Islamic finance

Islamic banking and finance have become increasingly widespread in the Arab and Islamic economies. Business arrangements of Islamic banking differ from conventional banking. Islamic finance in some countries is large enough to affect the quality of national accounts and monetary and financial statistics.

Our approach

ESCWA is building the statistical capacity of national statistical offices in its member States to compile national accounts, including the financial corporation sector and Islamic Finance, to improve the coverage of national accounts, and to provide additional analytical tools for policymakers.

Our partners

United Nations Statistics Division (UNSD); Morocco Office des Change and Palestine Central Bureau of Statistics (PCBS); Selected ESCWA member States; Selected Islamic Countries (Indonesia, Malaysia, Turkey, Bangladesh, Pakistan); Central Bank of the United Kingdom; independent experts; International Monetary Fund- IMF Committee on Balance of Payments Statistics (IMF-BOPCOM); Islamic Financial Services Board (IFSB); Islamic Development Bank; Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC); Statistical Centre for the Cooperation Council for the Arab States of the Gulf; Bank for International Settlements (BIS); The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). 

Our activities

A new Chapter on the treatment of Islamic finance in National Accounts was added to the new versions of the 2025 System of National Accounts (Chapter 26) and of the 7th edition of the Balance of Payments and International Investment Position Manual (Chapter 17). The research and experimentation work was led by the joint Islamic finance Task Team (IFTT), with ESCWA and the United Nations Statistics Division as Secretariat, an in collaboration with the International Monetary Fund and regional organizations such as GCC-Statistical Center and the Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC). 

The chapter presents complete and consistent guidance to properly account for Islamic finance and insurance in the national accounts and external sector statistics. 

ESCWA has established working groups to address Islamic finance. It has also held workshops, seminars and online consultations, and issued methodological papers, guidelines and case studies.