The total assets managed by Islamic funds grew by 4.9% and reached a record value of $75.1 billion in the first half of 2014, according to a report released by the Kuwait Finance House (KFH) bank and published by Kuwait News Agency (Kuna). This increase was, according to the institution, due to continuous supply of capital in Islamic products and performance gains from these investments.
The number of Islamic funds grew from just over 800 in 2008 to 1,069 on June 17, 2014, according to the report. Saudi Arabia and Malaysia represent more than 60% of the assets of Islamic funds in the world.
According to the survey, the total assets of Islamic finance in the world – not only the ones managed by Islamic funds but by financial institutions generally – has reached $ 1.8 trillion at the end of 2013 and should exceed $ 2 trillion in the third quarter of this year.
The KFH also said the banking and the issuance of “sukuk” – which are debt securities of companies and governments bonds issued according to the “sharia,” the Islamic law – dominate this sector, with shares of 80% and 15%, respectively.
European institutions have attracted a significant share of assets under management of Islamic funds, such as Luxembourg, with 8% of the total, and Ireland, with 4%.