Market Share of Sharia Banking on Global Sharia Finance
Sharia banking is one of the main pillars in the global sharia financial system. This system is based on the principles of Islamic law, such as the prohibition of riba (interest) and encouraging the fair sharing of risks and profits.
In recent years, Islamic banking has experienced significant growth in various Muslim-majority countries and even in non-Muslim countries. However, the global sharia banking market share is still dominated by several main countries.
Saudi Arabia occupies the first position in the global sharia banking market share with a percentage of 32.90%. As the center of the Islamic world and with abundant natural resources, Saudi Arabia has a strong foundation in sharia banking. The country also continues to strive to strengthen its Islamic financial sector through various economic reforms and initiatives.
In second place, Iran has a market share of 16.20%. Despite facing various economic challenges and international sanctions, Iran remains one of the major players in Islamic banking thanks to its strong commitment to Islamic economic principles and the full integration of the Islamic banking system in its economy.
Malaysia is in third position with a market share of 11.10%. Malaysia is known as one of the most advanced countries in the development of sharia banking. This country not only has strong Islamic financial institutions, but also acts as a center for education and research in Islamic finance.
The United Arab Emirates (UAE) ranks fourth with a market share of 10.80%. As a global financial center, the UAE has succeeded in developing its sharia banking sector by attracting international investment and implementing policies that support sharia economic growth.
Qatar and Kuwait each have a market share of 6.60%, occupying fifth and sixth positions. These two countries continue to strengthen their Islamic financial sectors through various initiatives and investments in Islamic financial infrastructure.
Türkiye is in seventh position with a market share of 2.90%. Although still relatively small compared to other countries on this list, Turkey shows great potential for growth in Islamic banking through supportive policies and increasing public interest in Islamic financial products.
Bangladesh occupies eighth position with a market share of 2.70%. With a large Muslim population, Bangladesh has a huge opportunity to further develop its Islamic banking sector and increase its global market share.
Indonesia, despite having the largest Muslim population in the world, only has a market share of 1.90% in global sharia banking. This shows that there is still a lot of untapped potential in this sector.
With appropriate efforts to increase public awareness and strengthen sharia financial regulations and infrastructure, Indonesia can increase its contribution to the global sharia banking market.
Overall, the global Islamic banking market share shows that some countries dominate this sector, while other countries have great potential for growth. By continuing to develop policies that support and enhance the capabilities of Islamic financial institutions, these countries can play a more significant role in the global Islamic economy.
Source: Bappenas
