over 40 years. Similar numbers are being witnessed globally in the United Kingdom, France, Germany and others.
Despite the adverse developments in the western world, the Islamic finance industry has not only weathered the storm exceptionally well. Despite the global recession, Islamic finance continues to expand at an impressive rate, registering double-digit growth in the height of the pandemic.
That said, even though the gross domestic product (GDP) growth of certain Islamic nations countries is expected to be lower than in the past,.
So what are the reasons for this growth, and how is the Islamic finance sector projected to develop in 2022
As mentioned earlier, even though the value of Islamic finance assets stagnated throughout 2020, it is estimated that they will continue growing at a compound annual growth rate (CAGR) of 5% over the next five-year stretch,.
