
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


Arabian Business
19 minutes 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.


Tourism Breaking News
2 hours ago
- Tourism Breaking News
Moscow sees surge in UAE tourists, plans to launch initiatives tailored for Gulf region
Post Views: 35 Moscow has witnessed a sharp increase in visitors from the UAE, rising from 18,000 in 2019 to 62,100 in 2024, according to Evgeny Kozlov, Chairman of the Moscow City Tourism Committee. He emphasised Moscow's growing appeal to Gulf tourists, with expanded halal dining options and Arabic-language services across the city. New tourist information centres—staffed with English and Arabic speakers—have opened at key locations, including Dream Island amusement park and river stations. A recently launched Muslim-Friendly Guide offers curated recommendations for hotels, restaurants, and activities. E-visas have also simplified entry procedures, boosting accessibility for international travellers. This summer, Moscow is hosting vibrant cultural festivals and events to entice Middle Eastern travellers to the city for a seamless holiday experience.


Tourism Breaking News
2 hours ago
- Tourism Breaking News
China extends visa-free entry to four GCC countries
Post Views: 35 China has launched a trial policy granting unilateral visa-free entry to citizens of Saudi Arabia, Oman, Kuwait, and Bahrain, expanding its visa-free access list to 47 countries, as per the recent report. Effective until June 8, 2026, the policy allows ordinary passport holders from these four Gulf Cooperation Council (GCC) countries to enter China visa-free for up to 30 days for business, tourism, family visits, cultural exchange, and transit. The policy has been warmly received across the Gulf region and is expected to enhance bilateral exchanges, strengthen cultural and people-to-people ties, and drive broader cooperation between China and the GCC. Currently, around 20 direct flights operate weekly between key Chinese cities—including Beijing, Shanghai, Guangzhou, and Shenzhen—and Saudi cities like Riyadh and Jeddah. The UAE is connected to 13 cities across mainland China through direct flights. This expansion marks a significant step in building economic and cultural relations between China and the Gulf states.