Islamic banks that operate under the specific laws of Sharia that forbid charging and paying interest to Muslim customers form a highly specialized sector of the banking industry. In addition, the religious law forbids trading of assets that are non-Shariah compliant (or haram). As well as catering for Muslim customers, it is growing to be considered a more equitable and sustainable form of finance in the rest of the world, and so has also gained popularity outside the Muslim world.
This ranking of the 100 largest Islamic banks in the world gathers data from 22 countries and represents a total of $903.9 billion in combined assets, $583.4 billion in net loans, $662.4 billion in deposits and $12.9 billion in net profit. Only Islamic banks whose financial data was available in financial year 2018 were included in the ranking.
Saudi Arabia-based Al Rajhi Bank is the largest Islamic bank, and the bank saw its total assets expand by 6.4% to $97.3 billion. Dubai Islamic Bank is the second-largest Islamic bank, and Maybank Islamic, the largest Islamic bank in Asia Pacific, ranks #4, read here about the largest banks in Asia Pacific.
The top 10 largest banks include eight banks from the Middle East and two banks from Asia Pacific. On aggregate, the top 10 accounted for 51.3% and 67.7% of combined assets and net profits, respectively.
Malaysia, Saudi Arabia, the UAE, Qatar and Kuwait are the largest markets in terms of the Islamic bank assets, with their aggregate assets representing 79% of the combined assets of the 100 largest Islamic banks. The Islamic banks in Malaysia, including both domestic and foreign Islamic banks, held six out of the top 20 ranks and 16 of the total 100. Notably, the combined assets of all Malaysian Islamic banks accounted for 23% of the 100 largest Islamic banks’ assets. After Malaysia, Bahrain and Indonesia have the next largest number of Islamic banks at 15 and 13, respectively. However, the aggregate bank assets in Bahrain and Indonesia accounted for only 6% and 2%, respectively.
Projecting the top 10 Islamic banks in the world 2021 is now extremely difficult, owing to the volatility in oil prices, which is the major factor in determining the economic climate for the Middle-East countries that make up more than half of the total number of banks, and eight out of ten in the top ten banks.
The following is the complete list of the 100 largest Islamic banks by assets.