Representatives from the Islamic financial services sector are set to gather for the 42nd council meeting of their apex body in Riyadh over the course of two days. The event, organized by the Islamic Financial Services Board (IFSB), will focus on discussions surrounding competency development and risk management practices within the industry. With the goal of enhancing stability and resilience, these deliberations are of paramount importance in the evolving landscape of Islamic finance.
The upcoming council meeting, held on Monday and Tuesday, is expected to provide a platform for in-depth discussions on recent developments in the Islamic financial services industry. These discussions will center on strategies and initiatives aimed at bolstering the industry's stability. A statement from the Saudi Central Bank, also known as SAMA, highlights the significance of this gathering in driving forward positive changes within the sector.
SAMA Gov. Ayman Al-Sayari, who holds the position of Chairman of the IFSB, will take the helm in steering the annual council and general assembly meetings. The event will be graced by the presence of governors, council members, and experts in the field of Islamic finance, further emphasizing the gravity of the topics to be addressed.
This year's council meeting will be distinguished by a special capacity-building workshop tailored for banks. As the industry marks the 20th anniversary of the founding of the IFSB, participants will also take a moment to commemorate this milestone. The combination of knowledge enhancement and celebration underscores the commitment of the Islamic financial services industry to continuous growth and improvement.
The Islamic finance industry is poised for growth in the upcoming years, according to a report by S&P Global Ratings released in May. This projection is attributed to the robust banking system of Saudi Arabia, which is expected to be a driving force behind the industry's expansion. Anticipating a 10 percent growth across the sector in 2023-2024, the report highlights the steady rise that the industry has experienced, with Saudi Arabia and Kuwait playing significant roles.
Despite predictions of a potential economic slowdown and a decrease in sukuk issuance in the current year, S&P Global Ratings maintains a positive outlook. The report suggests that new supplies of sukuk will exceed those maturing, indicating a continued demand for Islamic financial products. This sentiment echoes findings from Fitch Ratings, which underscore the resilience of the industry in the face of macroeconomic volatilities.
While the Islamic finance industry continues to grow, the report emphasizes its need to enhance competitiveness to attract a broader audience. It notes that the industry remains a collection of localized markets rather than a fully globalized sector. As stakeholders work towards enhancing its competitiveness, the Islamic financial services industry aims to broaden its appeal and secure a stronger position on the global financial stage.
The 42nd council meeting of the Islamic Financial Services Board in Riyadh provides a crucial platform for leaders, experts, and stakeholders to address essential issues facing the industry. Deliberations on competency development, risk management, and stability reflect the industry's commitment to growth and resilience. As the sector navigates challenges and embraces opportunities, its continued expansion is poised to shape the future landscape of Islamic finance on a global scale.