Boston-headquartered State Street has extended its Islamic finance offering in response to growing demand, especially in Malaysia and Brunei.
State Street is offering Shariah-compliant global custody and fund administration services, according to a statement. This follows the obtainment of a Shariah-compliant certificate from Amanie Advisors Sdn. Bhd, a leading Shariah advisory firm.
«We are proud to be presented with this certification, which further reinforces our ability to manage investors’ assets in line with the top standards for Islamic finance,» said Stefan Gmuer, head of Asia Pacific at State Street. «This comes at a time where we are seeing growing interest in services for Islamic assets that adhere to Shariah principles, especially in Malaysia and Brunei.»
State Street established its presence in Malaysia in 1996 and Brunei in 2011, offering a wide range of investment services and trading solutions to institutional investors.
Growth Outlook
In line with the growth of the Muslim population and their wealth, the outlook for Islamic finance is positive. According to S&P Global Ratings, Islamic finance assets are expected to record high single-digit growth in 2024-2025. In the longer term, the London Stock Exchange Group expects this asset base to expand from $4.5 trillion in 2022 to $6.67 trillion by 2027.
«The global Islamic finance industry has experienced strong growth over the past few years including the Middle East, US and UK markets, and is expected to maintain its upward trajectory, driven by anticipated lower interest rates and a strong appetite for investments in emerging markets,» Gmuer added.
