logo
Global Islamic Finance Grows 14.9%, Reaches US$3.9 Trillion in Total Assets

Global Islamic Finance Grows 14.9%, Reaches US$3.9 Trillion in Total Assets

Fintech News ME5 hours ago

In 2024, the global Islamic financial services industry continued to expand, growing by 14.9% year-on-year (YoY) to reach US$3.88 trillion in total assets, according to a new report by the Islamic Financial Services Board (IFSB).
Growth was observed across all major sectors, including Islamic banking, Islamic insurance, and sukuk, which are Islamic financial certificates, similar to bonds in Western finance, highlighting deepening market participation, and expanding geographic reach, especially in non-traditional markets.
In 2024, total assets in Islamic banking grew by 17.05%, marking a significant increase. The segment remained the cornerstone of the industry, accounting for 71.6% of Islamic finance assets. Although assets remained concentrated in mature, systemically significant jurisdictions, there were signs of growing momentum in emerging markets, particularly in Africa and Central Asia.
The Islamic capital markets also delivered strong gains, driven primarily by a surge in sukuk issuance. Global sukuk issuances rose by a remarkable 25.6% to reach US$230.4 billion, making it the fastest-growing segment in 2024. Sukuk outstanding accounted for 23.3% of total Islamic finance assets, further reflecting favorable financing conditions and growing demand from both sovereign and corporate issuers
Within the Islamic capital markets still, the Islamic funds industry also recorded growth, with total assets under management (AUM) increasing by 9.2% to US$193.6 billion. This increase was largely supported by robust performance in global equity markets, and marked a recovery following a decline in 2023.
Islamic insurance, referred to as takaful, recorded asset growth of 16.9% and an increase of 15.4% in gross written contributions. Despite the significant increase, the industry continued to account for a small portion of the market, accounting for 1.4% of the global Islamic finance assets.
The report highlights that while traditional markets continue to dominate Islamic finance, the industry is steadily expanding into non-traditional regions.
As of the end-of-year 2024, the Gulf Cooperation Council (GCC) region accounted for the largest share of global Islamic finance assets at 53.1%. This was followed by East Asia and the Pacific (EAP) with 21.9%, driven by Malaysia and Indonesia's well-established Islamic finance ecosystems.
The Middle East and North Africa (MENA, excluding GCC) contributed 16.9%, while other regions such as Europe and Central Asia (ECA), South Asia (SA), and Sub-Saharan Africa (SSA) held relatively small shares, but represent emerging growth frontiers.
The rise of Islamic fintech
In addition to traditional growth drivers, fintech is another trend that's driving structural shifts within the Islamic finance, offering new avenues for growth, efficiency, and financial inclusion.
For example, digital financing platforms, including Islamic equity crowdfunding and peer-to-peer (P2P) lending, are emerging as important sources of financing, particularly for small and medium-sized enterprises (SMEs) and underserved market segments.
Cryptocurrency-related activity is also growing in popularity within the Islamic finance landscape covering trading, investments, and tokenization. Examples include Rain and CoinMENA, two crypto exchanges licensed by the Central Bank of Bahrain which offer crypto trading and custodial services that meet Islamic standards.
Artificial intelligence (AI) is also gaining ground in Islamic finance, with institutions increasingly deploying the technology. An IFSB survey as part of the report highlighted identity verification (67%), chatbots and virtual assistance (56%), and digital footprint analysis (44%), as the most common uses of AI among Islamic banks.
Despite benefits including improved operational efficiencies, customer experiences, and new business opportunities, technology also introduces new risks. Digital financing platforms and crypto-related solutions, for example, require close attention to issues of investor protection, sufficient transparency and disclosure, and appropriate Sharia governance frameworks.
Finally, the adoption of AI introduces a unique set of risks. One particular concern is the potential lack of interpretative judgment in AI systems when applied to complex Sharia rulings and jurisprudential differences across jurisdictions. Moreover, the opaque and evolving nature of AI models poses significant challenges for supervisory authorities and Sharia boards in exercising effective oversight and informed judgment.
Islamic finance outlook
The Islamic fintech sector was valued at US$138 billion 2024. It's projected to exceed US$300 billion by 2027.
Standard Chartered projects that the global Islamic finance sector will grow by 36% between 2024 and 2028, with sukuk outstanding expected to surge 54.5% and Islamic banking by 30%.
The bank, which surveyed 26 leaders from various Islamic banking providers in Q1 2025, revealed a positive outlook for the industry, with 87% of respondents holding an optimistic view of the sector over the next five to ten years. The majority expect significant growth and expansion, along with increased adoption and innovation of Islamic finance products and services.
Economies including China, the Middle East, and Africa are expected to offer the greatest opportunities over the next two to three years.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Hang Seng Surges Amid US-China Trade Optimism While Bitcoin Faces Pressure
Hang Seng Surges Amid US-China Trade Optimism While Bitcoin Faces Pressure

Arabian Post

time31 minutes ago

  • Arabian Post

Hang Seng Surges Amid US-China Trade Optimism While Bitcoin Faces Pressure

Hong Kong's Hang Seng index climbed past the 24,000 mark, reaching heights unseen since March, fuelled by renewed optimism surrounding US-China trade discussions. Investor sentiment improved as market participants weighed the possibility of easing tensions between the two largest economies, sparking a notable rally in Hong Kong's benchmark index. However, this upbeat mood contrasted sharply with the performance of Bitcoin, which struggled amid uncertainties over inflation dynamics and broader market volatility. The Hang Seng's advance reflected a growing belief that US and Chinese officials are making progress toward resolving key trade disputes. Early talks aimed at addressing tariffs, technology restrictions, and investment barriers have led investors to anticipate a thawing in one of the most consequential economic standoffs globally. The improving trade dialogue appears to be encouraging capital inflows into Hong Kong-listed shares, particularly in sectors sensitive to cross-border trade such as technology, manufacturing, and finance. Market experts highlight that investor focus remains fixed on the trajectory of these negotiations, with any breakthroughs potentially unlocking significant value in the region's equities. The rally also aligns with a more cautious but hopeful stance among traders that a prolonged trade conflict could ease, bolstering global economic growth prospects. Notably, blue-chip stocks led the gains, signalling confidence among institutional investors betting on recovery and expansion in the Asia-Pacific markets. Conversely, Bitcoin's performance diverged, as the leading cryptocurrency grappled with pressure from both macroeconomic and regulatory fronts. The digital asset has faced downward momentum partly due to investor apprehensions over persistent inflationary pressures in the United States. Inflation data remains a key focal point, as higher consumer prices could prompt the Federal Reserve to sustain or accelerate interest rate hikes, tightening liquidity conditions and dampening risk appetite in speculative assets. ADVERTISEMENT Bitcoin's volatility has also been compounded by shifting regulatory attitudes worldwide. Authorities in various jurisdictions are intensifying scrutiny of digital currencies, citing concerns over money laundering, market manipulation, and financial stability risks. Such regulatory tightening has contributed to a cautious investor approach, limiting Bitcoin's ability to capitalize on broader risk-on sentiment seen in equities. Analysts note that while Bitcoin has often been viewed as a potential inflation hedge, its correlation with traditional risk assets has increased, causing it to react sensitively to shifts in monetary policy and global economic uncertainty. This evolving dynamic challenges the narrative of cryptocurrencies as safe havens, complicating portfolio strategies for institutional and retail investors alike. The Hang Seng's rally has benefited from strong performances in technology companies listed in Hong Kong. Giants in the semiconductor and telecommunications sectors saw their share prices rise amid speculation that easing trade tensions could reduce supply chain disruptions and promote cross-border business activities. Additionally, financial stocks gained momentum as optimism grew about improving economic fundamentals and potential credit growth in the region. Meanwhile, traders are closely monitoring upcoming US inflation reports, which could significantly influence market direction. Persistent inflation could lead the Federal Reserve to maintain a hawkish stance, thereby exerting downward pressure on risk assets including equities and cryptocurrencies. Conversely, signs of easing inflation could provide further impetus for market rallies and reduce volatility. Hong Kong's role as a financial gateway between China and the global economy continues to underpin investor confidence. The city's markets are seen as a barometer for broader regional economic health, and the Hang Seng's rise signals expectations that cross-border trade and investment flows will stabilise or improve amid diplomatic progress. This optimism is tempered by awareness of ongoing geopolitical risks, including Taiwan tensions and global supply chain uncertainties. Bitcoin's challenges underscore the growing complexity of the global investment landscape, where traditional and emerging asset classes are influenced by an intertwined set of economic, regulatory, and geopolitical factors. While the cryptocurrency market remains dynamic, its path forward appears increasingly contingent on external economic conditions rather than solely on technological or adoption milestones.

Nahyan bin Mubarak crowns Timble AI as grand winner of 4th Eureka! GCC in Dubai
Nahyan bin Mubarak crowns Timble AI as grand winner of 4th Eureka! GCC in Dubai

Khaleej Times

timean hour ago

  • Khaleej Times

Nahyan bin Mubarak crowns Timble AI as grand winner of 4th Eureka! GCC in Dubai

Sheikh Nahayan bin Mubarak Al Nahyan, UAE's Minister of Tolerance and Coexistence, crowned Timble AI as the grand prize winner of the fourth edition of Eureka! GCC of one of Asia's largest business model competitions for startups. The award ceremony took place at Al Habtoor Palace Hotel in Dubai. The event was attended by Sunjay Sudhir, ambassador of India to the UAE, along with senior officials, decision-makers, regional and international investors, mentors, and a wide audience of entrepreneurs and innovation enthusiasts. This year's edition attracted over 300 applications from startups across the GCC and several global markets, including India, Jordan, Turkiye, the United Kingdom, and Pakistan. Thirty companies advanced to the semi-finals and participated in a comprehensive training programme consisting of workshops, strategic consulting sessions, and intensive courses in business modeling and investment pitching. In the final stage, the top 10 startups pitched their ideas to a distinguished judging panel. Timble AI from the UAE stood out with its innovative AI-driven business solutions, securing the top prize. Meanwhile, Electrogenos won the top award in the Sustainable Solutions category, Dreamloop AI took second place overall, and Invoice Mate received the 'Startup Nominee' recognition for excellence in public engagement and storytelling. In his keynote address, Sheikh Nahyan stated, "I am delighted to be with you today for the fourth edition of Eureka! GCC – the largest startup competition in Asia. I commend this valuable initiative by Gulf Islamic Investments (GII), in collaboration with the Indian Institute of Technology Bombay, as a vital contribution to the economic development of our region." He added: "This event is a true celebration of the entrepreneurial spirit. Our region – as those who know it can attest has long embraced initiative, risk-taking, and innovation. Historically, our people have excelled in seizing economic opportunities and achieving success with determination and confidence." He emphasised that entrepreneurship is a cornerstone of the UAE's development, stating: "The vision of President Sheikh Mohamed bin Zayed Al Nahyan, places innovation and creativity at the heart of our progress. Entrepreneurs are key drivers of prosperity, not only in our country but across the globe." Sheikh Nahyan also noted that the UAE, under the wise leadership of Sheikh Mohamed, offers full support to entrepreneurs through funding, education policies, advanced infrastructure, advisory services, and intellectual property protection. He remarked, "We understand the importance of creating an integrated ecosystem that enables young men and women to transform their ideas into achievements. We are also committed to international collaboration – as demonstrated by this pioneering event." He continued, "I am pleased that this event is held in Dubai – a city that embodies the spirit of entrepreneurship and has become a global model for business support, thanks to the visionary leadership of Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai." Sheikh Nahyan also underscored the importance of raising public awareness about entrepreneurship, calling for: 'Highlighting inspiring role models, launching awards and competitions, promoting mentorship programs, and building support networks – all to reinforce the idea that entrepreneurship is not just about profit, but about enhancing quality of life and serving communities.' Sheikh Nahayan commended Eureka! GCC for blending innovation, support, and collaboration between the public and private sectors, saying, "Through this initiative, GII has affirmed that innovation and entrepreneurship can profoundly reshape how we work, learn, and perceive institutional roles in society." He concluded with a message to the participants: "I congratulate every one of you who took part in this competition. I am impressed by your determination, global vision, constructive curiosity, and, above all, your passion for success. You represent a bright future for your countries and will serve as inspiring examples in your communities. I wish you all the best on your journey – may this competition be the launchpad to even greater achievements." Pankaj Gupta, co-founder and co-CEO of GII and the visionary behind Eureka! GCC, commented, "This year's success confirms that the region's economic future is being shaped by bold ideas and resilient founders. The competition has evolved from a recognition platform into a true regional movement – uniting decision-makers, investors, and innovators around the goal of sustainable innovation." The competition received strong backing from strategic partners, including iACCEL GBI, Crowe UAE, Headstart, Its Her Way, Encubay, Trusity, Startup Middle East, Diwan Hub, Bits Pilani, and Ecobee – all of whom provided guidance, resources, and market access opportunities for participants. As this landmark edition of Eureka! GCC comes to a close, the winners now embark on new journeys – empowered with funding, media exposure, and an expanding regional support network – joining the next wave of Gulf success stories in one of the world's most dynamic economic environments.

Brink's and Meedaf forms strategic alliance to revolutionize cash and ATM operations in the UAE
Brink's and Meedaf forms strategic alliance to revolutionize cash and ATM operations in the UAE

Zawya

timean hour ago

  • Zawya

Brink's and Meedaf forms strategic alliance to revolutionize cash and ATM operations in the UAE

Abu Dhabi, UAE – Brink's, a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services, has agreed a strategic joint venture (JV) with Meedaf, the ADGM-licensed entity launched in April 2025 to serve financial institutions across the GCC. Under the terms of the JV, the Brink's-Meedaf alliance will revolutionize the UAE and wider region's cash management and ATM managed services industry, ushering in a new era of efficiency, security, and innovation. As the first strategic partnership in the Middle East & North Africa (MENA) region on the Meedaf platform, the new joint venture with Brink's will empower financial institutions' innovation potential by harnessing Brink's global technology, infrastructure, and operational expertise to establish elevated standards in cash management and ATM managed services throughout the UAE and beyond. The collaboration will deliver fully integrated solutions encompassing cash-in-transit, money processing, ATM managed services, and digital retail solutions, including deposit machines, cash recyclers, and kiosks. Through the integration of advanced technologies, businesses can enhance operational efficiency and reduce costs across their cash ecosystem. Brink's brings decades of global experience in managing complex, high-volume operations, coupled with proprietary systems that optimize route planning, crew deployment, and cash centre performance. These advanced capabilities are now seamlessly integrated into Meedaf's offerings, enabling financial institutions to reduce complexity, enhance consistency, and streamline day-to-day operations. Meanwhile, Meedaf's unparalleled regional experience will enable the joint venture to include cutting-edge technologies and advanced capabilities to ensure smarter, more secure operations and control across the entire cash ecosystem. Nader Antar, EVP and President, Brink's IMEA and APAC and Brink's Global Services, said: 'We are excited by the opportunity to collaborate with Meedaf to create a truly transformative service model. By providing a uniquely competitive value proposition, superior services, and solutions bridging physical and digital commerce, we aim to set a new standard in the UAE market for cash management, digital retail solutions and ATM management services.' Following its launch in the UAE, this strategic joint venture is set to transform the regional industry, driving operational transformation that combines innovative solutions with industry-leading standards. It also marks a major step forward in Meedaf's expansion into key regional markets Eng. Abdulla Abdul Aziz AlShamsi, Managing Director at Meedaf, commented: "Our joint venture with Brink's underscores Meedaf's unwavering commitment to revolutionizing financial services through cutting-edge innovation and strategic alliances. By harnessing Brink's unparalleled global expertise in cash management, we are poised to deliver exceptional operational efficiency and security to financial institutions across the region. This collaboration represents a pivotal stride towards realizing our vision of a more agile and resilient financial ecosystem, setting new benchmarks for excellence and transforming the landscape of financial services in the UAE. About The Brink's Company The Brink's Company (NYSE:BCO), a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services. Our customers include financial institutions, retailers, government agencies, mints, jewelers and other commercial operations. Our network of operations in 51 countries serves customers in more than 100 countries. For more information, please visit our website at or call +1-804-289-9709. About Meedaf Based in Abu Dhabi Global Market (ADGM), Meedaf is a financial services platform with interests in a portfolio of companies that provide institutions across the GCC with advanced financial, automation, security and operational solutions. Our offerings allow clients across the financial ecosystem to reduce costs, improve efficiency and unlock greater value. Visit for more information Brink's UAE Windalyn Goma windalyn.g@ +971 521655369

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store