ChatGPT said: Fitch Ratings expects ASEAN's Islamic finance industry, valued at nearly $950 billion in mid-2025, to exceed $1 trillion by end-2026, led by Malaysia, Indonesia, and Brunei. "The Islamic finance industry in ASEAN is among the largest globally, accounting for about a quarter of the global total," Fitch said in a statement. Sukuk outstanding reached $475 billion by mid-2025, or 16 per cent of the region's debt capital market, with Malaysia and Indonesia accounting for almost all issuance and 47 per cent of the global total. ESG sukuk are concentrated in these two countries, while Singapore is the sixth-largest dollar sukuk listing venue. Fitch rates 74 per cent of ASEAN's US-dollar sukuk, all investment-grade. Malaysia dominates Islamic banking with $300 billion in assets, or 42 per cent of system financing, followed by Indonesia ($56 billion), Brunei ($10 billion), Thailand ($2.8 billion), and the Philippines ($20 million). Islamic digital banks, including Malaysia's AEON Bank, are emerging. Regulations vary, with the Philippines easing capital requirements to attract entrants, while Vietnam, Myanmar, Laos, and Cambodia lack Islamic banking frameworks. Malaysia leads in Islamic funds with $50 billion in assets under management, compared with $3 billion in Indonesia and $500 million in Brunei. Takaful markets are strongest in Malaysia, Indonesia, and Brunei, where market shares range from 8.4 per cent in Indonesia to 63 per cent in Brunei's banking sector. The Philippines recently licensed its first takaful operators. Regional meetings in April and May 2025 underscored Islamic finance's role in sustainable growth and deepening ASEAN-GCC ties. Attribution: Amwal Al Ghad English Subediting: Y.Yasser
