The United Arab Emirates' Islamic fintech market is forecasted to grow from $3.7 billion in 2020 to $11 billion by 2025, according to a study released on Wednesday (March 17).
UAE's CAGR of 24% beats the 21% for Muslim-majority countries overall.
The market size is based on estimated transaction volume and not corporate revenue, says the study from DinarStandard--Salaam Gateway's parent company--and UK-based Elipses.
The study estimates Islamic fintech market size in Muslim-majority countries to be $49 billion in 2020.
Five jurisdictions alone account for 75% of this market: Saudi Arabia ($17.9 billion), Iran ($9.2 billion), the United Arab Emirates ($3.7 billion), Malaysia ($3 billion), and Indonesia ($2.9 billion).
The UAE comes in third on the study's 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 came out on top with a score of 87 overall, ahead of second place Saudi Arabia (76), and the UAE (70).
The Global Islamic Fintech Report 2021 produced by DinarStandard and Elipses can be downloaded in full from here.
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