Global Islamic finance assets to surpass $7.5 trillion by 2028
Global Islamic finance assets will reach $7.5 trillion by 2028, up from $5.5 trillion in 2024, reflecting the rapid expansion and growing relevance of Shariah-compliant finance in global markets, a report showed on Monday.
Standard Chartered unveiled today its comprehensive report on Islamic banking titled 'Islamic Banking for Financial Institutions: Unlocking Growth Amidst Global Shifts.'
In 2024, the Islamic finance industry surpassed a major milestone, reaching $5 trillion in global assets. This represents a 12 per cent rise from 2023 and a 43 per cent increase from 2020. Islamic banking is the largest contributor to the Islamic finance industry and remains the engine of growth, accounting for over 70 per cent of total Islamic finance assets. Islamic Banking assets are expected to grow from $4 trillion in 2024 to $5.2 trillion by 2028, the report said.
In the early years of Islamic finance, adoption was limited to a handful of markets. Now, a network of over 1,980 Islamic financial institutions deliver Islamic finance products and solutions across more than 90 markets worldwide. Yet despite this expansive market reach, 80% of industry assets remain concentrated in five markets: Iran, Saudi Arabia, Malaysia, the UAE and Kuwait. 'The diversification of assets outside of these markets will depend on how the broader community responds to challenges and seizes opportunities in the coming years. Such challenges and opportunities will be both internal to the industry, and at a regional and global socioeconomic level,' the report said.
Meanwhile, the sukuk market is set to rise from $971 billion to nearly $1.5 trillion over the same period. Sukuk issuance remains concentrated in the Gulf Cooperation Council (GCC), Southeast Asia, Türkiye, and Pakistan. However, we have seen Egypt, the Philippines, and Kenya emerge with more corporate and sovereign issues in recent years. Sukuk has increasingly been attracting a wider range of buyers, proving popular with non-Muslim investors, which has helped to narrow a notable gap in demand and supply. Sukuk is expected to form a more prominent portion of assets in the Islamic finance industry in the future, as demand for Shariah-compliant financial instruments grows.
Khurram Hilal, CEO, Group Islamic Banking, Standard Chartered said: 'Islamic finance is entering a new era that is defined by scale, sustainability, and strategic integration. A 36 per cent projected increase in assets reflects the sector's strong fundamentals and global appetite for ethical and inclusive finance. At Standard Chartered, we are proud to support this evolution through tailored, Shariah-compliant solutions in over 25 markets.'
The report notes persistent challenges in the sector. The ambitions of both Islamic financial institutions and governments to drive the industry further cannot be fully realised without various key developments, particularly in the standardisation of regulatory and legal frameworks, and the wider availability of Islamic risk management and liquidity tools. 'This inflection point brings multiple opportunities. The financial institutions that lean quickly into innovation and emerging trends will be likely to secure first-mover advantages. There is also significant opportunity to be seized by deepening alignment with sustainability, ESG, and ethical finance,' the report said.
Khurram concluded: 'Fostering innovation, strengthened market connectivity, and an elevated focus on sustainability will unlock the greatest opportunities in the future of Islamic finance. We aim to play a pivotal role in this future, collaborating, adapting, and delivering value to our clients and communities globally.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
2 hours ago
- Khaleej Times
World Bank raises UAE growth forecast for 2025 and 2026
The World Bank has raised its economic growth forecasts for the UAE for 2025 and 2026, citing robust expansion in both hydrocarbon and non-oil sectors. This growth is expected to offset the negative impact of weakening global demand and lower oil prices. According to the World Bank's latest Global Economic Prospects report, released on Tuesday, the UAE's GDP growth forecast for 2025 has been revised upwards by 0.6 percentage points to 4.6 per cent, while the 2026 forecast was increased by 0.8 percentage points to 4.9 per cent. The Bank also projects a 4.9 per cent economic expansion in 2027. Growth across the GCC region is also expected to accelerate, reaching 3.2 per cent in 2025, 4.5 per cent in 2026, and 4.8 per cent in 2027. 'The phase-out of Opec+ oil production cuts starting in April 2025 is expected to lead to higher oil output, despite anticipated lower oil prices driven by weak global demand. Growth will also continue to be supported by expanding non-oil sectors — particularly manufacturing, construction, and services — in economies including Bahrain, Kuwait, Oman, and the UAE,' the World Bank stated. In April, Opec+ surprised markets by announcing a larger-than-expected increase in oil output for May, despite weak prices and subdued demand. The group's decision to extend the 411,000 barrels-per-day production increase into June raised concerns about a potential global supply surplus. In a separate projection released earlier this year, the International Monetary Fund (IMF) estimated the UAE's GDP would grow by four per cent in 2025 and five per cent in 2026. Meanwhile, UAE Minister of Economy Abdullah bin Touq Al Marri stated that he expects the economy to grow by 5-6 per cent in 2025, fuelled by strong performance in key sectors such as technology, renewable energy, trade, financial services, and infrastructure. Slowing but no recession Globally, the World Bank warned that escalating trade tensions and policy uncertainty are expected to slow growth in 2025 to its weakest pace since 2008 – excluding official recessions. Growth forecasts have been revised downward for nearly 70 per cent of countries worldwide, across all regions and income levels. The Bank now expects global GDP to grow by just 2.3 per cent in 2025 – almost half a percentage point lower than earlier projections. 'A global recession is not expected,' the report said. 'However, if these forecasts hold, average global growth during the first seven years of the 2020s will be the slowest of any decade since the 1960s.' Indermit Gill, chief economist at the World Bank, noted a concerning long-term trend for developing countries. 'Outside of Asia, the developing world is becoming a development-free zone. Growth in developing economies has declined steadily – from six per cent annually in the 2000s, to five per cent in the 2010s, and now to under four per cent in the 2020s.' This downward trend parallels a decline in global trade growth, which has slowed from an average of five per cent in the 2000s to below three per cent in the current decade. Investment growth has also weakened, while global debt levels have surged to record highs. In 2025, growth is expected to decelerate in nearly 60 per cent of developing economies, with average growth projected at 3.8 per cent. This figure is forecast to rise slightly to 3.9 pe cent in 2026 and 2027 – still more than a full percentage point below the average growth seen during the 2010s. For low-income countries, the World Bank projects a 5.3 per cent growth rate in 2025, marking a 0.4 percentage point downgrade from previous forecasts. At the same time, higher tariffs and tight labor markets are pushing global inflation upwards, with prices expected to rise by an average of 2.9 per cent – remaining above pre-pandemic levels. Nonetheless, the World Bank notes that global growth could rebound more quickly if leading economies successfully reduce trade tensions and navigate policy challenges.
Sharjah 24
2 hours ago
- Sharjah 24
Sharjah Islamic Bank lists $500 million sukuk on Nasdaq Dubai
These perpetual sukuk, which cannot be redeemed before six years, were issued by the entity "SIB Tier 1 Sukuk IIND Ltd." They comply with Basel III requirements and saw strong demand from regional and international investors, providing the bank with additional capital to support its long-term growth plans. With this listing, the total value of sukuk listed by Sharjah Islamic Bank on Dubai Nasdaq has risen to $2.5 billion through five listings, enhancing Dubai's strategic role in developing the Islamic capital markets ecosystem. To celebrate the listing, Ahmed Saad, Deputy CEO of Sharjah Islamic Bank, rang the opening bell for the trading session at Dubai Nasdaq, alongside Hamed Ali, CEO of Dubai Nasdaq and Dubai Financial Market. Ahmed Saad stated that the listing of the $500 million perpetual capital sukuk on Dubai Nasdaq is a strategic step that enhances Sharjah Islamic Bank's position as a leading financial institution trusted by investors both locally and internationally. He noted that this issuance supports their long-term growth plans and strengthens their capital base in line with Basel III requirements, solidifying their financial position. He emphasized the importance of the ongoing partnership with Dubai Nasdaq, the leading platform that serves as a comprehensive window to global markets, providing a stimulating environment to attract capital. He mentioned that through this listing, Sharjah Islamic Bank reaffirms its commitment to supporting the UAE's efforts to establish itself as a global hub for Islamic finance and actively contribute to the growth and sustainability of this vital sector. For his part, Hamed Ali, CEO of Dubai Nasdaq and Dubai Financial Market, confirmed that this listing is an important step that goes beyond capital raising, reflecting a comprehensive shift led by pioneering regional institutions like Sharjah Islamic Bank towards developing and diversifying local debt markets. He clarified that as the demand for diverse investment instruments compliant with Islamic law continues to grow, Dubai Nasdaq is solidifying its position as a trusted center for innovation in the Islamic finance sector. The ongoing momentum in sukuk issuances serves as tangible evidence of the maturity of the financial ecosystem, which now bridges local aspirations with global capital flows. He added that the continuous relationship with Sharjah Islamic Bank underscores the strategic role that financial institutions play in building robust capital markets that keep pace with future changes in the UAE and beyond. With this listing, the total value of sukuk listed on Dubai Nasdaq reached $95.7 billion, reinforcing its position as one of the largest global destinations for listing Sharia-compliant fixed-income instruments. The total debt instruments market on Dubai Nasdaq has surpassed $136 billion, distributed across 160 listings, reflecting the growing confidence of international investors in Dubai's status as a key destination connecting capital flows between the Middle East and the world.
Arabian Business
3 hours ago
- Arabian Business
Oman hotel revenue hits $284m as visitor numbers up 8.6%
Oman's revenue from three to five-star hotels by the end of April 2025, reached OR109,213,000 ($283.7m), according to statistics released by the National Centre for Statistics and Information (NCSI). This is an increase of 17.3 per cent compared to OR93,094,000 ($242m) during the same period in 2024. The statistics indicate that this growth is attributed to an 8.6 per cent rise in the total number of hotel guests, recording 831,751 guests by the end of April 2025, compared to 766,153 guests in the corresponding period in 2024. Oman tourism growth Additionally, the occupancy rate increased from 53.4 per cent by the end of April 2024 compared to 61.1 per cent by end of April 2025, marking a 14.4 per cent growth. The number of guests from Oceania surged by 57.8 per cent, totalling 18,124 visitors, followed by Africa with a 57.6 per cent increase, reaching 5,993 guests. European guests rose by 19.9 per cent, totalling 314,535 visitors. Meanwhile, guests from the Americas increased by 19.1 per cent, reaching 28,843 visitors, while GCC nationals saw a 12.6 per cent increase, totalling 53,642 guests. Asian nationalities recorded a 5.4 per cent rise, with 114,426 visitors. Conversely, the statistics revealed a 0.7 per cent decline in Omani guests, totalling 238,895 visitors by the end of April 2025.
