Global Islamic finance assets reach $6.5 trillion in 2025
Accra: The global Islamic finance industry expanded to $6.5 trillion in assets, registering a 9 per cent annual growth rate as its footprint extended across 98 countries, according to the ICD–LSEG Islamic Finance Development Report 2026.
Released under the title Growth amid Headwinds, the report highlights the expanding resilience and global reach of Sharia-compliant financial services.
Industry growth was supported by solid performances across established hubs in the Gulf Cooperation Council (GCC) and Southeast Asia, alongside emerging markets in Central Asia, Türkiye, and Pakistan.
Core Sectors Expansion
Islamic banking remained the backbone of the global industry, accounting for approximately 71 per cent of total assets at $4.58 trillion after expanding by 8 per cent during the year.
Meanwhile, Islamic investment funds recorded the fastest sectoral growth, with assets under management surging 22 per cent to reach $375 billion, driven by strong equity market performance and wider adoption of alternative products.
The global sukuk (Islamic bond) market also maintained robust momentum, with outstanding values crossing $1.1 trillion following a record $291.4 billion in new issuances.
The takaful sector also expanded, with assets rising by nine per cent to US$146 billion.
Concentration and Future Outlook
Despite a presence spanning nearly 100 countries, the report’s regional breakdown showed that the GCC accounted for 41 per cent of global Islamic finance assets, while the rest of the Middle East and North Africa region accounted for 35 per cent. Southeast Asia represented 17 per cent.
Meanwhile, Sub-Saharan Africa accounted for just 0.28 per cent of global Islamic finance assets, highlighting the region’s limited share of the expanding industry.
Iran, Saudi Arabia, and Malaysia collectively account for $4.52 trillion, nearly 70 per cent of the global industry’s total assets.
The report noted that countries across Africa were introducing regulatory frameworks to support the development of Islamic finance, creating opportunities for the sector to expand into new markets
Looking ahead, the report projects strong long-term expansion for the sector, forecasting that global Islamic finance assets will scale up to $10.5 trillion by 2030.
This projected growth is expected to be propelled by continued digital transformation, increasing demand for sustainable and ESG-compliant financial solutions, and broader regulatory frameworks across emerging economies.
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