Assessing Public Awareness of Islamic Finance and Interest-Free Banking in India

2. Performance Of Islamic Finance Globally1

The Islamic finance industry, with its various sectors, experienced notable growth in 2021. Islamic banking, the largest sector accounting for 70% of the industry's assets, saw a substantial increase in net income, primarily due to eased provisions for credit losses. The growth in this sector was propelled by three main factors: government support for sectors affected by the pandemic, operational efficiency improvements like branchless banking and FinTech partnerships, and a sustained high demand for Islamic banking services (Irfan et al 2023a). Remarkably, the most significant growth occurred in non-core Islamic finance markets, indicating the emergence of new markets and the stabilization of the industry in more mature jurisdictions. Notable countries with substantial growth in Islamic banking included Tajikistan, Burkina Faso, and Ethiopia.