Malaysia is the world's leading jurisdiction for Islamic fintechs, according to the Global Islamic Fintech Report 2021 released on Wednesday (March 17) by DinarStandard and Elipses.
The report studied 64 countries for its Global Islamic Fintech Index that represents which countries are most conducive to the growth of Islamic fintech and its ecosystem.
The Index comprises 32 indicators across five different categories for each country. The five categories are: talent, regulation, infrastructure, market and ecosystem, and capital.
These were then weighted to arrive at an overall score, with a heavier weighting given to the Islamic fintech market and ecosystem category as the most indicative of a country's current conduciveness to the sector.
Malaysia scored 87 overall, ahead of second place Saudi Arabia (76), and the United Arab Emirates (70).
Malaysia's success comes from a supportive legal and regulatory environment, strong market for Islamic financial services, and availability of talent.
The market size of Malaysia's Islamic fintech sector was $3 billion in 2020 and the report forecasts it to grow to $8.5 billion in 2025.
The Global Islamic Fintech Report 2021 produced by DinarStandard and Elipses can be downloaded in full from here.
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