Sowing The Seeds Of Success: Strategic And Organic Growth In Islamic Finance In Singapore

Islamic Finance Singapore

Singapore, a globally recognised financial hub, continues to make strides in advancing Islamic finance despite its niche presence in the local financial ecosystem. Renowned for its regulatory excellence, innovation, and strategic economic positioning, Singapore presents a unique narrative within the global Islamic finance industry.

The growth of Islamic finance in Singapore has been driven by ground-up initiatives and organic efforts from key industry stakeholders. The 2024 Singapore Islamic Finance Forum (SIFF), now in its second year and organised by Islamic Finance Singapore Ltd (IFSG) with Maybank Singapore and World Scientific as key partners, marked a pivotal moment for the sector. The forum facilitated vital conversations among practitioners, resulting in resolutions to enhance talent development, improve public literacy, foster regulatory innovation, and prioritise Shariah-compliant financial products. These grassroots efforts have established a strong foundation for innovation and sustainable growth.

A notable development within this ecosystem is the rising prominence of Islamic Wealth Management (IWM). While not a direct outcome of SIFF, the sector’s expansion reflects the organic efforts of institutions like Maybank Singapore (Maybank), which has strategically championed IWM as a cornerstone of its offerings. Achieving a remarkable 107% growth in its IWM business in 2024, Maybank’s initiatives focus on addressing market gaps, as Singapore previously lacked end-to-end Shariah-compliant wealth management solutions. By aligning its offerings with the five pillars of IWM—Wealth Creation, Accumulation, Protection, Purification, and Distribution—Maybank and similar institutions cater to the evolving financial needs of both Muslim and non-Muslim clients. This demonstrates Singapore’s capacity to transform itself into a regional hub for IWM, driven by industry-led initiatives.

As Singapore steps into 2025, its focus on aligning Islamic finance and wealth management with broader innovation and sustainability goals positions the nation as an emerging bridge between East and West in the Islamic financial landscape.

Venture Capital Innovation
Hasan VC has taken a significant step in advancing halal venture capital by launching a fund supported by angel investors from 30 countries. In 2024, the firm funded 12 ethical startups, showcasing how Islamic finance can foster impactful innovation and empower regional entrepreneurs. Similarly, Quest Ventures is actively investing in Muslim-focused businesses that leverage technology to scale their offerings. Notable investments include Ethis, a Shariah-compliant crowdfunding platform in Malaysia; Kapital Boost, an Islamic peer-to-peer lending platform for SMEs in Indonesia; and Billz, a retail management platform for SMEs in Uzbekistan.

These initiatives underscore the diverse and dynamic growth of Singapore’s Islamic finance ecosystem. By addressing market demands, integrating advanced technology, and expanding regional influence, the sector continues to build a competitive and value-driven landscape for ethical financial services.

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Singapore: Islamic finance success in strategic and organic growth

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