How much did the Islamic Capital Market grow in the past year?

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Islamic Capital Market Experienced 4.5 Per Cent Year-on-Year Growth

The Islamic Capital Market (ICM) demonstrated a steady expansion, growing by 4.5 per cent year-on-year to reach RM2.43 trillion by the end of 2023. This growth signifies the continued importance and development of the ICM within the broader financial landscape, maintaining a significant share of the overall capital market.
Overall Market Size and Contribution

As of the close of 2023, the total value of the Islamic Capital Market stood at RM2.43 trillion, an increase from RM2.32 trillion recorded in 2022. This expansion allowed the ICM to sustain its substantial contribution, accounting for 63.73 per cent of the entire capital market. This segment is comprised of Shariah-compliant securities valued at RM1.16 trillion and sukuk with a total outstanding amount of RM1.27 trillion.
Shariah-Compliant Securities Performance

The number of Shariah-compliant securities listed on Bursa Malaysia saw an increase, rising from 789 to 811 by the end of 2023. These securities represented 81.51 per cent of the total 995 listed securities. The market capitalisation of these Shariah-compliant instruments also grew by 3.25 per cent compared to the previous year, reaching RM1.16 trillion, which constituted 64.32 per cent of the total market capitalisation as of December 2023.
Sukuk Market Dynamics

In the sukuk sector, corporate sukuk issuances made up 77.25 per cent of all corporate bonds and sukuk issuances in 2023, a slight decrease from 81.66 per cent in 2022. Similarly, corporate sukuk outstanding accounted for 83.96 per cent of the total corporate bonds and sukuk outstanding. Overall sukuk issuances in 2023 represented 60.84 per cent of total bonds and sukuk issuances, while total sukuk outstanding remained consistent at 63.20 per cent of the total bonds and sukuk.
Sustainable and Responsible Investing (SRI) Sukuk

The issuance of sustainable and responsible investing (SRI) sukuk also saw activity, with 15 issuers launching SRI sukuk in 2023, bringing the total number of SRI sukuk issuers since 2015 to 34. Corporate SRI sukuk issuances in 2023 totalled RM8.68 billion, representing 9.50 per cent of all corporate sukuk issuances. The outstanding amount for corporate SRI sukuk increased significantly to RM26.32 billion by December 2023, up from RM17.93 billion in 2022, forming 3.75 per cent of the total corporate sukuk outstanding.
Islamic Fund Management Growth

The Islamic fund management sector also experienced growth, with Islamic assets under management (AUM) reaching RM226.14 billion as of December 2023. This marks a 9.85 per cent increase from RM205.86 billion at the end of 2022. The total number of Islamic collective investment schemes, including various fund types, amounted to 415, with 28 of these being Islamic SRI funds. A total of 59 fund management companies were involved in overseeing Islamic funds, comprising 24 full-fledged Islamic entities and 35 conventional companies with dedicated Islamic windows.

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How much did the Islamic Capital Market grow in the past year?

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